Consumers aren’t buying the status quo.
Incumbents are seeing 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 transformation as a way to deliver new capabilities at speed. Their CIOs see cloud implementation as not only a way to reinvent and streamline massive IT estates but, more broadly, to 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, digital technologies, and a more consumer-centric approach powered by cloud adoption.
Early adopters in CG&S are becoming increasingly comfortable with the cloud. They realize the value cloud migration delivers, providing rapid access to new technologies in support of direct-to-consumer business models, and transforming sales, marketing, and a range of other business processes and functions from HR and knowledge management to the back office.
Among other benefits, cloud implementation offers CG&S companies the means to:
Rather than simply managing business functions and processes, #cloud implementation can set the pathway to real growth
We see four areas in particular that have potential for positive disruption in the CG&S space—all facilitated by cloud.
1. Sales and marketing
2. New product and process innovation
3. Forecasting and planning
4. Manufacturing and supply chain
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.
How does a CG&S company move most effectively to cloud? There are three potential paths:
Based on Accenture’s experience, we recommend starting with an infrastructure-led transformation to release uncommitted capital to be invested in future phases and facilitate broader cloud adoption. This can give companies breathing room and flexibility to explore niche areas for innovation. In a second phase, companies can institutionalize organization-wide cloud adoption to drive innovation-led growth while reducing operating costs.
Five common characteristics in the journey to cloud
Although each CG&S company’s journey to cloud is unique and tailored to individual requirements and cultures, all journeys share five common characteristics.
Creating a roadmap
The roadmap to cloud migration we recommend to CG&S companies begins with a comprehensive approach to sustain the journey. As a starting point, there are three steps crucial to arrive at a sound strategic destination.
Step 1: Identify the strategic business imperatives that are most pressing for your organization by first recognizing that cloud underpins any digital future, providing the platform, capabilities, and accessibility to meet business needs and seize new opportunities.
Step 2: Identify how cloud can potentially help reach business goals by offering several advantages when it comes to driving growth, creating agility, improving efficiencies, and strengthening resilience.
Step 3: Assess the company’s appetite for change, realizing that cloud can facilitate extraordinary change, but that delivering value from change requires a range of capabilities that are not available in every company.
Cloud adoption has introduced extraordinary opportunities for CG&S companies to transform how they conceptualize, develop, manage, and sell their products and services. When used to its fullest advantage, cloud and all its attendant benefits have the potential to redefine what it means to be a CG&S company.
#Cloud adoption has introduced extraordinary opportunities for CG&S companies to transform how they conceptualize, develop, manage, and sell their products and services
Accenture has broad and deep cloud experience and capabilities, and is developing industry cloud solutions and services to guide our CG&S clients at the pace of innovation on their journey to cloud. Find out more here.