Deloitte: Companies turning to cost management in the face of digital disruption

By Jonathan Dyble
A new release from Deloitte has revealed that companies are increasingly valuing the importance of cost management strategies as a way of facilitating d...

A new release from Deloitte has revealed that companies are increasingly valuing the importance of cost management strategies as a way of facilitating digital disruption and vice versa.

“With the emergence of disruptive innovations such as robotic process automation, analytics, and cognitive technology, cost management is morphing into a strategic enabler with the power to disrupt entire industries and fundamentally change how business is done,” said Deloitte.

See also:

This has been revealed in a survey of over 1,000 senior executives at global companies, finding that 86% of respondents are likely to pursue cost reduction initiatives over the next two years, whilst just short of half of companies are looking to satisfy cost reduction targets of less than 10%.

However, whilst there is an intent in the way of cost reduction from companies, Deloitte also reveals that there is currently a low success rate in these initiatives – something that it expected to change in the face of increasing digital disruption.

“To avoid falling behind, companies in every part of the world should understand the potential impact so they can capitalize on the opportunities, particularly with regard to automation, analytics, and cognitive technology,” Deloitte said.

“Unlike traditional tactical and structural cost approaches—which may be nearing or past their peak—cost solutions based on exponential technologies are just emerging and have the potential to deliver increasing savings over time.

“As digital technologies enable increased innovation in business and operating models, disrupting entire industries, companies may be able to see sustainable cost savings of 30 percent or more.”

For more information, see the full infographic from Deloitte.

Share

Featured Articles

AI welcome but human-centered IT support key to productivity

A global survey reveals 74% think inefficient IT support affected morale and hinders productivity, while 87% welcome adopting of AI in resolving IT issues

Machine Customers one of the biggest growth opportunities

From CIOs to legal officers, executives across organisations must be prepared to seize the growth opportunities machine customers will offer

Melanie Nakagawa, Chief Sustainability Officer at Microsoft

Nakagawa was appointed as Microsoft's Chief Sustainability Officer at the end of 2022, marking the next phase of her extraordinary sustainability career

Major League Baseball and Zoom announce new partnership

Digital Transformation

Palo Alto Networks announces AI-powered SASE solution

Cloud & Cybersecurity

Meta announces cuts to staff in drive to improve efficiency

Enterprise IT