CPG Digital Performance Index

LATEST THINKING

Last year, the top 25 US food and beverage companies drove 45 percent of category sales, but only 3 percent of growth. The remaining 97 percent of sales growth was driven by smaller players. Historical market leaders need to take steps to recapture their share of industry growth.

Nielsen Breakthrough Innovation Report, June 2016

ABOUT ACCENTURE
DIGITAL PERFORMANCE INDEX

Accenture conducted an independent assessment of 45+ CPG companies across geographies to identify performance based on four areas: digital strategy, digital production / delivery, digital consumer engagement and digital enterprise.

This “outside-in” view of a company’s digital footprint is based on publicly available data.

We see a tremendous disparity in digital performance across companies, with CPG lagging both disruptors and non-CPG industries.

Digital Performance

CPG disruptors and non-CPG industries outperform CPG companies in digital performance by a significant margin.

THE MISSING LINK:
WHAT DEFINES DIGITAL LEADERS?

PLAN

While CPGs see the opportunity, they have not merged digital initiatives seamlessly with their corporate strategy.

DIGITAL STRATEGY

83% recognize digital as a trend that impacts its markets and/or operations…

DIGITAL KPIs

…But only 22% are communicating specific financial KPIs aligned to internal digitization initiatives

LEADERSHIP (SOCIAL MEDIA)

Only 40% of CPG C-Suite leadership have been active on social media in the last month

HOST START-UP INCUBATORS

Only 28% of CPG companies host incubators (e.g. investment funds, facilities) for digital start-ups

MAKE

CPG companies employ data-heavy planning tools, but have further to go in utilizing digital technologies in designing products and managing the supply chain.

DIGITAL DESIGN

Only 57% of CPG companies have open innovation initiatives

DIGITAL PRODUCTS

49% of CPG companies are enhancing their product portfolio with new intelligent/ smart/digitized features

DIGITAL SUPPLY CHAIN (IoT)

28% of CPG companies use IoT technology to streamline their supply chain…

DIGITAL SUPPLY CHAIN (BIG DATA)

Only 53% have used big data analytics to manage the supply network

SELL

CPGs are furthest ahead in digital marketing, but still have opportunities in consumer intimacy and selling / service.

CONTENT & MARKETING

Behavior trackers, e.g. cookies, are used to monitor online activity of consumers by 85% of CPG companies

INSIGHT GATHERING

26% of CPG companies provide a users’ forum for consumers to view and comment on products and services

DIGITAL SELLING

49% of CPG companies provide consumers with a similar purchase experience digitally, off-line, and across different physical stores

DIGITAL SERVICE

49% of CPG companies provide consumers with access to self service via digital means (e.g. initiate change to order online, submit request on social media)

MANAGE

CPG companies are far behind in building their digital infrastructure, talent and organization.

DIGITAL INFRASTRUCTURE

40% of CPG companies highlight the fact that they routinely assess digital infrastructure and digital capability (e.g. IT audit)

DIGITAL SKILLS

Less than half of CPG companies provide employees with training on digital skills…

AND

DIGITAL TRAINING

…Similarly, only 47% offer employees training on digital platforms

DIGITAL ORGANIZATION

Only 32% of CPG companies have initiatives to break silos within the organization to adapt to a digital agenda

NEXT MOVE

Taking a holistic approach to the “new”—operating model transformation vs. business model transformation:

Getting started—Brilliant basics:

Be faster, more agile, more relevant—meeting consumers where they engage—and utilizing emerging technologies like AI to drive product development.

Grow the core—Extending reach through modern enterprise:

Move beyond process efficiency and resetting the cost base; transform to an agile organization that links into a broader ecosystem of capabilities and partners.