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The X Factor Competitive Agility

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ZBx (zero-based mindset), is a new approach more holistic than ZBB. Unleashing ZBx involves gaining a forensic visibility into enterprise-wide spending and funneling savings back into growth initiatives. Making companies agile. More competitive in the digital age. To keep up, companies need to take out non-working money that doesn’t support the business strategy and reinvest it on growth. Learn more: https://accntu.re/2s3wlJQ

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The X Factor Competitive Agility

  1. 1. THEX FACTOR COMPETITIVEAGILITY
  2. 2. THE SPEED OF CHANGE ZBx, or zero-based mindset, is a new approach, more hollistic than ZBB. Unleashing ZBx involves gaining a forensic visibility into enterprise-wide spending, and funneling savings back into growth initiatives—making companies agile, more competitive in the digital age. will never be as slow as it is today To keep up, companies need to take out non- working money that doesn’t support the business strategy and reinvest it in growth. Copyright © 2018 Accenture. All rights reserved. 2 Slide option 01
  3. 3. By launching enterprise-wide cost optimization through four interventions: Copyright © 2018 Accenture. All rights reserved. 3 Zero-Based Commercial Zero-Based Organization Zero-Based Supply Chain Zero-Based Spend ZBxISABOUTIMPROVINGAGILITY
  4. 4. Enables organizations to identify discretionary consumption of non- labor overhead expenses through a unique lens of granular cost visibility. This allows leadership to make the right choices to change the culture of the organization, ultimately freeing up cash that can funnel into growth initiatives, capability improvements and improving EBITDA. ZERO-BASED SPEND Copyright © 2018 Accenture. All rights reserved. 4
  5. 5. Designs the organization from a clean sheet to shift talent from work that no longer contributes to desired outcomes to the distinctive capabilities required to win in the future. Because the organization, talent, end-to-end capabilities and routines that have been passed from one generation to the next are not necessarily the same ones required to win in the new. ZERO-BASED ORGANIZATION Copyright © 2018 Accenture. All rights reserved. 5
  6. 6. Optimizes marketing, sales, customer service and pricing to deliver superior customer economics. ZERO-BASED COMMERCIAL Copyright © 2018 Accenture. All rights reserved. 6
  7. 7. Identifies the “should cost” of COGS and cost reduction opportunities across three levers—price, performance and value engineering—while optimizing product and service complexity. A closed loop process ensures results hold over time. ZERO-BASED SUPPLYCHAIN Copyright © 2018 Accenture. All rights reserved. 7
  8. 8. “LOOKINTHEREAR-VIEWMIRROR” WHEN IT COMES TO COST REDUCTION, TOO MANY… Setting projected resource needs based on past demands and applying incremental cutbacks on past budgets. But this approach doesn’t account for change, and cost curves have undergone fundamental transformation, dropping precipitously thanks to fast evolution of new technologies. Or in some cases, rising dramatically. Changes so dramatic that the only way to compete is to use a new, more forward-looking approach to establish what costs “should be”. Copyright © 2018 Accenture. All rights reserved. 8
  9. 9. STICK MAKINGCOST OPTIMIZATION Just like a crash diet, most cost optimization initiatives don’t last. In fact, only 36 percentof companies surveyed agree that their business sustains the benefit of cost optimization programs. Copyright © 2018 Accenture. All rights reserved. 9
  10. 10. THREESTEPSTOOBTAINING THEXFACTOR: CEOCOMMITMENT To drive a ZBx mentality requires ownership by the CEO and the leadership team. They are responsible for driving and operationalizing ZBx on a daily basis. FOCUS ON THEFOUR Zero-base and examine your should costs for everything from plant maintenance to customer marketing and sales. The cash can then be reinvested for growth. ZBxMINDSET Hardwire ZBx into your company culture to create a sustained commitment to should-cost mentality. How? Create a structure for “category ownership” to ensure there are checks to keep the players honest. Copyright © 2018 Accenture. All rights reserved. 10
  11. 11. Copyright © 2018 Accenture. All rights reserved. 11 LEARNHOWTOBUILDA ZBxMENTALITYFORFUTURE COMPETITIVENESS Download the full report at: The X Factor - Competitive Agility JointheConversation @AccentureStrat www.linkedin.com/company/accenture-strategy

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