Remove waste and improve processes to minimize cost of goods sold using content-ready Cost Optimization Strategies PowerPoint Presentation Slides. Outline a strategy for cost reduction without compromising the quality of the products with ready-made cost optimization strategies PPT templates. Intensify profitability and cash flow of an organization by implementing cost reduction strategies. Get access to the cost optimization strategies PowerPoint presentation slides for executing various strategies such as target costing, activity-based costing, enterprise resource planning, value engineering, and more. This deck covers various topics such as key levers to cost management, levers to achieve successful cost optimization, levels of strategic cost optimization, prioritizing IT cost optimization, IT cost optimization: three step approach, IT cost optimization initiative benefits, cost optimization techniques, cost optimization planning, cost cutting, cost management, cost design, cost positioning, and more. These templates are completely editable. You can use cost optimization strategies PowerPoint deck as per your need. Our Cost Optimization Strategies PowerPoint Presentation Slides help advancing your brand. Folks will get conscious of it's existence and benefits.

1. Your Company Name
Optimization
Strategies
COST

2. Our Agenda
2
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04. Agenda

3. Key Levers to Cost Management
3
Working Capital Management
› To ensure sustainability, reduce reliance &
exposure to short-term funding needs
› It is also subject to exposure and risks from
areas including receivables, payables and
inventory management
Procurement
› Due to reducing cost in china, many procurement
teams are facing growing pressure
› This will lead to more strategic sourcing,
consolidation of resources and improved contract
& inventory management
Operational Efficiency
› Companies often reduce focus on operational
& process efficiency
› Top performing companies understand the fact
that financial strength is built from driving out
operational inefficiencies
Supply Chain
› Inefficiencies in channel management and
distribution networks needs to be identified &
understood to optimize efficiency gains along the
supply chain
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4. Levers to Achieve Successful Cost Optimization
4
Discover Insight Design Implement Maintain &
Grow
› How to best
establish the cost
optimization
program?
› What are the goals /
scope of the
program
› What is the scale of
the cost optimization
opportunities?
› What opportunities
are available and
which one should be
developed?
› Which opportunities
should be
implemented and in
what order?
› What can be done
better?
› How can the benefits
and improvement to
the financial
performance be
permanently
embedded?
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5. Levels of Strategic Cost Optimization
5
Do More With
Less
Tighter Alignment
With Business
Transform To
Higher Levels
CostSaving
High
Low
Nature of IT Cost OptimizationTactical Strategic
Transform
Agenda: Evaluate technology,
broaden capabilities., create new
sources of revenue.
Invest more to optimize more
Rationalize
Agenda: Rationalize IT portfolio,
reduce functional redundancies.
Business relevance, flexibility, agility
Optimize
Agenda: Improve processes, “go
lean,” evaluate target operations
models (shared services), exercise
sourcing options.
Remove waste, increase efficiency
Reduce
Agenda: Cut IT costs, prioritize
demand, span of control
enhancements
Reduce costs and prioritize spend

6. Detailed Levels within Strategic Cost Optimization Framework
6
Reduce: Cut Costs And Prioritize Spend
Companies tend to prioritize cost optimization initiatives by simply considering short-term cash savings
Optimize: Remove Waste And Increase Efficiency
The focus should be on eliminating excess waste while increasing
the efficiency of current systems
Rationalize: Seek Business Relevance, Flexibility and Agility
It is imperative to focus on business goals and ensure that IT initiatives are aligned
with business objectives and priorities. IT performance metrics should be closely
tied to business metrics so that their alignment can be measured appropriately
Transform: Invest More To Optimize More
As economic conditions improve, companies can focus their
cost optimization efforts on implementing long-term business
and IT process improvements, enabling business growth and
innovation, and repositioning the business to sustain a
competitive advantage
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 4
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7. Prioritizing IT Cost Optimization
7
Dimension
Score
1 2 3
Strategic Value Low Medium High
IT Control Low Medium High
Potential Cost & Benefit Low Medium High
Customer Impact Negative Neutral Positive
Time to Benefit Realization < 18 Months 6-18 Months < 6 Months
Degree of Business Risk
Reengineering of current
processes & organizational
structures. Staff redundancies.
Limited changes in roles &
organizational structures
Minimal organizational
change & staff impact
Degree of Technical Risk
Impact on operating system,
database & middleware.
Moderate impact on few
technical components.
Minor impact on technical
components
Likelihood of Reprioritization &
Cancellation
High Medium Low
Investment Requirement High Medium Low
Total Score
9
Reject AcceptEvaluate
18 22 27
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8. IT Cost Optimization: Three-Step Approach
Application Portfolio Rationalization
Infrastructure Rationalization
Organizational & Operating Model
Global Sourcing
Operations & Process Transformation
IT Investment Optimization
› Flat or declining IT budgets, coupled with an
increased demand for IT services
› Removal of expenses from current spend or run rate
in order to invest in future business opportunities
Define IT investment Optimization Goals
Identify Investment Opportunity
Prioritize Investment Portfolio
Develop Ongoing Governance
IT & Business Alignment
IT Cost Assessment
› Business challenges identified through merger,
acquisition or divestiture of business operation
› Increased utilization of IT resources & assets
Alternate Sourcing
Business Alignment
Vendor Renegotiation
Consolidation/ Rationalization
Standardization
People Alignment
Opportunity Identification Realization of Benefits
Software Hosting Network End User
Computing
IT Overhead
Management
8
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9. IT Cost Optimization Initiative Benefits
9
Application Portfolio Rationalization
› Improved Cost Management
› Increased Efficiency
› Business Transformation
Infrastructure Rationalization
› Reduce total cost of ownership
› Improve economies of scale by standardization of assets
Organization & Operating Model
› Savings due to process standardization and reduced re-work
› Improved Product Quality and Service
Operations & Process Transformation
› Improve visibility of end-to-end value chain
› Increase demand forecast accuracy
› Drive significant increase in bottom line.
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10. Cost Optimization Techniques
10
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Improving Data Management
Enable people to share data in an easy & efficient way & use that data
to create business value through better & faster decisions
Supply Chain Optimization
CIOs need to work collaboratively to look beyond cost reduction to enable
increased sales. Focus should be on using a mixture of conventional &
unconventional techniques to optimize IT & business costs
Process Automation
Business leaders need to go beyond the current use of automation to
robotics, and leverage the Internet of Things and smart machines to build
intelligent business processes
Customer Self-Service
Establish a strategy to handle self-service technologies, which must be
continuously updated and based on the customer’s perspective and experience

11. Cost Optimization Techniques
11
Improving Business Efficiency Through Analytics
Advanced analytics helps in reducing customer churn and make
equipment safer. Utilizing analytics also helps in the customer retention
or improving marketing responses which in turn can have a big impact
on the business
Digitalization Of Business Processes
Develop an integrated approach that brings together required
competencies & expertise, along with buy-in from the executive leadership
team
Improving Inventory Management
As inventory is a working capital asset, reducing inventory will contribute
directly to the bottom line
Continuous Improvement Culture
CIOs need to work collaboratively with business leaders to focus on lean
improvement efforts
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12. Cost Optimization Planning
IT Procurement
› Hiring internally at lower rates than contact staff
› Deferring desktop Replacements
› Text Here
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Cost Savings within IT
› Open-Source desktop Software
› Consolidation of data centers within a single agency
› Text Here
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Joint Business &
IT Savings
› Asset utilization Analysis
› Teleworking
› Text Here
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Process Improvement,
Business Restructuring
& Innovation
› Sharing citizen call centers across agencies
› Sharing IT help desk across agencies
› Text Here
x
x
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x
x
x
x
x
x
Already
Done
Plan
to Do
Save
12
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13. Stages in Cost Reduction
13
Cost Cutting
Cost Management
Cost Design
Cost Positioning
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14. 1. Cost Cutting
14
Cost Cutting involves
cuts in spending based
on arbitrary criteria.
Costs are divided into
committed & discretionary
categories.
Cuts target discretionary before
committed; large before small;
expedient before sensitive.
Performance measured
against historical
standards
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15. 2. Cost Management
Cost Management involves a
systematic approach to cost
reduction that involves an
understanding of relevant cost drivers
Costs are organized by
resources, activities,
and cost objects
Performance measured
against long-term
target standards
Reductions achieved by
eliminating unused capacity,
nonvalue-added activities, &
reducing activity cycle times.
15
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16. Cost Design involves an evaluation & redesign of the internal value chain . It seeks to improve the relationship
among resources required and work performed to satisfy customer requirements
Costs are
organized by
process & sub
process.
Reductions achieved
by eliminating
redundancy &
conforming to
operational strategy.
Performance
measured against
best-in-class
standards of
performance.
3. Cost Design
16
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17. 4. Cost Positioning
17
Cost Positioning involves an
evaluation & redesign of the external
value chain. It seeks to improve the
relationship among supply chain
members to enhance competitiveness
Costs are organized by links in the value
chain
Reductions achieved by consolidation of
links, sharing information, better
coordination, & exploiting synergies
among supply chain members
Performance measured against strategic
objectives such as market share & price
targets
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18. Comparison of Stages
Stages Cost Cutting Cost Management Cost Design Cost Positioning
Basis Arbitrary spending cuts Understanding cost drivers Redesign internal value chain Redesign external value chain
Objective Achieve cost reduction targets Satisfy customer requirements
Enhance company
competitiveness
Enhance s. chain
competitiveness
Time horizon Short term Medium Term Long term Long Term
Perspective Internal Internal Internal External
Cost Measurement
Classified into committed &
discretionary
Organized by resources
activities, & cost objects
Organized by links in the
internal value chain
Organized by links in the
external value chain
Reduction Methodology
Reduce discretionary large &
expedient costs
Eliminate unused capacity, NVA
activities & reduce cycle times
Eliminate redundancy &
conform to operational
strategy
Consolidate links, share
information, coordination,&
synergies
Performance Standards Historical standards Long-term standards Best –in- class standards Strategic objectives
Common tool Standard costing Kaizen Costing Activity-Based Planning Strategic Cost Management
18
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19. It’s Time For
Tea Break!
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10:15 AM To 10:30 AM
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20. Cost Optimization Strategy Icons Slide
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21. 21
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24. Puzzle
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25. Important Notes
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27. Timeline
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28. Bulb & Idea
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Idea
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29. Magnifying Glass
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31. Pie Chart
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60%
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32. Bar Graph
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FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09
SalesInpercentage
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33. Scatter Chart
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Product 01
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$12
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$50 $48
$43
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$0
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0% 10% 20% 30% 40% 50%
Inprice
Highest
Sale
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34. Area Chart
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Product 01
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DecNovOctSepAugJulJunMayAprMarFebJan
InPercentage
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35. Radar Chart
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Product 01
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02-05-2018
06-05-2018
07-05-2018
09-04-2018
11-05-2018
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