Digital risks are spurring organizations to use cost reduction as a mechanism to fund technological transformation, say experts. According to Deloitte’s study, businesses now recognize their need to save-to-transform, using investments in digital infrastructure to drive dramatic improvements in future performance, efficiency and market position.
Related Article:Blockchain technology taking the banking sector by storm
Omar Aguilar, principal and global strategic cost transformation leader, Deloitte Consulting LLP said in today’s highly dynamic and competitive landscape, digital disruption is changing how companies view aspect of their business, including cost management practices. Aguilar says the survey found that application of artificial intelligence (A.I) and machine learning is expected to more than double from 25 per cent to 63 per cent.
“Similar growth is expected for automation and business intelligence. Cloud continues to be the most widely implemented digital technology covered by the survey at 49 per cent and is expected to remain popular due to its ability to tighten data security, as well as to reduce costs and improve productivity.”
Moreover, companies are very much optimistic about technology and expect an increased revenue. However, forward-thinking organizations are taking a cautionary stance. Over the years, cost reduction has evolved into an ‘essential tool’ to help businesses fund their required growth investments. Many companies are using digital cost solutions and infrastructure improvements. Aguilar says, these include robotic process automation, cognitive technologies, business intelligence and cloud-based enterprise resource planning to lift their efficiency, performance and competitiveness to a new level.
Related Article:Microsoft introduces new cloud experiences and AI capabilities
“Cost management practices and approaches have grown increasingly sophisticated over time, and digital solutions, although still maturing, now represent the most advanced level of cost management.” Aguilar said by harnessing the power of digital technology to streamline their cost structures and generate cost savings, companies can take full advantage of the latest digital innovations – becoming the disrupters, than the disrupted.”