Being able to efficiently manage operational costs is a key determinant of firms' profitability and overall financial performance. Firms that have robust cost management systems in place are better able to identify potential sources of cost leakage and can take the appropriate actions to reduce such cost leakage.
A key feature of effective cost management systems is their ability to zero-in on cost heads that exhibit either a sudden spike in expenses or a secular year-on-year increase in expenses that is disproportionate in relation to business performance. In addition, in order to be truly useful in controlling expenses, cost management systems must be able to uncover the underlying causes of sudden and/or inordinate rise in expenses, instead of just providing a breakdown of expense trends across the various cost heads and cost centers.
insAnalytics presents an integrated easy-to-use Cost Leakage Analysis solution that enables firms to discover the true underlying sources of cost leakage. Through a real-time visual representation & analysis of expenses under different cost heads, across the various cost centers, and through the years, the solution facilitates timely intervention by management so as to introduce cost reduction initiatives. The solution helps visualize the expenses in a statistically-reduced dimension that focuses on the key drivers of cost leakage, instead of just individual cost heads. This enables the firm to pin-point areas where cost-reduction initiatives are likely to generate the maximum impact.
The solution integrates seamlessly with the Budget Overrun Early Warning solution, enabling organizations to tie-in their cost-reduction strategy with their efforts to achieve optimal budget utilization across the various cost centers.
The solution is technology-agnostic, and available over a range of technology platforms. Choice of the best-suited platform for specific installations is governed by the existing ERP product being used by the client, in order to provide a cost-effective solution and to ensure seamless connectivity & integration. Open-source adaptations of the solution are also available to reduce the total cost of ownership for the client.