{ "docId": "019dd923-5de0-76bd-a16a-8ba4cc353505", "docSlug": "eb2743ec745d476c", "documentTitle": "Strategic Cost Transformation Grab’n Go session", "authorId": "Deloitte", "authorName": "Deloitte", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "strategy_consulting", "sourceTypeLabel": "Strategy consulting", "presentationDate": null, "orientation": "portrait", "aspectRatio": 0.707, "pageNumber": 4, "pageCount": 9, "prevPage": 3, "nextPage": 5, "slideType": "industry_trends", "function": "diagnose", "density": "overcrowded", "nDataPoints": 8, "notes": null, "elementsJson": [ "paragraph", "bar_chart_vertical" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-5de0-76bd-a16a-8ba4cc353505/4", "deckHref": "/decks/019dd923-5de0-76bd-a16a-8ba4cc353505", "deckJsonHref": "/decks/019dd923-5de0-76bd-a16a-8ba4cc353505.json", "deckAnchorHref": "/decks/019dd923-5de0-76bd-a16a-8ba4cc353505#slide-4", "components": [ { "bbox": null, "kind": "callout", "text": "72% of surveyed companies still missed their programmed cost reduction targets, mostly due to a combination of external barriers and internal constraints, infrastructure / system-related challenges and disjointed transformation efforts.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-0a68-773e-ba56-8dfb40a97174", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.4, "x": 0.45, "y": 0.24 }, "kind": "chart", "text": "Amount of target achieved", "attrs": null, "subkind": "bar-vertical", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8cfcb8bb-ec73-4929-b8d6-cda5a5499c47", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.4, "x": 0.05, "y": 0.24 }, "kind": "chart", "text": "Cost target reduction goals", "attrs": null, "subkind": "bar-vertical", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "992193b1-fd65-4376-a389-51acbe3a88ba", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "Success rate of cost transformation: 72%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd952-0a68-773e-ba56-93f6d5748fff", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.47 }, "kind": "paragraph", "text": "To address internal and external challenges, our advice is to clearly define how an organisation can achieve a competitive and sustainable cost structure and set up the right capabilities and technologies to run and grow efficiently.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5e65c95d-8a4d-49bc-a98e-700d29cfa199", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.12 }, "kind": "paragraph", "text": "reductions of a minimum of 10% (Figure 1). However, 72% of surveyed companies still missed their programmed cost reduction targets, mostly due to a combination of external barriers and internal constraints, infrastructure / system-related challenges and disjointed transformation efforts without the necessary governance and coordination.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "622a77e5-36be-4893-8dce-d46715120e1a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.53 }, "kind": "paragraph", "text": "The companies surveyed in the above-mentioned survey cite several key success factors and lessons learned that can help them achieve their cost transformation targets. These include solid tracking and reporting (72%), a clear business case (65%), effective change management (64%), investment in technology improvements (62%), realistic cost targets (58%), and dedicated leadership (46%).", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ac81be6d-1293-43c9-b35c-bfa09d876e72", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.9, "x": 0.05, "y": 0.62 }, "kind": "paragraph", "text": "Senior executives recognise the need to shift away from small-scale, isolated initiatives, and to embrace all-encompassing transformation efforts using all available options — not only standard cost levers, such as procurement and organisational restructuring, but also technology-driven cost levers and analysis tools, such as process re-engineering through process and task mining (see our articles on Process Mining), intelligent automation, data and artificial intelligence strategies, and adoption of cloud architecture solutions (Figure 2).", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d4546280-2485-4dca-af5a-faaee5263415", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.9, "x": 0.05, "y": 0.21 }, "kind": "title", "text": "Figure 1: Cost reduction targets and success rates of cost transformation programmes", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "248e2ffb-2449-4120-9570-2efd295d8540", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.9, "x": 0.05, "y": 0.43 }, "kind": "title", "text": "Top factors driving success in cost reduction programmes", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e930f479-b76c-4034-aada-46e755b80a93", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 5, "from": 4, "beatId": "c25f83bb-dcd8-4756-a515-572536c4c55f", "arcName": "The Consultant's Gambit", "arcSlug": "consultants-gambit", "beatName": "Problem & Complication", "beatSlug": "consultants-gambit-problem-complication", "evidence": "Industry trends and transformation levers highlight the complexity of cost reduction programmes", "position": 1, "confidence": 0.8, "parentBeatName": "Complication", "parentBeatSlug": "complication" } ], "loops": [ { "to": 5, "from": 4, "name": "Benchmark Gap", "slug": "39-benchmark-gap", "bestFor": "Performance improvement, competitive analysis, target setting", "matchId": "b0d8d1de-57bd-40c6-b722-34b64a25a6ea", "evidence": "The presentation highlights top factors driving success and utilised transformation levers", "position": 0, "objective": "Identify the gap in current cost reduction programmes", "structure": "Our Performance -> Industry Average -> Best-in-Class -> The Gap = The Opportunity", "confidence": 0.6, "description": "Compare performance against best-in-class to quantify the opportunity" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }