Financial and Technological Modeling – ECOTECHO®

In this proven process, our client defines the desired development, and we provide engineering solutions as well as financial perspectives. The outcome is a model that demonstrates the impact on specific product calculations on the P&L statement or other defined positions, which can be used in any industry that requires a technical and economical perspective.  

For today’s blog post, we asked Gregor Sacherer, project controller at SAPP Management AG, to answer some questions regarding our financial and technological model ECOTECHO®.  Gregor is not only one of our finance experts, he is also the one who came up with the idea for ECOTECHO®.

Gregor, could you tell us something about how the idea for ECOTECHO® was born?

The idea for ECOTECHO® was already born in 2014, while we were trying to find a sufficient interface between technical balances and financial results. Since no adequate solution for our purposes was on the market so far, we decided to create our own, which is known as ECOTECHO® today.

How would you describe ECOTECHO® in 1 sentence?

ECOTECHO® is a combination of spread sheet analyses, in which we connect technical key figures with pricing models for illustrating operating cost structures, economic and technical risks, as well as profitability.

How does ECOTECHO® differ from other financial models?

In contrast to other financial models, ECOTECHO® has a real-time interface to technical balances.

Is it only applicable in the pulp and paper industry or suitable for a variety of industries?

Yes, ECOTECHO® is definitely suitable for a variety of businesses and industries that require an inside view on technical, as well as economical aspects.

ECOTECHO® provides a number of benefits for businesses:

• Tailor-made calculation base
• Capability of multi-scenario calculations in a short time
• Model´s output match client´s data calculation standards
• Identification of main cost drivers to identify optimal fit for technology
• Identification of effect of process changes on mill operational cost
• Detailed estimation of future mill requirements for effective procurement planning
• Detailed estimation of CAPEX requirements for effective project planning
• Trusted technical base for CAPEX evaluation and business case evaluation
• Recommendation for debottlenecking
• Recommendation for best fit product portfolio
• Future power plant setup
• Evaluation of the optimal fuel
• Recommendation for eventual rebuild of old boilers