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