Highly accurate information is critical at various touchpoints in order for companies to leverage analytics in order to become key competitors in their niche.
There are various advancements that have been made in AI-related fields – Machine Learning (ML), Natural Language Processing (NLP), Predictive Analytics and others, which have radically altered how Business Intelligence works. When AI is integrated with these advancements, there is massive potential for the applications of data analytics in CPG businesses.
As a worldwide trend, CPG companies are increasingly starting to realize the value of BI and analytics and the tremendous advantages they offer.
Let’s take a look at the specific shifts in the industry which are enabling BI and analytics to quickly become an integral part of doing business today:
Internet proliferation: As customers become increasingly well-informed, their expectations have increased well beyond the traditional brick and mortar ordering platform.
Global expansion: As international trade becomes easier, opening up access to various new avenues to source products, CPG organizations have to now work with diminishing borders and learn to deal with the subsequent changes to the organization’s supply chain.
Data-Driven Revenue Growth: An interesting development recently has been the institution of mutually beneficial relationships between retailers and CPG companies, where they are able to exchange data and consumer insights to improve processes and outcomes for both parties.
Supply Chain Optimization: As market demands increase rapidly, CPG companies have to work hard to optimize the supply chain for greater efficiency and speed and simultaneously do away with conventional methods that don’t produce results.
Innovative packaging and marketing: More and more customers are now turning to online shopping. With this rapid shifts in buying behaviors, companies must look into how they’re presenting themselves to their customers, in terms of packaging and marketing.
Ironically, what is lacking in traditional BI systems is the “intelligence” part. This has resulted in these systems not being user-friendly and also not generating the kind of deep insights that CPG companies can leverage to drive real business outcomes.