Consumer goods and services companies are moving to the cloud. In this part of our blog on the Consumer Goods and Services industry and cloud, we’ll answer the question, “Why cloud?” In part 2, we’ll examine the overall cloud journey and how to create a roadmap for change.
Consumers aren’t buying the status quo.
If you’re an incumbent, you see smaller, nimbler consumer packaged goods players capturing consumers’ hearts and minds—reinventing core experiences such as home dining, delivery, grocery shopping and health.
As CG&S companies from beverages to cosmetics redesign their business model, many are turning to cloud solutions as a way to deliver new capabilities at speed. Their CIOs see cloud as not only a way to reinvent and streamline massive IT estates but, more broadly, significantly improve overall business performance.
In an era where the options to expand profitability through cost control have mostly been exhausted, CG&S businesses are beginning to focus more urgently on growth and on taking advantage of digital technologies and a more consumer-centric approach, powered by cloud.
Early adopters in CG&S are becoming increasingly comfortable with the cloud. They are realizing the value cloud delivers in providing rapid access to new technologies to support direct-to-consumer business models, and to transform sales and marketing as well as a range of other business processes and functions—from HR and knowledge management to the back office.
Among other benefits, cloud offers CG&S companies the means to:
Beyond ERP CG&S companies have a great opportunity to embrace cloud as a wider business-enabling tool. Rather than simply managing business functions and processes, cloud can set the pathway to real growth.
Consider a leading French clothing company that quickly established a digital presence in China with a cloud-enabled, multichannel e-commerce solution. Or a global manufacturer that migrated its inventory and warehouse processes to cloud, vastly improving data loading and execution performance.
We see four areas in particular that have potential for positive disruption in the CG&S space—all facilitated by cloud.
Today we see CG&S companies largely adopting low-risk, as-a-service models in the form of SaaS, IaaS or PaaS or archiving data in public cloud—all used at the fringe. However, we’re also seeing market leaders trying to understand the business case for cloud (private vs. public, among other debates) and how cloud can generate value other than merely driving cost reduction.
In part 2 of this blog series, we’ll look at how to turn that business case into a concrete roadmap.