Raport z Rynku Archive

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Solving the digital and analytics scale-up challenge in consumer goods

Many consumer-goods companies have entered the digital and analytics race, but very few are scaling impact. Here’s what leaders are doing right.

Ask any consumer-goods executive if his or her company has invested in digital and analytics, and you’ll almost certainly get an affirmative response. But ask whether those investments have yielded the desired results—and more than half of the time the answer will be no. Our research shows that only 40 percent of consumer-goods companies that have made digital and analytics investments are achieving returns above the cost of capital. The rest are stuck in “pilot purgatory,” eking out small wins but failing to make an enterprise-wide impact. The value at stake isn’t trivial: our analysis suggests that a company’s aptitude at scaling up digital and analytics programs is correlated with its financial performance. In this article, we describe the most common pitfalls that companies encounter in their journey toward digital and analytics scale-up. We also explore an emerging recipe for sustained success.

Measuring digital and analytics maturity—and its value

The consumer-goods industry has some catching up to do when it comes to digital maturity. Among 11 industries analyzed in the latest McKinsey Digital Quotient 1 survey, consumer goods ranks third lowest (Exhibit 1). The industry does much better in a comparison of analytics maturity, coming in at fifth place. This isn’t surprising: most consumer-goods companies have focused on established analytical areas (such as pricing) that require relatively little direct consumer data. Sectors with more direct consumer connections, such as retail, have focused more on digital capabilities to enable an omnichannel consumer experience. Within the consumer-goods industry, the companies with the highest levels of digital and analytics maturity are creating significant value. Between 2010 and 2018, the compound annual growth rate (CAGR) for the total shareholder returns (TSR) of the most mature digital and analytics performers—those in the top quintile—was 19.2 percent, approximately 60 percent higher than the 12.3 percent CAGR for bottom-quintile companies. While that analysis doesn’t prove causality, the correlation is compelling. And in light of the growth challenge that the industry is up against, the call to action is loud and clear: either fully tap into the power of digital and analytics, or get left behind.

Drawing on our experience working with consumer-goods players around the world, we have identified the four most common failure modes—the mistakes that hinder organizations from capturing value at scale from digital and analytics:

  • Neglecting to connect digital and analytics programs to the enterprise strategy. Laggards tend to treat digital and analytics efforts as side projects rather than important enablers of enterprise-wide priorities. Not surprisingly, these efforts struggle to get the attention and resources they require to succeed.
  • Making big investments prematurely. Some companies, enamored of having the latest technology, invest in digital and analytics before they thoroughly understand what the business truly needs and what will deliver significant impact. This failure mode tends to come in two flavors: a company either pursues a costly, all-encompassing “data lake,” without carefully thinking through exactly what that data lake will enable, or invests in a new technology stack in efforts to simplify or harmonize core platforms (such as enterprise-resource-planning systems), only to find that today’s best-in-class tech stack becomes outdated just two years later.
  • Holding out for “perfect” hires. Laggards spend as much as six months searching for two or three data scientists or wait until they feel they’ve found the “perfect” hire to lead the team. While it’s not wrong to look for the best data scientists, data engineers, designers, and other skilled people to fill critical roles, there are several ways to accelerate progress while building your technical bench—such as training internal talent, disaggregating roles, or partnering for new capabilities.
  • Underinvesting in change management. Executives often tell us that they wish they’d spent as much or more on change management as they did on technology. Without senior business leaders committed to role modeling the changes and a comprehensive plan for encouraging adoption by frontline employees, new techniques won’t stick. As a rule of thumb, digital and analytics leaders should allocate their energy and investment as follows: 25 percent on data, 25 percent on technology, and 50 percent on change management.

MORE: www.mckinsey.com

About the authors: Ford Halbardier is an associate partner in McKinsey’s Dallas office, where Brian Henstorf is a partner; Robert Levin is partner in the Boston office; and Aldo Rosales is an associate partner in the Mexico City office.

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How to Turn AI into ROI

After several decades of progress, AI technology is now poised to become a sig-nificant source of value for a wide range of businesses. In the 2019 MIT Sloan Management Review and Boston Consulting Group (BCG) Artificial Intelligence Global Executive Study and Research Report, 9 out of 10 respondents agree that AI represents a business opportunity for their company.In addition, a growing number of leaders view AI as not just an opportunity but also a strategic risk: “What if competitors, particularly unencumbered new entrants, figure out AI before we do?” In 2019, 45% perceived some risk from AI, up from an already substantial 37% in 2017. This shift suggests an increasing awareness of and concern with competitors’ use of AI. In China, perceived risk from AI is even higher.Significant challenges remain, however. Many AI initiatives fail. Seven out of 10 companies surveyed report minimal or no impact from AI so far. Among the 90% of companies that have made at least some investment in AI, fewer than 2 out of 5 report obtaining any business gains from AI in the past three years. This number improves to 3 out of 5 when we include companies that have made signifi-cant investments in AI. Even so, this means 40% of organizations making significant investments in AI do not report business gains from AI.The crux is that while some companies have clearly figured out how to be successful, most compa-nies have a hard time generating value with AI. As a result, many executives find themselves facing a set of AI realities: AI is a source of untapped opportunity, it is an existential risk, and it is difficult. Above all, it is an urgent issue to address. How can executives exploit the opportunities, manage the risks, and minimize the difficulties associated with AI? How should they navigate all three factors?

Our findings — based on a survey of more than 2,500 executives and 17 interviews with leading experts — provide a data-driven view of what organizations that succeed with AI are doing and what real success with AI looks like. Companies that cap-ture value from their AI activities exhibit a distinct set of organizational behaviors. They:•Integrate their AI strategies with their overall business strategy.•Take on large, often risky, AI efforts that priori-tize revenue growth over cost reduction.•Align the production of AI with the consump-tion of AI, through thoughtful alignment of business owners, process owners, and AI ex-pertise to ensure that they adopt AI solutions effectively and pervasively.•Unify their AI initiatives with their larger busi-ness transformation efforts.•Invest in AI talent, data, and process change in ad-dition to (and often more so than) AI technology. They recognize AI is not all about technology. More: www.bcg.com

More: Winning With AI. Pioneers Combine Strategy, Organizational Behavior, and Technology. OCTOBER 2019RESEARCH REPORT, By Sam Ransbotham, Shervin Khodabandeh, Ronny Fehling, Burt LaFountain, and David Kiron.

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BCG: What Coronavirus Could Mean for the Global Economy

Having largely ignored Covid-19 as it spread across China, global financial markets reacted strongly last week when the virus spread to Europe and the Middle East, stoking fears of a global pandemic. Since then, Covid-19 risks have been priced so aggressively across various asset classes that some fear a recession in the global economy may be a foregone conclusion.

In our conversations, business leaders are asking whether the market drawdown truly signals a recession, how bad a Covid-19 recession would be, what the scenarios are for growth and recovery, and whether there will be any lasting structural impact from the unfolding crisis.

In truth, projections and indices won’t answer these questions. Hardly reliable in the calmest of times, a GDP forecast is dubious when the virus trajectory is unknowable, as are the effectiveness of containment efforts, and consumers’ and firms’ reactions. There is no single number that credibly captures or foresees Covid-19’s economic impact.

Instead, we must take a careful look at market signals across asset classes, recession and recovery patterns, as well as the history of epidemics and shocks, to glean insights into the path ahead.

What Markets are Telling Us

Last week’s brutal drawdown in global financial markets might seem to indicate that the world economy is on a path to recession. Valuations of safe assets have spiked sharply, with the term premium on long-dated U.S. government bonds falling to near record lows at negative 116 basis points — that’s how much investors are willing to pay for the safe harbor of U.S. government debt. As a result, mechanical models of recession risk have ticked higher.

Yet, a closer look reveals that a recession should not be seen as a foregone conclusion.

First, take valuations of risk assets, where the impact of Covid-19 has not been uniform. On the benign end, credit spreads have risen remarkably little, suggesting that credit markets do not yet foresee funding and financing problems. Equity valuations have conspicuously fallen from recent highs, but it should be noted that they are still elevated relative to their longer-term history. On the opposite end of the spectrum, volatility has signaled the greatest strain, intermittently putting implied next-month volatility on par with any of the major dislocations of the past 30 years, outside of the global financial crisis.

Second, while financial markets are a relevant recession indicator (not least because they can also cause them), history shows that bear markets and recessions should not be automatically conflated. In reality, the overlap is only about two out of every three U.S. bear markets — in other words, one out of every three bear markets is non-recessionary. Over the last 100 years, we counted seven such instances where bear markets did not coincide with recessions.

There is no doubt that financial markets now ascribe significant disruptive potential to Covid-19, and those risks are real. But the variations in asset valuations underline the significant uncertainty surrounding this epidemic, and history cautions us against drawing a straight line between financial market sell-offs and the real economy.

by  Philipp Carlsson-Szlezak; Martin Reeves and  Paul Swartz

More: https://hbr.org/2020/03/

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Using AI and Analytics to Transform Your Business

As  the  world  becomes  more  digital,  artificial  intel-ligence (AI) is increasingly critical to the way we do business. Leaders are no longer deciding whether they will implement AI — they are deciding how.This year’s MIT SMR Connections survey shows that organiza-tions are rethinking the way they operate to gain value from AI. They are transforming their processes, encouraging collabora-tion across the enterprise, and finding new ways to use AI and analytics to get tangible results. Still, many organizations are facing challenges in getting their AI programs off the ground: Less than half of survey respon-dents reported active adoption. Most are still in the early stag-es of executing AI strategies. The good news is that leaders are committed to transforming their businesses. They understand that making changes today leads to big benefits tomorrow.SAS has long been an advocate of AI and its associated tech-nologies. We’ve been a pioneer in analytics, including machine learning,  for  more  than  40  years  and  have  decades  of  expe-rience  in  natural  language  processing.  And  we’re  embedding  AI into our core solutions so that our customers automatically benefit from AI capabilities.But it’s important to remember that even if you have the most powerful  analytics  available  and  expand  automation  across  ever more business processes, you still need humans to drive business strategy. Machines are not taking over the world.

They don’t understand strategy. They lack the vision required to truly drive change at a strategic level.Strategic vision can only come from business leaders and their teams. The survey explains how commitment from an organi-zation’s C-suite is key to a successful AI effort. When the tech-nology becomes part of the business culture, it’s more acces-sible to everyone. At SAS, we know that bringing AI into the day-to-day work-place — and making it more accessible — is integral to improv-ing the world around us. Business leaders need to account for the  convergence  of  people,  processes,  and  technology.  AI  is  one piece of the puzzle. Fortunately, the survey results indicate that businesses are shifting in the right direction. I’m excited to see this evolution as more organizations make AI part of their everyday decisions. It’s a big undertaking — transformation often is. But in the end, it’s well worth the effort.

 Jennifer Chase, Senior Vice President, Worldwide Marketing, SAS

More:  The research report “How AI Changes the Rules: New Imperatives for the Intelligent Organization”

Executive Summary

Many leaders are excited about AI’s potential to profoundly transform organizations by making them more innovative and productive. But implementing AI will also lead to significant changes in how organizations are managed, according to our recent survey of more than 2,200 business leaders, managers, and key contributors. Those survey respondents, rep-resenting organizations across the globe, expect that reaping the benefits of AI will require changes in workplace structures, technology strategies, and technology governance.The energy for exploring AI is widespread: Nearly two-thirds of survey respondents reported increased spending on AI technolo-gies in the past year. However, for most, it’s still too early to realize benefits at scale. Less than half of respondents reported active adoption, with just 1 in 20 indicating that they have implemented AI broadly, while 18% have implemented AI in a few processes and 19% are running pilot projects. The responses from those who have implemented AI indicate that these initiatives have implications for general management and technology leaders in three significant ways: 1. AI will drive organizational change and ask more of top leaders.The majority of respondents to our survey expect that imple-menting AI will require more significant organizational change than other emerging technologies. AI demands more collaboration among people skilled in data management, analytics, IT infrastructure, and systems development, as well as business and opera-tional experts. This means that organizational leaders need to ensure that traditional silos don’t hinder AI efforts, and they must support the training required to build skills across their workforces.2. AI will place new demands on the CIO and CTO.AI implementation will influence the choices CIOs and CTOs make in setting their broad technology agendas. They will need to prioritize developing foundational technology capabilities, from infrastructure and cybersecurity to data management and development processes — areas in which those with more advanced AI implemen-tations are already taking the lead compared with other respondents. CIOs will also need to manage the significant changes to software development and deployment processes that most respondents expect from AI. Many CIOs will also be charged with overseeing or supporting formal data governance efforts: CIOs and CTOs are more likely than other executives to be tasked with this, according to our survey. As leading practitioners note, AI requires both quality data and ongoing support to improve the efficacy of its results and to achieve strong ROI.3. AI will require an increased focus on risk management and ethics.Our survey shows a broad awareness of the risks inher-ent in using AI, but few practitioners have taken action to create policies and processes to manage risks, including ethical, legal, reputational, and financial risks. Managing ethical risk is a particular area of opportunity. Those with more advanced AI practices are establishing processes and policies for technology governance and risk management, including providing ways to explain how their algorithms deliver results. They point out that understanding how AI systems reach their conclusions is both an emerging best practice and a necessity, in order to ensure that the human intelligence that feeds and nurtures AI systems keeps pace with the machines’ advancements.The report that follows explores these findings in depth. Read on to learn more about the changes that leaders must prepare for to successfully implement trusted AI.

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Deloitte: Kobiecy sport najsilniejszym trendem w 2020 roku

W 2019 roku oczy kibiców wiele razy były skupione na sporcie w wydaniu kobiet. Telewizyjne relacje z Mistrzostw Świata kobiet w piłce nożnej oglądał rekordowy miliard widzów, pojawiło się wiele młodych gwiazd, ale dojrzali sportowcy, tacy jak Serena Williams, nadal byli inspiracją dla wielu osób. Jak przewidują w raporcie „2020 Sports industry outlook” eksperci firmy doradczej Deloitte, biznes zaczął postrzegać zawodowy sport kobiet jako potężną platformę różnorodności, integracji i szans na zysk.

Rozmach wokół rozgrywek kobiet w minionym roku otworzył nowe możliwości dla tworzenia lig zawodowych, franczyzy, sponsorów oraz wpłynął na wzrost sprzedaży biletów. Doskonale widać to na przykładzie rozgrywanych na francuskich stadionach meczów Mistrzostw Świata w piłce nożnej pań, gdzie jak podała FIFA w telewizji mecze obejrzało 1,12 miliarda widzów, bijąc tym samym rekord tej imprezy. Mecz finałowy obserwowało ponad 260 milionów osób.

Stare wyzwania

Rosnąca liczba fanów i coraz lepsze wyniki sportowe sprawiają, że kibice z coraz większym zainteresowaniem oglądają wyczyny sportsmenek. Mimo to kobiecy sport, szczególnie w dyscyplinach uznawanych dotąd za domenę mężczyzn, nadal mierzy się z pewnymi wyzwaniami. Dotyczy to szczególnie piłki nożnej, gdzie pule nagród są mniejsze, choć rosnąca, jednak wciąż niższa jest frekwencja na meczach, a czasy transmisji mniej atrakcyjne niż w przypadku męskich rozgrywek. To samo dotyczy sum, które wpływają na konta drużyn i lig od sponsorów. W opinii ekspertów Deloitte wpływ na zmianę tego stanu rzeczy mogą mieć nadawcy, sponsorzy oraz same organizacje sportowe.

– Świat sportu profesjonalnego, kręci się wokół pieniędzy. Organizacje sportowe i sponsorzy nie powinny dłużej czekać i jeszcze w tym roku rozważyć rzucenie mocniejszego światła na kobiece rozgrywki. Podwojenie inwestycji może być motorem wzrostu, który przyniesie korzyści nie tylko ligom i franczyzobiorcom, ale również samym kobietom decydującym się na sportowe zawodowstwo – mówi Przemysław Zawadzki, Partner Associate, lider Grupy Sportowej w Deloitte. Ekspert dodaje, żeruch jest także po stronie nadawców telewizyjnych, którzy poprzez lepszą ekspozycję sportu kobiet mogą zwiększyć zainteresowanie nim, a co za tym idzie przyczynić się do zwiększenia wartości transakcji.

Nowe możliwości

Zdaniem specjalistów z Deloitte rok 2020 przyniesie zawodniczkom wiele nowych możliwości. Producenci zainspirowani sukcesami takich sportsmenek jak Naomi Osaka (22 lata), sensacyjna triumfatorka wielkoszlemowego US Open czy złota medalistka olimpijska w snowboardzie Chloe Kim (19 lat) wprowadzą na rynek wiele produktów i usług dla młodych zawodniczek i amatorek.

Inna prognoza dotyczy większego wsparcia dla całorocznych sportów z udziałem pań, takich jak koszykówka i siatkówka czy piłka ręczna. Wzrośnie także liczba sponsorów na profesjonalnych imprezach sportowych, którzy będą zwiększać swoje wsparcie i zainteresowanie szczególnie lekką atletyką. Z kolei podczas finału Mistrzostw Świata w krykiecie może zostać pobity rekord frekwencji na kobiecej imprezie sportowej. Melbourne Cricket Ground ma ponad 100 tys. miejsc siedzących.

Dotąd kobiece ligi sportowe były wzorowane na męskich. Jak zauważają eksperci firmy doradczej istnieją jednak unikalne aspekty sportu kobiecego, które stwarzają zupełnie nowe możliwości. – W 2020 roku ligi i zespoły mogą nauczyć się czerpać z tych różnic, zaakceptować je i zaangażować kibiców w zupełnie nowy sposób. Pomóc w tym może większe skupienie się na integracyjnych strategiach zatrudniania w sporcie i to zarówno na stanowiskach biznesowych czy organizacyjnych jak i trenerskich – mówi Przemysław Zawadzki.

Rozgrywki piłki kobiecej w PZPN

Kobiety coraz śmielej zaznaczają swoją obecność w zdawałoby się męskim świecie futbolu. Doskonale widać to nad Wisłą, gdzie szczególnie wśród kobiet piłka zyskuje na popularności. Z przeprowadzonego w ubiegłym roku badania firmy Kantar Media na zlecenie UEFA wynika, że 63 proc. Polek interesuje się tym sportem i związanymi z nim wydarzeniami. To imponujący wynik przy 35 proc. średniej europejskiej. Mając to na uwadze, PZPN inwestuje w promocję oraz rozwój kobiecego futbolu. W ubiegłym roku zarząd federacji podjął decyzję, że począwszy od sezonu 2019/20 będzie przeznaczał kwotę ponad 7 mln na sezon na reorganizację systemu kobiecych rozgrywek, zarówno seniorskich jak i młodzieżowych oraz na plan rozwoju projektów związanych z kobiecą piłką, jak na przykład wdrożenie nowych programów organizacyjno-szkoleniowych. – Jedna z wprowadzonych zmian to zmniejszenie niemal o połowę, z 84 do 48, liczby klubów kobiecych na szczeblu centralnym. Chodziło o to, by zwiększyć poziom rywalizacji. Mieliśmy i nadal mamy jedną z najbardziej rozbudowanych struktur rozgrywek ligowych w Europie, nieadekwatną do liczby piłkarek. Dla porównania w Niemczech jest 21 klubów na szczeblu centralnym, a poziom gry zdecydowanie wyższy – mówi Maciej Sawicki, Sekretarz Generalny PZPN.

Od e-sportu do 5G

Zdaniem ekspertów Deloitte wzrost popularności kobiecych dyscyplin jest jednym z pięciu trendów jakie w 2020 roku wpłyną na sportowy ekosystem. W czołówce ponownie jest e-sport. Oczekuje się, że w ciągu tego roku światowy rynek sportów elektronicznych wygeneruje 1,5 miliarda dolarów przychodów, a widownia będzie liczyła 600 milionów fanów.

Odkąd w 2018 roku Sąd Najwyższy USA zniósł federalny zakaz zakładów sportowych, zalegalizowało je 14 stanów. Firmy widzą w hazardzie spore możliwości zarabiania, dlatego analityka sportowa i możliwości przechwytywania danych prawdopodobnie szybko się rozwiną, a strony bukmacherskie dadzą nowe pole dla lukratywnego sponsoringu w zakresie wykorzystania logo i danych ligi.

Decyzja amerykańskiego Narodowego Stowarzyszenia Sportów Akademickich, która pozwala sportowcom uniwersyteckim otrzymać odszkodowanie za używanie ich nazwiska oraz umożliwia graczom negocjowanie umów i zatrudnianie agentów przez California Fair Pay to Play Act może spowodować potrzebę wprowadzenia nowej formy agenta, specjalisty od reprezentowania talentów związanych z uczelniami.

Trendem, który co roku pojawia się w naszych raportach jest rozwój technologii i jej wpływ na świat sportu. W 2020 roku wprowadzenie technologii bezprzewodowej 5G może zmniejszyć opóźnienia w transmisji dla kibiców zarówno w domu, jak i na stadionach – dodaje Przemysław Zawadzki.