The impact of innovative approaches to cost management on enterprise profitability

Abstract

In the context of high competition in the market and global economic changes, effective cost management is becoming one of the key factors of financial stability and success of enterprises. The purpose of the study is to assess the impact of innovative approaches to cost management on the profitability of enterprises, as well as to develop practical recommendations for improving the efficiency of management processes through the use of modern technologies and management techniques. The work is also aimed at determining the role of digital technologies in the process of cost optimization, as well as considering the implementation of innovative cost management methods in small, medium and large businesses, with an emphasis on global and national economic features. The research methods include the analysis of modern approaches to cost management, the processing of statistical and empirical data on the implementation of innovative technologies in management processes, as well as the use of theoretical and practical models of cost optimization. The research process used methods of comparison, trend analysis and correlation analysis, which allow determining the effectiveness of the use of new technologies in various industries and types of business. The results of the study show that the implementation of digital technologies, such as cloud services, big data analytics, process automation and the Internet of Things, has a significant impact on cost optimization and increasing the efficiency of enterprises. The use of big data analytics allows you to reduce operating costs by 15–25%, which indicates the importance of such tools for increasing profitability. It is shown that Lean and Six Sigma methods demonstrate high efficiency in reducing costs and improving product quality, which is an important aspect for global companies such as Toyota and General Electric. As a result of cost optimization using innovative methods, companies can reduce production costs by 20–30%. However, in Ukraine, so far, these technologies are actively implemented only by large enterprises. The results obtained confirm the importance of state support for stimulating investments in technologies necessary for reducing costs at all stages of the production process. Conclusions. The use of innovative approaches to cost management is not only an important tool for increasing the efficiency of enterprises, but also a factor ensuring their competitiveness in the global market. Enterprises that implement modern technologies are able to significantly reduce costs and increase their profitability, which is important for ensuring their financial sustainability. At the same time, it is important for small and medium-sized businesses to provide state support in the form of financial incentives, tax breaks and consulting services, which will allow them to more effectively implement innovations and achieve significant results. In Ukraine, it is important to intensify the implementation of digital technologies in small and medium-sized businesses by creating a favorable economic environment that will allow enterprises to reduce costs and increase profitability by using the latest cost management methods.