COST MANAGEMENT PROFESSION .....AT EXISTENCE RISK SERIES 1

Every profession will change and will either exit or new dimensions will come forward.   The last several decade's rules and the new decade rules are different. We need to understand how the profession is at the doorstep of risk and where we are heading. The coming decade is a threat unless new subjects and strategies for placing within the industry are not being taken by the cost accountant profession. The time has come for the cost accountants and the subject dominance to come out of the fool’s paradise and think for the new decade and where it gets placed.  Cost management has changed radically and will very soon come to an end where different professionals will control the subject and expertise, showing the path of exit to the profession. Its time to come out of the professional development paradise.

This article raises the thought about the survival in the long term and also the value of the expertise dominance which cost accountant and cost management profession enjoyed. The article is to enlighten the thought for the betterment of the profession and not to degrade. If you take every note of the article it will help to improvise.

 Praising about a profession and placing assumption that the professional development will happen then one needs to understand that this is not 2008 neither 2015 but it is a new decade. It is very easy to say that the profession of cost management has a huge role  in USD 5 trillion GDP. Well, the following few things will change your thought and will give more clarity to the end-user.  Don’t criticize AI and IoT since they have taken control of the subjects of cost management long back and data analytics and professionals are better advisors than a new or old cost accountant. Technology has replaced the players.

One needs to think where we are heading and where the expertise of subject is moving away. Further one must understand that the lower end of the pyramid always struggle and their voice is ignored often. Professional development has been fool’s paradise and in 2020 henceforth it is next to impossible to impress through this model. The ground at the job level speaks a completely different story. In the past we have seen that whatever development has been done the current status at the lower end has only fallen rather rising above. Thanks to inflation for increasing the competition and giving a respectful salary to a new cost accountant while joining a job.

One more thing PSU are no longer going to remain PSU hence private dominance will change the rulers and current expectation in the future. Are we prepared for the same? The last several decades PSU helped us but not in the coming decades.

Artificial intelligence is helping to find the cost-benefit analysis followed with cost optimization strategy. MBA in finance and other qualified professional will be easily able to develop strategies and create cost optimization strategies. Nanotechnology and IoT has changed the rules of cost management and marginal costing of production is now next to zero. The loss-making business model in the initial days and then making a profit does not need cost audit neither cost advisory. Big data analytics and quality systems are driven by technology are advising managements about business strategy and strategic cost management. So why cost accountant and the professional expertise will be required?

Business models are no longer expensive. The cost has come down with the blessing of technology. Professional expertise has been replicated through various different courses which provide efficient training to manpower to become cost advisor.

The dream of India of USD 5 Trillion is no longer based on the low cost of production. It is dependent on the technology-driven process and strategy development. 5G itself is sufficient enough to open a million low-cost service and manufacturing business. Youtube and overseas courses through e-education model have changed the rulers of the cost management subject. Cost Accountant knowledge and expertise of cost management are no longer required where various other exceptional better sources of knowledge are available.  Various Management degrees have adopted and have trained on the practical basis of the cost management subject.

Doing data analytics and creating patterns and recruiting data scientist has changed the guards of the profession. Technology and the speed is changing the dominance of the profession on its subjects. Why a professional will be hired in the coming decade is the question to think over?

Inflation and cost of production cannot be kept low for a longer duration of time. The capitalistic mind plays the game over the decade and changes the demography of an economy.  Export is no longer the long term survival tool for any economy has been proved well in the Trade war story. Hence low-cost production and the export-driven economy is no longer going to be sole objective for India neither for any economy. Hence cost management is not required and neither the professionals.

Government of India wants growth and growth, not at low cost but based on consumption-driven on loan and capitalism. Cost is no longer hunger. Profit and higher ROI is the target where loss-making business models and Private equity are the players of the game.

Every person on the street knows about cost management and how to control. Various courses have taken away Target costing, Life cycle costing, product costing subject dominance from the profession to the Graduates and Under Graduates. Income tax and vat is no longer the property of any profession but a way of employment for the Graduates working as a consultant.

Now if the situation of the profession is at such risk then, where and how we find the place to stand in the next decade? What changes we need and how we plan to make those changes to the next level of the subject dominance? What type of practical training will be required and where we place the subject to be a pathfinder for the government of India? When ease of doing business is the competition then why several types of auditing standards and audit reports will be imposed on the various industries in the new decade?  

We spend millions on Conference and for professional development but what we are doing in real tersm for saving the same coming decade from so many challenges?

This is the 1st Series,I will come up with the 2nd series to what needs to be done and take forward the profession to the next level.