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Kees Jacobs presentation on Innoday
1.
In collaboration with New Realities in Brand
Engagement to Meet the Needs of the Empowered Consumer Kees Jacobs INNODAY March 10th Stockholm
2.
2© 2015 Capgemini
and The Consumer Goods Forum. All Rights Reserved Rethinking 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.
3© 2015 Capgemini
and The Consumer Goods Forum. All Rights Reserved Rethinking 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.
4© 2015 Capgemini
and The Consumer Goods Forum. All Rights Reserved Rethinking 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.
5© 2015 Capgemini
and The Consumer Goods Forum. All Rights Reserved Rethinking 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 98,000 Greater 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.
6© 2015 Capgemini
and The Consumer Goods Forum. All Rights Reserved Rethinking the Value Chain: New realities in collaborative business Example: what could urban living look like in 2025?
7.
7© 2015 Capgemini
and The Consumer Goods Forum. All Rights Reserved Rethinking the Value Chain: New realities in collaborative business We need to evolve towards value networks organised around consumers
8.
8© 2015 Capgemini
and The Consumer Goods Forum. All Rights Reserved Rethinking the Value Chain: New realities in collaborative business Example: Future Value Networks organised around ageing consumers
9.
9© 2015 Capgemini
and The Consumer Goods Forum. All Rights Reserved Rethinking 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 VALUE CREATION New Ways of Working Together Value Networks CollaborationValue Supply side Focus Demand side Focus Efficient Consumer Response
10.
10© 2015 Capgemini
and The Consumer Goods Forum. All Rights Reserved Rethinking the Value Chain: New realities in collaborative business Enabled by Modularised Technology Ensuring business agility and rapid collaboration via component-based technology capabilities The last mile of distribution Reconsidering the assumption that it is an area where companies operate independently of each other, and exploring opportunities to collaborate Consumer engagement Taking part in a dialogue with consumers, justifying their trust in the industry Transparency Keeping consumers informed about products’ key attributes, ingredients, nutrients and provenance as well as their environmental and societal impacts 1 2 3 4 We prioritised 4 strategic collaboration thrusts where the industry is underperforming, which will help to establish new value creation
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11© 2015 Capgemini
and The Consumer Goods Forum. All Rights Reserved Rethinking the Value Chain: New realities in collaborative business The CGF Consumer Engagement Principles initiative provides a platform to build consumer trust Consumer Engagement Taking part in a dialogue with consumers, justifying their trust in the industry 1 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
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12© 2015 Capgemini
and The Consumer Goods Forum. All Rights Reserved Rethinking 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
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13© 2015 Capgemini
and The Consumer Goods Forum. All Rights Reserved Rethinking the Value Chain: New realities in collaborative business For companies, this will impact consumer experiences, business operations and business models
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14© 2015 Capgemini
and The Consumer Goods Forum. All Rights Reserved Rethinking 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”DigitalCapability Leadership Capability The What Using digital technology and innovations to transform the customer experience, operational processes and business models The How Successful transformations depend as much on how firms manage digital transformation than solely on implementing new technologies
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15© 2015 Capgemini
and The Consumer Goods Forum. All Rights Reserved Rethinking the Value Chain: New realities in collaborative business Mastering the challenges and opportunities of digital transformation has 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 publication HOW WHAT 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
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16© 2015 Capgemini
and The Consumer Goods Forum. All Rights Reserved Rethinking 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 1 2 3 4 5 6
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In collaboration with Thank You ! Kees.Jacobs@capgemini.com
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