SG&A stands for "Selling, General, and Administrative" expenses. It is a category of operating expenses that companies report on their income statements. SG&A expenses encompass the costs associated with running a company's day-to-day operations and selling its products or services, but not directly tied to the production of goods or services.
SG&A expenses are important for investors and analysts to assess a company's operational efficiency and overall financial health. A high SG&A ratio relative to revenue can indicate that a company is spending a significant portion of its revenue on non-production and non-core operational expenses, which can affect its profitability. Conversely, a lower SG&A ratio may suggest better cost control and operational efficiency.
CSPs can lower their SG&A costs by sweating slow legacy assets and transitioning to a flexible BSS. Infonova SaaS BSS is secure, pre-integrated solution delivered as a SaaS, which not only reduces costs but also enhances automation, speeds up time-to-market, and eases the burden of operational and maintenance tasks.
When it comes to cost of sale, a digital marketplace can significantly decrease SG&A expenses. Platform solutions incur minimal additional costs as they grow, benefiting from economies of scale. A digital marketplace can offer flexibility and adaptability by seamlessly integrating with and enhancing a CSP‘s existing IT infrastructure. Through APIs, it can continuously evolve to deliver compelling customer experiences. With a digital marketplace, customer journeys can be digitized, reducing overhead costs. A digital marketplace also automates the co-creation of solutions within a partner ecosystem – CSPs can leverage these simplified processes to better serve their customers' needs and reduce cost of sale.