Can We Create and Deliver Value in 2025 Without Transforming and Reducing Costs?

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Cost reduction has become a necessity for most companies due to an increasingly volatile and competitive environment. However, simple cost reduction is insufficient to ensure a sustainable future in most markets.

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Today, companies must also increase their operational agility to face emerging challenges, improve service quality to retain highly solicited customers, and free up resources to innovate and quickly create sustainable competitive advantages.

 

Cost reduction is no longer just a short-term financial issue; it has become the essential means to finance transformation and prepare for the future.

 

This situation requires a new way of thinking about cost reduction projects, which previously aimed to prioritise actions that maximise short-term margins without overly disrupting operational capabilities, quality, and product and service availability.

 

The corporate survival guide demands a new and different approach to prioritise cost reduction actions, finance essential restructuring and strengthen competitiveness. Priority cost reductions must not only deliver short-term financing capacity but also have a strong medium and long-term impact : increasing operational agility, improving service quality, freeing up resources for innovation, and creating sustainable competitive advantage.

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