IDC whitepaper: Digitised food and beverage firms achieve higher growth
“Food and beverage companies who are using cloud-based, integrated solutions built upon industry-specific ERPs are achieving meaningfully better business outcomes”
Food and beverage firms that have adopted digital technologies are growing at five times the rate of their non-digitised counterparts, new research indicates. A study conducted by the International Data Corporation found that there is a strong and consistent relationship between digital transformation and increased revenues and profits.
The IDC study used a sample of over 700 firms involved in the food and beverage industry across four continents - Europe, Asia Pacific, Latin America and North America.
The companies that have not invested in digital technologies were found to have an average increase of 1.2% in revenue, and 1.6% in profit. In contrast, the businesses embracing Industry 4.0 have seen both profits and revenues grow by 5.6%.
TVN Reddy, CEO of Aptean, which commissioned the paper, said: “This research helps demonstrate why we believe the work that we do for our food and beverage customers is so critical. The pressure on the food and beverage industry, from changing regulations to supply chain disruption, has never been greater. This research not only showed higher revenues and profits after digital transformation, but also improved supply chain operations, quality and food safety performance. The importance of this study is that food and beverage companies who are using cloud-based, integrated solutions built upon industry-specific ERPs are achieving meaningfully better business outcomes.”
Group Vice President for IDC Energy and Manufacturing Insights, Kevin Prouty, commented: “Inquiries that IDC gets regarding cloud systems have shifted dramatically from total-cost-of-ownership five years ago to being able to take advantage and drive business results from newer functionality and technology today.”
The paper also investigated food and beverage firms’ perceptions of the highest priority for risk mitigation. 37% of respondents recognised traceability and food safety - which technologies such as blockchain are working to resolve - as the most critical consideration in the face of global supply chain disruptions.
Mr Prouty added, “While concerns about ongoing supply chain volatility in both supply and demand featured strongly in respondents’ concerns, it’s the reported performance differences between those firms that have chosen to act, rather than wait, on digital transformation that really stood out in this research.”