Despite the focus that the Consumer Goods industry places on business intelligence and data insights, not many companies are truly leveraging this valuable resource to its full potential.

1. CUSTOM RESEARCH
Business Intelligence
ADVANCED DATA ANALYSIS CAPABILITIES CRITICAL TO SUCCESS
Consumer goods (CG) manufacturers are sur- business processes is data critical for decision down the usage of data by the type of analy-
rounded by data, both internally-generated making, we heard supply chain planning, fol- sis leveraged for various business categories,
transactional data as well as retailer-provided lowed by sales, then corporate reporting. No and then ranks it by how well it is being used.
downstream data. How companies turn that surprises there, however, when we dig deeper Let’s start with the good news: the basics seem
data into actionable insights is what sepa- into those functions, the top processes within to be in place with standard and ad hoc reports
rates leaders from laggards. sales and marketing are trade promotions viewed as average to above average for sales
This month, CGT partners with Cognizant and category management. The top areas for and marketing, supply chain and corporate
to explore how data is used throughout var- supply chain are demand forecasting and functions. Pre-built reports for supply chain
ious business processes, and what we found S&OP. These processes are the primary focus are ranked highest at 3.64, and ad hoc reports
was a little disappointing. Despite the focus of most business and technology initiatives. for sales and marketing were next with a
that the industry places on business intelli- They align with the move toward the cus- respectable 3.46. More advanced analytics,
gence and data insights, not many compa- tomer and consumer in addition to the desire including optimization and modeling, rated
nies are truly leveraging this valuable resource to become more demand driven. More tacti- substantially poorer, the lowest being predic-
to its full potential. cal processes are secondary. tive analytics for sales and marketing at a 2,
So now that we have established that data which we would expect to improve over the
Is Data Leveraged Appropriately? is important, do business users utilize and next few years as the technology becomes
With technology advancements over the last trust it? This is where there is definitely room more accessible.
few years, CG companies have access to more for improvement. Only 19 percent of survey
data at more granular levels of detail, but respondents rate the confidence of their busi- To read the research in its entirety, visit:
where is it being used? When we ask to which ness users as “very high.” Figure 1 breaks www.consumergoods.com
E X P E R T P E R S P E C T I V E • B Y PA R T H S . M U K H E R J E E , S E N I O R C O N S U LTA N T, C O G N I Z A N T ’ S D W B I & P M P R A C T I C E
MARKETERS MOVE FROM THE 4 PS TO THE 3 PS
As organizations shrug off the to information management and ment needs. Cognizant provided the PREMISE: Business users’ con-
shackles of the recession and analysis. Therefore, organizations BICC strategic insight and skill sets fidence regarding information is
regroup, technology and business are increasingly committing them- to support this global business intel- based on the premise of impec-
processes are more closely inter- selves to a Data Warehouse and ligence capability. cable data quality. Data quality
twined than ever before. IT leader- Business Intelligence Competency issues can not only create IT-busi-
ship is redefining strategies to win Center (BICC), which requires spe- PROCESS: As with all success- ness disharmony but also result
in the reset economy. As part of cific skill sets and enhanced focus ful initiatives, process is para- in large dollar losses. A large
this overall strategy, organizations on talent management and partner- mount. Analyzing underlying data travel intermediary conducted a
are enhancing sales and market- ships. Recently, a toy manufacturer and making it actionable will define data quality assessment of its cus-
ing information management tech- needed to design a BICC across three success as organizations focus on tomer data, which resulted in
nology. Cognizant recommends continents with detailed roles, new markets and try to predict cus- identification of more than 11 mil-
organizing around three key areas: responsibilities, skills and recruit- tomers’ buying behavior. By imple- lion duplicates. At an average
People, Process and Premise. menting a store-level analytics spend of $2.00 per target, the
project, one major brewer gleaned organization saved $22 million in
PEOPLE: Global product develop- targeted customer data in new its direct marketing expenses by
ment, brand management and sales ways, enabling it to respond to cus- inspecting records and eliminat-
necessitate a centralized approach tomer changes and needs. ing duplicates.
28 CGT | MARCH 2010 | CONSUMERGOODS.COM

2. BY KARA ROMANOW
FIGURE 1
How successfully is data leveraged in each organizational area?
USAGE
Note: On a scale of 1-5, 3.17
with 1 being “very poor” , Reporting (pre-built) 3.64
3 being “average” and 3.41
5 being “very good”.
3.46
Next Steps Reporting (flexible and ad hoc) 3.20
3.11
With all of the emphasis placed on data why
3
aren’t the rankings higher? Unfortunately, Analytical (causal analysis) 2.80
2.55
barriers still exist and many of them just
2
haven’t been addressed. Figure 2 shows the Predictive analytics 2.41
(modeling, optimization, forecasting) 2.53
similar frustrations across sales and market-
ing and supply chain: data mining to derive SALES & MARKETING S U P P LY C H A I N CO RP O R AT E (HR, FINANCE, ETC.)
insights and data availability are the biggest
challenges. Data timeliness is a bigger issue FIGURE 2
for sales and marketing since most of the Biggest Barriers to Leveraging Data in Each Organizational Area
downstream data is sourced externally. BARRIER
Ironically, data quality is more of an issue for
supply chain processes, where most transac- Data mining to derive insights 36%
38%
tional data is sourced internally.
26%
Data availability 25%
The most promising finding Data quality 9%
16%
is that business and IT are User adoption 6%
10%
working together and sharing Data timeliness
6%
13%
responsibility for leveraging Insight delivery to users
6%
9%
data and garnering insights.
S U P P LY C H A I N SA L E S & M A R K E T I N G
The good news here is that we are headed FIGURE 3
in the right direction and the industry rec- Who is responsible for the following functions?
ognizes the need to improve in this area. All FUNCTION
of our respondents have some sort of initia-
tive in place to better leverage data, with 42 Data quality 34%
66%
percent at the enterprise level and 32 percent
69%
by department. The most promising finding Managing data and reporting infrastructure 31%
is that business and IT are working together
Providing requirements for 9%
and sharing responsibility for leveraging data additional data and reports 91%
and garnering insights. Few companies have Working with vendors who provide 75%
25%
dedicated organizations, with the majority services and tools for reports
leveraging business users with IT counter- 47%
Leading data quality projects 53%
parts and super users.
Figure 3 shows the split in responsibility for Leading end-to-end data integration 59%
to insights delivery projects 41%
specific functions between business and IT, with
IT taking the lead in managing infrastructure Final call on purchase of services 31%
and tools for advanced analytics 69%
and working with vendors, and the business
Final call on purchase of services 59%
primarily managing data quality, require- or tools for reporting 41%
ments and advanced analytics projects.
I T (CIO, CFO) B U S I N E S S (SALES, MARKETING, SUPPLY C HAIN)
CONSUMERGOODS.COM | MARCH 2010 | CGT 29

3. Consumer Goods Technology
Cognizant
February 2010

4. 1. Which are the areas of business in your organization where timely availability and interpretation of data is critical for decision making?
Please choose your top 3.
Supply chain planning functions
Areas of Business % Sales / Account team
Supply chain planning functions (demand forecasting, sales & 84%
78% Corporate reporting
operations planning, distribution planning, supply planning, 84%
procurement planning) Marketing
Sales / Account team (category insights) 78% 63% Supply chain execution / operations
Corporate reporting (Top Management / Financial reporting) 63%
56% Other
Marketing (Consumer insights) 56%
Supply chain execution / operations (transportation
management, warehouse management, inventory 41%
41%
management)
Other 0%
0%
2. Which are the sales and marketing areas in your organization which have the greatest need for timely availability and
interpretation of data for decision making? Please choose your top 3.
3
Trade promotion planning & optimization
Sales and Marketing Areas %
Trade promotion planning & optimization 72% Category management
Category management 69% Consumer promotion planning
Consumer promotion planning 50% 72%
69% Assortment planning and Space optimization
Assortment planning and Space optimization 44%
Multi-channel planning
Multi-channel planning 34%
Other 13% Other
50%
44%
34%
13%

5. 3. Which are the supply chain planning & execution areas in your organization which have the greatest need for timely
availability and interpretation of data for decision making? Please choose your top 3.
Suppy Chain Planning & Execution Areas %
Demand forecasting 75%
Sales & operations planning & optimization 72%
Inventory planning & optimization 53%
Production planning 41%
Procurement planning 22%
Transportation planning 13%
Warehouse management 0%
Other 0%
Demand forecasting
75% Sales & operations planning & optimization
72%
Inventory planning & optimization
Production planning
Procurement planning
53% Transportation planning
Warehouse management
41% Other
22%
13%
0% 0%

6. 4. Which of the following is the biggest barrier to leveraging data for supply chain planning & execution?
Biggest barrier: Supply Chain Planning & Execution %
Data mining
Data mining to derive insights 35%
Data availability 26% Data availability
Data quality 16% Data quality
User adoption 10% User adoption
Data timeliness 6%
Data timeliness
Insight delivery to users 6%
35% Insight delivery to
users
26%
16%
10%
6% 6%
5. Which of the following is the biggest barrier to leveraging data for sales and marketing functions?
Biggest barrier: Sales and Marketing Functions
gg g %
Data mining to derive insights 38%
Data availability 25% Data mining
Data timeliness 13%
Data quality 9% Data availability
Insight delivery to users 9% Data timeliness
User adoption 6% 38%
Data quality
Insight delivery to users
25% User adoption
13%
9% 9%
6%

7. 6. Who is responsible for each of the following functions in your organization?
Business
IT (CIO, CFO) (Sales, Marketing, Supply Chain)
Responsible % %
Data quality 34% 66%
Managing the data and reporting infrastructure 69% 31%
Providing 'requirements' for additional data and reports 9% 91%
Working with vendors who provide services and tools for reports 75% 25%
Leading data quality projects 47% 53%
Leading end-to-end data integration to insights delivery projects 59% 41%
Final call on purchase of services or tools for advanced analytics
31% 69%
(modeling & optimization)
Final call on purchase of services or tools for reporting 59% 41%

8. 7. Who is responsible for getting insights from data in your organization?
Dedicated
Business Users Super Users Organization IT
Responsible % % % %
Sales and Marketing functions (data refers to POS
44% 44% 13% 0%
data, syndicated data, sales data)
Supply Chain functions (data refers to
41% 34% 16% 9%
transactional data - shipment, inventory, orders)

9. 8. How will you rate the confidence of business users in the information from the reporting & analytical systems environment?
Confidence of Business Users %
Very High: All business decisions are made based on this 19%
Moderate to High: Business users take the information but get
59%
it validated before using it for their important decisions
Moderage to Low: Business users only use it for their routine
decisions while prefer to use date from other sources for 22%
critical decisions
Very Low: They never use the information from these systems
0%
for any meaningful decisions
Cannot Say / Not Applicable 0%
59%
Very High
Moderate to High
Moderage to Low
Very Low
Cannot Say / Not Applicable
22%
19%
0% 0%

10. 9. How is Sales and Marketing data (POS data, syndicated data, sales data) leveraged in your organization?
Rank on a scaled of 1 to 5. (1 - Very Poor, 5 - Very Good)
1 - Very Poor 2 3 - Average 4 5 - Very Good
Sales and Marketing data leveraged % % % % %
Reporting - Prebuilt 4% 22% 39% 22% 13%
Reporting - Flexible and adhoc
p g 4% 13% 33% 33% 17%
Analytical (causal analysis, Why) 8% 27% 31% 27% 8%
Predictive analytics
48% 26% 11% 7% 7%
(modeling, optimization,
(modeling optimization forecasting)
10. How is Supply Chain data (transactional data - shipment, inventory, orders) leveraged in your organization?
Rank on a scaled of 1 to 5. (1 - Very Poor, 5 - Very Good)
1 - Very Poor 2 3 - Average 4 5 - Very Good
Supply Chain data leveraged % % % % %
Reporting - Prebuilt 5% 14% 23% 32% 27%
Reporting - Flexible and adhoc 5% 20% 35% 30% 10%
Analytical (causal analysis, Why) 12% 24% 36% 28% 0%
Predictive analytics
27% 36% 14% 14% 9%
(modeling, optimization, forecasting)

11. 11. How is data for Corporate functions (HR, Finance, Regulatory, etc.) leveraged in your organization?
Rank on a scaled of 1 to 5. (1 - Very Poor, 5 - Very Good)
1 - Very Poor 2 3 - Average 4 5 - Very Good
Data for Corporate functions leveraged % % % % %
Reporting - Prebuilt 0% 14% 50% 18% 18%
Reporting - Flexible and adhoc
p g 11% 28% 17% 28% 17%
Analytical (causal analysis, Why) 20% 25% 35% 20% 0%
Predictive analytics
18% 35% 24% 24% 0%
(modeling, optimization,
(modeling optimization forecasting)

12. 12. At what stage is the initiative for leveraging data in your organization?
Stage: Initiative for Leveraging Data %
Some projects from the enterprise roadmap are underway 42% Some projects are underway
There is no enterprise level initiative; Data / BI / analytics are
32% There is no enterprise level initiative
being undertaken in pockets
Roadmap generated - sequence of projects planned 16% Roadmap generated
Strategy or assessment 10%
Strategy or assessment
No plans 0%
No plans
42%
32%
16%
10%
0%
13. Are you getting information in the right form and at the right time to make business decisions from your reporting
and analytical systems environment?
Information for Business Decisions % The information has to be further worked
The information has to be further worked upon to make it in upon
42% There are too many systems
the form where decisions can be taken
There are too many systems and it adds to the confusion 29% 42% The environment enables our enterprise to
have access to all relevant information
The environment enables our enterprise to have access to all
13% I use my own data
relevant information in a user friendly and timely manner
29% Cannot Say / Not Applicable
I use my own data, most directly from the source data
10%
systems, to make decisions Other
Cannot Say / Not Applicable 6%
Other 0%
13%
10%
6%
0%

13. 14. What is your position with the organization?
Position % Senior Management
Director / Manager 74%
Vice President 13% Vice President
Staff 10% Director / Manager
Senior Management (e.g., President, CEO, CFO, COO) 3% 74%
Staff
13%
10%
3%
IT / Technology - related
15. What is your functional area of responsibility? Logistics / Supply Chain
30%
Consumer Insights / Market Intelligence
Functional area of responsibility %
IT / Technology - related 30% Finance
Logistics / Supply Chain 23% Marketing
23%
Consumer Insights / Market Intelligence 17%
Sales / Account Management
Finance 10%
Marketing 3% Product Development / Research
Sales / Account Management 3% Other
Product Development / Research 3% 17%
Other 10%
10% 10%
3% 3% 3%

14. 16. What is the nature of your company's business?
Food & Beverage
Business % CPG
Food & Beverage 42% 42% 42%
Apparel, Footwear & Accessories
CPG 42%
Apparel, Footwear & Accessories 13% Durables & Household appliances
Durables & Household appliances 0% OTC
OTC 0%
Other 3% Other
13%
0% 0% 3%
17. What was your company's annual revenue for 2009?
29%
2009 Revenue %
Less than $ $100 million 3% 26%
$100 million to $499 million 19% Less than $100 million
$500 million to $1 billion 10% $100 million to $499 million
19%
$1 billion to $5 billion 29%
$500 million to $1 billion
$5 billion to $10 billion 13%
Over $10 billion 26% $1 billion to $5 billion
13%
$5 billion to $10 billion
10%
Over $10 billion
3%