Why Intelligent Spend Management Matters

Traditional tools no longer meet expectations for finance leaders who need an end-to-end platform that delivers real-time information for decision making. As businesses continue to grow and become more complex, intelligent platforms are increasingly necessary to derive true value from data. Supply chain leaders today struggle with the complex task of managing expenditures across global organizations with traditional tools that don’t provide a consolidated view across spend categories. A strategic, intelligent approach to spend management allows for a unified view across the supply chain – which is needed to make informed decisions about future purchasing strategies. Intelligent spend management has the capacity to transform any organization’s data into information that becomes a source of ideas and plans that can be used to grow the business.

As businesses continue to grow and become more complex, intelligent platforms are increasingly necessary to derive true value from data. In this transformative landscape, AI-powered task management plays a pivotal role. By automating and optimizing task workflows, it ensures that resources are allocated efficiently across the supply chain. With real-time insights and predictive capabilities, it empowers supply chain leaders to make data-driven decisions about future purchasing strategies.

Task management based on AI doesn’t just streamline day-to-day operations; it also transforms data into actionable information. By intelligently assigning tasks, monitoring progress, and providing instant feedback, it fosters a culture of continuous improvement. This approach not only enhances efficiency but also becomes a source of innovative ideas and strategic plans. In essence, AI task management becomes the driving force behind the intelligent spend management process, helping organizations unlock the full potential of their data to fuel business growth

Read More at The Digitalist by SAP >

How to Strategically Cut Costs Across the Enterprise

There are several steps businesses can take to develop a structural process for an enterprise cost reduction program in a way that positively impacts every aspect of the organization – not just the bottom line. For decades, businesses have made cost reduction a priority to increase profits and drive growth. In recent years, digital disruption, changing consumer preferences and fierce competition from new market players have entered the mix – posing a threat to margins and profitability. Today, rapid advances in technology are propelling organizations to undertake enterprise-wide cost transformations to remain agile, flexible and profitable in a time of constant change.

Read More at EY >

How Compliance and Cost Reduction Efforts Are Shaping Digital Transformation

“Leveraging funding and sponsorship of regulatory and cost reduction initiatives is enabling legacy firms to transform their data capabilities to achieve revenue generation and growth objectives.”

Today’s businesses aspire to be competitive by leveraging their data to drive revenue generation and business growth. To accomplish this, companies that still rely on traditional business models must embark on data-driven digital transformation initiatives. But how do technology and data leaders ensure that non-revenue generating data-driven transformation efforts receive the commitment and funding that are required to sustain these efforts?

Read More at Forbes Magazine >

Modern CFOs Are Leading the Charge to Improve Cost Management Outcomes

“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.

Find out how much money your business could save using this AP cost savings calculator.

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.

Read More at The Wall Street Journal >

Navigating the Cost Stages of Your Business

“Transformative companies know that having access to accurate cost information is more than just a novel exercise, but the insights can drive real competitive advantages.”

In business and in life, every single decision comes at a cost. Fully understanding each cost associated with a choice is a critical activity for any company looking to compete and grow. Cost stages in a business are like life stages – as you grow, you must refine each step in the process to thrive. Each stage requires different tools and capabilities designed to handle everything from minor bumps and bruises to major interventions. To make better business decisions, finance leaders must first improve the way they leverage their cost data to propel long-term, sustainable growth.

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Drive Business Strategy with Cost Optimization

According to Gartner’s 2018 IT Budget Benchmark for Midsize Enterprises, IT spend represents 3.5% of total business revenue.

“Rather than solely focusing on optimizing those costs, progressive CIOs rethink how technology investments can influence the other 96.5% of spending. CIOs that approach conversations about cost optimization from a strategic investment perspective are better equipped to balance critical business priorities while driving long-term cost savings.”

IT cost optimization isn’t only about cutting costs or identifying new sources of efficiency. It is also about strategic investments oriented around business objectives.

Read More at Gartner >

[INFOGRAPHIC] Anchors and Ladders of Cost Management

For modern businesses, the ability to accurately calculate and analyze their costs is essential to drive profits. According to Gartner, almost 90% of businesses suffer from poor cost visibility, and the same amount struggle to truly understand their costs and what drives them. These challenges stem from the cost management practices finance leaders implement in their organization, and the tools they rely on for business insights.

This infographic – Anchors & Ladders of Cost Management – highlights the common “cost anchors” – or negative behaviors that restrict long-term growth potential – and the positive “cost ladders” that build a sustainable foundation for profitable growth. Learn how ImpactECS enables finance leaders to raise their cost anchors and climb the ladders with timely access to meaningful cost data that is key to grow profits and fund innovation for the future. Download it today!

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7 Fundamentals of a Successful Costing Methodology

For many businesses, spreadsheets are a large part of their costing reality and have proven to do more harm than good when it comes to truly understanding business performance. Establishing a robust costing process doesn’t have to depend on spreadsheets or rigid ERP cost modules. With an integrated costing analytics tool, finance leaders can get access to accurate and actionable performance insights for meaningful business decisions. There are seven areas to consider when establishing a dynamic costing process in your organization.

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The Power of Cost Transparency

“The effectiveness of cost information is driven less by the cost method chosen, and more by the design and implementation of the cost allocation model used to support that method.”

While many businesses effectively analyze their revenue based on products, services, and customers, they often lack meaningful insight into their costs and profits. Companies with a disparate array of financial systems and costing methods find it extremely challenging to understand their financial data and achieve cost transparency. Getting cost data to a more granular level is one of the keys to arming managers with the insights they need to support strategic decision making that goes beyond what is necessary for financial reporting or inventory valuation. To improve overall performance, finance leaders need to make changes to how costs are captured and then harmonize both data and allocation models across the organization.

Read More at Deloitte >