Cloud computing has the potential to completely
redefine what it means to be a consumer goods company

While some CPG companies are using cloud innovatively to engage more directly with consumers or transform their operations, the majority are using it to drive efficiencies or incremental growth. Forward-thinking companies can achieve first-mover advantage with cloud in the new era of value-creation by focusing on how it enables innovation.

Today’s Strange New World

­Offers tailored to individual consumers where and when they need them. In their preferred size, color and formulation, of course.

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Based on a mélange of past preferences, gauge what consumers will want before they even know they want it. Create demand.

Cloud-enabled devices allow CPG companies more direct access to the end consumer than they have ever had for a one-on-one relationship.

Customized offers and products that anticipate needs, all available through a consumer’s preferred device? That is consumer nirvana.

The possibilities are endless.
But to pursue them, CPG companies must address new challenges

Meet the growing demands of “always-on” and “always-connected” consumers

Deliver differentiated products and services that consumers in developed markets now expect

Penetrate in fragmented,
fast-growing emerging markets

Cloud computing can help companies:

Engage with connected consumers

Optimize routes to market

Build agile operating models that can boost competitiveness

The good news? Cloud adoption is already gaining momentum in the CPG industry.

Also:

  • 12% of consumer goods and services IT workload has moved to the cloud—2x the global average.
  • There is now less concern about issues of cloud security and reliability.

Where CPG companies are currently exploring cloud:

Reimagining their:

  • Infrastructure-as-a-Service (IaaS)
  • Business-Process-as-a-Service (BPaaS)

Transforming their operations:

  • Divestiture management
  • Greenfield startup support
  • Application management
  • Brand asset management
  • Crowdsourcing for business
  • Big data compilation/data discovery

Yet, potentially game-changing opportunities remain untapped. Why?

Cloud investments are not aligned to strategic imperatives

The use of cloud is limited to functional, non-core areas

A lack of vision for how the cloud can enable larger-scale transformations

What areas hold big opportunities for CPG companies?

­Untapped potential

  • Cloud-based enterprise innovation management platform that captures and connects
    employee, consumer and consumer insights
  • For more ideas on how cloud can help, view the slideshare.
­Untapped potential
  • Geo-spatial recognition for offers
  • For more ideas on how cloud can help, view the slideshare.
­Untapped potential
  • Cloud-hosted store intelligence to help identify the need for product variants that match
    consumer preferences
  • For more ideas on how cloud can help, view the slideshare.
­Untapped potential
­Untapped potential
  • In-store intelligence to recognize supply chain gaps
  • For more ideas on how cloud can help, view the slideshare.
­Untapped potential
  • Research reveals: in the consumer goods industry, future spending will be dominated by
    emerging markets. The growing middle-class in these countries is expected to produce
    more than 1 billion new consumers by 2020.
  • For more ideas on how cloud can help, see view the slideshare.
  1. Source: Mario Pezzini, “An emerging middle class,” OECD Observer, 2012. Retrieved on February 15, 2015 from http://www.oecdobserver.org/news/fullstory.php/aid/3681/An_emerging_middle_class.html

The time to act is now.

When used to its fullest advantage, cloud computing can make 360-degree connectivity a reality. CPG companies that successfully transition to the cloud with a bold strategy will enjoy the benefits of first-mover advantage. The field is wide open. The opportunities are there for the taking. The time to act is now.