Five steps towards becoming an insight-led CPG
May 6, 2021
RESEARCH REPORT
In brief
In brief
- To maintain–let alone grow–market share, CPG companies must become fully insights-led enabled by the cloud.
- But, 74% say they’re struggling to scale data and analytics capabilities across their business.
- Change has to start at the top, with leaders building an insights-led culture into the enterprise DNA.
- Five no-regret steps help companies get started on becoming data and analytics-driven businesses.
Consumer packaged goods (CPG) companies have faced multiple challenges, from pandemic to a recession. Large, global companies are seeing their market share erode. Executives agree that advanced analytics are now critical and that leveraging data is essential for stealing back the advantage. Yet becoming insight-led is a real challenge.
89%
of CPG executives agree that advanced analytics are critical.
74%
of CPG executives acknowledge they're struggling to scale capabilities across their business.
CPG companies must become fully insight-led to maintain–let alone grow–market share.
Five key steps that accelerate value and business impact
- Organize end-to-end in multidisciplinary teams
To set up data and analytics capabilities, leading companies are establishing "pods" within a "hub and spoke" framework, bringing together vertically integrated, multidisciplinary and multi-business teams. The central hub sets the goals and provides an operational drumbeat. Market or functional spokes work alongside pods to ensure the correct business questions are being answered. - Develop robust analytical products by domain to accelerate value
CPGs have to shift from a static "use case" mindset to one focused on an analytical product that becomes stronger over time, prioritizing the highest-value opportunities that enable business strategy. Analytical products go much wider than one-off applications–and they should be scaled, enhanced and maintained. - Build a sustainable data foundation
Invest in an integrated and highly automated "intelligent data foundation" that provides flexible and robust access to relevant and comprehensive datasets updated in real time. To embed sustainability, make sure all critical data assets and management are in place. - Capitalize on the journey to cloud
Cloud is a vital accelerator, enabling a step-change in how CPGs can innovate through AI, big data and analytics without significant CAPEX. With cloud, enterprises can unlock speed of execution, cost savings, security and storage. With data in one cloud location, organizations can manage comprehensive toolsets and access the latest breakthrough technologies.
8-14%
Increase in ecommerce revenue
15-30%
Reduction in marketing expenses
- Unlock organizational adoption and end-user enablement
Change starts at the top with leadership’s commitment, and requires enterprise-wide adoption, embedding analytics and enhancing day-to-day processes. To succeed, CPGs must put the user–not the data–at the center of analytical products’ design.
How to start
Organize end-to-end
Define the core data and analytics team plus its current and required capabilities. Design a hub and spoke model that fits your business.
Develop robust analytical products by domain
Prioritize the domains and markets where data and analytics can have the highest impact.
Build a sustainable data foundation
Embed data control frameworks to ensure clear ownership, governance and quality. Drive data asset reusability.
Capitalize on the journey to cloud
Build company-wide understanding of cloud and establish a core IT team to lead the initiative and secure support.
Unlock organizational adoption
Lead from the top and ensure leadership commitment. Engage with end users from the beginning to understand their needs.
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