Analytics Study 2019: Companies Align on Data, Inside & Out

Catching Up with Catchphrases

 

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Business catchprases related to the topic of data are plentiful:

• “Data is a business asset”
• “Data is a competitive advantage”
• “Data is the differentiator”
• “Analyze or die”

OK, no one has ever used that last one (at least as far as Google or I know). But they might as well be, considering the critical importance that companies are now placing on business intelligence. It’s not too much of a stretch to say that analytics has become as vital to future success for consumer goods manufacturers and retailers as, well, products and stores.

For me, the most illustrative quote on the subject still comes from former Hershey chief executive officer John Bilbrey, who in 2017 told The CEO Forum Group, “Even though we are a confectionary company, we now like to think of ourselves as a knowledge company” that uses consumer insights to drive the business.

Bilbrey’s comment gained even more relevance early last year, when confectionary rival Nestle divested its namesake U.S. candy business. When an iconic candy maker decides that it shouldn’t be in the candy business anymore, you know the consumer goods industry is undergoing a massive transformation.

In this kind of environment, pivoting toward “data as strategy driver” as your catchphrase isn’t such a bad idea, because if you don’t stay ahead of consumer demand these days you won’t even have any flagship brands worth divesting.

Broadly speaking, there are two critical factors for becoming a successful “knowledge company”: internal analytics capabilities that can inform and direct the entire enterprise, and mutually beneficial methods of data sharing with retailer partners. They’re not mutually exclusive, of course, but they most definitely are mutually beneficial.

That’s why we decided for this year’s Retail and Consumer Goods Analytics Study to combine the two themes we’ve used in the past, looking at the state of analytics maturity within the organization as we have since 2016, but also checking in on the status of data sharing as we did from 2010 to 2015.

In general, we find that both CGs and retailers are making steady progress toward attaining the level of analytics expertise they’ll need to stay relevant with today’s evolving consumers. The one wrinkle impeding their efforts — aside from the traditional obstacles of corporate reticence and limited resources — is the continued emergence of new data sources to interpret and new shopping behaviors to understand.

On the other hand, after a three-year break, we were hoping to find more progress in regard to data sharing between retailers and manufacturers. Although there has certainly been an increase in the types of data being shared, an improvement in the methods of sharing being used, and even an uptick in the frequency of delivery, it seems as if not everyone has fully embraced the idea of another catchphrase: “data as collaborative catalyst” (perhaps because some retailers have adopted another one: “data as alternative revenue stream”).

Overall, however, the industry does seem to be putting its money where its mouth is (figuratively if not literally, although spending on analytics initiatives is also on the rise). Consumer goods manufacturers and retailers alike aren’t just talking about the need to become “data-driven” or “data-informed,” they’re taking the steps necessary to get there.

CGT would like to thank the support we've received from title sponsor AnswerRocket, along with EY, MOKA, PwC, Shortest Track, Signals Analytics and VSBLTY. 

Peter Breen, Editor-in-Chief

To read the rest of the study, click on the links below:

Data Sharing in the Age of Analytics
The Big Challenge: Balancing Maturity with Scope

To download the full study, click on the attachment below.