“CFOs can improve savings programs with the right architecture and information systems in place.”
In the past, the focus of cost management strategies has been on saving and cost-cutting to fund growth and profitability. Traditional approaches to cost management were streamlining business processes, reducing external spend, improving policy compliance and integrating organizational structure. Although relying on tactical improvements to achieve strategic-level cost targets is likely the primary reason many cost programs haven’t been successful, there are other significant barriers as well. Deloitte’s 2019 Global Cost Survey found that many cost management programs fail because they lack the proper architecture― outdated ERP systems, disparate legacy tools and poorly structured cost management programs. Armed with intelligent technologies and a forward-thinking mindset, leading CFOs are shifting their focus to fund the digital transformation needed to develop the agile business models that position companies to grow in digitally disrupted markets.