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rates, customer satisfaction levels, transaction volume, credit risk occurrence, fraud occurrence, current customer pro tability, and customer lifetime value. ABM data will be essential to validate and prioritize the nancial merits of which services to add and for which customers. ABM data will also be essential for a supplier s host system, with rule-based costing and pro t margin acceptance testing capabilities, to in uence customer demand in a way that is in harmony with the supplier s existing cost structure. CRM systems are intended to ensure that customer satisfaction is addressed so that true customer value is provided. Enterprise resource planning (ERP) and advanced planning systems (APS) are intended to ensure that good execution and organizational effectiveness are present. PM strategy maps and scorecards are intended to ensure that the work of employees aligns with senior management s strategies. But it takes ABM data to ultimately compute key leading performance indicator measures that ensure that shareholder value and wealth are being created. ABM data are foundational. They measure whether customers are consuming more resources than they are paying for, and ABM points employees to opportunities for improvements and corrective actions.

Internal Control; Guidance for Directors on the Combined Code: Turnbill Report London: Institute of Chartered Accountants in England and Wales Ishikawa, K (1986) Guide to Quality Control (2nd edn) White Plains, NY: Asia Productivity Organization/Quality Resources Jordanger, I (1998) Value-oriented management of project uncertainties Proceedings of the 14th World Congress on Project Management, 10 13 June, Ljubljana, Slovenia (Vol 2) Kahneman, D, Slovic, P, and Tversky, A (eds) (1982) Judgment under Uncertainty: Heuristics and Biases New York: Cambridge University Press Kaplan, R S and Norton, D P (1996) The Balanced Scorecard: Translating Strategy into Action Boston: Harvard Business School Press Keeney, R L and van Winterfeldt, D (1991) Eliciting probabilities from experts in complex technical problems IEEE Transactions on Engineering Management, 38(3), August, 191 201 Klein, J H (1993) Modelling risk trade-off Journal of the Operational Research Society, 44, 445 460 Klein, J H and Cork, R B.

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2 He must be a natural monopoly (exhibit economies of scale) and produce at minimum cost 3 His prices for all subsets of his output must be subsidy free, ie ful l the stand-alone and incremental cost tests The last remark provides one more motivation to use the subsidy-free price tests to detect potential problems with a given set of prices Ramsey prices Unfortunately, there is no straightforward recipe for constructing sustainable prices Constructing socially optimal prices that are sustainable is even harder However, under conditions that are frequently encountered in communications, Ramsey prices can be sustainable Recall that Ramsey prices maximize social welfare under the constraint of recovering cost Again we see a connection between competition and social ef ciency: in a contestable market, ie under potential competition, incumbents will be motivated to use prices that maximize social ef ciency with no need of regulatory intervention.