Thriving in uncertainty


Thriving in uncertainty

Strategic Cost Transformation APAC Survey

In a new Deloitte survey of what measures Asia Pacific (APAC) companies are undertaking to manage costs and improve margins, Australian companies were found to have the least aggressive cost reduction targets in the region and despite this, 75 per cent are not meeting their cost reduction goals.

Australian respondents adopt a tactical and low target approach to cost reduction compared to their counterparts in APAC, despite having to fund ambitious customer-centric growth transformations. This is not likely to be sustainable and a more strategic and transformational approach will be required.

This transformational approach to cost reduction is likely to include strategic outsourcing and capitalising on digital breakthroughs such as robotic process automation (RPA) and cognitive technologies. These developments are changing the basis of competition and laying the groundwork for substantial improvement in efficiency and effectiveness, soon companies may be pursuing cost improvements in excess of 50 percent, not just the 10 percent improvement currently being pursued.

Thriving in uncertainty
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