Formula For Growth: Innovation, Big Data & Analytics

Formula for Growth: Innovation, Big Data & Analytics

 

Technological and digital innovation is starting to transform, and in some cases even disrupt, the CPG and Retail industry. After decades of relatively limited - or linear - change, the industry is starting to experience the "knee in the curve" brought on by an exponential pace of innovation. This innovation is fueling an enormous amount of "Big Data" exhaust, providing CPG companies with ample opportunities to generate new insights leveraging existing and emerging sources and forms of data. The goal of this research is to demystify these potential Big Data opportunities for the CPG industry, while assisting companies in understanding how to improve their analytical maturity, competencies, and capabilities, ultimately improving decision-making to drive top and bottom-line growth.

The following report – Formula for Growth: Innovation, Big Data, and Analytics  provides a summary of the key conclusions and recommendations from the culmination of more than ten months of research on this industry opportunity.  The research effort was the byproduct of a true collaboration between the GMA member firms, GMA Information Systems Committee, and Deloitte Consulting, with contributions from numerous thought-leaders from business and academia.

 

Table of Contents

Introduction

Welcome & Executive Highlights

A welcome and introduction from the GMA, GMA I/S Committee, and Deloitte Consulting, including a video of the executive highlights of the research with Tom Davenport and Marcus Shingles.

Summary of Approach

A brief overview of the scope, objectives, and approach taken to arrive at the conclusions and recommendations contained within this study

Overview

This section starts with a general overview of "Big Data 101", a video capturing Wall-Street's perspective on Big Data Hype vs. Reality, followed by an overview of the key conclusions and recommendations

Key Conclusions and Recommendations                                     

1) Few CPG companies have the required analytical foundation in place. The majority of the CPG industry is lagging in data and analytical capabilities

Over the last decade, the majority of firms in the CPG industry have not progressed beyond localized analytics and are still challenged to capitalize on existing data.

2) Rapid-fire pace of innovation requires data & analytics competency

The rapid-fire pace of technological and digital innovation has the potential to define winners and losers in the CPG industry, and an integrated core competency around small data, Big Data and analytics is a requirement for the winners.

3) The CPG industry is moving from linear change to exponential disruption

Until now, a CPG company’s competitive advantage did not depend on having strong analytical maturity; however, the industry’s preconceived notion of change is about to be disrupted by the exponential pace of innovation.  Navigating this landscape will require companies to harness data and efficiently convert it to insights.

4) Business context is required to operationalize Big Data, analytics and innovation

The “Formula for Growth” is most impactful when applied in the context of cross-functional and integrated business planning and execution.  Whether small or Big Data, the goal is to consistently make better decisions to improve an organization’s planning and execution toward achieving top- and bottom-line growth objectives.

5) CPG companies need data and analytics to support an innovation-driven culture

This new “exponential” era will require a culture of experimentation and trial and error to allow companies to remain agile, fluid and adaptable to the pace of change. 

Additional Information

Acknowledgments and Key Contacts

An overview of the contributors and research participants that took part in the Formula For Growth: Innovation Big Data and Analytics study.

Top-lines and Additional References

A brief top-line by CPG function with additional references.