How embracing technology trends can drive leadership in the next generation of consumer products and retail. – EY
BEPS 2.0: as policies evolve, engagement is key
How GenAI strategy can transform innovation
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Americas SAP Consumer Products and Retail Leader, Ernst & Young LLP
As the EY Americas Consumer Technology Leader, I bring a mix of consumer and retail industry experience with a lens on enabling people to achieve transformational outcomes for their companies.
In brief
In the dynamic landscape of the consumer products and retail (CP&R) industry, staying ahead of the curve is essential. Rapid market shifts and disruption, coupled with increasingly sophisticated and fragmented consumer demands, threaten to create a risky environment for executives who take a wait-and-see approach to embracing evolving technology, which is critical to keeping pace in this hyper-dynamic environment.
Emerging Tech at Work
of managers surveyed say senior leaders at their companies have been slow to embrace emerging technologies.
Fueled by evolving technology, the CP&R industry is and will continue to transform well beyond traditional limitations at a pace stakeholders have demanded for years. The state of the market will reward those proactively enhancing digital capabilities, and those who do not will increasingly fall behind the competition. Below, we identify four pivotal evolving technology trends that are helping to reimagine the industry. From unlocking growth opportunities to strengthening organizational excellence, these evolving technologies are critical capabilities to becoming truly “consumer-centric” and creating long-term value. CP&R organizations seeking to thrive should consider leveraging these technologies against strategic goals across the front, middle and back offices to scale operations and stay ahead of the competition in consumer experience, innovation and loyalty.
Why it’s important: In the CP&R industry, personalized experiences and efficient supply chains are paramount for winning in the market. Artificial intelligence and machine learning (AI/ML) and microcomputing technologies are crucial for achieving these objectives by enabling real-time data ingestion and action across customer interactions. This, in turn, empowers businesses to understand consumer preferences at a granular and even hyper-local level, driving increased sales and profitability, brand engagement and loyalty, and streamlined supply chain efforts.
Now and in the future, brands and retailers will implement AI/ML across a host of use cases, such as:
AI-powered chatbots and virtual assistants can provide personalized recommendations, answer inquiries and offer real-time support, enhancing the overall shopping experience.
AI-powered systems and microcomputing capabilities can help companies monitor store-level sales data, foot traffic, product placements and consumer behavior, enabling retailers to optimize store layouts and activities for better promotions and increased sales.
AI algorithms can analyze customer data to create highly targeted segmentation and tailored marketing campaigns that resonate with individual preferences, driving higher conversion rates and lower go-to-market costs.
AI-driven pricing algorithms can adapt in real-time based on factors such as demand, competition and inventory levels, maximizing revenue and profitability.
AI-powered demand forecasting models can predict consumer preferences and optimize inventory and SKU management, reducing excess inventory costs and stockouts.
To succeed, companies must leverage technology to deliver exceptional customer experiences, tailor marketing efforts, respond to market needs and ensure their infrastructure can scale to accommodate real-time, sophisticated ML models.
Generative AI holds immense significance in CP&R for its ability to foster innovation in content creation and product development. By harnessing the power of GenAI, businesses can produce fresh and engaging content, get to market with speed and build rapid customer engagement models.
GenAI is still in its early stages and so are its applications in CP&R, but it’s already clear that the possibilities are endless.
GenAI can produce high-quality, tailored content, including social media updates, product descriptions and promotional messaging, to enhance digital marketing efforts.
CP&R companies can leverage GenAI to create design concepts, prototype ideas and even simulate consumer reactions to new product designs or promotional offers.
AI-powered virtual assistants can help customers with product selection, offering personalized recommendations, answering queries and mimicking the in-store shopping experience online.
GenAI can automate communication with suppliers, generate reports and assist in negotiation processes, improving supplier relationships and efficiency.
In manufacturing, GenAI can analyse large amounts of data and images to identify patterns of defects in products with high accuracy, boosting product quality and minimizing waste.
CP&R companies should consider integrating GenAI into operations more broadly across the value chain. Organizations that find the most appropriate use cases and implement them at scale will drive the operational agility that industry stakeholders have been expecting for years. It will be critical to rethink how talent and capital allocation can be repositioned to better drive value when content and innovation can be available at the drop of a hat.
Digital twin technology and predictive analytics play a pivotal role in revolutionizing CP&R operations. They facilitate agility and offer a comprehensive view of product lifecycles, supply chains and manufacturing processes.
Digital twin and predictive analytics are not new in CP&R, but applications for their use are becoming more robust
Retailers and manufacturers can create digital twins of products, enabling them to simulate and optimize designs, materials and manufacturing processes before physical production.
Digital twins can be applied to manufacturing plants, allowing real-time monitoring, predictive maintenance and performance optimization to reduce downtime and costs.
Digital twins enable retailers to create virtual representations of their supply chain, helping them visualize and optimize inventory levels, demand fluctuations and logistics.
As the CP&R industry becomes increasingly more digitally connected and complex, driven by software proliferation and the Internet of Things (IoT), companies should expand their use of digital twins to a wider range of interconnected value chain nodes. This approach will enable a more proactive response to disruption and market shifts by transforming these tools into a means for a truly dynamic enterprise, from the front office through to the back office.
With enterprise resource planning (ERP) upgrades imminent by 2025, modernization is foundational to integrating evolving technology capabilities. Cloud computing provides on-demand data storage and computing power, which is essential for supporting and scaling these new technologies.
CP&R executives should be considering these applications to derive the most value from Cloud and ERP upgrades.
Cloud-based solutions enable seamless integration between customer-facing systems and back-end operations, driving data consistency and streamlined workflows.
Cloud platforms offer the processing power needed to run complex analytics and AI/ML models in real time, enabling data-driven decision-making.
Cloud providers invest heavily in security and compliance measures, helping CP&R companies meet industry regulations and protect sensitive customer data.
Companies must look at their legacy transaction systems and rationalize how to modernize them to create efficiencies, whether by integrating evolving tech that makes their systems more usable or by upgrading legacy transaction systems to keep pace with their front-end infrastructure.
It’s imperative to recognize that the true power and value behind an evolving digital landscape lie not just in the technologies themselves but in how companies strategically integrate and orchestrate them into their operations and strategic initiatives. The following considerations serve as a guide to help CP&R leaders start a journey down this transformative path.
Data strategy: Establish robust data quality and governance frameworks, as inaccurate or poor-quality data can undermine the success of tech implementations.
Zero-party data: Capitalize on data provided directly by consumers to personalize experiences and tailor product offerings to meet individual preferences.
Evaluating the tech ecosystem: Continuously assess your technology ecosystem by building strategic alliances and leveraging partnerships to gain access to cutting-edge technologies and expertise, further driving innovation, agility and competitive advantage.
Collaboration and co-opetition: Encourage data- and tech-enabled collaboration both within your organization and externally, as partnerships with suppliers, distributors and even competitors can foster innovation and create a more agile system.
Governance: Establish clear governance policies and ethical guidelines for responsible technology use, particularly in areas like AI and data analytics.
Talent agenda: Invest in employee training and upskilling to enable your workforce to effectively utilize technology and adapt to new tools and workflows.
Helping businesses adapt at pace by equipping their people with the skills they need to continuously realize transformation.
¹. Is the future of your tech stack built on the foundation of your people?” Faisal Alam and Matt Barrington, EY website, June 12, 2023.
The consumer industry is undergoing a tech-driven transformation. Embracing these evolving technology trends is essential for CP&R companies that seek to optimize and scale their operating model to stay competitive, deliver exceptional consumer experiences and build long-term value. To maximize the full potential of these tech investments, organizations must consider their specific needs, value proposition, infrastructure and strategic goals, all while keeping a watchful eye on the broader tech landscape and industry trends.
About this article
Americas SAP Consumer Products and Retail Leader, Ernst & Young LLP
As the EY Americas Consumer Technology Leader, I bring a mix of consumer and retail industry experience with a lens on enabling people to achieve transformational outcomes for their companies.
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EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
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EY | Assurance | Consulting | Strategy and Transactions | Tax
About EY
EY is a global leader in assurance, consulting, strategy and transactions, and tax services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.
© EYGM Limited. All Rights Reserved.
EYG/OC/FEA no.
ED MMYY
This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.
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This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
How GenAI strategy can transform innovation
Select your location
No search results have been found
Local sites
Americas SAP Consumer Products and Retail Leader, Ernst & Young LLP
As the EY Americas Consumer Technology Leader, I bring a mix of consumer and retail industry experience with a lens on enabling people to achieve transformational outcomes for their companies.
In brief
In the dynamic landscape of the consumer products and retail (CP&R) industry, staying ahead of the curve is essential. Rapid market shifts and disruption, coupled with increasingly sophisticated and fragmented consumer demands, threaten to create a risky environment for executives who take a wait-and-see approach to embracing evolving technology, which is critical to keeping pace in this hyper-dynamic environment.
Emerging Tech at Work
of managers surveyed say senior leaders at their companies have been slow to embrace emerging technologies.
Fueled by evolving technology, the CP&R industry is and will continue to transform well beyond traditional limitations at a pace stakeholders have demanded for years. The state of the market will reward those proactively enhancing digital capabilities, and those who do not will increasingly fall behind the competition. Below, we identify four pivotal evolving technology trends that are helping to reimagine the industry. From unlocking growth opportunities to strengthening organizational excellence, these evolving technologies are critical capabilities to becoming truly “consumer-centric” and creating long-term value. CP&R organizations seeking to thrive should consider leveraging these technologies against strategic goals across the front, middle and back offices to scale operations and stay ahead of the competition in consumer experience, innovation and loyalty.
Why it’s important: In the CP&R industry, personalized experiences and efficient supply chains are paramount for winning in the market. Artificial intelligence and machine learning (AI/ML) and microcomputing technologies are crucial for achieving these objectives by enabling real-time data ingestion and action across customer interactions. This, in turn, empowers businesses to understand consumer preferences at a granular and even hyper-local level, driving increased sales and profitability, brand engagement and loyalty, and streamlined supply chain efforts.
Now and in the future, brands and retailers will implement AI/ML across a host of use cases, such as:
AI-powered chatbots and virtual assistants can provide personalized recommendations, answer inquiries and offer real-time support, enhancing the overall shopping experience.
AI-powered systems and microcomputing capabilities can help companies monitor store-level sales data, foot traffic, product placements and consumer behavior, enabling retailers to optimize store layouts and activities for better promotions and increased sales.
AI algorithms can analyze customer data to create highly targeted segmentation and tailored marketing campaigns that resonate with individual preferences, driving higher conversion rates and lower go-to-market costs.
AI-driven pricing algorithms can adapt in real-time based on factors such as demand, competition and inventory levels, maximizing revenue and profitability.
AI-powered demand forecasting models can predict consumer preferences and optimize inventory and SKU management, reducing excess inventory costs and stockouts.
To succeed, companies must leverage technology to deliver exceptional customer experiences, tailor marketing efforts, respond to market needs and ensure their infrastructure can scale to accommodate real-time, sophisticated ML models.
Generative AI holds immense significance in CP&R for its ability to foster innovation in content creation and product development. By harnessing the power of GenAI, businesses can produce fresh and engaging content, get to market with speed and build rapid customer engagement models.
GenAI is still in its early stages and so are its applications in CP&R, but it’s already clear that the possibilities are endless.
GenAI can produce high-quality, tailored content, including social media updates, product descriptions and promotional messaging, to enhance digital marketing efforts.
CP&R companies can leverage GenAI to create design concepts, prototype ideas and even simulate consumer reactions to new product designs or promotional offers.
AI-powered virtual assistants can help customers with product selection, offering personalized recommendations, answering queries and mimicking the in-store shopping experience online.
GenAI can automate communication with suppliers, generate reports and assist in negotiation processes, improving supplier relationships and efficiency.
In manufacturing, GenAI can analyse large amounts of data and images to identify patterns of defects in products with high accuracy, boosting product quality and minimizing waste.
CP&R companies should consider integrating GenAI into operations more broadly across the value chain. Organizations that find the most appropriate use cases and implement them at scale will drive the operational agility that industry stakeholders have been expecting for years. It will be critical to rethink how talent and capital allocation can be repositioned to better drive value when content and innovation can be available at the drop of a hat.
Digital twin technology and predictive analytics play a pivotal role in revolutionizing CP&R operations. They facilitate agility and offer a comprehensive view of product lifecycles, supply chains and manufacturing processes.
Digital twin and predictive analytics are not new in CP&R, but applications for their use are becoming more robust
Retailers and manufacturers can create digital twins of products, enabling them to simulate and optimize designs, materials and manufacturing processes before physical production.
Digital twins can be applied to manufacturing plants, allowing real-time monitoring, predictive maintenance and performance optimization to reduce downtime and costs.
Digital twins enable retailers to create virtual representations of their supply chain, helping them visualize and optimize inventory levels, demand fluctuations and logistics.
As the CP&R industry becomes increasingly more digitally connected and complex, driven by software proliferation and the Internet of Things (IoT), companies should expand their use of digital twins to a wider range of interconnected value chain nodes. This approach will enable a more proactive response to disruption and market shifts by transforming these tools into a means for a truly dynamic enterprise, from the front office through to the back office.
With enterprise resource planning (ERP) upgrades imminent by 2025, modernization is foundational to integrating evolving technology capabilities. Cloud computing provides on-demand data storage and computing power, which is essential for supporting and scaling these new technologies.
CP&R executives should be considering these applications to derive the most value from Cloud and ERP upgrades.
Cloud-based solutions enable seamless integration between customer-facing systems and back-end operations, driving data consistency and streamlined workflows.
Cloud platforms offer the processing power needed to run complex analytics and AI/ML models in real time, enabling data-driven decision-making.
Cloud providers invest heavily in security and compliance measures, helping CP&R companies meet industry regulations and protect sensitive customer data.
Companies must look at their legacy transaction systems and rationalize how to modernize them to create efficiencies, whether by integrating evolving tech that makes their systems more usable or by upgrading legacy transaction systems to keep pace with their front-end infrastructure.
It’s imperative to recognize that the true power and value behind an evolving digital landscape lie not just in the technologies themselves but in how companies strategically integrate and orchestrate them into their operations and strategic initiatives. The following considerations serve as a guide to help CP&R leaders start a journey down this transformative path.
Data strategy: Establish robust data quality and governance frameworks, as inaccurate or poor-quality data can undermine the success of tech implementations.
Zero-party data: Capitalize on data provided directly by consumers to personalize experiences and tailor product offerings to meet individual preferences.
Evaluating the tech ecosystem: Continuously assess your technology ecosystem by building strategic alliances and leveraging partnerships to gain access to cutting-edge technologies and expertise, further driving innovation, agility and competitive advantage.
Collaboration and co-opetition: Encourage data- and tech-enabled collaboration both within your organization and externally, as partnerships with suppliers, distributors and even competitors can foster innovation and create a more agile system.
Governance: Establish clear governance policies and ethical guidelines for responsible technology use, particularly in areas like AI and data analytics.
Talent agenda: Invest in employee training and upskilling to enable your workforce to effectively utilize technology and adapt to new tools and workflows.
Helping businesses adapt at pace by equipping their people with the skills they need to continuously realize transformation.
¹. Is the future of your tech stack built on the foundation of your people?” Faisal Alam and Matt Barrington, EY website, June 12, 2023.
The consumer industry is undergoing a tech-driven transformation. Embracing these evolving technology trends is essential for CP&R companies that seek to optimize and scale their operating model to stay competitive, deliver exceptional consumer experiences and build long-term value. To maximize the full potential of these tech investments, organizations must consider their specific needs, value proposition, infrastructure and strategic goals, all while keeping a watchful eye on the broader tech landscape and industry trends.
About this article
Americas SAP Consumer Products and Retail Leader, Ernst & Young LLP
As the EY Americas Consumer Technology Leader, I bring a mix of consumer and retail industry experience with a lens on enabling people to achieve transformational outcomes for their companies.
Connect with us
Our locations
Careers
Webcasts
My EY
Site map
Do Not Sell or Share My Personal Information
Legal and privacy
Accessibility
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
YouTube
EY | Assurance | Consulting | Strategy and Transactions | Tax
About EY
EY is a global leader in assurance, consulting, strategy and transactions, and tax services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.
© EYGM Limited. All Rights Reserved.
EYG/OC/FEA no.
ED MMYY
This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.
In addition to cookies that are strictly necessary to operate this website, we use the following types of cookies to improve your experience and our services: Functional cookies to enhance your experience (e.g. remember settings), and Performance cookies to measure the website’s performance and improve your experience., and Marketing/Targeting cookies, which are set by third parties, allow us to execute marketing campaigns, manage our relationship with you, build a profile of your interests and provide you with content or service offerings in accordance with your preferences.
We have detected that Do Not Track/Global Privacy Control is enabled in your browser; as a result, Marketing/Targeting cookies, which are set by third parties that allow us to execute marketing campaigns, manage our relationship with you, build a profile of your interests and provide you with the content or service offerings in accordance with your preferences are automatically disabled.
You may withdraw your consent to cookies at any time once you have entered the website through a link in the privacy policy, which you can find at the bottom of each page on the website.
Review our cookie policy for more information.
Customize cookies
This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
