About two Decades ago or so, in my early days of business meetings, I still clearly remember that I used to go in to them thinking I am the smartest guy around! Half way in the meeting, when the other guys started to throw the 'terms' at me, my brain never comprehended anything beyond ROI....Sometimes I felt stupid? the other times a newbie? but it sure never felt good! Those days you just couldn't sneak on to your smartphone under the table and 'google' these terms either. Then overtime with my quest to be that 'smart know it all guy' which I still haven't mastered even so closely, I decided to joined MBA. It was like taking on a beast when family and work life was swinging on to the busiest end of the spectrum. One of my first tasks was to familiarize myself with some of these alien gibberish which only the polished and the seasoned business person could speak. I am still not versed with them all but I think after my first blog on professional services, this would be a great topic to cover early on in my series of business blog. There are about a few thousand of these acronyms and terms but I will mention the very few terms which we actually hear a lot lately.
In my next blog I will try to tackle some more complex of these definitions and light explanation of the "terms" regularly used in the business world but are alien to us, God's regular people.
API – Application Programming Interface (an interface created on database or computer system to accept requests from other computers and third parties)
ASP – Application Service Provider (a company that offers services to its customers via a network)
B2B – Business to Business (companies that sell to other companies, like Oracle)
B2C – Business to Consumer (companies that sell to individuals, like GAP)
CAD – Computer Aided Design (tools and software used by engineers and architects to design)
CAGR – Compound Annual Growth Rate (a cumulative interest rate used by banks or within investment projects)
CEO – Chief Executive Officer
CFO – Chief Financial Officer
CMO – Chief Marketing Officer
COO – Chief Operating Officer (head of operations)
CTO – Chief Technology Officer (responsible for the tech side)
CRM – Customer Relationship Management (a system to capture, analyze and store customer information in order to manage clients efficiently)
EBITDA – Earning Before Interests, Taxes, Depreciation and Amortization (an indicator of a company’s financial performance)
EDI – Electronic Data Interchange (a set of standards used to exchange data between different companies and organizations)
EPS – Earnings Per Share (is the ration between the profits of a company and the common shares)
ERP – Enterprise Resources Planning (a system that integrates all the data from an organization into a single location)
FIFO – First In, First Out (used both in computer programs and accounting; it determines that what comes first is handled first)
GAAP – Generally Accepted Accounting Principles (a framework used to carry out financial accounting within companies)
ICT – Information and Communications Technology (term used to encompass the fields related to IT and electronic communications)
ISV – Independent Software Vendor (a group of developers or company specialized in the production of software for a certain niche)
IPO – Initial Public Offering (when a company first introduces its shares on the stock market)
LIFO – Last In, First Out (used both in computer programs and accounting; it determines that what comes last is handled first)
LLC – Limited Liability Company (a legal entity where the owners are not liable personally)
MSRP – Manufacturer’s Suggested Retail Price (a recommendation made by a company in order to standardize the price of its products across different places)
NDA – Non-Disclosure Agreement (a contract between two parties to secure the confidentiality of information)
NPV – Net Present Value (a method to valuate long term investments or projects)
OEM – Original Equipment Manufacturer (a company that manufacturers equipment that will be re-branded and sold by other companies; sometimes it refers to the reseller as well)
OTC – Over-The-Counter (trade of stocks or other derivatives directly between two persons)
P&L – Profit and Loss (also called Income Statement, is an accounting report used to outline how revenues are transformed into profits)
POS – Point of Sale (a checkout point in retail stores, or the hardware behind it)
RFP – Request For Proposal (an invitation for suppliers to bid on a specif task or service)
ROI – Return On Investment (ratio of money earned relative to total money invested)
ROS – Return On Sales (ratio of money earned relative to total sales)
SAAS – Software As A Service (software or applications that are developed on the web and the users access it via the Internet)
SOHO – Small Office/Home Office (refers to small or home office environments)
TCO – Total Cost of Ownership (a method to estimate all the costs – direct and indirect – related to a project or purchase)
TQM – Total Quality Management (a management strategy to raise the awareness of the whole organization towards quality)
TSR – Total Shareholder Return (a method of valuation which takes into consideration both dividends and share price gains)
VC – Venture Capital (a form of financing where the owners give up part of his business in exchange for cash the private investor)
Next business blog, more business terms! Please visit my medical blog too, I have some interesting topics out there.
~Dr.V
In my next blog I will try to tackle some more complex of these definitions and light explanation of the "terms" regularly used in the business world but are alien to us, God's regular people.
API – Application Programming Interface (an interface created on database or computer system to accept requests from other computers and third parties)
ASP – Application Service Provider (a company that offers services to its customers via a network)
B2B – Business to Business (companies that sell to other companies, like Oracle)
B2C – Business to Consumer (companies that sell to individuals, like GAP)
CAD – Computer Aided Design (tools and software used by engineers and architects to design)
CAGR – Compound Annual Growth Rate (a cumulative interest rate used by banks or within investment projects)
CEO – Chief Executive Officer
CFO – Chief Financial Officer
CMO – Chief Marketing Officer
COO – Chief Operating Officer (head of operations)
CTO – Chief Technology Officer (responsible for the tech side)
CRM – Customer Relationship Management (a system to capture, analyze and store customer information in order to manage clients efficiently)
EBITDA – Earning Before Interests, Taxes, Depreciation and Amortization (an indicator of a company’s financial performance)
EDI – Electronic Data Interchange (a set of standards used to exchange data between different companies and organizations)
EPS – Earnings Per Share (is the ration between the profits of a company and the common shares)
ERP – Enterprise Resources Planning (a system that integrates all the data from an organization into a single location)
FIFO – First In, First Out (used both in computer programs and accounting; it determines that what comes first is handled first)
GAAP – Generally Accepted Accounting Principles (a framework used to carry out financial accounting within companies)
ICT – Information and Communications Technology (term used to encompass the fields related to IT and electronic communications)
ISV – Independent Software Vendor (a group of developers or company specialized in the production of software for a certain niche)
IPO – Initial Public Offering (when a company first introduces its shares on the stock market)
LIFO – Last In, First Out (used both in computer programs and accounting; it determines that what comes last is handled first)
LLC – Limited Liability Company (a legal entity where the owners are not liable personally)
MSRP – Manufacturer’s Suggested Retail Price (a recommendation made by a company in order to standardize the price of its products across different places)
NDA – Non-Disclosure Agreement (a contract between two parties to secure the confidentiality of information)
NPV – Net Present Value (a method to valuate long term investments or projects)
OEM – Original Equipment Manufacturer (a company that manufacturers equipment that will be re-branded and sold by other companies; sometimes it refers to the reseller as well)
OTC – Over-The-Counter (trade of stocks or other derivatives directly between two persons)
P&L – Profit and Loss (also called Income Statement, is an accounting report used to outline how revenues are transformed into profits)
POS – Point of Sale (a checkout point in retail stores, or the hardware behind it)
RFP – Request For Proposal (an invitation for suppliers to bid on a specif task or service)
ROI – Return On Investment (ratio of money earned relative to total money invested)
ROS – Return On Sales (ratio of money earned relative to total sales)
SAAS – Software As A Service (software or applications that are developed on the web and the users access it via the Internet)
SOHO – Small Office/Home Office (refers to small or home office environments)
TCO – Total Cost of Ownership (a method to estimate all the costs – direct and indirect – related to a project or purchase)
TQM – Total Quality Management (a management strategy to raise the awareness of the whole organization towards quality)
TSR – Total Shareholder Return (a method of valuation which takes into consideration both dividends and share price gains)
VC – Venture Capital (a form of financing where the owners give up part of his business in exchange for cash the private investor)
Next business blog, more business terms! Please visit my medical blog too, I have some interesting topics out there.
~Dr.V
