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Author's profile photo Mark Osborn

Why CP Companies Need a Digital Value Network to Win

To compete and win in today’s highly competitive, agile, and digital world, consumer products (CP) companies must fundamentally transform their business models and business processes – and the IT operations that support both. Why? Because this is your market reality:

  • Consumers’ expectations are rapidly evolving. By 2030, the world’s middle class population is projected to swell to 5 billion and those consumers will wield an estimated 56 trillion Euro in spending power.
  • Consumers are hyper-connected to the Internet and to one another. For example, there are now more than 2.8 billion Internet users worldwide, up from only 35 million users in 1995.
  • Business complexity is increasing. A staggering 90% of the world’s data has been generated within the last two years.
  • The pace of business continues to accelerate. Consider that the average lifespan of a company on the Fortune 500 is now less than 15 years, compared with greater than 75 years in 1955.

Secure your spot among the market leaders

The market rewards companies that thrive in today’s dynamic business environment. According to IDC, by 2018, one-third of the top 20 market share leaders in most industries will be significantly disrupted by new competitors (and “reinvented” incumbents).  How can your company be among the leaders? It requires a fundamental transformation of your business. But not in incremental baby steps; it requires great leaps forward to removes the boundaries created by legacy practices and limited thinking.

Enable transformation through a digital value network

By activating a digital value network, CP companies can establish flexible, agile, and interconnected operations that drive new levels of business insight and enable transformation. A digital value network begins with a digital “core” that interconnects all aspects of your business in real-time. The digital core gives CP companies the opportunity to bring together core business processes on a platform that features real-time analytics to enable a smarter, faster, and simpler enterprise. Your entire value chain, including the core, is digitized, and serves as the platform for innovation and business process automation.

Why embrace digital transformation?

A digital value network frees your workforce to think creatively and achieve business transformation by:

  • Innovating for the future by rapidly identifying and building new business models and new business processes to capitalize on real-time market opportunity
  • Running in real-time, enabling you to transform every business process enterprise-wide to achieve new levels of performance and competitive advantage
  • Empowering the business to identify issues quickly, immediately evaluate available options, select the best combination of options, and then immediately initiate workflow to execute
  • Simplifying technology by eliminating and streamlining process steps, data aggregates, and data tables

Begin re-imagining your business today

SAP Business Suite 4 SAP HANA (SAP S/4HANA) is the real-time platform at the core of the digital value network and enables companies to connect seamlessly – both internally and externally. SAP S/4HANA enables companies to re-imagine business processes for fundamentally better performance.

For example, leveraging a digital value network, your organization can re-imagine business processes to:

  • Ensure new product success while simultaneously driving overall category growth
  • Eliminate supply disruption risk while protecting margins
  • Optimize production capacity and material flow
  • Accelerate and improve short-term demand forecasting
  • Deliver optimal ROI on all promotions and campaigns

And, it’s not just processes like these you’ll be transforming. You’ll also be transforming how you engage the business as a result of these improved processes to re-imagine planning and decision-making processes to align around common goals. Plus it helps enable your company to innovate for the future by serving as the platform for digital transformation.

Learn more

SAP is proven in the CP industry with the most comprehensive portfolio of consumer products-specific business process solutions and the largest, most diverse customer. Learn more about how we can help your business transform.

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