Application of cloud computing in personal consumer goods industry

Smart consumer goods companies use the power of cloud computing to speed response, improve service delivery, reduce costs, and drive business innovation. Now, in order to meet the needs of consumers, retailers and new markets and to meet the challenges of commodity prices, the personal consumer goods industry is facing unprecedented changes, speed and flexibility will be the key to determining success or failure. Technology will play a key role in providing information and forecasting capabilities for business leaders to make decisions quickly. But as companies continue to doubt the value-added of information technology and the persistence of budget pressures, they must find a new, fast, secure, cost-effective delivery model and must be able to bundle business with it. The pattern is cloud computing.

Consumer goods companies are attracted by cloud computing because the technology not only speeds service delivery and increases the availability of infrastructure, but also provides flexibility to allow companies to expand or shrink services as demand changes. Cloud computing allows you to dramatically speed up your operations and reduce it labor costs by up to 50% in configuration, operations, management, and monitoring.

Cloud computing allows companies to take advantage of economies of scale, and companies can enhance ROI by improving employee productivity and optimizing IT resources. Cloud computing enables you to create and enhance information management and service management architectures. Given these advantages, cloud computing will help you increase it flexibility and responsiveness at the same time.

Cloud computing can help you reduce costs-not just control costs. This approach has helped IBM's consumer customers achieve a breakthrough in productivity through virtualization, optimization, energy saving and flexible sourcing. Since it costs only a fraction of the company's total revenue (most of it overhead is spent on maintaining and managing existing systems), but companies are losing as much as $ billions of a year to inefficient supply chains, so consumer goods companies believe the IBM Cloud computing solution can help them truly globalize and differential , integrate information and drive innovation to prove that the company is consumer-oriented and is responsible for ensuring that a strong organization is built.

This white paper will briefly introduce cloud computing and explain how it and business leaders in the consumer goods industry use IBM Cloud computing solutions to:
• Develop solutions as soon as possible
• Reduce IT labor costs by 50% in configuration, operations, management, and monitoring
• Increase capital utilization by 75% to significantly reduce licensing costs
• Shorten the supply cycle from weeks to minutes
• Improve quality and reduce software defects by about 30%
• Reduce IT support costs by up to 40%

Personal consumer goods industry is full of it challenges

The business leaders of personal consumer goods companies have repeatedly stressed reducing costs-to achieve this goal, the IT department has migrated to the distributed computing environment. But, despite their efforts to streamline the supply chain, this inefficient problem persists. Supply chain inefficiencies cost about 40 billion dollars a year for the consumer goods Industry (3.5%) 1 of total sales, and customer promotions still account for about B. 1 of total revenue. In addition, business leaders believe it is not driving or delivering value, and that it is under greater pressure. What's more, the business unit thinks it project cycles are too long and quality does not pass.

The personal consumer goods industry is changing to meet the needs of consumers and retail customers, which requires it to never stagnate. The IT department of personal consumer goods companies must continue to control costs-while creating business value. But where are they going to apply for the budget? The IBM "2008 CIO Survey" shows that personal consumer goods companies have very low it budgets and have not increased over the years.

According to our latest 134 CIO survey, it costs about 2.11% of total revenue-and most of it is spent on maintaining existing systems, with little budget to drive business growth and create new opportunities. In addition, the 2008 GMA It survey also showed that the IT operating budget for 2007 accounted for only 2.11% of total revenue. See Figure 1.

Figure 1:it The percentage of budget and revenue has not changed