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Challenges with technology infrastructure are the biggest barrier to enterprises looking to improve their margins by cutting costs, according to the 2024 edition of Deloitte’s MarginPLUS survey.
Deloitte polled nearly 300 business leaders on business margin improvement and technology transformation efforts, and found that 82% reported their companies had missed cost reduction targets. The number of respondents who named “challenges with technology infrastructure to meet new internal business conditions” as a barrier to success rose from 31% in the last edition of the survey to 50% in 2024.
Other top challenges in 2024 included being unable to rapidly change cost structures (48%), attract or retain talent (43%), or enable digital infrastructure to meet new external business conditions and scale (40%).
“Over half of the respondents said data and [generative] AI strategies was where their focus would be in the upcoming year for margin improvement strategies,” Annie Adams, a managing director in Deloitte’s mergers, acquisitions, and restructuring practice, told IT Brew. “Companies are really trying to figure out how to use data better.”
Read more here.—TM
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