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The Role Of Technology In Retail Food Sustainability

Joerg Koesters

You know your business. You’re an expert in what to expect from your customers, marketing campaigns, supply chain logistics, and IT developments within your field. But there are a lot of new concepts and technologies out there that impact the retail market and food sustainability. Let’s take a quick look at how technology is shaping each of these areas.

Social media and the generation gap

Social media is a hot buzzword right now, but many people in business leadership fail to appreciate the role social media plays in building their brand and their business. We have social media marketing, but it can also be a tool for gathering intelligence on potential issues that arise due to a recall or disease outbreak. However, the data gathered still needs to be handled logically. Gone are the days when a business would hire a couple college kids to respond to queries on social media. Instead, having your social media profiles connected to analytics helps you more quickly determine when you’re dealing with business as usual versus a serious PR nightmare.

But beyond social media, the focus consumers have on food is changing as the generations pass the torch to the next generation. Though we’re often focused on Generation X consumers, due to their position at the top of their earning potential, Generation Z consumers have a radically different view of food retail. In Switzerland, the dairy industry that has remained unchanged for centuries is now facing digitalization, transparency and traceability, potentially to the point of which region, farm, or even cow from which the consumer’s milk comes.

Digital transformation

Another hot trend is digital transformation or digitization of businesses. From farmers in developing countries who use mobile devices to verify the weather conditions for the next few days to utilities that are able to better expand and invest in their infrastructure to power farms, digitization has the opportunity to revolutionize our world.

Imagine a supply chain that starts with a connected farmer in a developing country. Digitization allows for mobile device connectivity, so the farmer can determine what needs to be done about a pest in the field. Sensors allow a grain elevator to estimate what the season’s yield will be, allowing for better distribution of bulk food ingredients around the globe. A manufacturer can use analytics to determine points of peak demand, giving them flexibility with just-in-time supply chain management. A store can use connectivity to determine exactly where produce or meats have come from during a recall. Consumers know they’re getting the best food for their families.

Personalization and 3D printing

Another driving trend in food is personalization. Whether it’s food that meets a hot new diet or doesn’t have allergens that cause health problems for much of the developed world, today’s consumer wants their food their way. As the Internet is bringing people together from across the globe, families with children who face the challenges of ADHD, for example, spoke out and demanded equal food quality to that being developed in Europe. Many children with ADHD have problems with hyperactivity caused by artificial food dyes. In Europe, these dyes have fallen under strict regulation, requiring foods that contain the dyes to be labeled similar to how alcohol and tobacco is in the U.S. Upon learning this, U.S. families demanded through a Change.org petition that a particular candy manufacturer stop using artificial food dyes in its candy.

Another trend in personalization is the advent of the 3D printer. No longer a simple gimmick to experiment with, the 3D printer has become an essential shop-floor tool in large and small businesses worldwide. Why? Because it makes it much more feasible for the average customer to afford the exact specifications they want in their food. Imagine a supermarket where a customer can simply walk up to a kiosk, request a pound of gluten-free, garlic-parmesan flavored pasta that is fortified with vitamins and is available in a number of child-friendly shapes. Instead of having an entire row of pastas, the kiosk only takes up a few square feet while still delivering a wide range of options, from economical to gourmet.

Sustainability

You’ve probably heard plenty about sustainability over the past few years. As a hot new buzzword, it’s regularly thrown into conversations whether it’s really understood or not. You know that climate change is turning into a problem for your suppliers as the weather becomes increasingly unpredictable, making it difficult to forecast potential crop yields in the long term, but what about in the short term? With your customers’ access to and interest in sustainability initiatives, your company needs to provide the information they need on what you’re doing to keep our world running. But can sustainability be good for your business? The answer is a resounding yes!

Many retailers may be unaware of the United Nations’ Sustainable Development Goals. This initiative among member nations is focused on ending hunger, improving nutrition, improving food security, and promoting sustainable agriculture across the world. Currently, half a billion small farms provide 80% of the food for developing nations. Rural development will help increase the output of small farms to meet some of the world’s rising demand. It’s estimated that today, 795 million people are undernourished, and projections show that our world’s population will grow by another two billion by 2050. How will we feed everyone? Sustainability feeds not only today’s generation, but it ensures that the capability remains to feed tomorrow’s generations as well.

Adapting to the latest trends

Though many companies are currently holding their own, how much longer will that option be viable? Food delivery, better convenience store foods, and healthy fast-food chains are all gaining ground in the market. To remain competitive, you need to understand that these seemingly esoteric, theoretical concepts can and will make a tangible impact on how food is grown, transported, personalized, and delivered in the future.

For example, let’s look at online grocery shopping. This trend has been growing wildly in the past few years, with the percentage of U.S. households that have purchased groceries online increasing from 11% in 2013 to 21% in 2015. These households are also shopping differently online compared to in-store shopping, and busy households are increasingly shopping for specific products or setting up subscription-based shopping. How does a traditional grocery store keep customers coming to a brick-and-mortar store when faced with these competitors?

I know you’re busy running your business on a day to day basis, but you can see the additional levels of complexity in these topics that you need to understand to drive future revenue. To remain competitive, you need to improve your customers’ brand loyalty and grow your companys’ market share. By getting a better grip on these topics’ complexity, you’ll be able to address those concerns with a deeper understanding of the latest trends.

At SAP, we believe in helping our clients get the tools they need to stay ahead of the latest trends in their industries. Our upcoming SAP Future of Food Forum is an online series of virtual live discussions, with the first session on October 18. Among the topics we’ll cover during these discussions is the role being played by technology in terms of food sustainability.

To learn more about food sustainability and topics around the future of food, please join our virtual forum.

 

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About Joerg Koesters

Joerg Koesters is the Head of Retail Marketing and Communication at SAP. He is a Technology Marketing executive with 20 years of experience in Marketing, Sales and Consulting, Joerg has deep knowledge in retail and consumer products having worked both in the industry and in the technology sector.

The Internet Of Things: An Environmentalist’s Heaven Or Hell?

John Graham

Back in early December, The Guardian ran an article asking whether the Internet of Things will save or sacrifice the environment. As you’d expect, the answer is far from clear. Some environmentalists worry about the effects of producing, installing, and powering those billions of extra devices; others urge the use of IoT sensor networks to help us monitor and curb resource consumption and emissions.

On the surface, the thought of creating huge wireless sensor networks for the benefit of the environment seems paradoxical. However, there is a much bigger picture lurking underneath. The Global e-Sustainability Initiative’s (GeSI) recent #SMARTer2030 report suggests that IoT-related technologies could save “almost 10 times the carbon dioxide emissions that it generates by 2030 through reduced travel, smart buildings, and greater efficiencies in manufacturing and agriculture.”

Even if we achieve a situation in which physical IoT devices have a net positive effect on humanity’s carbon footprint, there is still the massive data transmission and storage growth to consider. Speaking as an executive of a company providing the cloud-based data platform for IoT networks, I can say that it’s in our best interests to keep energy consumption as low as possible, because it costs less. That’s why data centers are built with energy efficiency top of mind.

Ultimately, whether or not the IoT turns out to be an environmentalist’s dream will depend on how we apply its concepts. If it’s primarily used to stream endless high-quality video feeds 24 hours a day or for power-hungry gimmicks and trivialities, the footprint will be far worse than if it’s used directly to get resource and energy management under control. It seems unlikely that the private sector and consumers alone will summon the collective motivation to veer in the direction of the latter, so policy will need to keep up and be sound and assertive.

The attitude of disposability in Western society today is another issue altogether. Perfectly functional year-old smartphones and computers are piling up in landfills across the globe as consumers struggle to resist the lure of the latest model. Can the IoT buck this trend by being founded on sensor networks built to last? With the world trending away from centralized hardware and toward cloud-based software, it could be that upgrades to the virtual aspects of IoT will be enough to satisfy our lust for innovation, while the sensors hum away out of sight and out of mind.

Time will tell.

Register here to listen to an SAP Live webcast in which IBM’s IoT guru Michael Martin discusses the possibilities and challenges of our connected future.

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John Graham

About John Graham

John Graham is president of SAP Canada. Driving growth across SAP’s industry-leading cloud, mobile, and database solutions, he is helping more than 9,500 Canadian customers in 25 industries become best-run businesses.

Climate Change: Look North and South – The Evidence Is Real

Nancy Langmeyer

Explorer Sir Robert Swan – the first and only man to walk on both the North and South Poles unsupported – believes that “the greatest threat to our planet is the belief that someone else will save it.”

As a self-proclaimed survivor, Sir Swan, like many others around the globe, believes that climate change and global warming are very serious issues.

The United Nations (UN) adopted 17 Sustainable Development Goals (SDGs) in 2015, and Goal 13 asks the world to “take urgent action to combat climate change and its impacts.” According to the UN, “Climate change is now affecting every country on every continent. It is disrupting national economies and affecting lives, costing people, communities, and countries dearly today and even more tomorrow.”

The National Aeronautics and Space Administration (NASA) says the rate of temperature increase around the globe has nearly doubled in the last 50 years due to greenhouse gases released as people burn fossil fuels. But even though 2016 was the hottest year in recent history, sadly there are still people in the world who say global warming is of no concern and that it is actually a “hoax!”

Well, like Sir Swan, let’s look to the North and Sole Poles and see what we can learn about the reality of this situation.

The Poles have a story to tell us…

Sir Swan believes the North and South Poles hold vital clues to the issue of global warming and that they are an indication of what is going on around the world in respect to climate change.

In his TED talk, Swan showed pictures of melting ice in the North and South Poles, describing it as a dangerous situation. He says, “We need to listen to what these places tell us, and if we don’t, we’ll end up with our own survival situation here on planet Earth.”

So, let’s start in the North and find out what we can learn there.

At 90⁰ north latitude, the North Pole is 450 miles north of Greenland, in the middle of the Arctic Ocean. There is no actual landmass at the North Pole – only massive amounts of ice that expand in winters and shrink down to half the size in summers.

The climate change story here is that the North Pole has been experiencing unusually high temperatures, reaching 32⁰ Fahrenheit in December 2016, which was 50⁰ warmer than typical! This trend has lead to an alarming shrinkage of the Arctic Sea ice masses that equates to approximately 1.07 million km² of ice loss every decade.

Why is this a problem? Well, according to the National Science Foundation, sea ice variability – the amount of water the ice puts into or pulls out of the ocean and the atmosphere – plays a significant role in climate change. NASA says that, “The sea ice cover of the Arctic Ocean and surrounding seas helps regulate the planet’s temperature, influences the circulation of the atmosphere and ocean, and impacts Arctic communities and ecosystems.”

Even the coldest place on Earth is getting warmer!

Now, in the completely opposite direction, what can we learn from the South Pole and Antarctica? At 90⁰ south latitude, Antarctica, which includes approximately 90% of the ice on the planet, is a little over 300 feet above sea level with an ice sheet on it that is about 9,000 feet thick.

Much colder than the North Pole, the temperature here has dropped to a chilling low of -135.8⁰ Fahrenheit in 2013. However, this pole, too, is experiencing warmer weather, with its highest temperature reaching 63.5⁰ in March 2015.

NASA indicates that Antarctica has been losing about 134 gigatonnes of ice per year since 2002. And just recently, a new concern emerged – a rift in the continent that could send a significant part of the polar cap off into the ocean and create one of the largest icebergs ever recorded. This could, in the long run, raise global sea levels by four inches.

So what’s a little rise in sea level?

While a couple inches here or there doesn’t seem like much, NASA says rising sea levels can erode coasts and cause more coastal flooding, and in fact, some island nations could actually disappear.

And that’s just the sea level. There are other ramifications as the climate changes, such as an increase in infectious diseases with the expansion of tropical temperature zones, more intense rain storms and hurricanes, and many other life-threatening issues.

Let’s be the “someone else”

These insights are just the tip of the iceberg (so to speak) in the story of global warming, but it is evident the Poles are telling us that climate change is real. It’s also evident that it’s time for us as the inhabitants of this world to become the “someone else” Sir Swan talks about. And the good news is that it’s not too late for us to save this planet.

We don’t have to go to the North or South Pole to make an impact. We can simply follow Swan’s advice: “A survivor sees a problem and doesn’t go, ‘Whatever.’ A survivor sees a problem and deals with that problem before it becomes a threat.”

Whether it’s at work with a company like SAP that supports the UN SDGs with its vision and purpose, or individually – we all have to help climate change before there are irreversible threats to our place. Let’s be the someone else, starting today.

A quick note: My last blog focused on how women in the arts and sports are helping to break gender inequality barriers. Well, I am happy to report that this same movement is happening in science too! In 2016, an initial 76 women in science embarked on a leadership journey to increase the awareness of climate science. The inaugural session of the year-long Homeward Bound program, which focused on empowering women in science, culminated in December 2016 with the largest female expedition in Antarctica. Here these brilliant, dedicated female scientists and engineers saw the effects of climate change first-hand and brainstormed how they, through “collaborative leadership, diverse thinking, and creative approaches,” could make an impact. 

SAP’s vision is to help the world run better and improve people’s lives. This is our enduring cause; our higher purpose. Learn more about how we work to achieve our vision and purpose.

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Nancy Langmeyer

About Nancy Langmeyer

Nancy Langmeyer is a freelance writer and marketing consultant. She works with some of the largest technology companies in the world and is a frequent blogger. You'll see some under her name...and then there are others that you won't see. These are ones where Nancy interviews marketing executives and leaders and turns their insights into thought leadership pieces..

The Future of Cybersecurity: Trust as Competitive Advantage

Justin Somaini and Dan Wellers

 

The cost of data breaches will reach US$2.1 trillion globally by 2019—nearly four times the cost in 2015.

Cyberattacks could cost up to $90 trillion in net global economic benefits by 2030 if cybersecurity doesn’t keep pace with growing threat levels.

Cyber insurance premiums could increase tenfold to $20 billion annually by 2025.

Cyberattacks are one of the top 10 global risks of highest concern for the next decade.


Companies are collaborating with a wider network of partners, embracing distributed systems, and meeting new demands for 24/7 operations.

But the bad guys are sharing intelligence, harnessing emerging technologies, and working round the clock as well—and companies are giving them plenty of weaknesses to exploit.

  • 33% of companies today are prepared to prevent a worst-case attack.
  • 25% treat cyber risk as a significant corporate risk.
  • 80% fail to assess their customers and suppliers for cyber risk.

The ROI of Zero Trust

Perimeter security will not be enough. As interconnectivity increases so will the adoption of zero-trust networks, which place controls around data assets and increases visibility into how they are used across the digital ecosystem.


A Layered Approach

Companies that embrace trust as a competitive advantage will build robust security on three core tenets:

  • Prevention: Evolving defensive strategies from security policies and educational approaches to access controls
  • Detection: Deploying effective systems for the timely detection and notification of intrusions
  • Reaction: Implementing incident response plans similar to those for other disaster recovery scenarios

They’ll build security into their digital ecosystems at three levels:

  1. Secure products. Security in all applications to protect data and transactions
  2. Secure operations. Hardened systems, patch management, security monitoring, end-to-end incident handling, and a comprehensive cloud-operations security framework
  3. Secure companies. A security-aware workforce, end-to-end physical security, and a thorough business continuity framework

Against Digital Armageddon

Experts warn that the worst-case scenario is a state of perpetual cybercrime and cyber warfare, vulnerable critical infrastructure, and trillions of dollars in losses. A collaborative approach will be critical to combatting this persistent global threat with implications not just for corporate and personal data but also strategy, supply chains, products, and physical operations.


Download the executive brief The Future of Cybersecurity: Trust as Competitive Advantage.


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How Digital Transformation Is Rewriting Business Models

Ginger Shimp

Everybody knows someone who has a stack of 3½-inch floppies in a desk drawer “just in case we may need them someday.” While that might be amusing, the truth is that relatively few people are confident that they’re making satisfactory progress on their digital journey. The boundaries between the digital and physical worlds continue to blur — with profound implications for the way we do business. Virtually every industry and every enterprise feels the effects of this ongoing digital transformation, whether from its own initiative or due to pressure from competitors.

What is digital transformation? It’s the wholesale reimagining and reinvention of how businesses operate, enabled by today’s advanced technology. Businesses have always changed with the times, but the confluence of technologies such as mobile, cloud, social, and Big Data analytics has accelerated the pace at which today’s businesses are evolving — and the degree to which they transform the way they innovate, operate, and serve customers.

The process of digital transformation began decades ago. Think back to how word processing fundamentally changed the way we write, or how email transformed the way we communicate. However, the scale of transformation currently underway is drastically more significant, with dramatically higher stakes. For some businesses, digital transformation is a disruptive force that leaves them playing catch-up. For others, it opens to door to unparalleled opportunities.

Upending traditional business models

To understand how the businesses that embrace digital transformation can ultimately benefit, it helps to look at the changes in business models currently in process.

Some of the more prominent examples include:

  • A focus on outcome-based models — Open the door to business value to customers as determined by the outcome or impact on the customer’s business.
  • Expansion into new industries and markets — Extend the business’ reach virtually anywhere — beyond strictly defined customer demographics, physical locations, and traditional market segments.
  • Pervasive digitization of products and services — Accelerate the way products and services are conceived, designed, and delivered with no barriers between customers and the businesses that serve them.
  • Ecosystem competition — Create a more compelling value proposition in new markets through connections with other companies to enhance the value available to the customer.
  • Access a shared economy — Realize more value from underutilized sources by extending access to other business entities and customers — with the ability to access the resources of others.
  • Realize value from digital platforms — Monetize the inherent, previously untapped value of customer relationships to improve customer experiences, collaborate more effectively with partners, and drive ongoing innovation in products and services,

In other words, the time-tested assumptions about how to identify customers, develop and market products and services, and manage organizations may no longer apply. Every aspect of business operations — from forecasting demand to sourcing materials to recruiting and training staff to balancing the books — is subject to this wave of reinvention.

The question is not if, but when

These new models aren’t predictions of what could happen. They’re already realities for innovative, fast-moving companies across the globe. In this environment, playing the role of late adopter can put a business at a serious disadvantage. Ready or not, digital transformation is coming — and it’s coming fast.

Is your company ready for this sea of change in business models? At SAP, we’ve helped thousands of organizations embrace digital transformation — and turn the threat of disruption into new opportunities for innovation and growth. We’d relish the opportunity to do the same for you. Our Digital Readiness Assessment can help you see where you are in the journey and map out the next steps you’ll need to take.

Up next I’ll discuss the impact of digital transformation on processes and work. Until then, you can read more on how digital transformation is impacting your industry.

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About Ginger Shimp

With more than 20 years’ experience in marketing, Ginger Shimp has been with SAP since 2004. She has won numerous awards and honors at SAP, including being designated “Top Talent” for two consecutive years. Not only is she a Professional Certified Marketer with the American Marketing Association, but she's also earned her Connoisseur's Certificate in California Reds from the Chicago Wine School. She holds a bachelor's degree in journalism from the University of San Francisco, and an MBA in marketing and managerial economics from the Kellogg Graduate School of Management at Northwestern University. Personally, Ginger is the proud mother of a precocious son and happy wife of one of YouTube's 10 EDU Gurus, Ed Shimp.