The Cost Reduction

Suddenly every one is feeling that their cost structures are inefficient. Everyone is feeling that they are overstaffed. Are economic activities within their businesses slowing down? Is there less work? Are employees sitting idle? Were they sitting idle before the current economic situation?

All business organizations now-a-days are using technology to manage their resources. Their systems are integrated to manage various management functions and enterprise wide resources so that optimization and improvisation can be ensured.

R&D departments are developing new products. Innovations and new management techniques are under development. Many of these developments will be breakthrough technologies, products and techniques.

New technologies are our future. This is a time for preparing ourselves for the greater challenges and achievements of tomorrow. We are seeing bad times and bad time will continue for some more time as predicted but thereafter we are going to enter a totally new world.

Slowing down is sometimes good. It provides us time to think. Think about the opportunities, we were not looking at. It provide us chance to self introspect. It allows us to do SWOT analysis in a fair and realistic way.

Our knowledge about our businesses and processes needs streamlining. More focused approach to business execution is required. It is a time to think about talent who will bring real value to business. Real talents will have challenging time to prove their worth.

New leaders will come up to show their talents and their style. They will explore the new world of technology. They will bring about every change that is required and then to become inevitable.

It's a time for new generation to start revolutionary thinking to bring new results. Market has to think differently. Economies will be market driven again but market intelligence will go a sea change. Dynamics will change. Industry structure will change. Cost structure has to be changed.

Cost reduction in this new era will not be about minimizing use of resources or cutting down on investments but it's about finding new alternatives which will bring about better returns.

It's about finding newer avenues for your resources. It's about building new muscles. Non remunerative resources have to be identified for elimination but priority should be to find out new avenues wherein each piece of our resources will prove remunerative.

We need new technologies. We need new leaders. We need new ways to look at our business and the cost structures.

We need to eliminate market inefficiencies and supply chain barriers. All our negotiation has to be win-win. Cohesive awareness in creating industry wide improvement in cost structure needs to be followed. We have to come out of our narrow vision of Value Added concept to broaden our horizon for newer concept of value creation and cost improvements.

We need to adapt to change quickly and mobilization of resources has to be cost effective. Better mobilization without diminishing the value is critical for success and to create positive results.

We have to create newer case studies for our better tomorrow. I wish a prosperous New Year 2009 to every one from Indian and the international business community.

And, those who have been fired. Be an Enterpreneur if you known any exploitable opportunity.

You will see great years ahead. :)