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Executive Analytics - DIGITAL COST MANAGEMENT THROUGH SENSE7 BIG DATA ANALYTICS
Big data analytics is currently the most sought commodity on the global market as it provides businesses with insights from analyzing different data sets. Companies then utilize these insights to make informed decisions to streamline their workflow processes, resulting in business profitability.
However, big actionable data doesn't come cheap. In this blogpost, we look into how we can utilize digital cost management using big data analytics. Let's get started.
But first, what is Digital Cost Management (DCM)?
DCM is the management of advanced, next-generation cost management solutions that utilize digital technologies to boost the efficiency and effectiveness of business processes.
Benefits of Utilizing big data in your Cost Management Processes
ABC Technologies successfully provides SaaS & MSP services to its customers. However, due to lack of synergy between the technical teams, the company uses IT resources worth an estimated value of 250,000$ but bills its customers only 160,000$, resulting in monthly revenue losses of 90,000 $.
Sam is given 5M $ by the organization he works for to upgrade their existing legacy Enterprise application version to a more current version that is more secure and robust. However, Sam chooses not to upgrade the application, putting his organization at risk. A couple of months later, their legacy system is hacked and sensitive data is stolen.
Last but not least, we met Bob. Bob is a tech investor and decides to invest approx 10M $ into his company’s technology infrastructure to enable it to deliver effectively on its core services. However, the allocation for upgrading the company’s technology infrastructure was 5M $. Even though Bob’s idea was awesome, he had unfortunately misjudged the company’s financial ability to undertake the project.
All these scenarios can easily be monitored by Sense7.
Using Cognitive Intelligence to Analyze and Reduce External Spend:
A beverage manufacturer faced intense margin pressure as its primary product offering became commoditized, resulting in the product supply far outpaced consumer demand.
The company turned to Cognitive intelligence to implement a rapid cost transformation initiative designed to deliver a cost savings impact. The cognitive intelligence tool gathered data from the company's various systems, understood the industry's specific processes, and became more competent with each analysis, unlike a traditional rules-based system.
It took the company 2-3 weeks to identify, analyze and classify millions of purchase transactions, at a speed of 40,000 transactions per minute, unlike a traditional rules-based system that could have taken 6-8 weeks for the same workload.
Once the company's transactions had been accurately categorized by spend category, supplier, location, and period, it was able to generate deep insights about their external spend, allowing them to drive targeted actions into improving external spend efficiency by eliminating waste.
Digital Cost Management with SENSE7 Big Data Analytics
To make sense of the data collected, we need a tool that can make sense of it, and that tool is SENSE7. With the SENSE7 Big data analytics feature, your organization will be able to do the following:
As your organization's volume of data increases, you'll require a tool that can gather both fragmented and unstructured data and make sense out of it.
SENSE7 provides deep insights into your digital infrastructure by automatically correlating over your IT assets to provide healthy real-time insights for continuous financial management.
Are you interested in scaling your cost management activities with a modern solution? Schedule a demo with SENSE7 today and watch your expenses reduce and gain business profitability.