Cloud Innovation: Consumer Packaged Goods eBook


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Cloud, mobile and social technologies are dramatically changing the way consumer goods companies and retailers operate and interact with consumers. In this eBook, we look at 10 real-life case studies of how companies like L’Oreal USA, Brown Forman, Starbucks and 1-800-Flowers are using cloud, mobile and social technologies to reimagine their operations, consumer and partner relationships. Get inspired by their stories and get started on your path to the cloud!

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Cloud Innovation: Consumer Packaged Goods eBook

  2. 2. Cloud Mobile Social90% of consumer goodscompanies aim to implementor at least pilot cloudsolutions by 2014(source)38% of daily mediainteractions on mobilephones (source)Social and mobile shoppers spent 27% more than those using traditional channels(source)Cloud, Mobile, Social are Reshaping Retail andConsumer Goods25% Consumer PackagedGoods purchases areinfluenced by social media(source)
  3. 3. Leading Consumer Goods Companies are Using Cloud,Mobile and Social Technology to Rethink their BusinessConsumerRelationshipsRetailer andSupplierRelationshipsWorkforce OperationsCloud Mobile Social
  4. 4. Consumer Relationships• Direct-to-consumer• Social marketing and collaboration• Consumer self-service
  5. 5. Consumer Relationships 5CLOUD MOBILE SOCIALStarbucks had an idea in late 2008 tolaunch a social campaign to drive anational pledge for service to coincidewith President Obama’s inaugurationin mid-January. The challenge was thatit was just 3 weeks away and they hadno idea how much traffic to expect tothe site.Appirio rose to the occasion, buildinga highly scalable interactive websiteusing Salesforce’s platformin just 21 days . The site allowedmillions of users to search 30K+volunteer opportunities, sign up, andspread the word through an integratedFacebook application.The site scaled seamlessly to supportmassive traffic when the brand’s CEOfeatured the app on Oprah and raised1.3M hours of volunteer time fromparticipants nationwide.Social Consumer and CommunityEngagement• Millions of Users• App showcased on Oprah• Raised 1.3M hours of volunteertime from participants• Built using Salesforce platform• Completed in 3 Weeks"With the cloud, we can makeridiculous things happen in ashort period of time."- Chris Bruzzo,SVP Channel Brand Management
  6. 6. 6CLOUD MOBILE SOCIALConsumer RelationshipsAn American multinational consumergoods was facing a company-wideproduct recall. To make matterstougher, the Brazilian governmentwas threatening country-wide actionif the company did not streamline itsproduct recall process immediately.In just 3 days, from initial phone call toa fully operational product recall site,Appirio developed a website solutionusing Salesforce Sites for consumersto request monetary reimbursementor product exchanges in return fordefective products. In addition to basicfunctionality, the site included complexPortuguese language requirements andhigh security features, given the bankdata involved.Within just days, the site wasup and processing 100s of recallreimbursements and productexchanges, saving the companyfrom facing country-wide sanctionsand fines.Consumer Self-Service for ProductRecall• 100s of users• Built using Salesforce platform• Completed in 3 days
  7. 7. 7CLOUD MOBILE SOCIALConsumer RelationshipsThe hair care division of the world’slargest cosmetics and beauty companyrelies on salons and store ownersfor business, but providing themincentives and rewards for their loyaltywas challenging. The loyalty systemthey had in place made it difficult tolaunch new promotions quickly andrequired weeks of effort from valuableIT resources.Appirio built a custom rewardsprogram application using theSalesforce platform that calculatesaward balances, points awarded andredeemed across multiple brands,programs and membership tiers. Theapplications integrates with SAP fororder placement and connects to 6brand websites for use by 100,000+salons and stylists.Appirio did in 3 months, what it hadtaken 6 years to build out in theoriginal system. And with the newsystem in place, the company is ableto roll-out brand programs morefrequently and properly reward loyalcustomers, to keep them coming backfor more.Cloud Powered Loyalty Program• Integrates data from 6 productwebsites for use by 100,00+ salonsand stylists• Custom Salesforce application withSAP integration• Completed in 3 months"Today, the field is moreempowered and has betterinformation than in thepast. They can pool theirown information, look at itthemselves, or ask us to help."- Senior Manager,Salon Care
  8. 8. Workforce• Social collaboration• Real-time talent management
  9. 9. 9WorkforceCLOUD MOBILE SOCIALThe world’s largest cosmetics and beautycompany demands a brand and userexperience that is consistent with theirleading brand. Unfortunately, the waytheir sales reps communicated withsalons and retail outlets, was fallingflat. Each month, HQ distributed 2GB ofcontent on 1,000s of CDs mailed to eachindividual rep that showcased the latestand greatest for the products they werepushing. It was costly, cumbersome andnot in line with the forward-thinkingbrand.Appirio developed a uniqueuser experience using SalesforceAuthenticated Sites, Calendaringand Content that displays recentannouncements, featured contentfor easy access and sharing based onindividual role. Additionally, reps useChatter to collaborate around how tobest use content in the field.Now, all product information,promotions, events and updates areeasily accessible from one place and thesocial functionality allows reps to sharetips and stories about their experiencesin the field. The online portal also savesmoney and the environment.Branded Sales Enablement Community• 1,000+ users• Salesforce Portal, Chatter andContent Management• Completed in 4 weeks
  10. 10. 10WorkforceCLOUD MOBILE SOCIALThe American-owned spirits and winedistributor was a siloed and somewhattraditional organization in that theyhad employees all over the world thatdidn’t have the means to collaborate.They did have a traditional SAP portalin place, but it wasn’t user-friendlyand adoption was extremely low.After hiring a new CEO who wantedto revitalize the company, globalcollaboration became a key initiative.Brown-Forman employed Appirio toroll-out an employee collaborationportal built on Salesforce with agraphic iPad-like user interface.A combination of a social enterpriseblueprint designed to identify usecases and ensure adoption, andthe CEO’s passion for top-downcollaboration made the portal a hugehit, both in the US and abroad, allowingcross-company collaboration.Global Employee Collaboration Portal• Salesforce platform and Chatter forsocial collaboration• Completed in 2 months“With more than 3,000employees in more than 135countries, keeping our employeesconnected, informed andaligned—all in real-time—iscritical to delivering customersatisfaction.”- Jennifer McClinton,Director of Technology Development
  11. 11. 11WorkforceCLOUD MOBILE SOCIALThe US-based airline that offers low-fare, high-quality service betweenmajor metropolitan cities acrossthe country was having troublecommunicating with its employees.With the majority of employees inthe air or working on the ground atairports, it was impossible for them toaccess the company’s legacy intranetsystem on a mobile device, leavingthem feeling disconnected from thefun-loving brand.Virgin turned to Appirio to create a socialand mobile employee intranet. Themobile-optimized intranet has SalesforceChatter and Content embedded intothe portal, enabling cross-companycollaboration for 2,700 users.Now, pilots, flight attendants andground crew can access the socialintranet on-the-go to get the latestand greatest company announcementsand news and communicate with otheremployees. As a result, the averagesite visit has gone from just 45 secondsto 6 minutes, with employees finding away to stay connected on the road.Social and Mobile Employee Intranet• 2,700 users• Built using Salesforce CompanyCommunities• Completed in 6 weeks• Increased time on site by 8x"VXConnect is now up andrunning and the initial responsehas been tremendous.”- Ben Eye,Communications & Events ManagerWATCH THE VIDEO HERE
  12. 12. 12WorkforceCLOUD MOBILE SOCIAL1-800-Flowers, a floral and gift retailerand distribution company based in theUnited States, was missing out on theopportunity for its employees to havedeeper, more meaningful interactionsand better collaboration. Their existingintranet and email system were dated,difficult to use and offered no abilityfor sharing documents, trackingrevisions or collective scheduling.Appirio Replaced Bloomnet, the priorsystem, with Google Apps, Google+ andGoogle Docs for 1,400 users nationwide.Smilelink, a new intranet portal wasdeveloped with Google Sites templatesand served as the HR department‘shome page. Appirio also developed acommunity engagement and trainingplan to ensure adoption and maximizethe impact of the new intranet.Google provided a unified platformfor both internal collaboration andexternal marketing, making it easierfor employees to share and trackinteractions, while making it easyto maintain and update the intranetwithout IT support. 1-800-Flowers nowhas a social intranet that’s engaging,fresh and easy-to-maintain.Social Employee and Partner Intranet• 1,400 users• Built using Google+, Apps, Docs,Sites• Completed in 7 weeks
  13. 13. Operations• CRM and mobile sales enablement• Mobile retail execution• Kiosk/store operations management
  14. 14. 14OperationsCLOUD MOBILE SOCIALA multinational alcoholic beveragescompany and Worlds largest producerof spirits had limitied visibility intoquality control after production wascomplete. They were shipping productall over the world, without full visibilityinto what was happening at the storelevel.Appirio built a mobile quality surveyapp on the Salesforce platform thatallows the company to send out e-mailrequests to employees to sampleproduct quality from store locationsbased on a GPS code. The app supports5 languages and multiple mobile devices,providing visibility by brand, region,country, etc. The app has helped to resolve localissues with product shipping andhandling with improved productquality to the consumer. The improvedreporting capabilities, provided bythe app in dashboard form, help thecompany assess product quality acrossnumerous filter parameters and offergreater insight into customer needsand quality concerns.Mobile Quality Control Survey• Mobile app powered by Salesforceplatform and HTML5• 5 Asian languages and 20 filterpoints• Completed in 3 weeks
  15. 15. 01110110 0101110 00100000 01101110011 00100000 011101001101000 01100101 0010000001100011 01101111 0110111101101100 01100101 0111001111010001001001 0111011001110110 011110 00100000 01100011 00100000 01110101000 01100101 001000000011 01101111 011011111100 01100101 01110011010001001001 0111011015OperationsCLOUD MOBILE SOCIALThe world’s largest cosmetics andbeauty company manages thousandsof combinations of beauty advisors,brands and store locations. Employeequotas and performance were trackedin spreadsheets, which was extremelylabor intensive and inhibited timelyanalysis.Appirio built a custom Salesforceapplication with complex sharingrules pertaining to Beauty AdvisorManagers and Brand Managers to keepgeographies and brands separate. Theapplication included custom objectsfor Doors (individual store location, i.e.Macys SF), Accounts (Macy’s), BeautyAdvisors (Contacts) and Performancefor reporting across the entirebusiness.By having all this data at their fingertips and being able to slice and dice itacross accounts, brands, geographies,managers have been able to measurethe performance of each Advisoragainst their weekly, monthly andquarterly goals. And in turn, theyhave been able to establish andrefine training programs based onperformance data to help improvesales or reallocate Beauty Advisorsfrom one location or brand, to anotherwhere they can have more impact.Real-time Beauty Advisor Talent Analysis• Custom Salesforce app• Completed in 7 weeks
  16. 16. 16OperationsCLOUD MOBILE SOCIALFor a global high fashion and cosmeticsbrand, managing field sales, includingorders and pipeline for retail stores,was nothing short of a “spreadsheetfrenzy”. The 18 year-old homegrownsystem built with LotusNotes eFormsinvolved lots of manual updates anddisconnected data. With data stored innumerous disparate systems, trackingand reporting tended to be done inspreadsheets, offering no visibilityacross the organization and taking upa considerable amount of time fromboth field sales reps and management.Appirio deployed a custom SalesforceCRM system that improved the fieldsales experience by providing asingle point of reference for businessprocesses and an access point for SAPdata, including orders.By reducing time spent onadministrative tasks, the new systemenables field sales personnel to spendmore time in stores coaching teammembers, promoting products, anddriving customer satisfaction.Cloud-based Retail Operations• 200 users• Salesforce CRM integrated with SAP• Completed in 5 months
  17. 17. Retailer and SupplierRelationships• Streamlined partner marketing and onboarding• Social partner collaboration
  18. 18. 18CLOUD MOBILE SOCIALRetailer and SupplierRelationshipsThe professional division of anAmerican multinational consumergoods company serves a wide rangeof industries, including food service.With thousands of customers underits belt, the company was experiencingdifficulty managing service requestsfrom business partners and as a result,the company’s response time wassuffering.With the help of Appirio, the companyrevamped how they manage customerservice requests, content and metricsby developing a custom-skinned portalwith a dashboard gauge componentdisplaying metrics on store cleanlinessand compliance, based on inspectionreports.The securely available portal not onlymakes it easier for business partnersto submit and track requests, it is alsocustomized to their individual brand,making it a familiar and easy-to-useexperience.Branded Partner Community• Improved response time• Custom branded Salesforce portal• Completed in 10 weeks
  19. 19. Getting Started on Your Path to the CloudIf you’re inspired by these examples and want to get started on your path to the cloud,we’ve identified three simple steps to get started.Assess Current State Identify and PrototypeOpportunitiesCreate CloudTransformation RoadmapStart by understanding yourcompany’s strategic prioritiesand how the current technologyaligns with those priorities. Theobjective is to identify wherethe biggest gaps are.The next step is identifyingthe areas where cloud, mobileand social technology couldhelp achieve business goalsmore quickly and efficiently(take a look at our customeruse cases as a starting point).We suggest starting with along list that you can prioritizebased on potential impact andrisk. Consider crowdsourcingdevelopment of your cloudprototypes or PoCs if you don’thave the expertise in-house.The final step is prioritizingopportunities. Assess the riskand reward associated witheach opportunity and thensequence projects based onyour appetite for risk andfinancial objectives. Turning theroadmap into reality requiresa solid business case as wellas a change plan for yourorganization. Quick wins andprototypes are keys to gettingcommitment to drive a broadcloud transformation program.
  20. 20. Appirio is a global services provider who uses crowdsourcing and cloud, social and mobiletechnology to help enterprises reimagine their business and become more agile. Appiriobrings together technology expertise with a deep understanding of the way people work,and the nearly limitless skills of a crowdsourcing community of 70,000+ developers, to helpenterprises transform relationships with their customers, partners and workforce. Appirio hasworked with more than 500 enterprises, including organizations like Facebook, Intuit, JapanPost Network, LOreal, McGraw-Hill, NetApp, The Four Seasons, and Virgin America. Thecompany is backed by Sequoia Capital, GGV Capital and General Atlantic.© 2013 Appirio, Inc. 760 Market Street 11th Floor San Francisco, CA 94102 650.268.9911 www.appirio.comshare