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Cost cutting seems to be the mantra of businesses large and small in these highly competitive times. However, many such actions appear to be misdirected and result in erosion of market position and profit potential. How does this happen? The answer lies in knowing what cost factors are really important to the bottom line.
Business intelligence reporting and analysis software techniques involve many advanced methodologies to query the vast stores of data resident in the average business enterprise. Foremost among these is the concept of the scorecard. The scorecard serves as the reporting vehicle for information found as the result of an executive's query of a database to answer critical questions.
One area to query such a system for is cost cutting. Structure a query using a BI software suite to determine the areas where cost cutting can generate the most savings and impact to the bottom line, without introducing unexpected negatives in other functional areas. The answer, if successful, will provide guidance to decision-makers that will lead to true performance management.