Cloud computing has the potential to completely
redefine what it means to be a consumer goods company
While some CPG companies are using cloud innovatively to engage more directly with consumers or transform their operations, the majority are using it to drive efficiencies or incremental growth. Forward-thinking companies can achieve first-mover advantage with cloud in the new era of value-creation by focusing on how it enables innovation.
Today’s Strange New World
Offers tailored to individual consumers where and when they need them. In their preferred size, color and formulation, of course.
Based on a mélange of past preferences, gauge what consumers will want before they even know they want it. Create demand.
The possibilities are endless.
But to pursue them, CPG companies must address new challenges
Meet the growing demands of “always-on” and “always-connected” consumers
Deliver differentiated products and services that consumers in developed markets now expect
Penetrate in fragmented,
fast-growing emerging markets
Cloud computing can help companies:
Engage with connected consumers
Optimize routes to market
Build agile operating models that can boost competitiveness
The good news? Cloud adoption is already gaining momentum in the CPG industry.
- 12% of consumer goods and services IT workload has moved to the cloud—2x the global average.
- There is now less concern about issues of cloud security and reliability.
Where CPG companies are currently exploring cloud:
- Infrastructure-as-a-Service (IaaS)
- Business-Process-as-a-Service (BPaaS)
Transforming their operations:
- Divestiture management
- Greenfield startup support
- Application management
- Brand asset management
- Crowdsourcing for business
- Big data compilation/data discovery
Yet, potentially game-changing opportunities remain untapped. Why?
Cloud investments are not aligned to strategic imperatives
The use of cloud is limited to functional, non-core areas
A lack of vision for how the cloud can enable larger-scale transformations
What areas hold big opportunities for CPG companies?
- Research reveals: in the consumer goods industry, future spending will be dominated by
emerging markets. The growing middle-class in these countries is expected to produce
more than 1 billion new consumers by 2020.
- For more ideas on how cloud can help, see view the slideshare.
- Source: Mario Pezzini, “An emerging middle class,” OECD Observer, 2012. Retrieved on February 15, 2015 from http://www.oecdobserver.org/news/fullstory.php/aid/3681/An_emerging_middle_class.html
The time to act is now.
When used to its fullest advantage, cloud computing can make 360-degree connectivity a reality. CPG companies that successfully transition to the cloud with a bold strategy will enjoy the benefits of first-mover advantage. The field is wide open. The opportunities are there for the taking. The time to act is now.