7 Costly Innovation Mistakes CPG CIOs Make
4. Taking the wrong approach to platform migration
CIOs can approach platform migration in one of two ways: use-case-centric or lift and shift.
With a use-case-centric approach, the CIO and project team specifies use cases to drive all development work, from the initial gathering and negotiation of requirements all the way through creating code. With lift and shift an exact copy of an application or workload, together with its data store and operating system, is transferred from its current environment to another location, typically the cloud.
Use-cases should be selected in a way that allows the semantic layer to be incrementally built for the most common market archetypes, says Sagar Balan, chief business officer, CPG, at data analytics and AI engineering company Tredence.
"The migration will have to be designed so cost and architectural considerations are suited for the hyper-scaler world of low compute cost," he advises.
A lift-and-shift migration strategy moves resources to the cloud without necessarily having to redesign the application to suit the new infrastructure, although the migration process might fail if the organization doesn't accurately map application requirements to the required cloud configuration.
5. Failing to look forward
A digital transformation shouldn't be limited to upgrading the system of record with a newer version. For example, a common misconception is believing thatS/4 HANA,a ready-to-run cloud ERP that supports the latest industry best practices, will modernize the enterprise just by itself, Balan says.
Meanwhile, artificial intelligence and machine language technology should be deployed in a reusable and scalable manner.
"Starting the AI roadmap with a MLOps- and FinOps-first approach, rather than in hindsight, is essential for cost-effective, intelligent,and sustainable AI applications," Balansuggests. "Building a system of intelligence with a feedback loop to the system of record is essential to modernize business processes."
Perhaps the biggest innovation mistake CIOs make is viewing large infrastructure projects as the primary, and sometimes only, way to achieve IT goals. "In the current market, especially in consumer products, that approach may not align with the pace of the business,"says Allison Vernerey, VP of product at digital storefront technology provider Zmags.
Vernerey warns that a major infrastructure project carries the risk of consuming far too much time and money without achieving the desired value. "There are times when a full re-platform and migration to a new e-commerce system may be appropriate, but that should be a fairly rare path to take," she says.
Furthermore, by the time a major project has been completed and deployed, business goals and challenges may have changed. Vernerey suggests building a strong alignment with business teams. Shenotesthat working with enterprise teams will help CIOs develop projects with solid business value.
"These teams may want certain benefits from a full migration,but make sure to prioritize which benefits need to come first, adopt the right technology, and set your teams up to deliver incremental value over time."
7. Getting over your skis
When approaching any new project, be careful not to bite off more than you can chew. "Make sure you can achieve meaningful milestones month after month, and even week after week," Vernerey advises. One should always look for opportunities to improve customer experiences.