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Moving beyond ERP to the digital enterprise—Infographic

Accenture takes CPG companies on a journey to understand how they can leverage their ERP investment as part of a digital enterprise transformation.

Overview

Accenture outlines how consumer goods companies can leverage their ERP investment as part of a digital enterprise transformation.

CPG companies will find this necessary as they struggle with a frenetic market driven by three trends: globalization, emerging middle-class consumers and digital adoption. An integrated ERP environment can help companies enter new markets and deliver better outcomes at lower cost.

Infographic

Consumer Goods: Beyond ERP to the Digital Enterprise–Infographic

Drive Value

The migration to a digital enterprise calls for realizing maximum value before, during and after an ERP program. Most companies don’t realize the potential of their technology investments because, according to a Gartner study of 186 companies, only 37 percent actually measure the value delivered. 1

The few winners that are maximizing the value of their ERP platforms are organizing their global IT to proactively drive Value Realization into the business through an effective business partner organization, strong global process ownership and solution ownership. A key element of this winning approach is to focus on the steps that impact business outcomes and customer value by exploring end to end Value Generation across processes and functions rather than following a bottom-up approach.

As budgets continue to get pinched, consumer goods companies must pay more attention to getting value from ERP investments. And, as they grow globally, the need for one single global process model is all the more important. Taking these steps will help your business to begin to optimize processes and unlock hidden value.

  • Sweat your assets. Is every IT asset contributing to business outcomes? Some companies make significant investments in systems, yet they don’t have skills or a culture that will make use of the asset.

Select top down value drivers with typical high value impact to create a prime value chain. And, using KPIs, measure how each process has impact on these value drivers.

  • Look back to move forward. Every large program goes through compromises—budget cuts or aspects that are cast aside because they aren’t a priority. Don’t forget these trade-offs forever. Look back because you may have discarded processes or capabilities that will deliver more value.

  • Elevate performance. After an ERP solution has been implemented and is up and running, it is a good time to make sure your business is getting what it needs from technology vendors. Can core functionality be extended? Are there opportunities to scale across geographies? There should be continuous improvements to bring new innovation to process.

Through it all, look at your performance compared to peers in terms of financial performance, process efficiency and harmonization, ERP program cost, state of ERP solution and total cost of ownership.

Accenture helps consumer goods companies to realize the value of their ERP investment and boost efficiency and effectiveness across global operations by bringing together all of the necessary components—from diagnostics to process improvement services—to deliver quick value and also ongoing innovation.

Gartner RAS Core Research Note G00205812; Bill Swanton; August 20, 2010.

Global ERP Foundation

Strategic Scaling for Business Outcomes at Speed

Globalization is driving CPG companies to rethink and reshape their business model so that they may profitably serve more customers with relevant, desirable products. Transforming the operating model to enable integrated global business services will revolutionize how companies organize and deliver front, middle and back office services across corporate, business units and regional entities.

In the past, companies have implemented ERP solutions that support individual areas. This fragmented approach has only enabled progress in pockets. A single, integrated ERP environment is what will connect global processes in a way that gives your business the agility to enter new markets and deliver better outcomes at lower cost.

While the destination to achieve standardized global business services may be quite similar, the journey to getting there may be different based on a company’s current ERP landscape. From newly implementing, expanding, consolidating or fine-tuning ERP systems, Accenture brings the people, process and technology assets to accelerate the path to value.

  • ERP strategy built to deliver on business imperatives. We help our clients to clearly derive the right ERP strategy in terms of architecture, level of standardization of processes and solutions, number of instances, investments, benefit cases and timelines.

  • Rapid results. As a leading global systems integrator for ERP platforms, we have built a set of leading practices, processes and technologies that are packaged for deployment. Our clients get more predictable, high-quality results, faster with less cost and risk. Accenture Enterprise Services for Consumer Goods, the Accenture industry vertical on SAP, contains proven processes and solutions to help our clients offset costs and deliver a seamless solution within the desired timeline.

  • Industrial strength. We bring a consumer goods-specific delivery model for SAP solutions that integrates technology, functions and processes in our offshore Consumer Goods Factory for SAP. Having our consumer goods and technical experts in one location encourages collaboration and innovation, ensuring even more predictable, repeatable and reliable service as well as ready-to- use, plug-and-play flexible capacity to deliver work to our clients.

  • Technology innovation. Accenture collaborates closely with SAP to leverage the potential of emerging technologies. Our CPG clients build competitive advantage by harnessing the value of advanced analytics, business intelligence platforms, cloud computing and more.

Whether your CPG company is embarking upon its first ERP rollout, you are rethinking existing architecture or you are ready to win in new markets, we bring global ERP-enabled operating models that reduce the complexity and risk of worldwide operations while containing costs and boosting productivity.

Beyond ERP Business Integration

Enhancing the Core

Consumer goods companies have traditionally leveraged ERP solutions to automate processes and support end-to-end enterprise-wide integration while implementing regional or global operating models.

Standard ERP deployment integrates discrete functions such as order to cash, finance, controlling, manufacturing and procurement. Yet your business is managing core functions that extend far beyond those that fall within the traditional ERP scope. CPG companies aiming to become a digital enterprise can begin a logical evolution from this ERP foundation.

  • The focus on back-end standardization of global operations has neglected multiple front-office domains such as retail execution, customer service, trade promotion management, product innovation and product lifecycle management processes as well as the extended supply chain including enhanced capability in integrating manufacturing, warehousing and transportation. For these areas, many companies have been integrating legacy and country or brand-specific solutions which are now poised for further improvement.

  • Extending the core ERP project to areas such as supply chain management, F&A, warehousing, CRM, human resources and global S&OP can replace local or legacy solutions with ERP functionality that flexes with the changing needs of the business. Making front-office functions, such as sales and marketing, part of your ERP program will better equip your business to deliver a personalized, differentiated and seamless experience that fulfills your brand promise across channels. Extending the ERP to these additional areas also allows the business to easily upgrade to new features and functions—and leveraging the latest technologies is essential for winning today’s tech-savvy digital consumer.

  • Consumer goods leaders understand that in these domains, one size does not fit all. They must balance the high degree of peculiarity with the need to drive standardization of processes, data and solutions to drive scale and leverage leading practices. This can be done through the application of an archetypes model when building capabilities. As an example, in the front-office and secondary distribution space different markets can be grouped around a small number of archetypes representing different route to markets. Also, in the manufacturing and supply chain space, processes and solutions may be grouped based on category differences.

A mix of prioritization and change management will help facilitate this evolution.

  • Design and deploy by Archetypes. “One size fits all” and “every market is different” are approaches that have lead to failure in extending the Core. Define your “North Star” Business architecture balancing complete localization and full standardization grouping similar processes and capabilities in Archetypes to accelerate deployment, reduce costs and increase speed to value.

  • Be smart about scope. You can’t do everything at the same time. Many companies try to put too much in the scope for an ERP deployment. Set your sights on initial strategic initiatives that will yield greater value for the business.

  • Align stakeholders. The technical complexity with ERP deployment calls for a robust change management program that helps users to adapt to change while fully leveraging the data, logic and processes that live in the ERP system.

Accenture has extensive experience in helping clients to set up enhanced capabilities beyond the boundary of the core ERP platform.

Using a proven approach to defining archetypes and delivering processes and solutions, our consumer goods clients are effectively designing, building and deploying new capabilities on a global scale to extend the core and improve performance in supply chain, front-office, and back-office.

We bring a deep understanding of CPG industry challenges and couples that with solutions and approaches that address these challenges. Through a mix of core SAP and an approach that accelerates change management adoption, we help deliver clear value to your business.

Unleash the Power of Enterprise Analytics

Unlocking Greater Insights

Analytics has become essential in today’s fast-paced, data-charged CPG environment. Many companies have layered analytics solutions on top of SAP systems, but frequently this has been done on the back of large ERP programs, not always getting the proper focus and priorities.

As a consequence, many companies have not been able to fully exploit the power of standardized regional or global ERP platforms built with best-in-class enterprise analytics that integrate external customer and consumer data sources.

Furthermore, some of the implemented technologies are, by now, possibly obsolete compared to the modern in-memory technologies that allow faster processing of large amounts of data, and also sophisticated real-time analysis that can help the business make the right decision in the right moment and ultimately drive value.

Leading-edge descriptive and predictive enterprise analytics can help fuel the move to a digital enterprise by delivering new levels of insight. For example, SAP HANA® unlocks analytic insights from within the ERP system to help your business overcome traditional issues, and also make more informed decisions across the enterprise.

Accenture provides CPG-specific, end-to-end analytics solutions that run on the SAP HANA® platform. Solutions are based on an Accenture proprietary CPG data model and on a set of more than 1,000 industry-specific KPIs covering marketing, sales, promotion, the field force, supply chain logistics and finance. Solutions can be delivered as a public or private cloud service so your real-time enterprise can get game-changing insights at all times.

Pay-Per-Use

Adapting the IT Environment

Through the transformation to a digital enterprise, your organization becomes more fit, fast and flexible with a global operating model that extends the reach of your ERP from core functions to consumer-facing areas of the business. The IT services to support the new nimble business should also be scalable and agile. Outsourcing various IT functions can meet the needs of the digital enterprise and also reduce risk, increase efficiency and save money.

  • Service options. Pay-per-use IT services may include application development, application outsourcing and infrastructure outsourcing. Accenture helps clients to reduce application costs from 20 to 50 percent and increase speed to market by 10 to 50 percent through agile application development. Network outsourcing can improve scalability, minimize network downtime and reduce network operating costs by 10 to 20 percent.

An outsourcing partner can also identify smaller service units (development, testing, training or infrastructure management services) and offer one standard interface at a set price.

  •  Industry-specific. Accenture enables continuous improvement in cost, service levels and innovation through our ongoing investments in SAP solutions. We have created the Accenture Consumer Goods Solution Factory for SAP to suit all SAP demands, providing companies with best-practice solutions based on deep industry insights.

  • Cloud-based. Cloud computing has fundamentally changed the landscape of technology and business, allowing its adopters to access standard technology services and also harness emerging technologies such as social media, mobility, big data and advanced analytics. Unlike in a traditional IT environment, cloud services are available 24/7, enabling predictability of price and service.

Reliable, scalable IT services that drive efficiency are a must for a digital enterprise in today’s nonstop CPG environment.

Digital Infrastructure

Digital, networked, real-time enterprise

Technology platforms are increasingly being used to not only to better automate and integrate processes and enhance usability of solutions, but to support relationship interactions and strengthening connections among different “personas” such as Consumers, Retailers and Employees.

This has enabled new business models allowing enterprises to us more business partners and better integrate with their value chains both upstream and downstream. This is often done by moving some processes to the cloud, and operating in a networked fashion with externally managed services in a pay-per-use model.

Moreover, the advent of in-memory technologies and the ability to embed analytics into business process is also enabling the redesign of enterprise processes to shorten cycle times, implement sense and response virtuous loops, connect information along value chains and ultimately run a real-time business.