The Cost & Margin assurance is important to mitigate the root cause areas of leakage such as hosting cost of unused/redundant assets, higher level of equipment failures than expected, customer does not achieve the expected margin etc. If not followed it leads to challenges like:
- Not all costs are considered when calculating margins which provides an inaccurate view of borderline products / customers / partners.
- Not all revenues as per reported financials are mapped when calculating margins.
- Most margin management programs do not cover the length and breadth of all products & services offered.
- Complex dashboards that provide very little actionable & measurable outcomes