kees jacobs, capgemini - dlf · how does this impact commercial collaboration between retailers and...
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1© 2018 Capgemini. All rights reserved.
Innovation in Collaboration
Kees Jacobs, Capgemini
DLF Høstmøte - Autumn Conference, October 2018
2Copyright © Capgemini 2018. All Rights Reserved
Consumer behaviour has changed
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Shopping journeys and missions are changing
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A new paradigm for marketing and sales
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A blurring of the line between CP and R
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A supply network no longer fit for purpose
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All these seismic shifts are disrupting Value Chains, leading to New Value Networks that are organized around consumers
Muhtar Kent
Chairman
The Coca-Cola Company
Motoya Okada
President & Group CEO,
AEON Co., Ltd.
“If we do not
understand and start
to adopt this
fundamentally
different approach,
we will struggle to
create value and
secure long term
growth.”
Source: Rethinking the Value Chain, Capgemini & CGF, 2016
How does this impact Commercial Collaboration between retailers and CPG manufacturers?
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Facilitated by The Consumer Goods Forum, a group of commercial top-executives across retailers and manufacturers have come together to initiate a step-change across the industry on ‘Innovation in Collaboration’, in order to better serve consumers and to jointly grow the industry’s share of wallet in a profitable manner.
Under the CGF umbrella, manufacturers and retailers have drafted a new collaborative model
10© 2018 Capgemini. All rights reserved.
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Insufficient collaborative focus on delighting shoppers and consumers
Lack of mutual profitable growth commitments
Limited sharing of shopper and consumer insights
Too short term focus
Pure focus on the physical product
Abundant sources of inefficiency
Lack of mutual trust
Lack of speed and time to market
Negative dominance of annual negotiation-cycle
Addressing some current collaboration challenges
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The ambition is to have both retailers
and manufacturers adopt joint
approaches and build best practices to
improve shopper experiences by
innovating in collaboration, driven by
consumer needs and occasions, and
based on clear joint ‘profitable growth’
commitments.
Innovation in collaboration
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Disruptive agile approaches to drive mutual value from digital technology innovations
Cut out current sources of inefficiency in the retailer-manufacturer interface and tactics
Delivering relevant experiences and services beyond the product (in store and across other digital channels)
Breakthrough in mutual trust via collaborative cultures, skills and rewards
Joint commitment to establish mutual profitable growth
Laser focus on jointly delighting shoppers and consumers
Multi year building blocks delivered and managed via short cyclic value sprints (‘test and learn’) and monthly scorecards
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Synergetic sharing of deep shopper and consumer insights4
Increase decision-speed and time to market (responding quickly to changing needs and conditions)
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Frame the negotiation process with clear value-sharing mechanisms10
We jointly defined 10 Guiding Principles to succeed in innovation in collaboration
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We designed a joint ‘Innovation in Collaboration’ framework in order to establish a common understanding on what value can be added to consumers
The starting point is the consumer
/shopper – how can we get to know them
better and understand their needs and wants
– how can we add more value to their life
The next part is to establish the different roles between the teams in meeting those needs, identifying the data and capabilities
required to do so including services, touchpoints and channels
This then leads to developing a joint proposition – could be a product innovation,
could be a joint data campaign, could be a service offer, it could also be something that
drives efficiencies for both brands
By jointly executing upon this Innovation in Collaboration process, the negotiations will
be framed with measured value delivery for both brands and will
capture learning for future collaborations
This will also provide the foundation for a
jointly focused approach to cut-out all inefficiencies that are
hindering the realisation of the joint
value proposition
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Customer ExperienceData and Insights Innovation
Let’s look at some best practices
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Customer ExperienceData and Insights Innovation
Let’s look at some best practices
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Consumer Driven Insight Services are critical to drive innovation in collaboration
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Pricing EffectivenessWhat is the price-perception and optimal (dynamic) price-points ?
Shopper EngagementWho are our target-shoppers and where / how to invest in shopper acquisition and path-to-
purchase engagement ?
Assortment RelevancyWhat s the optimal target mix of merchandising and
services accross channels ?
Value SharingWhat trade terms will provide a
balanced value proposition ?
Promotion ImpactWhat promotions generate incremental and sustainable revenues and margin ?
Sales effectivenessWhere can we be more effective in
driving insotre sales ?
Digital Channel SalesHow can we improve sales
performance accross digital and omnichannels ?
Store ExperienceWhat are the shopper experiences
around our products in specific stores ?
Needs and OccasionsWhat are the real shopper needs and occasions in the context of individual
people’s lives ?
Instore Digital BehavioursWhat’s the impact of digital interactions and
services within stores?
Channel coverageHow are we reaching our shoppers (what’s the potental of eg new stores or channels ?
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Collaboration in Data Science will drive collaboration even further
• Secured data-ownership• GDPR (privacy) compliance• Authorised usage
(only for specificcollaborative analysis)
• Joint data-science• Collaborative
dashboarding
• Data & Insights filtering (as relevant forcollaborative sharing)
Collaborative Business Data Lab
Data
Insights
Collaborative Business Insights
Retailer
Data
Insights
Manufacturer
LoyaltyPOS
Geo-location
ProductData
SearchWeather
3rd Partydata
SensorData
Onlinetransactions
Social Media
Consumer Needs and Occasions
CollaborationValue
(topline/bottom-line)
Categories
Promo’s
Pricing
Products, Services,
Experiences
Collaboration inefficiencies
Click-Stream
Supply Chain
External
Data
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Customer ExperienceData and Insights Innovation
Let’s look at some best practices
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Collaborative innovation is more important than ever in today’s increasingly-blurry categories.
OLD WORLD NEW WORLD
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We see different ways in which companies can drive growth through collaborative innovation.
Routes to Growth
Through
Collaborative
Innovation
New
Services
New
Product Categories
New
Business Models
Collaborate with Customers to unlock
insight and test entry into new segments
and categories through
existing channels.
Google + Levi’s
Collaborate with Customers and
Partners beyond existing channels to
build platforms to bring new
services to Consumers
Apple + Nike
Collaborate with Partners in the broader
ecosystem to develop fundamentally
new ways of generating revenue.
IKEA + Task Rabbit
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Impactful collaborative innovation is approached through a strategic ecosystem approach.
Bars
& Restaurants
Immersive
Experiences
Digital
Content
Social
Media
Sporting
Events
Retail
Events &
Festivals
Product
Hardware
Home
Entertaining
Subscription
Services
As traditional category boundaries continue to blur, understanding the current and future ecosystem of customers, partners and end consumers, becomes integral to prioritising opportunities and focusing attention for collaboration.
Only an ecosystem approach will create sustained and defensible growth.
CPG Brand
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Customer ExperienceData and Insights Innovation
Let’s look at some best practices
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The extension of the physical world with new digital solutions opens up new ways to enhance the
customer experience and unlock savings and revenues.
Physical Store Proposition
Out-Of-
StoreIn-Store
Online Store Proposition
Virtual
Store
Web
Store
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A next wave of disruption will come up:
Conversational Commerce
Vision Report MIT, Capgemini, Intel
Capgemini consumer research
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Personalized Service
SocialObservation
Trust &Empathy
Voice & VisualDialogue
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Brands have got their voices back, but what is their personality ?
"VOICE, AS A THING RATHER THAN AN ABSTRACT CONCEPT, OPENS UP A WHOLE NEW PALETTE FOR BRANDING, WHICH TRADITIONALLY HAS BEEN VERY VISUAL,“
▪ Voice assistants will soon sound significantly more like human beings
▪ Voice assistants are also learning to better use pitch, volume, rate and tone - all elements of speech used to effectively convey emotion, and emotion favors connection
▪ In the past, 'brand voice' has been metaphorical, now what the brand sounds like will be a key attribute
▪ What should your brand sound like?
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30© 2018 Capgemini. All rights reserved.
Conclusion: Data, Insights, Innovation and Customer Experience will drive collaborative success
31© 2018 Capgemini. All rights reserved.
How to start building a successful future together ?
1. Qualify and select the trading-partner(s) with best cultural fit
and trusted relationships to accelerate Innovation in
Collaboration.
2. Establish top-down joint executive commitment to Innovate
in Collaboration, with longer-term mutual profitable growth
ambitions.
3. Assemble mutual (cross-functional) leadership-teams, that
have the right spirit and belief to gain the trust of the
collaboration partners and to demonstrate joint value.
4. Kick-off with a joint (facilitated) session to define the
common vision, mutual value objectives and metrics, ways to
innovate services and experiences beyond products,
collaboration roadmap planning and governance-cadence.
5. Launch and execute via short-cyclic value-sprints (‘test and
learn’) and monthly scorecards, with tangible value-delivery
in the context of the agreed multi-year ambition
THANK YOU
DLF Høstmøte, October 2018
Kees Jacobs
Capgemini