To serve personalized ads for multiple brands to the same customer profile through Pinterest, Spotify and email, for example, business units from different brands and regions will need a centralized structure to share information and work together.
Optimizing consumer products organizations to handle digital tools
Some consumer product companies have even decided on a digital-first operating model after trial and error with new technology.
CP firms often invest in a D2C channel, digital marketing, cloud migration or another data-heavy initiative to modernize the organization and achieve growth.
Then, after purchasing technology platforms, consulting work and training, they will discover they aren’t reaping the expected benefits. This is because while the technology improved, the organizational model did not.
“Migrating to Amazon Web Services (AWS) might turn a lot of heads, get various press releases, and by all accounts is a good thing to have,” Liebermann said. “But how do you actually use it? You can build a Bugatti that can go 200 mph, but you give it to someone and they might drive it 20 mph and crash into a tree. It’s about preparing people to use new tools at their maximum capacity.”
Whether companies have already invested in digital or are just starting their digital journey, the operating model is an often overlooked yet significant factor in success.