Consumer goods companies, many of which have been around for over a hundred years, often operate on long held implicit orthodoxies—certain truths that dictate how they approach markets and consumers, and how they make decisions. Now, in an increasingly volatile age, a number of these truths no longer hold true, or at least need to be challenged. Here are five you may want to reconsider in order to boost your competitiveness in the digital age.
Here are the five “truths” that are now untrue:
CEOs need strong regional organizations in to deliver commercial results.
Markets should be split between “developed” or “emerging”.
You need more than two layers to make solid decisions.
It’s all about functional excellence.
In consumer goods what matters in digital is the vision.
5 trillion reasons for consumer companies to go digital now
With the advent of digital and advances like one-click purchasing, consumers are making companies work harder to earn their money. And the consumer industry has responded, transforming every link of the value chain. But exactly how big is the prize for players that adopt digital approaches? According to new research by Accenture and the World Economic Forum it is estimated that over $5 trillion in societal impact can be found through cost savings and productivity improvements for consumers and environmental benefits for society.
Instead, here are the “True Truths” steering consumer goods companies toward increased competitiveness in the digital age:
The region as a center of gravity is dead, or dying.
Instead of an emerging versus developed market approach, companies should define “archetypes”
Three’s a crowd—agility means being confident of two layer decision making.
Outcome-based, cross-functional integration is key
What’s important about digital is execution.
Managing Director, Accenture Strategy
Till Dudler is a managing director in Accenture Strategy and the industry lead for Consumer Goods & Services for Europe, Africa, and Latin America. Till focuses on helping executives drive better strategic outcomes, with a particular emphasis on operating model development, growth strategy and cost competitiveness. Till has more than 14 years of experience working for Accenture. He is based in London, United Kingdom.