kees jacobs presentation on innoday

In collaboration

with

New Realities in Brand Engagement to Meet the Needs of the Empowered Consumer

Kees JacobsINNODAY

March 10th

Stockholm

2© 2015 Capgemini and The Consumer Goods Forum. All Rights ReservedRethinking 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.


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.


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


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

98,000Greater 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%


Example: what could urban living look like in 2025?


We need to evolve towards value networks organised around consumers


Example: Future Value Networks organised around ageing consumers


We see an evolution of Industry Collaboration

Mid-90s Mid-2000s 2015 – 2025

EFFICIENCY

GROWTH

Long-term growth by

NEW VALUECREATION

New Ways of Working Together

Value Networks

Col

labo

ratio

n Va

lue

Supply side Focus Demand side Focus

Efficient Consumer Response


Enabled by Modularised TechnologyEnsuring business agility and rapid collaboration via component-based technology capabilities

The last mile of distributionReconsidering the assumption that it is an area where companies operate independently of each other, and exploring opportunities to collaborate

Consumer engagementTaking part in a dialogue with consumers, justifying their trust in the industry

TransparencyKeeping consumers informed about products’ key attributes, ingredients, nutrients and provenance as well as their environmental and societal impacts

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We prioritised 4 strategic collaboration thrusts where the industry is underperforming, which will help to establish new value creation


The CGF Consumer Engagement Principles initiative provides a platform to build consumer trust

Consumer EngagementTaking part in a dialogue with consumers, justifying their trust in the industry

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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


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


For companies, this will impact consumer experiences, business operations and business models


The ‘Leading Digital’ research of Capgemini and MIT Centre of Digital Business show that success is about both the “What” and the “How”

Dig

ital C

apab

ility

Leadership Capability

The WhatUsing digital technology and innovations to transform the

customer experience,operational processes and business models

The HowSuccessful transformations depend as much

on how firms manage digital transformation than solely on implementing new technologies


Mastering the challenges and opportunities of digital transformationhas 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 publicationHOW

WH

AT

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




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

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In collaboration

with

Thank You !

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