Understanding value chains has been central to growth in the FMCG industry. Dramatic changes in consumer behavior, business innovation, demographics and economics mean that value chains will no longer meet business objectives as they once did.
As a result, future success will increasingly require a shift from traditional, linear value chains towards more collaborative value networks. Consumers are being empowered. In business and society, we see networks springing up that are organized around consumers and their communities, and supported by the internet and the new business models.
These networks are non-linear and offer many routes to consumer value. They respond rapidly to changing needs, because they need less top-down control. They help build mass collaboration with different partners along the value chain. We have to understand that we are facing a new and changed world.
If you want to read more about the future of our industry, we recommend the book “Beyond advertising – Creating Value Through All Customer Touch Points” by Professor Jerry Wind and Catharine Findiesen Hays.