Strategic Cost Transformation
How do I embrace digital disruption to improve margins and costs while thriving in uncertainty?
- Zero-based Budget
- Cost management in the age of digital disruption
- Cost Management and Improvement Trends in the Fortune 1000
- Demystifying the science of Strategic Cost Evolution
- Future of Operations
Our member firms help organizations optimize and align costs strategically through the implementation of traditional approaches, targeting operating models and advanced cost solutions related to automation and cognitive technologies. Our professionals work with clients to transform their business and operations to achieve sustainable actions that capture savings, improve margins, and strategically allocate resources to growth initiatives.
For many organizations, the thought of rebuilding the company budget from the ground up can be nightmare-inducing. Wiping the financial slate clean and starting from scratch would be a last resort in a worst-case scenario, never an option to be considered under normal circumstances. Yet an increasing number of organizations choose to do exactly that, an extreme method of budgeting known as 'Zero-based Budgeting.'
Cost management used to be something businesses only thought about when they were struggling. In recent years, however, it has become a standard operating practice that receives constant attention—in good times and in bad. But cost reduction failure rates are high, even while cost reduction targets remain low.
Global macroeconomic factors are having a major impact on cost management efforts at large US companies. While the domestic economy has gained significant strength, other parts of the world are still struggling. This has created a cost/growth paradox we call “thriving in uncertainty,” where companies are simultaneously pursuing the seemingly conflicting goals of aggressive cost improvement and aggressive growth. Deloitte’s fourth biennial survey of cost management and cost improvement trends explores how companies are managing costs in this challenging environment.
Global macroeconomic factors are having a significant impact on cost management efforts at global companies. This has created a cost/growth paradox we call “thriving in uncertainty,” where companies are simultaneously pursuing the seemingly conflicting goals of aggressive cost improvement and aggressive growth. Deloitte’s fourth biennial survey of cost management and cost improvement trends explores how companies are navigating this challenging environment.
The Fourth Industrial Revolution is driven by the convergence of computing, data and AI. It is totally transforming the nature of business operations and the role of operations leaders, across industries. Those ready to take advantage of these changes will lead the revolution, not be driven by it.
Driven by accelerating connectivity, new talent models, and cognitive tools, work is changing. As robotics, AI, the gig economy and crowds grow, jobs are being reinvented, creating the “augmented workforce.” We must reconsider how jobs are designed and work to adapt and learn for future growth.
Frictionless, automated, personalized travel on demand—that’s the dream of the future of mobility. And the extended auto ecosystem's various elements are combining to realize that dream sooner than expected, which means that incumbents and disruptors need to move at top speed to get on board.
Cost management used to be something businesses thought about only when they were struggling. In recent years, however, it has become a standard operating practice that receives attention in good times and in bad.
Here’s how Deloitte can help:
- Save: Focus on immediate actions to reduce costs, maximize liquidity, bring stability, and capture savings to avoid further deterioration of the business.
- Fund: Focus on actions that help improve cost and competitive position, avert cuts that might inhibit future growth, and rebalance costs to fund investments in business strategy enablers.
- Grow: Enable or develop a scalable cost or business platform to fuel growth and investment in core capabilities while supporting a differentiated business strategy.
- Transform: Improve business operations through application of disruptive cost approaches such as automation and cognitive solutions to enable agile strategies in the business and set the stage to thrive in a changing market environment.