Why is it time for the intelligent enterprise?

The Consumer Packaged Goods (CPG) industry is undergoing a revolution powered by digital. CPG companies need to move to modern and become intelligent enterprises to thrive in this radically different environment. The traditional value chain is breaking up and reconfiguring along multiple new paths. Consumers are looking for direct personalized relationships with brands that understand them and provide experiences that are constantly changing and adapting to meet their needs. CPG companies that once confidently pursued a single business model are now having to reinvent themselves to become an intelligent enterprise in this radically different environment.

New technologies hold the key—that means making use of advanced analytics to generate new insights, AI and robotics to transform the speed and agility of operations, and blockchain and IoT to transform the supply chain. However, CPG companies today are struggling to achieve the needed agility and speed due to their large, central ERP core systems.



How to make the move to a modern intelligent CPG enterprise

The evolution to an intelligent enterprise will hinge on three key aspects:

  1. Simplification of the core business
  2. Standardization of commoditized services
  3. Innovative capabilities built on new digital technologies

The intelligent CPG enterprise is built around a digital core with data at its heart. Enterprise master data solutions provide must have data consistency across the whole organization. Around this core is an application program interface (API)-based technology platform that allows data to be exposed and consumed by other internal systems and by external organizations. Innovation is driven by a set of new technologies and solutions which enable capabilities that are owned and managed in a product-centric manner and accessed by employees, suppliers, consumers and customers.

What are the principles of the intelligent CPG enterprise?

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Data is at the core

Data is the new currency in the era of intelligence. Companies must control critical data and build cross-functional data assets and insights.

API-lead integration

Digitally decouple platforms and enable reuse of data and integration standards for multiple services and a multi-speed IT delivery.

Focus on user experience

New integrated platforms to drive growth, profitability, engagement and productivity—build analytical solutions to gain insights into user behavior.

Variable IT consumption

Move to solutions that provide more flexible pricing models to allow the flex of cost to consumption.

Continuous delivery

Organize the IT delivery function to deliver new IT services to the business to meet the changing requirements from consumers, customers, suppliers and the workforce.

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Enabling the intelligent CPG enterprise with new technologies

Modern CPG businesses all have certain characteristics: customer and business agility, real-time insights, as-a-Service models, etc. These rest on some core foundations: data, platforms, new processes, and talent and skills augmented by machine intelligence. One common feature will characterize every transformation into an intelligent CPG enterprise: the need to achieve and demonstrate value from progressing to new technologies as the digital core.

With SAP® technologies and Accenture myConcerto capabilities, CPG companies can have not just a clear vision for their destination, but also a planned and scoped approach for getting there as rapidly as possible at every stage of the transformation journey.

Becoming an intelligent enterprise in today's CPG market is non-negotiable.

Alberto Cavalli

Managing Director – SAP Services CPG, Europe & LATAM


Kim Madsen

Managing Director – SAP Services CPG, North America

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