WEBCAST23  FEBRUARY  2011
THE EVOLUTION OF THE FUTURE VALUE CHAIN                            2             2020 Future Value Chain Building Strategi...
2020 Future Value Chain: Objectives and Principles                                             Objectives                 ...
2020 Future Value Chain: The Future Value Chain Genesis2016: A Vision of the Future       2018: Succeeding in a Volatile  ...
©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
2020 Future Value Chain Framework: Trends, Objectives and Tactics                                        6              20...
TRENDS:WHAT IS DRIVING OUR OBJECTIVES                            7    2020 Future Value Chain Building Strategies for the ...
We see rapid changes in societies around the world Increased urbanization                                                 ...
changes in consumer and shopper behaviourIncreased impact of consumer technology adoption                                 ...
other changes in our environmentScarcity of natural resources                                                             ...
OBJECTIVES:WHAT WE WANT TO ACHIEVE                          11   2020 Future Value Chain Building Strategies for the New D...
2020 Future Value Chain: Four Strategic Objectives                                      Make Our Business More Sustainable...
1. Make Our Business More Sustainable: From Niche to Norm   Success means consumers trust our industry   Retailers and bra...
2. Optimize a Shared Supply Chain: Collaborate Differently, Compete Differently   The 2020 future supply chain reconsiders...
3. Engage with Technology-Enabled Consumers: The Consumer in the  Consumer technology   Changes lives of consumers   Chang...
4. Serve the Health and Wellbeing of Consumers: Focus on Quality of Life    Health and wellbeing of consumers: physical,  ...
TACTICS:HOW WE WILL ACHIEVE OUR OBJECTIVESAS AN INDUSTRY                           17        2020 Future Value Chain Build...
2020 Future Value Chain:                           18   2020 Future Value Chain Building Strategies for the New Decade    ...
HOW TO USETHE FUTURE VALUE CHAININ YOUR COMPANY                         19   2020 Future Value Chain Building Strategies f...
You can already be inspired by a lot of good example initiatives across the industry                                      ...
You can already be inspired by a lot of good example initiatives across the industry                                      ...
How Robust Is Your Strategy?   Make Your Business More Sustainable                                  Engage with Technology...
Q  &  A
Three Ways Companies Can Leverage the Future Value Chain in their Own Business  1. Apply the Future Value Chain framework ...
workshop that will lead you from Inspiration toward a concrete RoadmapFuture Value ChainDiscovery-day                     ...
Contact details           The Consumer Goods Forum                 Capgemini           Sabine Ritter                      ...
www.FutureValueChain.comwww.theconsumergoodsforum.comwww.capgemini.comwww.hp.comwww.microsoft.com©2011 The Consumer Goods ...
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2020 Future Value Chain Webcast Presentation

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If 200 consumer products and retail executives agreed on the trends they are most concerned about and the strategic objectives they would jointly focus on, would you want to know what they were?

The 2020 Future Value Chain report provides the answers to this question. It truly is a report by the industry, for the industry. This special webcast highlights the findings of the new report.

http://www.futurevaluechain.com

Published in: Business

2020 Future Value Chain Webcast Presentation

  1. 1. WEBCAST23  FEBRUARY  2011
  2. 2. THE EVOLUTION OF THE FUTURE VALUE CHAIN 2 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  3. 3. 2020 Future Value Chain: Objectives and Principles Objectives -­‐ Bring  a  collective  vision  to  the  CP&R  Industry -­‐ Ensure  the  Industry  is  best  prepared  to  continue   to  meet  the  needs  of  shoppers  and  consumers   in  a  changing  world Principles -­‐ New  report  every  two  years   -­‐ 10-­‐year  perspective -­‐ (Executive)  industry  expertise  via  workshops -­‐ Not  a  consultant  project 3 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  4. 4. 2020 Future Value Chain: The Future Value Chain Genesis2016: A Vision of the Future 2018: Succeeding in a Volatile 2020: Building Strategies forValue Chain Market the New Decade 80 executive participants 130 executive participants 200 executive participants Two global workshops Global workshop (Utrecht, NL) Global workshops (Chantilly, FR) (Utrecht, NL & Chicago, USA) Asian workshops: Regional workshop Follow-up: GS1 in Europe (Antwerp, BE) Hong Kong (Asian region) 2016 Future Supply Chain Country workshops: Mumbai (Indian market) Australia (Melbourne) Information Sharing report Tokyo (Japanese market) France (Paris) New Ways of Working Together Follow-up: Netherlands (Utrecht) Succeeding in a Volatile Market US (Chicago) Mexico (Mexico City) 4 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  5. 5. ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  6. 6. 2020 Future Value Chain Framework: Trends, Objectives and Tactics 6 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  7. 7. TRENDS:WHAT IS DRIVING OUR OBJECTIVES 7 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  8. 8. We see rapid changes in societies around the world Increased urbanization Aging population Today: Close to 180,000 people move into cities daily, adding roughly 60 million new urban dwellers each year Older consumers 2015: Doubling of cities > 8 million Have substantial ecomomic power 2020: 8 Megacities (>20 million) Devote greater portion of total expenditure to necessities 2050: 70% of world population lives in urban centers May soon represent majority of voting public in many countries Example consequences Shift to smaller-footprint stores Example consequences No room for unproductive Changes to business models to meet inventory needs of different population Supply and logistical challenges Review products and processes New infrastructures required (e.g. wider aisles, largeprint labels) Shrinking workforce challenges 10 2020 Future Value Chain Building Strategies for the New Decade 11 2020 Future Value Chain Building Strategies for the New Decade Increasing spread of wealth Shifting of economic power Middle class is rapidly expanding (mostly in developing regions) 2000: 56 % of global middle class in developing countries 2030: 93 % of global middle class in developing countries Economic powers like China, Brazil and India continue to rise Volatile global economy will remain the norm for coming decade Example Consequences source of growth for manufacturers and retailers Implications for availability and prices of commodities Potential protectionistic country policies 12 2020 Future Value Chain Building Strategies for the New Decade 18 2020 Future Value Chain Building Strategies for the New Decade 8 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  9. 9. changes in consumer and shopper behaviourIncreased impact of consumer technology adoption Increase in consumer service demands Shoppers continue to become more empowered using technology Exponential growth and adoption of consumer technologies Explosive growth of mobile features and device convergence drives new levels of service demands 2013: over 2 billion mobile users globally will have purchased via Rise of stronger web-based service economy handsets Consumers demand 24/7 service Online sales will grow to 25 % to 30% of total retail sales Crucial role of social media (now: 4 % to 15%) Example consequences Growth of mobile interaction and commerce Example consequences Consumer technology used in stores More demanding consumers Addressing social communities New service models needed Leveraging huge amounts of data Dealing with privacy Becoming more transparent and collaborative towards shoppers 13 2020 Future Value Chain Building Strategies for the New Decade 15 2020 Future Value Chain Building Strategies for the New Decade Growing consumer concern about sustainability Increased importance of health and wellbeing Shoppers want more healthy products and a healthier lifestyle Emerging consumjer segments like LOHAS (Lifestyles of Health and Sustainability) increases significantly LOHAS In US are approximately 19% of adult population: Regulation carbon footprint increase 41 million consumers significantly Sales from LOHAS expected to quadruple in five years Consumers expect governments and companies to play major role US Green marketplace grows from $420 billion in 2010 to $845 billion by 2015 Food, beverage and personal and household goods sectors particularly exposed Waste becomes key focus sustainability discussion 17 2020 Future Value Chain Building Strategies for the New Decade 16 2020 Future Value Chain Building Strategies for the New Decade 9 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  10. 10. other changes in our environmentScarcity of natural resources Increase in regulatory pressure Demand larger than supply 2030: World population 8.3 billion Regulatory pressure expected to increase Demand for food +50% Hot button areas: Demand for energy +50% Environment Fresh water demand +30% Sustainability food safety Example consequences Energy revolution New Water policies Impact on food prices Pressures on food quality & Safety 20 2020 Future Value Chain Building Strategies for the New Decade 21 2020 Future Value Chain Building Strategies for the New Decade Rapid adoption of supply chain technology capabilities Impact of next-generation information technologies More synchronized value chain with greater visibility and traceability Information Technology shifts from indispensable support function Improved collaboration to the way to become adaptive New supply chain / logistics technologies New ways of business due to next generations of IT Information transparency New ways of managing business processes Major new opportunities for innovation Freeing up from current IT constraints Example consequences Need to improve visibility and traceability Need to share information over company boundaries Need to adopt right technologies 23 2020 Future Value Chain Building Strategies for the New Decade 22 2020 Future Value Chain Building Strategies for the New Decade 10 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  11. 11. OBJECTIVES:WHAT WE WANT TO ACHIEVE 11 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  12. 12. 2020 Future Value Chain: Four Strategic Objectives Make Our Business More Sustainable From Niche to Norm Optimize a Shared Supply Chain Collaborate Differently, Compete Differently Engage with Technology-Enabled Consumers The Consumer in the Serve the Health and Wellbeing of Consumers Focus on Quality of Life 12 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  13. 13. 1. Make Our Business More Sustainable: From Niche to Norm Success means consumers trust our industry Retailers and brand manufacturers collaborate Tackling big challenges (e.g., deforestation) Helping consumers understand their role in living an environmentally friendly lifestyle Common measures, language and consistent messaging Success will come Helping consumers understand their role when consumers begin Helping to make the right decisions, enabling a to trust our industry significant change in consumer behavior Competitiveness delivered by Brand and store performance Breakthrough innovations improving sustainability Working with upstream suppliers to extend our influence over many other contiguous industries 13 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  14. 14. 2. Optimize a Shared Supply Chain: Collaborate Differently, Compete Differently The 2020 future supply chain reconsiders assumptions New parameters include: Reduced CO2 emissions Energy consumption Driven by consumers; they are the trigger for Success will come when supply chain an optimized collaborative supply chain flow optimization is treated from a total value chain perspective rather than from individual company perspectives 14 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  15. 15. 3. Engage with Technology-Enabled Consumers: The Consumer in the Consumer technology Changes lives of consumers Changes shopping journey Increases marketplace transparency Consumers Success will come when we Demand personalized dialogues and offerings anytime, understand how to maintain a anywhere true dialogue with consumers Embrace technology quicker than the industry via their preferred channels Digital natives are increasingly big consumer base and technologies Digital immigrants also heavily use consumer technologies The industry Needs to figure out how to effectively interact Needs to be viewed as a trusted source for information Will be more successful when companies engage consumers in new product and service development 15 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  16. 16. 4. Serve the Health and Wellbeing of Consumers: Focus on Quality of Life Health and wellbeing of consumers: physical, emotional, spiritual, intellectual and sustainable wellbeing Positive changes in consumer behavior Healthy choices available for all budget levels Information/education to make informed choices Success will come when Improved availability and quality of water and hygiene we focus Reduce diseases and infant mortality rate To be established via a new way of working together Governments, consumer goods companies, pharmaceutical companies and NGOs Enabling new business models Enabling a dialogue to collaboratively work on concrete solutions 16 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  17. 17. TACTICS:HOW WE WILL ACHIEVE OUR OBJECTIVESAS AN INDUSTRY 17 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  18. 18. 2020 Future Value Chain: 18 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  19. 19. HOW TO USETHE FUTURE VALUE CHAININ YOUR COMPANY 19 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  20. 20. You can already be inspired by a lot of good example initiatives across the industry Illustrative Examples Make Our Business Optimize a Shared More Sustainable Supply Chain Unilever Collaborates with Walmart (ASDA) Colgate-Palmolive (as many other to Create Awareness and Educate Customers Companies) Uses Global Data on Sustainable Living Synchronization to Standardize Business Processes, Drive Efficiency and Enable METRO Group Develops a Sustainable Faster Innovation Aquaculture Program for Fish in the Mekong Delta in Vietnam United Biscuits and Nestlé Collaborate to Generate Significant Environmental and Cost Savings Many Consumer Product Companies are Committed Towards Sustainable Production of Palm Oil Mars and Kuehne + Nagel Measure and Visualize Order Placement Impact to Gain Coca-Cola Hellenic Runs Energy-Efficient Environmental Benefits and Improve Plants that Reduce CO2 Emissions Efficiency Albert Heijn Uses Dynamic Pricing and Digital Signage to Reduce Waste on Fresh Produce Danone Works with Carrefour to Improve On-Shelf Availability and to Leverage Supply-Driven Shopper Insights - and Track and Reduce Energy Usage for Its Products 20 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  21. 21. You can already be inspired by a lot of good example initiatives across the industry Illustrative Examples Engage with Serve the Health Technology-Enabled and Wellbeing of Consumers Consumers PepsiCo Successfully Engages a Large Customer Base to Interact in Product CFBAI Initiative Seeks to Address the Problem of Development Childhood Obesity by Self-Regulating Advertising to Children under 12 Years Coca-Cola in Japan Uses Interactive Product Recall Service of GS1 in U.S. and Vending Machines to Increase Canada Has Helped to Build an Efficient Consumer Engagement Process for Handling Product Recalls Nestlé Helps Raise Awareness about the Importance of Proper Nutrition and Health and Wellness to through an Innovative Mobile Marketing Children through Its Healthy Kids Global Program Solution Offered by O2 Mobile in UK Hindustan Unilever Limited Educates Rural Women to Enter the Growing Consumer Market in Rural India Unilever and Albert Heijn Jointly Work on Strategic Activation Platforms, Using Walmart Collaborates to Make Technology Shopper Insights to Drive Joint Growth More Accessible and Affordable for Small Health Practices 21 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  22. 22. How Robust Is Your Strategy? Make Your Business More Sustainable Engage with Technology-Enabled Consumers Will you drop product lines that are fundamentally not Do you know how to survive a negative social sustainable? network viral fan page? Do you have a contingency plan for an unexpected eco- Is your company really differentiating between a disaster or climatic disruption? Do you have programs in place to address, for example, Do you know who else is providing information about restrictions on truck emissions, access to urban zones and your brands or stores to consumers or shoppers? noise pollution? How do you create transparency with consumers while Are you prepared to transparently report the detail of your maintaining control? Optimize a Shared Supply Chain Serve the Health and Wellbeing of Consumers Do you still see your supply chain as a source of Are your products creating the health crisis rather competitive advantage? than solving it? Would you share a truck or a warehouse with a competitor? Are you prepared to meet the new demands of older Is your supply chain able to cope with the impact of oil consumers? returning to its 2008 historical high of $147 a barrel? Or Do you know where you will get your labor force once even exceeding that, and hitting $200? your current labor force retires? Are you willing to share non-competitive information with How will you efficiently serve the underserved customers trading partners including competitors about product in developing markets? movements along the supply chain? 22 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  23. 23. Q  &  A
  24. 24. Three Ways Companies Can Leverage the Future Value Chain in their Own Business 1. Apply the Future Value Chain framework inside your company What strategic objectives should we have inside our company? What tactics do we need to put into place to achieve the objectives? 2. Implement the relevant tactics and ideas from the Future Value Chain initiative Existing company programs address strategic objectives 3. Challenge yourself to see how robust your strategy really is to: Make your business more sustainable Optimize a shared supply chain Engage with technology-enabled consumers Serve the health and wellbeing of consumers 24 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  25. 25. workshop that will lead you from Inspiration toward a concrete RoadmapFuture Value ChainDiscovery-day Building  Strategies for the  New  Decade Inspiration by concrete business solutions and best-in- class reference examples Blending with company- specific issues and initiatives in an unconventional facilitated process Resulting at the end of the day in a high level roadmap that fits your business context ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  26. 26. Contact details The Consumer Goods Forum Capgemini Sabine Ritter Kees Jacobs The Consumer Goods Forum Capgemini +33 1 82 00 95 80 +31 653 292 832 s.ritter@theconsumergoodsforum.com kees.jacobs@capgemini.com Marc van der Liet Brian Girouard The Consumer Goods Forum Capgemini +33 1 82 00 95 84 +1 952 212 0417 m.vanderliet@theconsumergoodsforum.com brian.girouard@capgemini.com HP Microsoft Mario Vollbracht Ted Combs HP Microsoft +1 404 551 5872 +1 630 725 4319 mario.vollbracht@hp.com tedcombs@microsoft.com www.hp.com/go/retail David Bailey www.hp.com/go/consumergoods Microsoft +44 118 909 4566 davidbai@microsoft.com 26 2020 Future Value Chain Building Strategies for the New Decade ©  2011  The  Consumer  Goods  Forum,  Capgemini,  HP.  Microsoft  .  All  rights  reserved
  27. 27. www.FutureValueChain.comwww.theconsumergoodsforum.comwww.capgemini.comwww.hp.comwww.microsoft.com©2011 The Consumer Goods Forum, Capgemini, HP, Microsoft. All rights reserved.
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