Explain About CGMA Cost Transformation Model

The newly introduced CGMA cost transformation model with the highly suited functionalities to the nowadays modern business environments in order to do the prominent activity of controlling costs and or monitoring it into the appropriate level to become a cost leader in each of market leading industry they operate in their selves.

This model contains six major elements those which highly interdependent with each other and or complement with each other. At the very first thing we look here that which create a cost conscious culture and it give us means, in order to be the cost leader a particular organization have to be forefront to minimize their costs than its rivals, to do this put the appropriate KPIs, create the effective benchmarks and even set the appropriate the targets in order to get their employees motivated as highly to achieve this.
And the next important thing that which highly co-related to create a cost conscious culture is managing the risks associated with that and that gives us the look what are the risks? risks happens whenever we try to control the cost it may have the side effects like produce a poor quality, brand name spoils, cause of those customer distractions etc. so not one-off as with continuously organization have a keen on eye to assess, mitigate and manage such risks still be important.
In order to do the both aforementioned functions basically we need to make a deep analysis to find the exact cost drivers that which drive each of every costs and source ones for the costs. So find the drivers, use the proper cost accounting and control mechanism to keep the cost lies within the appropriate level for example very popular full cost accounting tool Activity based costing.
Then the rest of things in the cost transformation model are make our current and potential products profitable and our main aim is to generate the optimum profit as possible from our products so through with the effective use of this cost transformation model to ensure our current products produce profit as well as for our potential products too and those may be in the design and development phase like that so make the cost planning and assessment and if necessary change the design or production methods product mix and even our trading strategies or marketing ideas. And last and additional item in the model is sustainability and social concern as far as how important which to make the profits it is being the top responsibility at the the same time we have to protect our environment and also keep the social concerns as possible as we can at higher level because of it may be create the fictitious image like a short run cost but honestly it'll generate the sustain profits in the long term.
Business Case Studies (Ex: Tata steel, British Gas etc.) explains even much more things deeply as related if needed.