Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

PROGRESS SURVEY REVEALS 93% OF FAST MOVING CONSUMER GOODS COMPANIES FEEL PRESSURE TO EMBRACE DIGITAL TRANSFORMATION

Global survey of enterprise decision makers indicates ongoing confusion and denial will be businesses’ greatest barrier to success

Progress (NASDAQ: PRGS) today announced the results of its recent survey surrounding digital transformation within the fast moving consumer goods (FMCG) market. Conducted by Loudhouse Ltd. in early 2016, the global survey polled IT and marketing decision makers on the importance of digital transformation within their business.

Digital technologies are reshaping both consumer demand and competitive dynamics in the consumer goods marketplace, irrevocably changing how people shop and how they decide what to buy. Results from the survey indicate that while digital transformation is viewed by many FMCG companies as critical, their strategy, planning and implementation is slower than desired.  

State of Denial

Of those surveyed, 60% admit that their organisation is still largely in denial about the need to transform digitally. While 93% of survey respondents believe they have less than two years to make significant inroads before their business begins to suffer financially and competitively, and 60% feel they may already be too late, 33% currently do not have a clearly defined digital strategy. Of those, 53% know it is important but have yet to take any initial action. Forty-nine percent (49%) admit that they struggle to look even more than a few months ahead.

Challenges to Digitally Transform

While respondents expressed concern around their ability to execute, executive buy-in and more, many claimed to have confidence in having the right tools and technology to be able to execute today (55-60%). When asked about challenges, results indicated:

  • 52% see digital transformation as something daunting that will take a long time.
  • 66% feel IT and marketing are not in alignment to deliver on a digital transformation strategy.
  • 64% find it difficult to keep up with the ever-changing digital landscape.
  • 27% feel ownership of digital efforts should be driven by marketing with help from IT; 38% denote it should be IT driven and 32% felt it should be driven by IT with the help of marketing. Yet, 64% felt that IT should own the budget. These disparities indicate there is no clear ownership of digital efforts.

Overall, survey respondents felt the three biggest barriers to digital transformation include reliance on IT teams to deliver on strategy (69%), lack of leadership to define a digital transformation strategy (67%) and lack of skills to execute on strategy (64%). In addition, respondents see CMOs (53%) followed by CEOs (51%) as the key advocates for digital transformation. However, 43% and 50% respectively believe those roles are most reticent and need further convincing.

What’s Next?

FMCG businesses recognise the importance of digital transformation and 96% have plans to act within the year. Respondents agreed—100% feel that improving and optimising the customer experience is a priority. Action plans include a focus on speed and responsiveness (56%), safety and security (51%) and consistency across channels (51%). Technology critical to these initiatives include mobile (62%), analytics (58%), data connectivity (45%), ecommerce (40%), business governance/rules (36%), WCM (31%) and Cloud/PaaS (29%).

“The fast moving consumer goods market is highly competitive. These businesses are often the early adopters of innovation, as they need to stay ahead of generic underlings looking to cut at their bottom line,” said Mark Troester, Vice President, Solutions Marketing, Progress. “Digital transformation is critical to future success; that is why we’re working with many household names to determine the best strategy and technology implementation to maximise their efforts.”

Survey respondents included a mix of global C-Level/VP decision makers; heads of marketing, digital and IT; as well as developers, IT architects, directors, engineers and line of business managers. These individuals represent organisations ranging from SMBs through large global enterprises.