View
2
Download
0
Category
Preview:
Citation preview
© 2020 Avasant LLC. All Rights Reserved.Proprietary and Confidential. No part of this document may be reproduced in any form or by any electronic or mechanical means,including information storage and retrieval devices or systems, without prior written permission from Avasant LLC.
August 2020
Using Digitalization to Expand
Despite COVID-19
Retail & CPG
Digital Services 2020-
2021 RadarViewTM:
Report Excerpt
2
Table of Contents
• About the Retail & CPG Digital Services 2020-
2021 RadarView Report
3
• Executive Summary 4
• Lay of the land 8
• Road Ahead 19
• RadarView Overview 26
• Retail and CPG Digital Services RadarView 29
• Infosys Profile 33
• Key Contacts 38
2
3
About the Retail & CPG Digital Services 2020-2021
RadarViewTM Report
1The pandemic has transformed the Retail & Consumer Packaged Goods (CPG) industry. Buying behavior has shifted due to growing concerns over economic stability, changing lifestyles, and health. Companies focused on essential items are thriving. The rest are fighting for survival. In this changing landscape, digital adoption offers agility and resilience, and unlocks growth opportunities.
2Avasant’s ongoing interactions with industry leaders indicate that enterprises must expedite their digital transformation journey to stay ahead of the competition. The key challenge, however, is finding the right strategic balance between business growth and cost containment.
3The Retail & CPG Digital Services 2020-2021 RadarViewTM Report zeroes in on key action items to navigate ongoing headwinds to gain competitive advantage. It identifies key global service providers and systems integrators to assist enterprises in business transformation.
4Avasant evaluated 30 retail and CPG service providers using a rigorous methodology against the key dimensions of Practice Maturity, Partnership Ecosystem, and Investments and Innovation. The report recognizes 20 that generated the greatest value over the past 12 months.
5The report also highlights key market trends and offers Avasant’s view of the road ahead for retail and CPG companies in the coming years.
Executive Summary
5
Key Recommendations for Retail
• Elevate the mindshare of private label brands by promoting their availability. Price-conscious
consumers are willing to replace any of their usual brands if they have limited availability.
• Launch lucrative subscription-box models and interactive apps to swiftly transition to online shopping
and boost e-commerce sales.
Evaluate which business
models and revenue streams
can drive business growth
• Reconceptualize certain physical locations such as pop-up stores, frictionless stores, and “smart stores”
that are loaded with emerging technologies to facilitate social distancing, safety, and convenience.
• Redesign store layouts to provide in-store guidance via video analytics and the Internet of Things (IoT).
Include space for new operating models such as curbside pickup and Buy Online Pick In Store (BOPIS).
Reimagine physical stores for
experiential retailing and
enhanced experiences
• Invest in digital technologies (drones, autonomous vehicles) or hire employees to expedite last-mile
delivery of ecommerce sales.
• Leverage robots, drones, IoT, Artificial Intelligence (AI), and analytics to optimize inventory levels,
expedite order fulfilment, and containing costs by reducing the dependency on the human workforce.
Accelerate the digitalization
of the supply chain to
expedite delivery and
contain costs
• Invest in predictive analytic solutions to forecast demand locally (for stock replenishment) and to
design targeted and personalized marketing campaigns to attract new business.
• Deploy chat bots for virtual assistance and Augmented Reality(AR) and Virtual Reality (VR) to facilitate
decision making from initial interest to point of sale.
Devise an aggressive
investment plan to revitalize
business growth
• Invest in or partner with niche retailers to add SKUs to your online marketplace. Build a one-stop-shop
experience for customers.
• Acquire or partner with specialists to infuse their digital capabilities across the entire value chain to
improve the shopping journey from product inquiry to final delivery.
Forge strategic alliances to
provide differentiated
experiences
6
Key Recommendations for CPG
• Increase the development of health-related products such as face masks, sanitizers, medication, and
healthier meals to align with changing behaviour patterns.
• Use predictive analytics/AI to to unlock new growth opportunities, especially for non-essential items.
Proactively identify customer
preferences and prioritize
SKUs
• Leverage digital technologies to optimize manufacturing processes such as automation and predictive
analytics for operational efficiency and AI-powered bots for technical assistance.
• Explore local sourcing options to lessen dependency on geographies that may suffer from stock
unavailability.
Revisit manufacturing
processes to reduce
dependencies that impact
productivity
• Promote the subscription model to increase the sale of essential items and health-related products.
• Digitally connect with luxury brand consumers by sending personalized notifications or alerts,
developing customized products at minimal cost, and providing free consultation services.
Expand e-commerce
capabilities to increase
customer outreach
• Free up working capital from store closures to be used for the redesign of existing stores. Prioritize
investment in point of sale, curbside pickup, and facilitation of social distancing to boost in-store traffic.
• Make product packaging more compact to ease online delivery. Use recyclable materials for the
targeting of millennials.
Modify your GTM strategy to
improve brand visibility and
acquire new customers
• Evaluate partnerships with 3PLs to outsource warehousing and last-mile delivery to reduce supply chain
costs and expedite delivery.
• Partner with IT and business service providers to enable process automation, real-time monitoring of
customer preferences, and digital transformation.
Forge partnerships to
transform operations and
contain costs
7
Avasant has recognized 20 top-tier providers supporting
retail and CPG industry in digital transformationLEADERS
Cognizant
IBM
TCS
Accenture
HCL
Infosys
INNOVATORS
NTT DATA
UST Global
Capgemini
Tech Mahindra
Wipro
CHALLENGERS
SofttekMindtree
Sutherland Unisys
DISRUPTORS
CGI
Genpact
Atos
DXC
LTI
Retail: Lay of the Land
9
A shift in customer preferences driven by external factors is
driving retail sector transformation. … impacted retail in varied ways as customers align their spending with changing preferences and demands.
Retailers are constantly tracking the customer semantics to keep pace with changing demands in order to carefully plan promotional campaigns and stock replenishment.
Sources: Avasant Research, Avasant Digital Masters 2020 RadarView
Customer preference
Impact Summary
Redefining essential items
• Bulk purchase of groceries, toiletries, disposables• Growing demand for premium products like
meal kits and flavoured beverages• Increased snack consumption
Prioritizing health and safety
• Rise in demand for face masks and sanitizer.• Increase spending on health-related products
like vitamins and supplements• Bulk purchase of health measurement devices
New lifestyle choices
• Preventive measures such as social distancing• Preference for local manufacture and meat
substitutes• Preferring pop-up restaurants, home delivery
Optimizing spent on non-essential
items
• Low demand for luxury products (apparel, footwear) and services (fine dining, salon services)
• Preference for lower prices
2XUnemployment to
double in 2020 as >40%
suspected to lose job
>50%Decline in human
interaction over the
next six months
3XGrowth in internet
traffic in major
geographies
Ec
on
om
icSo
cia
lTe
ch
no
log
ica
l
External pressure due to COVID-19 has…
10
The ratio of online sales to total sales will increase by five percent in 2020 as retailers invest more in e-commerce, warehouses, and digital engagement.
Online shopping accelerates as consumers prioritize safety
and social distancing
Sources: Avasant Research, US Department of Commerce, Company quarterly reports
New Operating Models
Apparel & footwear and home
improvement stores are promoting
curbside pick-up.
Supply Chain ManagementLeveraging nearby distribution centers
for last mile delivery.
Digital EngagementImplementation of chatbots as virtual
assistants and VR-enhanced online
sales.
One-Stop Shop>50% revenue growth for grocery
retailers by adding more SKUs to online
marketplaces.
Store Closures> 8,500 retail stores have been shut
down permanently, encouraging online
shopping.
Increased Outreach
Reaching out to more customers
through e-commerce sites and targeted
promotional campaigns.
4XGrowth of online sales compared to offline sales in
the U.S, in Q1 2020.
Retailers with operational e-commerce channels witnessed revenue growth as they quickly responded to changing demands, preferences, and habits.
11
The digital supply chain will enable real-time tracking of products for transparency, accurate demand forecasting, and expediteddelivery to augment revenue growth by 2-4%.
Greater investment in digital supply chains is driving revenue
growth and enhancing the customer experience
Sources: Avasant Research, NRF, Harvard Business Review
… compel retailers to formulate strategies for expedited delivery, demand forecasting, and inventory management.
~50%Loss of intended
purchases when
customers
encounter stock-
outs in retail stores
75%Of customers
expect online, last-
mile delivery and
curbside pickup to
be free.
Sales pressures and higher customer expectations…
Deploy AI-powered bots in warehouses for order fulfilment and in stores for stock
replenishment and inventory management.
Improve supply chain visibility, agility, transparency, and real-time monitoring for orders and
deliveries.
Leverage digital technologies such as analytics, IoT, and blockchain to forecast local and
regional demand.
Explore the “dark store” option to convert some existing stores into order fulfilment centers
to expedite order delivery.
Evaluate the last-mile delivery options such as curbside pickup time slots and drone
delivery.
12 Sources: Avasant Research, Harvard Business Review, NRF
Omnichannel sales accelerate as retailers adapt to
unexpected market forces
Omnichannel retailing is a critical strategic investment as customers become more conscientious about buying patterns and brand preferences.
Prominent retailers are investing in omnichannel retailing to boost sales and build customer loyalty during these challenging times.
15%-20%
Increase in revenue through a strong
omnichannel strategy that offers
personalized online promotions and
product recommendations, more in-
store purchases, and more frequent
visits to stores.
Redesign and simplify web sites to convert first-time online shoppers to
repeat visitors.
Provide a uniform, seamless, and personalized experience across all
channels.
Leverage apps, beacons, and NFC technologies in stores to sync with
customer mobile devices for in-store guidance.
Provide all possible fulfilment options such as home delivery, online
purchase, Pickup in Store (BOPIS) and curbside pickup.
Use analytics to recommend local products through targeted
promotional campaigns.
Be transparent to the consumer by providing real-time visibility on
availability, pricing, reviews, and product shipment.
13
Retailers are adjusting their business and operating models to
align with new expectationsProgressive companies must modify their approach as customers prioritize convenience, quality, and cost
Digitally mature retail companies are investing heavily in these new business models to improve sales of higher margin products,contain supply chain costs, and facilitate a more rapid sales cycle.
Sources: Avasant Research, Company Press Release, NRF
Private Label Brands
>25% revenue growth
of private labels
Subscription Box
>50% growth in grocery
shopping
Bu
sin
ess
Mo
de
ls
BOPIS
>75% of customers are
interested in BOPIS
Curbside Pickup
>90% of customers
found it convenientOp
era
tin
g M
od
els
• Expand the customer base as competitive pricing
has become the deciding factor.
• Manage inventory for private label products to
compensate for unavailability of branded goods.
• Deploy analytics to understand the monthly
shopping patterns of consumers.
• Launch personalized promotional campaigns to
ensure regular business.
• Grow your e-commerce business through
omnichannel retailing.
• Encourage customers to visit stores by investing in
contactless payment and social distancing norms.
• Redesign stores to provide parking spaces for
curbside pickup.
• Hire staff to facilitate the movement of goods from
store to vehicles.
COVID-19 has led to some drastic changes in Q1 2020 Illustrative examples
CPG: Lay of the Land
15 Sources: Avasant Research, Bureau of Economic Analysis
CPG companies must invest more in analytics to align their strategies and business models with the evolving consumer trends and requirements.
Customer demands and preferences are evolving as they
adjust to the new normal post-COVID-19
… will continue in the coming months as customers prioritize expenditure based on the current situation
Food & Beverage: Growing demand for high-valued goods such as plant-based products, meal kits, flavored drinks, and health foods and supplements to build immunity.
Apparel & Footwear:Changing weather and a preference for comfort clothing have altered the market. But supply chain improvements and targeted marketing campaigns can encourage greater apparel and footwear spending.
Furniture & Furnishings: Growth has flattened, and this is expected to continue as purchasing patterns have shifted from work and home schooling to outdoor and recreational furniture.
US Customers’ ExpenditureMonthly growth in H1 2020
985
429 415
1,038
450411
Food & Beverage Furniture & Furnishing Apparel & Footwear
Jan-20 Jun-20
Minimal growth (~1%) in Food & Beverage, and Furniture & Furnishings, slight decline in Apparel & Footwear…
16 Sources: Avasant Research
Though bankruptcies downgrade the overall rating of CPG brands, organizational restructuring will play a critical role in retaining existing business and acquiring new customers.
CPG companies are revamping GTM strategies and business
models as they file for chapter 11 bankruptcy
… prompting some leading CPG organizations to move working capital spend from stores to new strategies and business models.
New product lines: As customers prioritize convenience and casuals over
expensive apparel and footwear, luxury brands are substituting sportswear
and new casual attire for formal attire.
Direct 2 Customers: With the growing importance of precautionary
measures such as social distancing, CPG companies are strengthening
their online presence to reach customers directly.
Location of retail outlets: Retail outlets are moving out of malls to reduce
operating costs as they seek better ways to facilitate curb-side pickup,
and attract consumers.
Supply chain management: Conversion of some retail outlets into dark
stores or order fulfilment centres to manage last-mile delivery of e-
commerce sales, as well as stock replenishment of brick & mortar stores.
Digital connections: Connecting digitally with customers through chat
bots, VR-based shopping experiences, and AI-based targeted promotions
to drive sales and enhance brand loyalty.
>25%*Of stores to close
permanently, as
CPG companies
file for bankruptcy
under Chapter 11
in Q2 2020.
High debts/losses have led to store closures and bankruptcy filings…
*Based on press releases from CPGs
17
With fluctuating demand, manufacturing constraints, and supply chain disruption, agile CPGs taking an analytics-based approach have the greatest opportunity for business sustainability.
CPG companies are revisiting manufacturing and supply
chain strategies to ensure business continuity
Sources: Avasant Research
Explore options to reduce losses due to human error or supply chain disruption due to dependency on materials from distant locations.
20%-40%Reduction in output
due to the factory
lockdowns,
unavailability of raw materials, and high
dependency on
human employees.
Digitize manufacturing and supply chain processes by integrating technologies like RPA,
IoT, analytics, and AI.
Evaluate plant-based and other raw material alternatives to ensure the regular supply of
goods.
Explore locally-produced raw materials and machinery to optimize the procurement
process and reduce dependency on imports.
Partner with niche companies specializing in the production of similar products to cater
to the surge in demand for essential items such as toilet paper and masks.
Leverage AI and analytics to forecast local and regional demand, and streamline
procurement and manufacturing processes.
18 Sources: Avasant Research, Company SEC Filings
Many CPG companies are exploring multiple online channels to acquire new business and retain existing clientele.
E-commerce sales are accelerating as CPG firms focus on
business sustainability and customer engagement
Leading CPGs are monetizing opportunities derived from store closures by reaching directly to consumers
>30%*: Growth in e-commerce
of leading CPGs, Q1 2020.
>10%*: Share of total revenue
by e-commerce.
• Launching new products to meet changing preferences by analyzing
customer needs.
• Re-evaluating and repackaging product offerings regularly, via
analysis of online orders.
• Targeted marketing by analysing demographics, regional data, and
buyer preferences.
• Bundling free consultation services virtually, especially in the sale of
non-essential items such as cosmetics.
• Providing training and video demos to educate customers on new
products or services.
*Based on quarterly reports from leading CPG companies
Road Ahead
20
Entering adjacent spaces by players with others in the ecosystem is crucial for business growth and meeting customer expectations.
Forge strategic alliances to establish ecosystems that
differentiate customer services
Sources: Avasant Research
Retailers partnering with
farmers
Reduction in perishable
product losses,
boosting profitability up
to 1% via partnerships
with urban farmers for
offering in-store living
products farm
Retailers partnering with
digital natives
Increase in traffic when
in-store retailers accept
sales returns from
digitally native retailers,
unlocking growth
opportunities
CPGs partnering with
3PLs
Improvement in
delivery time by
outsourcing warehouse
management and
inventory management
to 3PLs
CPGs partnering with
digital natives
Increase in revenue by
partnering with digital
natives operating in
retailer who provide
D2C subscription-box
services
> 50% > 20% > 30% 10-12%
Partnerships with emerging players are a vital element in exploration of new revenue streams and operating models.
21
Acquisition of and partnership with digital companies accelerates deliveries, curtails losses due to shrinkage, and reduces dependency on employees.
Acquire or partner with digital specialists to contain costs by
expediting and optimizing processes
Sources: Avasant Research
Improvement in workforce
efficiency using robots for
inventory sorting in warehouses
Improvement in employee
productivity using chatbots
to resolve technical issues
30%
Bots
Reduction in lead time for work-order generation through
IoT-enabled
equipment management of
perishable goods
Reduction in manual labor by
automating processes across functionalities for
demand forecasting
80% 60%
IoT Automation
Reduction in personal and operational
downtime by deploying drones for
inventory management
20%
Drones
40%
22
Retail & CPG companies with data-driven, customer-centric strategies will gain more traction due to demand for more personalized, convenient, and safe shopping experiences.
Prioritize customer-centricity across critical touchpoints to
improve conversion rates and drive revenue growth
Sources: Avasant Research
Digital technologies play a pivotal role in better understanding, analyzing, and approaching customers.
Omnichannel Marketing
>25% growth in customer conversion by
integrating and optimizing digital and in-store
experiences for luxury brands
Experiential Retailing>40% sales conversion by using digital
technologies such as AR/VR and contactless
trials during product selection.
Virtual Assistant>80% sales conversion when a virtual assistant
is present to answer question during the
shopping journey
Hyper-localization>5% growth in revenue by forecasting
local demand through harnessing
locational data
Personalized Marketing>10% growth in revenue from targeted
campaigns by analyzing customer
profiles
Product Recommendations
>30% growth in revenue by
recommending products based on
buying patterns
Customer
23
Leverage predictive analytics and AI to improve financial
metrics and the overall customer experience
Source: Avasant Research
Pro
du
ct
Aff
inity
Cu
sto
me
r
En
ga
ge
me
nt
Su
pp
ly c
ha
in
ma
na
ge
me
nt
Product Development• Predict shifts in customer
behavior due to external factors such as weather to develop new SKUs.
• Real-time monitoring of consumer preferences for product modification.
Pricing and packaging• Ascertain optimal prices by analyzing
the pricing model of competitors.
• Determine the ideal size and type of packaging for home delivery and shelf displays.
Manufacturing Prioritization • Prioritize the manufacturing of SKUs
based on analysis of the market.
• Predict repairs and potential breakdowns to avoid interruptions or delays.
Personalized Experience• Hyper-personalized marketing
and product recommendations.
• Virtual concierges or store associates as shopping assistants.
Advanced analytics can drive incremental revenue growth by up to 10% by launching new lines or modifying products based on customer preferences; it can also improve profitability by 1%-2% by optimizing manufacturing and supply chain processes.
Inventory management• Identify optimal inventory levels at
warehouses and stores by monitoring sales trends, customer preferences, and buying patterns.
• Real-time tracking of products to facilitate online sales.
Customer Segmentation• Profile customers based on
demographics, characteristics, buying behavior and social habits to forecast needs.
• Reduce customer churn.
Staying connected• Sending alerts and notifications on
product launches, and promotions based on profiles, shopping history, and behavior.
• Guiding customers in store through video analytics.
…to develop predictive analytics and AI use cases to transform processes, optimize operations, and enhance customer experiences.
Procurement Optimization• Select the best carrier for
shipments across geographies to reduce delays.
• Order raw materials based on requirements and availability.
.
Real-time data generated by
IoT applications, consumer
technologies, and social media
Structured
enterprise data
from online and
offline portals
Structured data
from partners
within the
ecosystem
Data Sources
Triangulation of data from various sources…
Catalog Planning• Plan the ratio of SKUs in the catalog
between the online marketplace and stores based on shelf-life, and lead and cycle times.
• Identify the right shelf for products displayed in stores.
24
Embrace disruptive technologies in use cases across the
value chain
Source: Avasant Research
Product Development, Strategy and
Planning
Procurement, Supply Chain Management
Manufacturing WarehousingStore
OperationsSales and Marketing
Customer Experience
and Engagement
• Adjust price, promotions, production based on real-time updates
Ro
bo
tic
s &
Au
tom
atio
n • Freight and contract management
• Returns processing
• Automate processes like assembly and raw material ordering
• Quality checks
• ERP management• Automated stock
replenishment• Planned product
placement
• Provide accurate information about inventory levels in all stores
• Product categorization
• Full audits with real-time insights
• Optimization and monitoring of promotional activities
• 24X7 customer care support for orders and updates
• Behavioural and geospatial analysis across all channels
• Catalogmanagement
Art
ific
ial
Inte
llig
en
ce • Demand
forecasting• Last-mile delivery
options through AI-powered devices
• Validate consistency in production processes
• Adherence to quality
• Assortment rationalization
• Warehouse automation
• Space planning and store design
• Manage inventory levels in stores
• Self checkout
• Price and loyalty program optimization
• Sales activation optimization
• NLP-powered chat bots• Create personas to
recommend products• Automated order
placements
• Interactive packaging readable by smart devices
Inte
rne
t o
f
Thin
gs
(Io
T)
• Smart transportation for temperature-sensitive products
• Location tracking
• Real-time asset monitoring through sensors
• Energy management
• Inventory management through RFID
• Smart store to study interest in products
• Track shrinkage
• Increase social media metrics by connecting with consumer IoT devices
• Near field communicationpayment through smart devices
AR
/ V
R/
3D
/
Blo
ckc
ha
in
• Augmented packaging using multi-dimensional platforms
• Spotting counterfeits
• Supply chain visibility from sourcing to consumption
• Asset tracking
• Remote assistance during breakdown
• Employee training, sharing of knowledge
• Locate, scan, sort, and move inventory using smart glasses
• In-store navigation• Personalized
marketing• Monitor product
expiry
• Online marketing by providing demos
• Better online shopping experience
• Contactless trials• Creating virtual
encounters
While retail & CPGs have been conservative in leveraging emerging technologies due to the need for upfront investment, the pandemic is forcing them to rapidly adopt and integrate digital technologies.
25
Engage with service providers to expedite the digital
transformation journey
Source: Avasant Research
>85%Of new
outsourcing
contracts include
digital
Product development
and manufacturing
• RPA/ IA
• AI and analytics
• Cloud-based
infrastructure
Strategy and Planning
• NLP and chatbots
• Machine learning
• Analytics
• RPA
Procurement, supply
chain management
• RPA/IA
• IoT
• AI and analytics
• Blockchain
• Robots
Productivity tools
implementation
• RPA
• Intelligent automation
• Migration
accelerators
Applications and
systems integration
• API-based portals
• Cloud-based
infrastructure
Employee management
• RPA
• AI and Analytics
• IoT
• Cloud database
• Dashboards
Information exchange/
communication
• Apps and chatbots
• Blockchain
• AI and analytics
• IoT
Revenue and expense
management
• Intelligent automation
• Predictive Analytics
• AI
• Dashboards
Customer experience
management
• IoT and chatbots
• AR/ VR
• AI and analytics
• Cloud-based
infrastructure
Key segments and processes leveraging digital transformation within the scope of outsourcing contracts
List of recent outsourcing engagements
As digital and business transformation is a top priority for retailers & CPG enterprises, the role of the service provider has evolved beyond cost optimization to that of strategic partner and growth promoter.
RadarView Overview
27
Avasant Retail & CPG Digital Services 2020-2021
RadarViewTM assesses service providers across 3 dimensions:
Practice
Maturity
• This dimension includes measures around the type, market acceptance and quality of offerings for the industry. It also assesses the strength of the industry practice with respect to its size, certified employees, embedded expertise in emerging technologies and coverage of industry sub-segment.
• The width and depth of the client base, verticalized business revenues and usage of proprietary/outsourced tools and platforms, response to COVID-19, and future strategy are important factors that contribute to this dimension.
Investment and
Innovation
Partner
Ecosystem
• This dimension measures the strategic direction of investments and resultant innovations in the offerings and commercial model, and how it aligns with the future direction of the industry.
• The overall strategic investments, both organic and inorganic ones, towards capability and offering growth, technology development, and human capital development, along with the innovations that the service provider develops with its partners, are critical aspects of this dimension.
• This dimension typically assesses the nature of the partnerships and ecosystem engagement that the provider has entered into. It evaluates the objective of the partnership (co-development, co-innovation, etc.), its engagement with technology solutions or product providers, start-up communities and industry associations.
• The kind of joint development programs around offerings, go-to-market approaches, and the overall depth in partnerships are all important aspects.
28
Research methodology and coverage
Note: Assessments for Accenture, Atos, CGI, Sutherland, and TCS have been conducted based on public disclosures and market interactions only.
Avasant based its analysis on a number of sources:
Publicly available information such as SEC filings, annual reports, quarterly earnings calls, executive interviews and statements.
Public
disclosures
Discussions with enterprise executives leading digital initiatives and influencing service providers selection and engagement.
Market
interactions
Inputs collected through their capability decks and structured briefings in April – June 2020.
Provider
inputs
Of the 30 service providers assessed, the final 20 featured
in RadarView for 2020-2021 are:
Retail & CPG Digital Services 2020-2021
RadarViewTM
30
Reading the RadarView
Avasant has recognized service providers in 4 classifications:
Leaders show consistent excellence across all the key dimensions of the RadarView assessment (practice maturity, partnership
ecosystem, and investments and innovation) and have had a superior impact on the market as a whole. These providers have
shown true creativity and innovation and have established trends and best practices for the industry. These providers have proven
their commitment to the industry and are recognized as thought leaders that set the standard for the rest of the industry to follow.
Leaders display a superior quality of execution and a reliable depth and breadth across verticals.
Innovators show a penchant for reinventing concepts and avenues, changing the very nature of how things are done from the
ground up. Unlike the Leaders, Innovators have chosen to dominate a few select areas or industries and distinguish themselves on
the basis of superior innovation. These radicals are always hungry to create pioneering advancements in the industry and are
actively sought-after as trailblazers redefining the rules of the game.
Disruptors enjoy inverting established norms and developing novel approaches that invigorate the industry. These providers choose
to have a razor-sharp focus on a few specific areas, and address those at a high level of granularity and commitment that results in
tectonic shifts. While Disruptors might not have the consistent depth and breadth across many verticals like the Leaders or the
innovation capabilities of the Innovators, they exhibit superior capabilities in their areas of focus.
Challengers strive to break the mold and develop groundbreaking techniques, technologies and methodologies on their way to
establishing their unique position. While they may not have the scale of the providers in other categories, Challengers are eager and
nimble, and use their high speed of execution to great effect as they scale heights in the industry. Challengers have a track record
of delivering quality projects for their most demanding Global 2000 clients. In select areas and industries, Challengers might very well
have capabilities that match or exceed those of the providers in other categories.
31
Retail & CPG Digital Services 2020-2021 RadarViewTM
LEADERS
Cognizant
IBM
TCS
Accenture
HCL
Infosys
INNOVATORS
NTT DATA
UST Global
Capgemini
Tech Mahindra
Wipro
CHALLENGERS
SofttekMindtree
Sutherland Unisys
DISRUPTORS
CGI
Genpact
Atos
DXC
LTI
Infosys profile
33
Value Chain Coverage
Industry-Specific Solutions/Offerings
• A large US-based
chocolate manufacturer
• A leading
telecommunications
provider based in the US
• A leading fashion retailer
• A chain of coffee houses
• An American
multinational home
appliance manufacturer
• A global supplier of
athletic shoes and
apparel
Sample Clients
Enter Title Here
Practice Overview
Infosys: RadarView Profile
Share of total companyrevenue
Y-o-Y revenue growth (2019)
TradeEdge Market Connect (EdgeVerve)
An automated two-way data exchange platform using ML to analyze and report sales data
Skava Commerce A full suite of ready-to-use microservices for digital commerce transformation
Infosys Live Enterprise Suite
Polycloud architecture to accelerate digital transformation
Infosys NiaAI-based platform to identify patterns in product procurement while adhering to best practices
Omnichannel loyalty solutions using ML and predictive analytics for personalization
Using video analytics to
enable the Amazon Go experience at low cost
Leverages its big data and AI capabilities to help clients attract and retain customers
Integrated in-store solutions –omnichannel, mobile, cloud
16% 20%
Leveraging cloud capabilities for IoT-based solutions
Cloud solutions for retail ERP and back office, POS and checkout services, warehouse mgmt., customer loyalty, etc.
Uses advanced data analytics to predict and improve CX
Cloud solutions for POS, mobile
shopping assistant, and store inventory management
• Practice Size: 20,500+ (~11,500
retail and ~9,000 CPG)
• Active Clients: 210+ clients (~135
retail and ~75 CPG)
• Delivery Highlights: Retail & CPG
operations in 21+ offices across
13 countries globally
Partnerships/Alliances
Practice Maturity
Investments & Innovation
Partner Ecosystem
Provides industry clients with innovative solutions leveraging its IP assets and partner ecosystem. Expertise in digital supply chain
and in-store transformation
Darker color indicates higher coverage through digital services
Product Development
Strategy and Planning
Procurement, Logistics, and Supply Chain
Manufacturing
Warehousing
Store Operations
Sales and Marketing
Customer Engagement and Management
34
Bu
sin
ess
Ch
alle
ng
es
Solutions leveraging Digital Technologies
Differentiated Approaches
Business Sustainability
and Recovery
Digital Maturity
Supply Chain
Changing Customer
Behavior/ Preferences
Evolving Working Culture
Data HarmonizationCloud, AI, and
Analytics
A cloud platform leveraging AI/ML to reduce
cost of data analytics, and improve data
reliability and insights
Digital Transformation solutions Analytics
Intuitive, interactive and user-friendly interface
for measuring opinion of the brand to enable
faster data-driven decision making
Alternate pick-up models CloudEnable online or curbside pickup from stores
using Skava Commerce platform
Contactless SolutionsDigital
Transformation
Enable stores with contactless ordering,
payment, checkout, delivery, and customer
feedback for early functioning
New way of working Automation, IoTAutomated thermal screening, remote
desktops, and collaboration tools.
• Developed automated thermal screening
solutions by leveraging existing technologies for
forest fire spotting and autonomous vehicle
solutions.
• Offering business re-structuring options
(rebadging) for business stability and recovery.
Darker color indicates higher coverage through digital services
Commercial Models
Infosys: Response to COVID-19
Output-based
Input-based
Fixed fee
Hybrid
Outcome-based/
Gain-share
Self-funded
Pay as you go
Monthly Subscription
Flexible payments
Shared services
buy-out
35
Client Capability Summary Business Impact
A European global sports and
lifestyle goods company
• Advanced
Analytics
• Need to upgrade to advanced CRM analytics for omnichannel
campaigns and increase multi-purchase transaction customers• Infosys implemented advanced CRM analytics using concepts like
consumer DNA/gene to derive customer insights.
• Improved data science lifecycle by 70%• Reduced TCO by 50%• Improved email delivery from 35% to
98.7%
A leading beauty
and personal care marketing
company
• Cloud• Analytics
• The client was experiencing issues with expansion, reduced revenues, a
shrinking customer base, and a legacy technology stack.
• Infosys assisted in the development of multi-channel social selling
platform. The solution included Azure cloud platform, analytics module,
and a personalized dashboard for a better customer experience.
• Increased download-to-conversion rate
by 50% and cart-to-order conversion
rate by 70%• Increased average order value by 18%
An American global
manufacturer of confectionary and pet foods
• Advanced Analytics
• AI
• Need to upgrade the outdated market traceability solutions which had
critical operational gaps. Also, about 60% of the business units did not
comply with regulatory requirements in regards to tracing and holding
finished product.• Infosys conducted design thinking workshop to develop a solution that
leverages AI-based data lakes(for driving intelligent insights), predictive
analytics with ERP systems integration, and automation for seamless
testing.
• Reduced time to track product by 95%• Reduced cost of market traceability
deployment• Laid down foundations for other next
gen technologies.
A global sports and lifestyle
goods company in Europe
• AI
• Need to reduce the product cost at the concept stage by eliminating the
manual efforts and iterations in the product development cycle.• Infosys deployed its NIA platform to analyze the variables (merchandiser
and brand managers) that determine the material and labor cost. Also,
developed visualizations for the development lifecycle using prediction
analytics.
• Reduced product development
lifecycle by about 70%• Reduced costs by 60%• Reduced dependencies on brand
managers and merchandisers.
Infosys: Case Studies
36
Infosys: RadarView Profile
• Infosys’s 20% annual growth in the Retail & CPG industry is driven by its ability to integrate design thinking with digital solutions to achieve clients’
goals like transforming operations, building new capabilities, or removing non-performing assets by leveraging industry-specific IP like TradeEdge
and Skava. For example, for a renowned food and beverage company,it introduced a new business model by mining and analyzing data assets.
• Infosys leverages its wide products portfolio to provide differentiating solutions in supply chain, store operations, and data monetization. For
example, it built product traceability solutions on Live Enterprise platform and created a new fan experience by opening AR, VR store in Melbourne.
• With Retail & CPG accounting for 16% of the company’s total revenue, Infosys has been deploying next-gen digital technologies across the sub-
industries. For example, for a logistics company, it deployed AI and analytics capabilities for real-time data feeds, and for a restaurant chain, it
deployed edge computing and cloud for managing IT operations on a daily basis.
• Infosys has leveraged AI and ML to create predictive models and data platforms to elevate capabilities in sales, inventory, supply chain, and
pricing. In the context of pandemic, Infosys re-purposed existing solutions and enabled work from home for employees.
Practice Maturity
Investments & Innovation
• Infosys acquired companies to fill strategic gaps in some capabilities. It acquired WongDoody in 2019 and Brilliant Basics in 2018 to add to its
existing customer management portfolio through an innovation-led approach.
• Improving client engagement and co-developing solutions with clients through its Living labs (innovation centers). It partners with clients to monitor
and respond to industry dynamics, and redesign marketing and e-commerce models, etc. For example, it is designing boundless stores (automated
store for self-checkout) and for a leading sportswear company, it developed a Product Wall (virtual showcase of products on the wall) by
leveraging camera vision and other digital technologies.
Partner Ecosystem
• Infosys is developing industry-specific solutions in partnership with niche technology providers. It partnered with AIMIA to gain access to their loyalty
management suite, AWS for store analytics solutions, and POS solution companies like Enactor, GK Software, and Infor Starmount for integration.
• Infosys leverages its global alliances with technology providers like SAP, Demandware, and Magneto for e-commerce platforms. It has partnered
with Microsoft for scaling IT operations for its Azure stack.
• It has tie-ups with several startups like Trifacta, Waterline Data, and TidalScale for using their digital capabilities to co-develop industry-specific
solutions.
Analyst Insights
37
Disclaimer
Avasant does not endorse any provider, product or service depicted in its research
publications, including RadarViewTM, and does not advise users to select only those providers recognized in these publications. Avasant’s research publications are based on
information from best available sources and Avasant’s opinion at the time of publication,
and their contents should not be construed as statements of fact. Avasant disclaims all
warranties, expressed or implied, with respect to this research, including any warranties of
merchantability or fitness for a particular purpose.
38
Key Contacts
Carlos Hernandez
Partner
Carlos.hernandez@avasant.com
Joe Frampus
Partner
Joe.frampus@avasant.com
Pooja Chopra
Research Leader
pooja.chopra@avasant.com
Swapnil Bhatnagar
Research Director swapnil.bhatnagar@avasant.com
GET CONNECTED
www.Avasant.com
Empowering Beyond
Washington DC
New YorkDallas
Los Angeles
(Headquarters)
Toronto
London
Port of Spain
Bangalore
Mumbai
Hong Kong
Tokyo
Delhi
Dubai
Johannesburg
Kampala
Madrid
Recommended