All the Business Acronyms You Need to Know
Open the New York Times or browse around the Internet for 30 minutes and I am sure that you will come across several business acronyms. Not knowing what they mean can be quite annoying. That is the purpose of the list below; to provide a quick reference to the most common used acronyms so you won’t get lost when they cross your path in the future. There is a brief explanation for each one as well.
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 (the big boss)
CFO - Chief Financial Officer (head of the finance)
CMO - Chief Marketing Officer (head of marketing)
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 the ownership)
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Missed out on quite a lot of them :)
ISV,SAAS,HA.
Thanks,
Arun.PC
I will update it, thanks for the heads up.
You forgot SCM (Supply Chain Management). :)
I had to look up EMEA just today, and now I find it’s not on your list. It’s apparently a common abbreviation in business marketing for the Europe/Middle East/Africa region.
CYA dude, CYA.
Cover your ass.
[…] All the Business Acronyms You Need to Know Selling OTC to the CEOs, B2B YO. LIFO, and mind the GAAP, ya’ll. (tags: business lists acronyms reference) […]
ECM - Enterprise Content Management
[…] Links Oct. 17 All the business acronyms you’ll ever need to know from API to VC […]
KPI - Key Performance Indicator - critical numbers you have to track and improve
This list is a good starting point, but it’s far from complete right now. SAAS can also be SAS, SMB and SME (small to medium business, small to medium enterprise), and don’t even get me started on marketing acronyms and abbrev. that are making their way into the business vernacular (SEO, SERPs, SEM…). The opposite end of the spectrum (an overfull list) can be found here: http://facultyweb.berry.edu/jgrout//acronym.html
And don’t forget the most important: TLA
(Three Letter Acronym)
[…] Daniel Scocco presents All the Business Acronyms You Need to Know posted at Innovation Zen. […]
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Thanks, Daniel; unfortunately, this is quite useful. But OMG! I am so sick of what I just wrote in a blog I contribute to (hoping I’ve coined a term), “the epidemic of acute ‘ACRONYMONIA,’ the uncontrollable urge to reduce every human effort to three letters.”
I was writing in Idea Champions’ “The Heart of Innovation” about a report in Andrew Chen’s Futuristic Play from an ad conference in New York City, where he contrasted the use of another pair of acronyms not yet found in your list. He says NY’s Mad Men talk about “Consumer Generated Media (CGM),” where SF’s Webniks are all about “User Generated Content (UGC).”
(I took the opportunity to make the point about how we as businesses think about customers. “Seeing people just as consumers is to think of them in a passive role; as mouths to be stuffed, you might say. ‘Users’ casts them in an active role: mouths that also have something to say, to contribute. As a consummate user myself, I’m far more receptive to a company that addresses me as a person with something to offer, rather than as a receptacle they wish to pour products into.”)
http://www.ideachampions.com/weblogs/archives/2007/10/how_do_you_thin.shtml
Found your post here, btw, from Maura Welch’s Business Filter in the Boston Globe. (I see she left you a comment, too,)
http://www.boston.com/business/blog/filter/2007/10/deciphering_acr.html
Thank you very much for your post. We have included it in our current Carnival of Small Business Issues - “The Canarian” - Edition #25 Such list will never be complete, just ignore the people who are complaining. — Mary S. for fcon21.biz
[…] Daniel Scocco presents All the Business Acronyms You Need to Know posted at Innovation Zen. […]
[…] Caroline Middlebrook will have you looking at untargeted traffic in a different way, with her article 5 Overlooked Benefits of UNTARGETED Traffic. Daniel lists All the Business Acronyms You Need to Know. […]
Great Job.. on the Acronyms list. I have people asking all the time what does B2B mean, hey now I have a list to refer them to.
Appreciate the information
MEGAN
http://www.PassportMentors.com