The use of emerging technologies and innovative modern solutions not only optimise cost but also provide other benefits, such as time saving, risk mitigation, efficiency improvement, and employee and customer satisfaction, PwC Middle East has said in its latest report ‘Rethinking cost to drive value for your organisation’ (Volume 2 ) which was released yesterday.
The report explores the remaining three out of six modern cost optimisation trends for organisations in the region. In this series, PwC has deliberately moved away from traditional cost cutting solutions that are still essential as part of the wider cost optimisation agenda, in favour of innovative solutions that are based on modern trends and cutting-edge technologies that can drive the cost optimisation agendas of present-day organisations.
The trends included in this volume are Shared services, Big data analytics, and Blockchain. Shared services aim to raise efficiency, improve performance and reduce cost. In addition to benefiting organisations with multiple dispersed locations, Shared Service Centres (SSCs) drive value for organisations through synergies in support functions by transferring routine operational tasks to relatively independent centres that act as service providers.
Big data analytics is an emerging set of technologies that is used to support executives and managers at senior levels with decision making and in monetisation of their data assets. More importantly, through analytics, executives will be more informed and enabled to optimise cost effectively, improve profitability and drive new business models.
Blockchain is a promising technology with the potential to change the global business environment, in both the private and public sectors. In addition to offering advanced solutions, with Blockchain there is no need for an intermediary or central registration system to follow the movement of information exchange and control it.
The technology is based on extremely secure blocks, meaning it is less costly and inherently more secure than other hosting technologies. Dr. Bashar El Jawhari, Partner, Consumer and Industrial Products and Services at PwC Middle East, said: “The economic volatility brought by COVID-19 pandemic put additional stress on the operational costs in the public and private sectors, which turned many organisations to cost cutting solutions that are harmful in the long term.
This is why the need for cost optimisation programmes lies in their ability not only to reduce waste, but to improve efficiency and productivity.
Thus ensuring sustainability and creating value for all stakeholders.” Moving forward, these trends cannot be taken in isolation from a broader programme to improve operational efficiency and optimise cost.
This includes looking at many elements of the operating model, implementing required improvements, and designing broader initiatives on top of these solutions.
Doing so will help organisations overcome some of the typical challenges and spare them some of the pitfalls that many go through when implementing such programmes, the report added.
