So far, Ford has relied on various applications, including databases and a Web-based tool, to help managers from product development to sales understand the fine art of profitability. Talus is an Atlanta-based company that made its name in the airline and hotel businesses but that is expanding into many other industries. Talus originally handled client engagements on a pure consulting basis, creating systems from scratch for each particular company. At least so far. In the airline industry the software does set prices, and Phillips believes that as companies become more comfortable with the technology, a certain amount of automatic price setting will take hold.
Talus works by gathering and analyzing a wide range of data and incorporating human expertise.
In autos it might look at the cost of a rebate, trying to find the sweet spot between big, profit-killing incentives and no rebate at all, which maximizes profit per unit but undoubtedly weakens sales. Hansen says that the principles embedded in the software have guided Ford's actions for about two years, and by capturing them in a software package they can more easily be made part of the daily routine at Ford. But he adds that key changes in business processes, such as rewarding sales teams for focusing on profits rather than number of units sold, have played a vital role. You've got orchestra versus balcony, adult versus child, Wednesday night versus Saturday night. Add in all kinds of group discounts, and what you have is a system requiring lots of analysis, which is what Talus is good at.