Enterprise Services Blog 4 Stats Prove CPG Companies Need to Think About Applications

4 Stats Prove CPG Companies Need to Think About Applications

  • March 1, 2017

By Christa Anz, Marketing Manager, Consumer & Retail Industries

The state of CPG has been in flux for 30+ years now. Mergers, acquisitions, regulations, demanding consumers, direct to consumer – it truly has become an evolving evolution.

Amidst all of that madness, there lies IT. We sometimes forget that none of the items mentioned above happen without them. So with such an extraordinary mountain to climb in order to appease and please internal and external stakeholders – what does a CIO do?

Most industries, including CPG, have just started dialing up Digital Transformation initiatives and are ready to leverage digital trends like mobility, social media and big data to reach their employees and their consumers. Here are some stats to prove that:

  • 76% of CXOs expect business to be disrupted by digital technologies in the next 12 months1
  • 38% of organizations have less than 25% of their applications moved to a cloud services model today, but within 5 years, 85% will have up to 75% of them transformed to a cloud services model.4
  • 56% of enterprise workloads are expected to be in private or hybrid clouds in the next two years.2
  • 43% of organizations with 10K+ employees estimate that they have moved between 1-24% of their applications to the cloud; almost 40% with 10K+ employees anticipate moving between 50-74% of their applications the cloud in the next 5 years.4

Now as these stats are a year or so old, it seems like we should already be knee deep in the middle of making these predictions, in fact, a reality. While well on our way, many people are so eager to get there that they’ve misplaced and forgotten the key to unlocking all of their digital opportunities. Or they’ve put the cart before the horse and have totally left off the collar connecting the two that does indeed provide the outcome of both entities moving. Your applications directly drive and influence growth opportunities while providing business outcomes for IT. Give them a little attention and you can easily reduce costs, get to market faster and prepare for the future – because you know it will continue to change.

If you are sitting in the cart waiting for it to move it might be worth evaluating what is needed to reach your final destination. As you are looking for reasons to modernize and transform your applications – these five explanations should help pave the way.

Read Top 5 reasons to think about applications transformation in CPG.

1 MIT Sloan Management Review. “Strategy, Not Technology, Drives Digital Transformation: Becoming a Digitally Mature Enterprise,” 14 July 2015. 2 451 Research. Voice of the Enterprise Cloud Computing Customer Insight Survey, Q4 2014 4 IDC Research. Cloud-Based Application Services: 2015 U.S. Customer Strategies, December 2015.