Arthur Andersen Releases New Book Documenting Worldwide Activity-Based Management Success / Global Lessons Highlights Progress and Benefits of International ABM

Arthur Andersen today proudly announced its most recent addition to its book series with the release of Arthur Andersen's Global Lessons in Activity-Based Management, which provides an inside look at 14 international case studies currently reaping the benefits of activity-based management (ABM). Global Lessons tracks the rapid worldwide expansion of ABM due to the advancements of software capabilities, and the development of corporate reporting solutions. Written by Steve Player of Dallas, Texas and Roberto Lacerda of Sao Paolo, Brazil, Global Lessons presents the seven commandments of ABM implementation based on recent research and the key lessons from Arthur Andersen's ABM Best Practices Studies. In Global Lessons, the ABM implementation teams of each cross- industry case study share the challenges and lessons learned from their projects. The profiled organizations include: Brazil: Banco Real, CTBC Telecom, and Multibras

Electrodomesticos; Canada: Alcan Smelters & Chemicals, Finning International

and Clarica (formerly The Mutual Group); France: AscoForge Safe; Mexico: Grupo Casa Autrey; The Netherlands: Hallmark Greeting Cards; Portugal: Portugal Telecom; and United States: Manco, National Council on Compensation

Insurance, American Seating, and Tampa Electric. Jeff Medek, director of ABM at Navistar -- a leading North American producer of heavy and medium trucks, confirms the value of the new book. "From best practices to industry trends, this book offers a comprehensive guide to ABM implementation and the benefits it offers," Medek explained. "This is really a powerful collection of Global Lessons for management taking business to a higher level of financial success." "From the manager who is a novice at ABM to the veteran of the ABM evolution who is looking for best practice tips, Global Lessons has something for everyone," co-author Lacerda said. "The case studies show how making business decisions with activity- based information, rather than traditional financial tools, truly can increase productivity and revenues. While competition now comes from around the globe, so do opportunities for enhanced profits." One featured organization is Tampa Electric Company (TEC), a subsidiary of TECO Energy -- a diversified, energy-related holding company. As described in Global Lessons, TEC implemented ABM to identify the total energy delivery costs of providing various services to different customer segments. "Our shareholders expect a good return on their investment. ABM allows us to maximize the use of our resources by eliminating non-value work resulting in increased profitability," Tom Salisbury, director of financial services for energy delivery at TEC, said. TEC now uses ABM to recognize important cost savings opportunities and target new market expansion in the changing deregulated utility environment. "The biggest industry change in the last several years has been the improvement in PC software available to support ABM implementations and perform analytical applications," Player said. "More powerful OLAP (Online Analytical Processing) tools have come onto the market. Vendors have used funding from venture capitalists or investments from other companies to strengthen their products and enhance their understanding of the needs of ABM customers. In a nutshell, the support systems for ABM have grown much stronger." Another international case study in Global Lessons is CTBC Telecom. Controlled by one of Brazil's largest conglomerates, CTBC Telecom is the only private organization operating on fixed and cellular telecommunications in the country. With 1997 revenues of US$270 million, CTBC Telecom decided to implement ABM to not only provide more accurate product costs, but also to support cost reduction and continuous improvement efforts. "We expect strong competition from some of the largest companies in the world. Consequently, understanding our true costs and margins and knowing their drivers will be critical to be one step ahead of other players," Marineide da Silva Peres, CTBC Telecom's CFO, said. Arthur Andersen's Global Lessons in Activity-Based Management is published by John Wiley & Sons, Inc. The book retails for US$29.95, and is now available in bookstores nationwide or may be ordered online through and In conjunction with the Global Lessons launch, Arthur Andersen is also releasing Activity-Based Management: Lessons from the ABM Battlefield -- second edition (John Wiley & Sons, Inc., 1999). Spurring from the success of the earlier version, the second edition retails for US$29.95, and is also available at bookstores nationwide. About Arthur Andersen Arthur Andersen's business consulting practice helps leading organizations to improve their decision making, business operations and organizational capability through a broad range of process improvement, performance enhancement and middle market technology implementation services. Arthur Andersen is a global professional services organization consisting of over 100 member firms and more than 70,000 people united by a single worldwide operating structure and a common culture of innovation and knowledge sharing. With revenues of more than US$6 billion, it stands today as a world leader in professional services. Arthur Andersen is a business unit of Andersen Worldwide. ots Original Text Service: Arthur Andersen Internet: Contact: Megan F. Salch of Arthur Andersen, 214-741-8086 (in the USA), or email, Web site: Web site:

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