What Will Consumer Goods Look Like in 2014?

IDC Manufacturing Insights and IDC Retail Insights wrapped up 2013 by highlighting their respective top 10 predictions for the year ahead. Two webinar sessions on December 10, 2013 provided organizations with insight and perspective on long-term industry trends along with new themes that may be on the horizon. Covering 3D value chains and servitization optimization  to big data and analytics, these predictions will help both sides of the supply chain to grasp emerging market opportunities and plan for future growth.

• Prediction #1: Manufacturers will begin to build 3D value chains.
• Prediction #2: Operational, information and consumer technology converge to reshape approaches to technology management.
• Prediction #3: Operational resiliency will be the focus of supply chain strategies in 2014 and beyond.
• Prediction #4: Supply chain technology investment will involve modernizing existing systems, while also trying new approaches.
• Prediction #5: The modernization of the underlying B2B commerce backbone becomes an investment priority for IT.
• Prediction #6: Product lifecycle management (PLM) strategies become increasingly global, multidisciplinary, innovation-based, and customer-focused.
• Prediction #7: PLM initiatives will focus on value realization.
• Prediction #8: "Servitization optimization" will be core to future profitable revenue growth and leading manufacturers will make the necessary investments to enable these strategies.
• Prediction #9: On their way towards the factory of the future, 2014 will set the stage for a new manufacturing renaissance.
• Prediction #10: Plant floor IT investments will continue to become a higher share of the overall technology investment portfolio.

"The manufacturing industry has an established track record of continuously improving productivity and is at the cusp of a new wave of gains that will dramatically restructure value chains to be closer to demand regardless of direct labor costs. This is being driven by an 'intelligent economy' where customers are more informed, talent is at a premium, and the time to react to changes is compressed," said Robert Parker, IDC Retail, Energy and Manufacturing Group Vice President and General Manager. "In 2014, companies should put together a set of business initiatives across critical line of business areas such as supply chain, factory operations, product management, and customer experience/aftermarket services, and follow a progression toward the principles of the '3D' value chain, the theme for our 2014 predictions."

To access the replay of IDC Manufacturing Insights webinar, click here.

• Prediction #1: In 2014, fast-followers will chase the 50 global retailers already transforming store, mobile, and e-commerce channels, supply chains, merchandising, and marketing for the omni-channel customer experience
• Prediction #2: Business transformation will drive ERP, core merchandising, FAR, and planning investment to a 9% CAGR through 2015
• Prediction #3: By 2016, leading retailers will improve same-shopper sales with immersive commerce driving additional revenue growth of 1.5% and margin growth of an additional 3%
• Prediction #4: By 2017, marketing and advertising technology investment will increase by 50%
• Prediction #5: Retailers will narrow and enable big data and analytics (BDA) projects in 2014 as 20%-30% of projects fell short in 2013
• Prediction #6: Emerging consumer privacy concerns will force 50% of early adopters to revisit hyper-personalized promotions by 2015
• Prediction #7: E-commerce and store platform replacements that enable mobile, integrated and interactive experiences will support a 10% CAGR in commerce investment through 2017
• Prediction #8: As product assortment refresh cycles quicken, 25% of mid-sized retailers will initiate new PLM or sourcing projects in 2014
• Prediction #9 - Retailers will double the rate of industry supply chain investments in 2014, as compared to 2013
• Prediction #10: By 2016, 50% of national retailers, will invest in distributed order management, enterprise inventory visibility, and workforce management to enable same day fulfillment

“In the next three years, retail will reinvent itself as omni-channel leaders reach for customer relationship, relevancy, and reciprocity. A new replacement cycle of enterprise, planning, and commerce systems will anchor complex company-wide business transformation for immersive experience and commerce. Quick-to-market leaders will improve same-shopper sales —fast becoming the most significant leading indicator of future performance," said Parker. "We expect renewed investment in the narrower but transformative capabilities of PLM and sourcing, marketing and advertising, and big data and analytics."??

To access the replay of IDC Retail Insights webinar, click here.

During the next 60 days, IDC will publish dozens of Top 10 Predictions documents for 2014. Please visit www.idc.com/predictions2014 for a complete listing.

Related Content:
2012 Review & Outlook Report
10 Predictions for Brand-Oriented Manufacturers
Top 10 Manufacturing Supply Chain Predictions