Kees Jacobs presentation on Innoday

In
collaboration
with
New Realities in
Brand Engagement
to Meet the Needs
of the Empowered
Consumer
Kees Jacobs
INNODAY
March 10th
Stockholm

2© 2015 Capgemini and The Consumer Goods Forum. All Rights Reserved
Rethinking 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
98,000
Greater 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 VALUE
CREATION
New Ways of
Working Together
Value
Networks
CollaborationValue
Supply side Focus Demand side Focus
Efficient Consumer
Response

Enabled by Modularised Technology
Ensuring business agility and rapid collaboration
via component-based technology capabilities
The last mile of distribution
Reconsidering the assumption that it is an area
where companies operate independently of each
other, and exploring opportunities to collaborate
Consumer engagement
Taking part in a dialogue with consumers,
justifying their trust in the industry
Transparency
Keeping consumers informed about products’ key
attributes, ingredients, nutrients and provenance
as well as their environmental and societal
impacts
1
2
3
4
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 Engagement
Taking part in a dialogue with consumers,
justifying their trust in the industry
1
 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”DigitalCapability
Leadership Capability
The What
Using digital technology and innovations to transform the
customer experience,
operational processes and business models
The How
Successful transformations depend as much
on how firms manage digital transformation than solely on
implementing new technologies

Mastering the challenges and opportunities of digital transformation
has 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 publication
HOW
WHAT
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
+26%
compared to peers
+9%
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
1
2
3
4
5
6

In
collaboration
with
Thank You !
Kees.Jacobs@capgemini.com

Kees Jacobs presentation on Innoday

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