Unlock Cost Savings: How Data-Driven Technology Enablement Transforms Your Business

Is your organization focusing on technology enablement? It’s essential for cutting costs effectively, as technology and expenses go hand in hand.

In the past few years, top CFOs shifted their approach. Instead of slashing costs randomly, they focus on smart cost optimization. This means cutting unnecessary spending while investing in areas that boost business value. This year should mark a turning point where finance leaders promote ongoing cost optimization backed by technology upgrades and strong data analytics, leveraging AI and other advanced tech.

Why continuous cost optimization matters

Cost optimization is vital for a business’s success. By consistently trimming unnecessary expenses and investing thoughtfully, companies can become more resilient and nimble. However, many firms still lag in their cost optimization efforts. A 2024 survey of finance leaders found that many cost-cutting initiatives, like assessments and automation strategies, haven’t shown meaningful progress in the last year. Still, many CFOs and finance leaders reported success in cost optimization through technology upgrades, particularly with AI in finance.

This encouraging trend highlights the potential success when leveraging technology effectively. How can CFOs enhance their cost optimization strategies? The key is to utilize advanced technologies and tools. Embracing AI, machine learning, and cloud systems requires a supportive tech environment.

The takeaway? Businesses get more value from these investments when they tackle outdated systems first. This makes technology modernization important, reducing old technical burdens while boosting cost optimization.

Implementing technology enablement

To boost profitability and strategic cost optimization, companies must align tech investments with their business goals. This alignment helps identify new opportunities and manage risks better. CFOs should play a key role in these discussions alongside the CEO, CIO, and other C-suite executives.

Effective technology modernization efforts should:

• Highlight the risks of staying stagnant. Not modernizing can lead to serious issues: unmet goals, rising operational costs, inefficiencies, poor customer experiences, challenges in attracting talent, and even loss of competitive edge.
• Explore various options and timelines. Technology modernization can take many forms; it doesn’t always mean a complete overhaul. Companies should consider updates to existing software, cloud migration, or even collaborating with third parties for quick benefits.
• Focus on data quality. Reliable data analytics are essential for real-time collaboration, planning, and insights. CFOs must prioritize data management to ensure data used is accurate and trustworthy for decision-making.
• Use core tech principles for ongoing modernization. Simplified architecture, modular deployment, and well-managed data are critical for success. CFOs should ensure their organizations are meeting these modern tech standards.

Technology modernization doesn’t just stop with finance systems; keeping finance technology plans current is crucial. CFOs should prioritize investing in cloud systems, AI, and advanced analytics that promote efficiency and drive cost savings.

Additionally, AI deserves special attention from CFOs. Many finance teams have started using AI not just for compliance but also throughout processes like order management and expense reporting, leading to significant returns. Companies that embrace AI will likely find new growth opportunities compared to those still tied to legacy systems and data issues.

Ultimately, it’s crucial for CFOs to lead technology modernization and cost optimization efforts, ensuring value is clear and measurable. Each proposed investment should come with a strong business case, showing the expected returns and benefits.