In the traditional expense process, employees are often in the clouds when it comes to knowing how their corporate footprint affects costs. It is especially difficult to track what they spend on telecommunications and IT and are often completely disconnected; because in their minds: “the company take’s care it”.
When we start treating cost management more like social media networking and less like traditional methods, a deep culture shift occurs and savings seemingly appear out of thin air!
By applying some of the key concepts which have helped mankind effectively generate mountains of information in every passing second (ie. social media: Facebook, Twitter, Wikipedia and the likes..) we can leverage the collective intelligence of the entire enterprise to control costs.
Everyone in your company should have a profile. The profile should have information about their role, the department they work in, who they report to, and the services and devices that they use. Profiles are important because it attributes a user to what they own - so when employees leave the company, services and devices don’t get lost in the process.
Social media have made our lives more transparent than ever before. In a glimpse, we can access information about what you like, where you are, the relationships you have, where you work, and even what you do for fun.
In a corporate setting, a lot of this information isn’t the business of the enterprise.. But corporate spending is! By tracking costs and making the cost visible to managers and employees you can easily align company cost management initiatives across the board.
Sharing and Collaboration
Transparency of cost information creates opportunities to share and allows for better collaboration. By having people from different departments collaborate on tasks you can make better decisions overall.
With systems integration, collaboration can be seamless. In the same way you can share an article on both linkedin and twitter simultaneously, the same can be accomplished using an expense management software (eg. Relaying information between erp and hr software).
Having access to information immediately will save on visits to the accountant; along with compiling data from multiple sources into a spread sheet and generating your own reports.
In our experience we have seen clients reduce usage by 25% in doing this one simple thing - showing employee’s what they spend! The reason they now care about these costs is because it's relevant.
This is where the real brilliance of social media is. In allowing users to manage their own profiles, create their own content, vote for ideas, host events, and even overthrow a dictatorship. It is the end users who make the whole thing work. By enabling similar functionality to your cost management system you will have users optimizing their costs proactively.