In the previous article, we saw how products and customer journeys are changing. Now we let's see what McKinsey predicts about costs and manufacturing.
Costs
Sophisticated analytics techniques now allow us to take the zero-based budgeting approach. (This is about preparing budgets that are based on actual needs for the upcoming period with no regard to the previous one.)Better trade-offs will be revealed.
Integrated planning platforms enable managers to make complex decisions that balance policy considerations (for example a preference for nonrefundable tickets) with variables such as the time of year or traveler seniority.
Individual budget-plans can be revised from the top down (executives to planners) and vice versa very quickly, and so budgets will be rooted in detailed insights.
Manufacturing
Resource productivity and effectiveness can be improved with digital manufacturing. Current and new data sources combined with smarter machines will bring better productivity.
Cheap Internet-linked sensors and user-friendly tools of advanced-analysis will give workers a perfect understanding, and control over, processes that are too complex today to handle appropriately. The economic effect will be immense.
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