Forfeited Revenue is the total dollar value of services that a customer has agreed to pay for that is permanently lost when a carrier or data center cannot deliver services on time according to CRD. It shows how effectively any carrier or data center maximizes revenue based on the orders their customers have already signed. Ideally, every order would be installed on CRD, making Forfeited Revenue zero, because the carrier managed inventory, equipment, and processes to efficiently respond to customers’ needs. However, every dollar of Forfeited Revenue is an opportunity lost forever. This metric directly quantifies the revenue impact of late installs for the carrier, and standardizes all comparisons of impact across customers, business units, and products using dollars. Decision makers can subsequently evaluate, prioritize, select, and execute improvement programs using Forfeited Revenue, cost and duration to calculate standard measures of ROI.
ARMdcs is attending Capacity North America 2017 in Denver, CO on September 6 & 7
While $215 billion sounds like Apple's immense hoard of cash, a segment's capital investment, or perhaps industry profits, it is a shocking estimate of 2014 global telecommunications lost revenue due to poor data integrity. That stunning number is supported by ARM's independent evaluations and another firm's assessment of the state of inventory data integrity spanning the last decade.