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

 

Here is an excerpt from an article written by Ford Halbardier, Brian Henstorf, Robert Levin, and Aldo Rosales for the McKinsey Quarterly, published by McKinsey & Company. To read the complete article, check out others, learn more about the firm, and sign up for email alerts, please click here.

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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.

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Here is a direct link to the complete article.

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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