Blog
Transform, not just reduce, your costs
3-MINUTE READ
October 7, 2021
Blog
3-MINUTE READ
October 7, 2021
As I speak with business leaders these days, it’s clear the disruption of COVID-19 has left them looking at costs differently. What changed? The pandemic has forced them to focus on what their costs should be and create a more variable cost structure—a cost transformation, not simply cost reduction.
That’s a good thing, but here’s the challenge. For a true cost transformation—creating the optimal cost behaviors that are sustainable over time—a company has to have deep visibility into everything it spends. Such visibility is key to both identifying opportunities to reduce or reallocate spend, as well as driving cost-conscious behaviors and new ways of working. Yet it’s virtually impossible to gain this kind of visibility with disjointed data and simple Excel spreadsheets, which are common across most companies.
More than ever, companies need to be able to apply intelligence to cost management. In fact, according to Accenture research, 84% of C-suite executives believe they must leverage AI to achieve their growth objectives. Yet 76% also reported they struggle with how to scale their use of AI and 68% said they don’t know how they can realize measurable value from their data in its current state.
Cloud-based data lakes make it easy for companies to collect data into a central repository and turn data into actionable insights with the help of advanced analytics so they don’t have to remain blind to what they’re actually spending versus what they should be spending. Here’s how that can help achieve cost transformation.
Inflation and economic uncertainty: What CEOs need to do now
For a true cost transformation, a company has to have deep visibility into everything it spends.
Anshul Singhal
When it comes to costs, the pandemic taught us the importance of looking forward. What should the company be spending on what—independent of what it spent last year?
With an advanced analytics platform, companies can answer those critical questions. Leaders can access and analyze what they’re spending at a forensic level and model what their new, optimal cost structure should be if they started from scratch. They also can gain the insights and support to instill a new cost mindset and new ways of working.
I’ve seen this firsthand in my work with clients. Companies that take advantage of the tools available are not just reducing costs, but they are achieving a true cost transformation. Contact me if you too want to set your company up to generate sustainable, long-term value.