Evaluate your key business goals and work out the changes that are required to achieve those. These changes might be so small and incremental that it may not even appear to be a ‘transformation’. Keeping an eye on the goals, will ensure that you do not invest in areas that do not necessarily need changing. It will also ensure that you simply do not replace an existing process with a new one, without first working out how that change will impact your organisation.
Think beyond features – to the Benefits
Technology investments often end up being the shiny new toy. Decision-makers in organisations may get attracted to snazzy devices and application features – and lose sight of evaluating the true benefits of the technology. For instance, the sales rep selling in-store would have a very good idea of what sells and how much stock to carry. There may be no incremental benefit in equipping the rep with an app that provides real-time sales analytics and inventory data. So, the app gets relegated to being just a feature with no real benefits. On the other hand, a field sales rep might find it extremely useful, especially in sectors that are prone to unpredictable spikes in demand.
Be ready to Invest in the change
You have evaluated the changes that your organisation needs, you have identified the technologies that can truly benefit your organisation – you must be ready to invest in that change. This is not only about financial investments – you have to invest time and in people. This requires your organisation to think of the RoI, again not only in terms of finances but also in terms of effort. Be aware that your biggest challenge in implementing the required change might be people – so invest in making them less resistant and more welcoming of the change.
There will be distractions galore in your transformation journey – emerging tech areas, solutions that seem to be working for your competitors and so on. Mukherjee proposes a simple thumb rule, “If it fits the strategy and looks feasible go with it; if it is outside the agreed strategy then think long and hard, and then turn it down – or change the strategy!”
This blog is based on Niloy Mukherjee’s recent report titled “Digital Transformation in Sales and Marketing”.
Click here to download the full report ?
The global Ecosystm AI study reveals the top priorities for FMCG companies, focused on adopting emerging technologies (Figure 1). It is clear that their key priority is to handle the competitive market by focusing both on the consumer and the supply chain. Supply chain optimisation through demand forecasting ensures that they are not managing extra stock, and simultaneously not losing out on customers because of lack of stock. This just-in-time inventory management includes initiatives such as pricing optimisation in response to market demand, competition and – especially in the case of perishables – ensuring that stock closer to the use by date is cleared.
Technology as an Enabler of FMCG Transformation
The one advantage that FMCG companies have today is they have access to enormous customer and inventory data. As a result, they are able to leverage several emerging technologies to transform.
One area that is transforming the industry is digital marketing which includes multiple aspects such as search engine marketing, video marketing, social media activity and email marketing. While several technologies come together for a digital marketing solution and AI is a key component of the solutions, there are platforms that provide an end-to-end solution.
Digital marketing is most effective with a targeted group of customers and when organisations can identify digital or social champions. Johnson & Johnson’s Babycenter.com is a good example of how creating a digital community can help market products. The core idea behind the website is to give expecting and new mothers advice on early childhood. While on the surface it appears disassociated from Johnson & Johnson, the site almost exclusively carries their advertisements. This gives them a targeted base to push their products to. Dollar Shave Club is another example of how brands can leverage digital marketing. Their social media engagement has been so successful that they got bought over by Unilever. The digital campaign includes incentivising members with their products for posting about them on Instagram or Facebook.
FMCG companies are investing in Blockchain and digital ledger technologies for track and trace functionalities and operational efficiency. The technology not only helps manage the supply chain better by effective shipping timelines maintenance, delivery management and inventory management; it also helps build trust in a brand. It helps in compliance management, reduces the number or need for middlemen, easier handling of cross-border transactions and brings about an end-to-end accountability.
Danone initiated a Track & Connect service for their baby formula using Blockchain for transparency and traceability to show the authenticity of their products to parents and for better customer experience. FMCG companies will benefit immensely from the farm-to-fork accountability concept initiated by Agriculture.
From predictive analysis to machine learning to deep learning, AI is bringing a lot of benefits to FMCG companies. AI is enabling companies to discover gaps (both in their consumer interactions and in the supply chain) and make their processes intelligent – including demand forecasting, supply chain optimisation, personalised product offerings, social media analytics, consumer sentiment analytics and recommendation engines.
FMCG organisations are analysing internal and external data sources for both sales and improved customer experience. As FMCGs are forced to sell online to remain competitive, they have access to a high volume of the consumer as well as supply chain and inventory management data. Coca Cola remains one of the leaders in the FMCG market by leveraging this data, including product research and social data mining. Even their vending machines are looking to leverage AI for personalised offerings and for loyalty programs.
The need to enhance the customer experience has also seen innovations like the Maggi Chatbot – “Kim”- that helps customers learn about Maggi recipes, ingredients and dietary requirements, through Facebook Messenger.
FMCG companies that cannot afford to invest in technologies such as AI also have the option of leveraging the technology offerings of their online retail platform. eBay offers analytics as a service to the sellers – offering them data, metrics and analytics to help them succeed. They also introduced computer vision technology to help sellers create clearer and more attractive images for the platform.
In this competitive market, we will see FMCG companies – and not just the big global brands but also the local producers – embrace more technology.
For more insights from our AI Research, click below