Value drivers and EVA
High-performing organizations’ senior executives define broad business objectives in one or many areas (capacity, supply chain network, process technology, organizations). For some of these objectives, technology-based solutions will affect financial reports in different ways (Revenue increase and/or cost reduction are more likely to affect the Income Statement, working capital and/or fixed capital efficiencies are more likely to affect the balance sheet). But in the end, they impact the free cash flow. Ultimately, these organizations look for technology solutions that deliver economic value-add or EVA.