Download - Kees Jacobs presentation on Innoday
In collaboration
with
New Realities in Brand Engagement to Meet the Needs of the Empowered Consumer
Kees JacobsINNODAY
March 10th
Stockholm
2© 2015 Capgemini and The Consumer Goods Forum. All Rights ReservedRethinking the Value Chain: New realities in collaborative business
The CGF Board initiated this study to address the new realities in collaborative business
Board Co-Sponsors of The Consumer Goods Forum’s End-to-End Value Chain & Standards Pillar
Muhtar
Kent
Chairman & CEO
The Coca-Cola
Company
Motoya Okada
President &
Group CEO
AEON Co., Ltd
The Consumer Goods Forum (“CGF”) is a global, parity-based industry network.
It brings together the CEOs and senior management of 400+ retailers, manufacturers, service providers, and other stakeholders across 70 countries.
3© 2015 Capgemini and The Consumer Goods Forum. All Rights ReservedRethinking the Value Chain: New realities in collaborative business
New thinking emerged from collaborative visioning
The Consumer Goods Forum is pleased to invite you, as a leader in the Consumer Goods Industry, to participate in a workshop that will help define the future of our business.
4© 2015 Capgemini and The Consumer Goods Forum. All Rights ReservedRethinking the Value Chain: New realities in collaborative business
What’s different now?
Demand access to More and Quicker
information in order to trust the products
they (consumers) buy and the
companies that serve them
Population shifts and the rising middle class in developing nations.New product, service,
distribution and accountability models
will be focused on consumers and
communities
Social media, mobile and wearable
technology, IoT, advanced data analytics, 3D
printing, robotics - changing the shape
of our industry
Scarcity of natural resources and need
for more efficient, ethically sourced production while reducing waste
Traceability of materials and
ingredients together with environmental
sustainability
5© 2015 Capgemini and The Consumer Goods Forum. All Rights ReservedRethinking the Value Chain: New realities in collaborative business
At the heart of it all…the empowered consumer
connected to the web by 2025
87%
tweets per second
US consumers consider where a product is made before buying
5bn
TRUST
CONNECTIVITY
SHARE OF VOICE
SOCIAL NETWORKS
SUSTAINABILITY
98,000Greater reliance on social media for information gathering/sharing vs. traditional channels
56% of shoppers want to know where their food comes from
of consumers want more meaningful interactions with brands
70%won’t buy from a company they don’t like
90%
6© 2015 Capgemini and The Consumer Goods Forum. All Rights ReservedRethinking the Value Chain: New realities in collaborative business
Example: what could urban living look like in 2025?
7© 2015 Capgemini and The Consumer Goods Forum. All Rights ReservedRethinking the Value Chain: New realities in collaborative business
We need to evolve towards value networks organised around consumers
8© 2015 Capgemini and The Consumer Goods Forum. All Rights ReservedRethinking the Value Chain: New realities in collaborative business
Example: Future Value Networks organised around ageing consumers
9© 2015 Capgemini and The Consumer Goods Forum. All Rights ReservedRethinking the Value Chain: New realities in collaborative business
We see an evolution of Industry Collaboration
Mid-90s Mid-2000s 2015 – 2025
EFFICIENCY
GROWTH
Long-term growth by
NEW VALUECREATION
New Ways of Working Together
Value Networks
Col
labo
ratio
n Va
lue
Supply side Focus Demand side Focus
Efficient Consumer Response
10© 2015 Capgemini and The Consumer Goods Forum. All Rights ReservedRethinking the Value Chain: New realities in collaborative business
Enabled by Modularised TechnologyEnsuring business agility and rapid collaboration via component-based technology capabilities
The last mile of distributionReconsidering the assumption that it is an area where companies operate independently of each other, and exploring opportunities to collaborate
Consumer engagementTaking part in a dialogue with consumers, justifying their trust in the industry
TransparencyKeeping consumers informed about products’ key attributes, ingredients, nutrients and provenance as well as their environmental and societal impacts
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We prioritised 4 strategic collaboration thrusts where the industry is underperforming, which will help to establish new value creation
11© 2015 Capgemini and The Consumer Goods Forum. All Rights ReservedRethinking the Value Chain: New realities in collaborative business
The CGF Consumer Engagement Principles initiative provides a platform to build consumer trust
Consumer EngagementTaking part in a dialogue with consumers, justifying their trust in the industry
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Created and driven by the industry - for the industry and consumer
Forward looking and a ‘living’ set of principles, which will evolve over time
Creates balance between value for the business, for the consumer and for society
Links to and builds on existing initiatives, platforms and policies Aims to provide positive and pragmatic guidelines to
build/maintain consumer trust Will help industry with practical resources
12© 2015 Capgemini and The Consumer Goods Forum. All Rights ReservedRethinking the Value Chain: New realities in collaborative business
The 7 Consumer Engagement Principles
1. Simple Communications
2. Value Exchange
3. Transparency
4. Control and Access
5. Ongoing Dialogue
6. Protection of Personal Information
7. Integrity in Social Media
13© 2015 Capgemini and The Consumer Goods Forum. All Rights ReservedRethinking the Value Chain: New realities in collaborative business
For companies, this will impact consumer experiences, business operations and business models
14© 2015 Capgemini and The Consumer Goods Forum. All Rights ReservedRethinking the Value Chain: New realities in collaborative business
The ‘Leading Digital’ research of Capgemini and MIT Centre of Digital Business show that success is about both the “What” and the “How”
Dig
ital C
apab
ility
Leadership Capability
The WhatUsing digital technology and innovations to transform the
customer experience,operational processes and business models
The HowSuccessful transformations depend as much
on how firms manage digital transformation than solely on implementing new technologies
15© 2015 Capgemini and The Consumer Goods Forum. All Rights ReservedRethinking the Value Chain: New realities in collaborative business
Mastering the challenges and opportunities of digital transformationhas proven to deliver higher rates of profitability
Source: (a) Digital Transformation : A Road-Map for Billion Dollar
Organizations A joint MIT - Capgemini publication(b) The Digital Advantage How digital leaders outperform their
peers in every industry A joint MIT-Capgemini publicationHOW
WH
AT
FASHIONISTAS Many advanced digital
features (such as social, mobile) in silos
No overarching vision Underdeveloped coordination Digital culture may exist in
silos
BEGINNERS Management skeptical of the
business value of advanced digital technologies
May carry out some experimentation
Immature digital culture Transformation
CONSERVATIVES Overarching digital vision
exists, but underdeveloped Few advanced digital features Strong governance across silos Taking active steps to build
digital skills and culture
DIGITAL MASTERS Strong overarching digital vision Good governance Many digital initiatives
generating business value in measurable ways
Strong Digital culture
REVENUE PROFITABILITY
MARKET VALUATION
+12% compared to peers
+26% compared to peers
+9% compared to peers
16© 2015 Capgemini and The Consumer Goods Forum. All Rights ReservedRethinking the Value Chain: New realities in collaborative business
From the Future Value Network vision we have identified 6 Value Creation Capabilities for succesful Retailers
Reinventing the role of the store
Reinvent (and re-purpose) stores as physical and digital anchorpoints to offer the experiences and services that consumers are demanding
Serving a seamless path to purchase
Organise your commercial activities seamlessly around the dynamic paths to purchase of your consumers, accross all digital and physical touchpoints
Engaging with empowered consumers
Engage with consumers in a personal and contextually relevant manner, gain their trust and differentiate from your competition Revenue and Satisfation
Traffic and Intimacy
Loyalty and TrustCollaborating in the Value Network
Agile business collaboration to increase consumer-relevant reach and impact and to improve quality of life and of societies, eg on sustainability and health & wellness
Operating consumer centric supply chains
Organise your supply chain around dynamic consumer demands, ensuring the exact right localised product-availability in the most efficient and sustainable manner
Building a responsive insight driven business
Embed smart and actionable insights within every enterprise-wide business activity, enabling fast and right decisions and agile, fact-based operations
Availability and Efficiency
Impact and Responsibility
Profitability and Agility
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