MAY 2018CIOAPPLICATIONS.COM9bandwagon by adding highly specialized functional ingredients to both new and established products to give consumers the hyper-specialized benefits they're looking for all in one place. Example: Alove yogurta Japanese-style yogurt containing aloeverais an edible skin enhancer with additional health benefits.· Non-Animal Protein: Concern for the world's ability to feed the growing population in a sustainable way has propelled non-animal protein into Retail &Food service markets. Example: Beyond Meat's plant-based Beyond Burger has mass distribution in national grocery chains and is even on the menu at T.G.I. Friday's.Disruptor #2: Unprecedented Access to Shopping Technology· Frictionless Shopping: Amazon's Organizations that do not embrace AI & Machine Learning will quickly become less efficient and less innovative than their competitorsAndria Longfull suite of online grocery shopping platforms, delivery options and brick & mortar stores gives consumers what they want, when they want it, where they want it. Example: As a Prime member, a consumer can "shop" at their local Whole Foods and have their order delivered within 1-2 hours via Prime Now. · Traditional Retailers' Response: To avoid extinction, traditional retailers have been forced to reinvent the way they engage with shoppers by making significant investments in logistics and digital capabilities. Example: With its acquisition of Shipt, Target will offer same-day delivery services, including grocery. · Digital Assistants: Voice interfaces' inherent brand biases resulting from brand partnerships will force brands to change the way they reach consumers. Example: Marketers everywhere will become well-versed in "Algorithm Optimization" as they try to keep their products `visible' to consumers via Siri or Alexa the same way they use SEO with online search engines today. Disruptor #3: Unprecedented Access to Information· Transparency & Traceability: Widespread distrust has increased the need for F&B manufacturers to be forthcoming about their ingredients, production processes, and supply chains at a level previously not seen. Only those brands that are fully transparent will gain consumers' trust and be rewarded with brand loyalty. Example: Using Blockchain technology, companies can have a record of every transaction of a product from farm to shelf via a de-centralized ledger.· Artificial Intelligence ("AI") & Machine Learning: These sophisticated technologies will make all processes from demand forecasting and delivery scheduling to pricing and promotion more efficient. Organizations that do not embrace AI & Machine Learning will quickly become less efficient and less innovative than their competitors. Example: Uber uses Machine Learning to determine everythingthe pricing of rides, minimizing wait times, predicting surge pricing, and optimally matching passengers with other riders to minimize detours when pooling.· Game-Changing `Economies': eSports, Outer space & Passenger Economies will drastically alter how consumers spend their time, energy and money, while simultaneously improving productivity across industries and cities. Example: Driverless cars will significantly increase productivity of the U.S. transportation network at a fraction of the cost, while simultaneously saving lives via safer driving.When evaluating which of these disruptors to prioritize, organizations should take into consideration the following three factors:· Time horizonWhen do we expect the tipping point to occur to take the disruptor mainstream?· Organizational complexityDo we have the internal capabilities to attack it today? If not, what will it take to get the capabilities?· Importance to consumersHow much do consumers care about the disruptor?Although no organization can accurately predict future disruption, each should be constantly assessing its own standing and asking "what if?"
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