"The research will assist CPG companies in understanding the broad set of capabilities and competencies required to improve their analytical IQ, with big data making that need even more urgent," said Marcus Shingles, principal, Deloitte Consulting LLP and enterprise innovation and analytics practice leader for Deloitte's consumer products sector. "The emphasis is on the need to think beyond data tools and techniques, and focus on analytical talent models, decision processes and cultural shifts. With the 'new normal' of rapid-pace technological and digital innovation, CPG companies will depend now more than ever on big data analytics to compete and grow."
The five specific conclusions and recommendations identified in the research are:
1. Few Have the Required Analytical Foundation in PlaceOver the last decade, the majority of CPG industry firms have not progressed beyond localized analytics and are still challenged to capitalize on their "small" existing data (internal and structured). Conversely, a handful of CPG firms have improved their analytical maturity to become strong analytical companies and therefore have the required foundation to capitalize on new emerging sources of big data.
2. Rapid-Fire Pace of Innovation Requires Data & Analytics CompetencyThe 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. Industry is moving from linear change to exponential disruptionUntil 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 Required – Integrated and Cross-Functional Business Planning & ExecutionThe "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. Cultural Shift - The Characteristics and Traits of the New Industry "Winners"This new "exponential" pace of innovation will require a culture of experimentation, trial and error, and other methods that enhance a company's ability to remain agile, fluid and adaptable. A strong versus weak data and analytical maturity is one of the key differentiators between a CPG company that effectively navigates this new era of innovation and one that falls victim to the exponential pace of change.