Consulting case studies

Jun 09, 2016

Cutting costs to grow stronger

A global software business unlocked tremendous value by transforming its cost structure and operating model to enable growth

Client challenge

Transform its cost structure and operating model to position itself for future growth by:

  • Addressing the organizational and operating model challenges resulting from recent acquisitions and industry shifts (license to more of a ‘software-as-a-service’ position).
  • Identifying cost savings and process and operating model streamline opportunities.
  • Planning for investment in the most promising growth areas of the business to enable future grow.

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PwC’s solution

Define and help implement turnaround initiatives by:

  • Applying our Fit for Growth* methodology to analyze and target specific areas for cost reduction, operating model transformation, and investments.
  • Collaborating with company leaders across the business, HR, Finance, and Operations to help design the new operating model to improve efficiency and reinvigorate growth.
  • Transforming the organization by improving its global workforce.
     

* Fit for Growth is a registered service mark of PwC Strategy& LLC in the United States

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Impact on client’s business

Successful repositioning and $100 million in uplift in year one:

  • The company achieved $100 million in EBIT uplift in the first year and identified an additional $150 million in year two.
  • It has the potential to find a total of $378 million in uplift.
  • The operating model transformation enabled the fundamental repositioning of the business and its right to win.

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"PwC and the client identified $378 million in total potential EBIT uplift for the company, and in year one it was able to take $100 million out of its costs and reinvest it in its most promising growth areas."

Contact us

Vinay Couto
Principal, Strategy&
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Rodger Howell
Principal, PwC's Strategy&
Tel: +1 (708) 267 0590
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John Plansky
Senior Partner
Tel: +1 (617) 521 8801
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