How can consumer goods companies adapt to the third wave of digitisation?

Only one of two leading firms achieves 80% of their digital transformation project targets.

Companies not integrating advanced technologies like generative AI and digital twin simulations into their products or services may soon face obsolescence. Experts warn that even half of leading consumer goods companies globally are struggling to meet 80% of their digital transformation goals.

In the first two waves of digitisation, technology drove companies ahead by automating processes and digitising channels and supply chains. The third wave, focusing on differentiation, risks further widening the gap between leaders and laggards.

“In many ways, this wave of tech, which is aimed at delivering a competitive advantage in critical digital capabilities such as sales, marketing, and innovation, is the trickiest but the most important in predicting a consumer product company’s fate,” said Rajesh Narayan, a partner in Bain & Company’s Consumer Products and Enterprise Technology practices.

According to Bain & Company, companies often fail to gain digital advantages due to a lack of digital ambition. Inadequate operating models, poor technology architecture, talent issues, and unbalanced current technology needs with future requirements compound this issue.