IT Seen as Growth Engine for CPGs

By Karen A. Frenkel  |  Posted 01-27-2014 Email Print this article Print

A new survey of CIOs at 27 leading consumer packaged goods (CPGs) companies finds that they are increasing their investments in new technologies to drive business growth, according to The Boston Consulting Group (BCG). These technologies include social media, software as a service and advanced analytics. There is a wide range of money spent and rate of adoption, however. Forty-two percent of the companies surveyed are not quick to adopt new technologies, despite spending significant sums on IT. Another eight percent of participants have constrained IT spending, yet did invest in new technologies, but the report warns that this strategy that may not be sustainable. "Many CPG chief information officers today are at an inflection point," says Ashwin Bhave, a BCG partner and coauthor of the report. CIOs at CPGs are also changing with the times—and being more strategic. "For the first time," says Elise Fennig, Grocery Manufacturers Association (GMA) vice president of industry affairs, "we are seeing many CPG CIOs look at IT through more than just a cost lens. Companies whose IT and business leaders have a clear, agreed-upon vision for the role of IT in their business model can take concrete steps to transform their growth position." The Boston Consulting Group and the Grocery Manufacturers Association conducted the study, which updates their 2010 report. For the full study, "GMA Information Technology Benchmarking 2013: The New Mission for IT in Consumer Packaged Goods," click here.

Karen A. Frenkel writes about technology and innovation and lives in New York City.


Submit a Comment

Loading Comments...
Thanks for your registration, follow us on our social networks to keep up-to-date