From Vendor Management to Platform Orchestration

With escalating pressures to continually provide innovative market offerings while simultaneously demonstrating sustainable, profitable growth, it’s no surprise that CPG and retail companies are thinking more like their consumers. They are challenging the traditional topics as basic as how to define a channel and the nature and value of a product. For example,  Coca-Cola is taking steps to transform their traditional fountain machines into digital nodes of consumer engagement,  Peapod is taking the store front to where consumers are through mobile commerce technologies,  and Rebecca Minkoff is changing the store experience with digital interactivity.

Achieving these innovative value chains require progressive companies to reach beyond their traditional core competencies to combine cross-disciplinary technologies and capabilities to create compelling value propositions.

Our experiences working directly with global CPG and retail companies and across industries engaged in complex innovation outsourcing such as consumer electronics and defense taught us that leading orchestrators consistently outperform their peers. On average, they achieve development and launch milestones 25 to 50 percent faster; and enjoy 20 to 40 percent cost advantages; and have a higher likelihood of sustained differentiation.

The outsourcing of new digital platform involving convergent technologies requires several key elements of success ..Read complete article in Supply & Demand Chain Executive

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