© 2020 Avasant LLC. All Rights Reserved.Proprietary and Confidential. No part of this document may be reproduced in any form or by any electronic or mechanical means,including information storage and retrieval devices or systems, without prior written permission from Avasant LLC.

August 2020

Using Digitalization to Expand

Despite COVID-19

Retail & CPG

Digital Services 2020-

2021 RadarViewTM:

Report Excerpt

2

Table of Contents

• About the Retail & CPG Digital Services 2020-

2021 RadarView Report

3

• Executive Summary 4

• Lay of the land 8

• Road Ahead 19

• RadarView Overview 26

• Retail and CPG Digital Services RadarView 29

• Infosys Profile 33

• Key Contacts 38

2

3

About the Retail & CPG Digital Services 2020-2021

RadarViewTM Report

1The pandemic has transformed the Retail & Consumer Packaged Goods (CPG) industry. Buying behavior has shifted due to growing concerns over economic stability, changing lifestyles, and health. Companies focused on essential items are thriving. The rest are fighting for survival. In this changing landscape, digital adoption offers agility and resilience, and unlocks growth opportunities.

2Avasant’s ongoing interactions with industry leaders indicate that enterprises must expedite their digital transformation journey to stay ahead of the competition. The key challenge, however, is finding the right strategic balance between business growth and cost containment.

3The Retail & CPG Digital Services 2020-2021 RadarViewTM Report zeroes in on key action items to navigate ongoing headwinds to gain competitive advantage. It identifies key global service providers and systems integrators to assist enterprises in business transformation.

4Avasant evaluated 30 retail and CPG service providers using a rigorous methodology against the key dimensions of Practice Maturity, Partnership Ecosystem, and Investments and Innovation. The report recognizes 20 that generated the greatest value over the past 12 months.

5The report also highlights key market trends and offers Avasant’s view of the road ahead for retail and CPG companies in the coming years.

Executive Summary

5

Key Recommendations for Retail

• Elevate the mindshare of private label brands by promoting their availability. Price-conscious

consumers are willing to replace any of their usual brands if they have limited availability.

• Launch lucrative subscription-box models and interactive apps to swiftly transition to online shopping

and boost e-commerce sales.

Evaluate which business

models and revenue streams

can drive business growth

• Reconceptualize certain physical locations such as pop-up stores, frictionless stores, and “smart stores”

that are loaded with emerging technologies to facilitate social distancing, safety, and convenience.

• Redesign store layouts to provide in-store guidance via video analytics and the Internet of Things (IoT).

Include space for new operating models such as curbside pickup and Buy Online Pick In Store (BOPIS).

Reimagine physical stores for

experiential retailing and

enhanced experiences

• Invest in digital technologies (drones, autonomous vehicles) or hire employees to expedite last-mile

delivery of ecommerce sales.

• Leverage robots, drones, IoT, Artificial Intelligence (AI), and analytics to optimize inventory levels,

expedite order fulfilment, and containing costs by reducing the dependency on the human workforce.

Accelerate the digitalization

of the supply chain to

expedite delivery and

contain costs

• Invest in predictive analytic solutions to forecast demand locally (for stock replenishment) and to

design targeted and personalized marketing campaigns to attract new business.

• Deploy chat bots for virtual assistance and Augmented Reality(AR) and Virtual Reality (VR) to facilitate

decision making from initial interest to point of sale.

Devise an aggressive

investment plan to revitalize

business growth

• Invest in or partner with niche retailers to add SKUs to your online marketplace. Build a one-stop-shop

experience for customers.

• Acquire or partner with specialists to infuse their digital capabilities across the entire value chain to

improve the shopping journey from product inquiry to final delivery.

Forge strategic alliances to

provide differentiated

experiences

6

Key Recommendations for CPG

• Increase the development of health-related products such as face masks, sanitizers, medication, and

healthier meals to align with changing behaviour patterns.

• Use predictive analytics/AI to to unlock new growth opportunities, especially for non-essential items.

Proactively identify customer

preferences and prioritize

SKUs

• Leverage digital technologies to optimize manufacturing processes such as automation and predictive

analytics for operational efficiency and AI-powered bots for technical assistance.

• Explore local sourcing options to lessen dependency on geographies that may suffer from stock

unavailability.

Revisit manufacturing

processes to reduce

dependencies that impact

productivity

• Promote the subscription model to increase the sale of essential items and health-related products.

• Digitally connect with luxury brand consumers by sending personalized notifications or alerts,

developing customized products at minimal cost, and providing free consultation services.

Expand e-commerce

capabilities to increase

customer outreach

• Free up working capital from store closures to be used for the redesign of existing stores. Prioritize

investment in point of sale, curbside pickup, and facilitation of social distancing to boost in-store traffic.

• Make product packaging more compact to ease online delivery. Use recyclable materials for the

targeting of millennials.

Modify your GTM strategy to

improve brand visibility and

acquire new customers

• Evaluate partnerships with 3PLs to outsource warehousing and last-mile delivery to reduce supply chain

costs and expedite delivery.

• Partner with IT and business service providers to enable process automation, real-time monitoring of

customer preferences, and digital transformation.

Forge partnerships to

transform operations and

contain costs

7

Avasant has recognized 20 top-tier providers supporting

retail and CPG industry in digital transformationLEADERS

Cognizant

IBM

TCS

Accenture

HCL

Infosys

INNOVATORS

NTT DATA

UST Global

Capgemini

Tech Mahindra

Wipro

CHALLENGERS

SofttekMindtree

Sutherland Unisys

DISRUPTORS

CGI

Genpact

Atos

DXC

LTI

Retail: Lay of the Land

9

A shift in customer preferences driven by external factors is

driving retail sector transformation. … impacted retail in varied ways as customers align their spending with changing preferences and demands.

Retailers are constantly tracking the customer semantics to keep pace with changing demands in order to carefully plan promotional campaigns and stock replenishment.

Sources: Avasant Research, Avasant Digital Masters 2020 RadarView

Customer preference

Impact Summary

Redefining essential items

• Bulk purchase of groceries, toiletries, disposables• Growing demand for premium products like

meal kits and flavoured beverages• Increased snack consumption

Prioritizing health and safety

• Rise in demand for face masks and sanitizer.• Increase spending on health-related products

like vitamins and supplements• Bulk purchase of health measurement devices

New lifestyle choices

• Preventive measures such as social distancing• Preference for local manufacture and meat

substitutes• Preferring pop-up restaurants, home delivery

Optimizing spent on non-essential

items

• Low demand for luxury products (apparel, footwear) and services (fine dining, salon services)

• Preference for lower prices

2XUnemployment to

double in 2020 as >40%

suspected to lose job

>50%Decline in human

interaction over the

next six months

3XGrowth in internet

traffic in major

geographies

Ec

on

om

icSo

cia

lTe

ch

no

log

ica

l

External pressure due to COVID-19 has…

10

The ratio of online sales to total sales will increase by five percent in 2020 as retailers invest more in e-commerce, warehouses, and digital engagement.

Online shopping accelerates as consumers prioritize safety

and social distancing

Sources: Avasant Research, US Department of Commerce, Company quarterly reports

New Operating Models

Apparel & footwear and home

improvement stores are promoting

curbside pick-up.

Supply Chain ManagementLeveraging nearby distribution centers

for last mile delivery.

Digital EngagementImplementation of chatbots as virtual

assistants and VR-enhanced online

sales.

One-Stop Shop>50% revenue growth for grocery

retailers by adding more SKUs to online

marketplaces.

Store Closures> 8,500 retail stores have been shut

down permanently, encouraging online

shopping.

Increased Outreach

Reaching out to more customers

through e-commerce sites and targeted

promotional campaigns.

4XGrowth of online sales compared to offline sales in

the U.S, in Q1 2020.

Retailers with operational e-commerce channels witnessed revenue growth as they quickly responded to changing demands, preferences, and habits.

11

The digital supply chain will enable real-time tracking of products for transparency, accurate demand forecasting, and expediteddelivery to augment revenue growth by 2-4%.

Greater investment in digital supply chains is driving revenue

growth and enhancing the customer experience

Sources: Avasant Research, NRF, Harvard Business Review

… compel retailers to formulate strategies for expedited delivery, demand forecasting, and inventory management.

~50%Loss of intended

purchases when

customers

encounter stock-

outs in retail stores

75%Of customers

expect online, last-

mile delivery and

curbside pickup to

be free.

Sales pressures and higher customer expectations…

Deploy AI-powered bots in warehouses for order fulfilment and in stores for stock

replenishment and inventory management.

Improve supply chain visibility, agility, transparency, and real-time monitoring for orders and

deliveries.

Leverage digital technologies such as analytics, IoT, and blockchain to forecast local and

regional demand.

Explore the “dark store” option to convert some existing stores into order fulfilment centers

to expedite order delivery.

Evaluate the last-mile delivery options such as curbside pickup time slots and drone

delivery.

12 Sources: Avasant Research, Harvard Business Review, NRF

Omnichannel sales accelerate as retailers adapt to

unexpected market forces

Omnichannel retailing is a critical strategic investment as customers become more conscientious about buying patterns and brand preferences.

Prominent retailers are investing in omnichannel retailing to boost sales and build customer loyalty during these challenging times.

15%-20%

Increase in revenue through a strong

omnichannel strategy that offers

personalized online promotions and

product recommendations, more in-

store purchases, and more frequent

visits to stores.

Redesign and simplify web sites to convert first-time online shoppers to

repeat visitors.

Provide a uniform, seamless, and personalized experience across all

channels.

Leverage apps, beacons, and NFC technologies in stores to sync with

customer mobile devices for in-store guidance.

Provide all possible fulfilment options such as home delivery, online

purchase, Pickup in Store (BOPIS) and curbside pickup.

Use analytics to recommend local products through targeted

promotional campaigns.

Be transparent to the consumer by providing real-time visibility on

availability, pricing, reviews, and product shipment.

13

Retailers are adjusting their business and operating models to

align with new expectationsProgressive companies must modify their approach as customers prioritize convenience, quality, and cost

Digitally mature retail companies are investing heavily in these new business models to improve sales of higher margin products,contain supply chain costs, and facilitate a more rapid sales cycle.

Sources: Avasant Research, Company Press Release, NRF

Private Label Brands

>25% revenue growth

of private labels

Subscription Box

>50% growth in grocery

shopping

Bu

sin

ess

Mo

de

ls

BOPIS

>75% of customers are

interested in BOPIS

Curbside Pickup

>90% of customers

found it convenientOp

era

tin

g M

od

els

• Expand the customer base as competitive pricing

has become the deciding factor.

• Manage inventory for private label products to

compensate for unavailability of branded goods.

• Deploy analytics to understand the monthly

shopping patterns of consumers.

• Launch personalized promotional campaigns to

ensure regular business.

• Grow your e-commerce business through

omnichannel retailing.

• Encourage customers to visit stores by investing in

contactless payment and social distancing norms.

• Redesign stores to provide parking spaces for

curbside pickup.

• Hire staff to facilitate the movement of goods from

store to vehicles.

COVID-19 has led to some drastic changes in Q1 2020 Illustrative examples

CPG: Lay of the Land

15 Sources: Avasant Research, Bureau of Economic Analysis

CPG companies must invest more in analytics to align their strategies and business models with the evolving consumer trends and requirements.

Customer demands and preferences are evolving as they

adjust to the new normal post-COVID-19

… will continue in the coming months as customers prioritize expenditure based on the current situation

Food & Beverage: Growing demand for high-valued goods such as plant-based products, meal kits, flavored drinks, and health foods and supplements to build immunity.

Apparel & Footwear:Changing weather and a preference for comfort clothing have altered the market. But supply chain improvements and targeted marketing campaigns can encourage greater apparel and footwear spending.

Furniture & Furnishings: Growth has flattened, and this is expected to continue as purchasing patterns have shifted from work and home schooling to outdoor and recreational furniture.

US Customers’ ExpenditureMonthly growth in H1 2020

985

429 415

1,038

450411

Food & Beverage Furniture & Furnishing Apparel & Footwear

Jan-20 Jun-20

Minimal growth (~1%) in Food & Beverage, and Furniture & Furnishings, slight decline in Apparel & Footwear…

16 Sources: Avasant Research

Though bankruptcies downgrade the overall rating of CPG brands, organizational restructuring will play a critical role in retaining existing business and acquiring new customers.

CPG companies are revamping GTM strategies and business

models as they file for chapter 11 bankruptcy

… prompting some leading CPG organizations to move working capital spend from stores to new strategies and business models.

New product lines: As customers prioritize convenience and casuals over

expensive apparel and footwear, luxury brands are substituting sportswear

and new casual attire for formal attire.

Direct 2 Customers: With the growing importance of precautionary

measures such as social distancing, CPG companies are strengthening

their online presence to reach customers directly.

Location of retail outlets: Retail outlets are moving out of malls to reduce

operating costs as they seek better ways to facilitate curb-side pickup,

and attract consumers.

Supply chain management: Conversion of some retail outlets into dark

stores or order fulfilment centres to manage last-mile delivery of e-

commerce sales, as well as stock replenishment of brick & mortar stores.

Digital connections: Connecting digitally with customers through chat

bots, VR-based shopping experiences, and AI-based targeted promotions

to drive sales and enhance brand loyalty.

>25%*Of stores to close

permanently, as

CPG companies

file for bankruptcy

under Chapter 11

in Q2 2020.

High debts/losses have led to store closures and bankruptcy filings…

*Based on press releases from CPGs

17

With fluctuating demand, manufacturing constraints, and supply chain disruption, agile CPGs taking an analytics-based approach have the greatest opportunity for business sustainability.

CPG companies are revisiting manufacturing and supply

chain strategies to ensure business continuity

Sources: Avasant Research

Explore options to reduce losses due to human error or supply chain disruption due to dependency on materials from distant locations.

20%-40%Reduction in output

due to the factory

lockdowns,

unavailability of raw materials, and high

dependency on

human employees.

Digitize manufacturing and supply chain processes by integrating technologies like RPA,

IoT, analytics, and AI.

Evaluate plant-based and other raw material alternatives to ensure the regular supply of

goods.

Explore locally-produced raw materials and machinery to optimize the procurement

process and reduce dependency on imports.

Partner with niche companies specializing in the production of similar products to cater

to the surge in demand for essential items such as toilet paper and masks.

Leverage AI and analytics to forecast local and regional demand, and streamline

procurement and manufacturing processes.

18 Sources: Avasant Research, Company SEC Filings

Many CPG companies are exploring multiple online channels to acquire new business and retain existing clientele.

E-commerce sales are accelerating as CPG firms focus on

business sustainability and customer engagement

Leading CPGs are monetizing opportunities derived from store closures by reaching directly to consumers

>30%*: Growth in e-commerce

of leading CPGs, Q1 2020.

>10%*: Share of total revenue

by e-commerce.

• Launching new products to meet changing preferences by analyzing

customer needs.

• Re-evaluating and repackaging product offerings regularly, via

analysis of online orders.

• Targeted marketing by analysing demographics, regional data, and

buyer preferences.

• Bundling free consultation services virtually, especially in the sale of

non-essential items such as cosmetics.

• Providing training and video demos to educate customers on new

products or services.

*Based on quarterly reports from leading CPG companies

Road Ahead

20

Entering adjacent spaces by players with others in the ecosystem is crucial for business growth and meeting customer expectations.

Forge strategic alliances to establish ecosystems that

differentiate customer services

Sources: Avasant Research

Retailers partnering with

farmers

Reduction in perishable

product losses,

boosting profitability up

to 1% via partnerships

with urban farmers for

offering in-store living

products farm

Retailers partnering with

digital natives

Increase in traffic when

in-store retailers accept

sales returns from

digitally native retailers,

unlocking growth

opportunities

CPGs partnering with

3PLs

Improvement in

delivery time by

outsourcing warehouse

management and

inventory management

to 3PLs

CPGs partnering with

digital natives

Increase in revenue by

partnering with digital

natives operating in

retailer who provide

D2C subscription-box

services

> 50% > 20% > 30% 10-12%

Partnerships with emerging players are a vital element in exploration of new revenue streams and operating models.

21

Acquisition of and partnership with digital companies accelerates deliveries, curtails losses due to shrinkage, and reduces dependency on employees.

Acquire or partner with digital specialists to contain costs by

expediting and optimizing processes

Sources: Avasant Research

Improvement in workforce

efficiency using robots for

inventory sorting in warehouses

Improvement in employee

productivity using chatbots

to resolve technical issues

30%

Bots

Reduction in lead time for work-order generation through

IoT-enabled

equipment management of

perishable goods

Reduction in manual labor by

automating processes across functionalities for

demand forecasting

80% 60%

IoT Automation

Reduction in personal and operational

downtime by deploying drones for

inventory management

20%

Drones

40%

22

Retail & CPG companies with data-driven, customer-centric strategies will gain more traction due to demand for more personalized, convenient, and safe shopping experiences.

Prioritize customer-centricity across critical touchpoints to

improve conversion rates and drive revenue growth

Sources: Avasant Research

Digital technologies play a pivotal role in better understanding, analyzing, and approaching customers.

Omnichannel Marketing

>25% growth in customer conversion by

integrating and optimizing digital and in-store

experiences for luxury brands

Experiential Retailing>40% sales conversion by using digital

technologies such as AR/VR and contactless

trials during product selection.

Virtual Assistant>80% sales conversion when a virtual assistant

is present to answer question during the

shopping journey

Hyper-localization>5% growth in revenue by forecasting

local demand through harnessing

locational data

Personalized Marketing>10% growth in revenue from targeted

campaigns by analyzing customer

profiles

Product Recommendations

>30% growth in revenue by

recommending products based on

buying patterns

Customer

23

Leverage predictive analytics and AI to improve financial

metrics and the overall customer experience

Source: Avasant Research

Pro

du

ct

Aff

inity

Cu

sto

me

r

En

ga

ge

me

nt

Su

pp

ly c

ha

in

ma

na

ge

me

nt

Product Development• Predict shifts in customer

behavior due to external factors such as weather to develop new SKUs.

• Real-time monitoring of consumer preferences for product modification.

Pricing and packaging• Ascertain optimal prices by analyzing

the pricing model of competitors.

• Determine the ideal size and type of packaging for home delivery and shelf displays.

Manufacturing Prioritization • Prioritize the manufacturing of SKUs

based on analysis of the market.

• Predict repairs and potential breakdowns to avoid interruptions or delays.

Personalized Experience• Hyper-personalized marketing

and product recommendations.

• Virtual concierges or store associates as shopping assistants.

Advanced analytics can drive incremental revenue growth by up to 10% by launching new lines or modifying products based on customer preferences; it can also improve profitability by 1%-2% by optimizing manufacturing and supply chain processes.

Inventory management• Identify optimal inventory levels at

warehouses and stores by monitoring sales trends, customer preferences, and buying patterns.

• Real-time tracking of products to facilitate online sales.

Customer Segmentation• Profile customers based on

demographics, characteristics, buying behavior and social habits to forecast needs.

• Reduce customer churn.

Staying connected• Sending alerts and notifications on

product launches, and promotions based on profiles, shopping history, and behavior.

• Guiding customers in store through video analytics.

…to develop predictive analytics and AI use cases to transform processes, optimize operations, and enhance customer experiences.

Procurement Optimization• Select the best carrier for

shipments across geographies to reduce delays.

• Order raw materials based on requirements and availability.

.

Real-time data generated by

IoT applications, consumer

technologies, and social media

Structured

enterprise data

from online and

offline portals

Structured data

from partners

within the

ecosystem

Data Sources

Triangulation of data from various sources…

Catalog Planning• Plan the ratio of SKUs in the catalog

between the online marketplace and stores based on shelf-life, and lead and cycle times.

• Identify the right shelf for products displayed in stores.

24

Embrace disruptive technologies in use cases across the

value chain

Source: Avasant Research

Product Development, Strategy and

Planning

Procurement, Supply Chain Management

Manufacturing WarehousingStore

OperationsSales and Marketing

Customer Experience

and Engagement

• Adjust price, promotions, production based on real-time updates

Ro

bo

tic

s &

Au

tom

atio

n • Freight and contract management

• Returns processing

• Automate processes like assembly and raw material ordering

• Quality checks

• ERP management• Automated stock

replenishment• Planned product

placement

• Provide accurate information about inventory levels in all stores

• Product categorization

• Full audits with real-time insights

• Optimization and monitoring of promotional activities

• 24X7 customer care support for orders and updates

• Behavioural and geospatial analysis across all channels

• Catalogmanagement

Art

ific

ial

Inte

llig

en

ce • Demand

forecasting• Last-mile delivery

options through AI-powered devices

• Validate consistency in production processes

• Adherence to quality

• Assortment rationalization

• Warehouse automation

• Space planning and store design

• Manage inventory levels in stores

• Self checkout

• Price and loyalty program optimization

• Sales activation optimization

• NLP-powered chat bots• Create personas to

recommend products• Automated order

placements

• Interactive packaging readable by smart devices

Inte

rne

t o

f

Thin

gs

(Io

T)

• Smart transportation for temperature-sensitive products

• Location tracking

• Real-time asset monitoring through sensors

• Energy management

• Inventory management through RFID

• Smart store to study interest in products

• Track shrinkage

• Increase social media metrics by connecting with consumer IoT devices

• Near field communicationpayment through smart devices

AR

/ V

R/

3D

/

Blo

ckc

ha

in

• Augmented packaging using multi-dimensional platforms

• Spotting counterfeits

• Supply chain visibility from sourcing to consumption

• Asset tracking

• Remote assistance during breakdown

• Employee training, sharing of knowledge

• Locate, scan, sort, and move inventory using smart glasses

• In-store navigation• Personalized

marketing• Monitor product

expiry

• Online marketing by providing demos

• Better online shopping experience

• Contactless trials• Creating virtual

encounters

While retail & CPGs have been conservative in leveraging emerging technologies due to the need for upfront investment, the pandemic is forcing them to rapidly adopt and integrate digital technologies.

25

Engage with service providers to expedite the digital

transformation journey

Source: Avasant Research

>85%Of new

outsourcing

contracts include

digital

Product development

and manufacturing

• RPA/ IA

• AI and analytics

• Cloud-based

infrastructure

Strategy and Planning

• NLP and chatbots

• Machine learning

• Analytics

• RPA

Procurement, supply

chain management

• RPA/IA

• IoT

• AI and analytics

• Blockchain

• Robots

Productivity tools

implementation

• RPA

• Intelligent automation

• Migration

accelerators

Applications and

systems integration

• API-based portals

• Cloud-based

infrastructure

Employee management

• RPA

• AI and Analytics

• IoT

• Cloud database

• Dashboards

Information exchange/

communication

• Apps and chatbots

• Blockchain

• AI and analytics

• IoT

Revenue and expense

management

• Intelligent automation

• Predictive Analytics

• AI

• Dashboards

Customer experience

management

• IoT and chatbots

• AR/ VR

• AI and analytics

• Cloud-based

infrastructure

Key segments and processes leveraging digital transformation within the scope of outsourcing contracts

List of recent outsourcing engagements

As digital and business transformation is a top priority for retailers & CPG enterprises, the role of the service provider has evolved beyond cost optimization to that of strategic partner and growth promoter.

RadarView Overview

27

Avasant Retail & CPG Digital Services 2020-2021

RadarViewTM assesses service providers across 3 dimensions:

Practice

Maturity

• This dimension includes measures around the type, market acceptance and quality of offerings for the industry. It also assesses the strength of the industry practice with respect to its size, certified employees, embedded expertise in emerging technologies and coverage of industry sub-segment.

• The width and depth of the client base, verticalized business revenues and usage of proprietary/outsourced tools and platforms, response to COVID-19, and future strategy are important factors that contribute to this dimension.

Investment and

Innovation

Partner

Ecosystem

• This dimension measures the strategic direction of investments and resultant innovations in the offerings and commercial model, and how it aligns with the future direction of the industry.

• The overall strategic investments, both organic and inorganic ones, towards capability and offering growth, technology development, and human capital development, along with the innovations that the service provider develops with its partners, are critical aspects of this dimension.

• This dimension typically assesses the nature of the partnerships and ecosystem engagement that the provider has entered into. It evaluates the objective of the partnership (co-development, co-innovation, etc.), its engagement with technology solutions or product providers, start-up communities and industry associations.

• The kind of joint development programs around offerings, go-to-market approaches, and the overall depth in partnerships are all important aspects.

28

Research methodology and coverage

Note: Assessments for Accenture, Atos, CGI, Sutherland, and TCS have been conducted based on public disclosures and market interactions only.

Avasant based its analysis on a number of sources:

Publicly available information such as SEC filings, annual reports, quarterly earnings calls, executive interviews and statements.

Public

disclosures

Discussions with enterprise executives leading digital initiatives and influencing service providers selection and engagement.

Market

interactions

Inputs collected through their capability decks and structured briefings in April – June 2020.

Provider

inputs

Of the 30 service providers assessed, the final 20 featured

in RadarView for 2020-2021 are:

Retail & CPG Digital Services 2020-2021

RadarViewTM

30

Reading the RadarView

Avasant has recognized service providers in 4 classifications:

Leaders show consistent excellence across all the key dimensions of the RadarView assessment (practice maturity, partnership

ecosystem, and investments and innovation) and have had a superior impact on the market as a whole. These providers have

shown true creativity and innovation and have established trends and best practices for the industry. These providers have proven

their commitment to the industry and are recognized as thought leaders that set the standard for the rest of the industry to follow.

Leaders display a superior quality of execution and a reliable depth and breadth across verticals.

Innovators show a penchant for reinventing concepts and avenues, changing the very nature of how things are done from the

ground up. Unlike the Leaders, Innovators have chosen to dominate a few select areas or industries and distinguish themselves on

the basis of superior innovation. These radicals are always hungry to create pioneering advancements in the industry and are

actively sought-after as trailblazers redefining the rules of the game.

Disruptors enjoy inverting established norms and developing novel approaches that invigorate the industry. These providers choose

to have a razor-sharp focus on a few specific areas, and address those at a high level of granularity and commitment that results in

tectonic shifts. While Disruptors might not have the consistent depth and breadth across many verticals like the Leaders or the

innovation capabilities of the Innovators, they exhibit superior capabilities in their areas of focus.

Challengers strive to break the mold and develop groundbreaking techniques, technologies and methodologies on their way to

establishing their unique position. While they may not have the scale of the providers in other categories, Challengers are eager and

nimble, and use their high speed of execution to great effect as they scale heights in the industry. Challengers have a track record

of delivering quality projects for their most demanding Global 2000 clients. In select areas and industries, Challengers might very well

have capabilities that match or exceed those of the providers in other categories.

31

Retail & CPG Digital Services 2020-2021 RadarViewTM

LEADERS

Cognizant

IBM

TCS

Accenture

HCL

Infosys

INNOVATORS

NTT DATA

UST Global

Capgemini

Tech Mahindra

Wipro

CHALLENGERS

SofttekMindtree

Sutherland Unisys

DISRUPTORS

CGI

Genpact

Atos

DXC

LTI

Infosys profile

33

Value Chain Coverage

Industry-Specific Solutions/Offerings

• A large US-based

chocolate manufacturer

• A leading

telecommunications

provider based in the US

• A leading fashion retailer

• A chain of coffee houses

• An American

multinational home

appliance manufacturer

• A global supplier of

athletic shoes and

apparel

Sample Clients

Enter Title Here

Practice Overview

Infosys: RadarView Profile

Share of total companyrevenue

Y-o-Y revenue growth (2019)

TradeEdge Market Connect (EdgeVerve)

An automated two-way data exchange platform using ML to analyze and report sales data

Skava Commerce A full suite of ready-to-use microservices for digital commerce transformation

Infosys Live Enterprise Suite

Polycloud architecture to accelerate digital transformation

Infosys NiaAI-based platform to identify patterns in product procurement while adhering to best practices

Omnichannel loyalty solutions using ML and predictive analytics for personalization

Using video analytics to

enable the Amazon Go experience at low cost

Leverages its big data and AI capabilities to help clients attract and retain customers

Integrated in-store solutions –omnichannel, mobile, cloud

16% 20%

Leveraging cloud capabilities for IoT-based solutions

Cloud solutions for retail ERP and back office, POS and checkout services, warehouse mgmt., customer loyalty, etc.

Uses advanced data analytics to predict and improve CX

Cloud solutions for POS, mobile

shopping assistant, and store inventory management

• Practice Size: 20,500+ (~11,500

retail and ~9,000 CPG)

• Active Clients: 210+ clients (~135

retail and ~75 CPG)

• Delivery Highlights: Retail & CPG

operations in 21+ offices across

13 countries globally

Partnerships/Alliances

Practice Maturity

Investments & Innovation

Partner Ecosystem

Provides industry clients with innovative solutions leveraging its IP assets and partner ecosystem. Expertise in digital supply chain

and in-store transformation

Darker color indicates higher coverage through digital services

Product Development

Strategy and Planning

Procurement, Logistics, and Supply Chain

Manufacturing

Warehousing

Store Operations

Sales and Marketing

Customer Engagement and Management

34

Bu

sin

ess

Ch

alle

ng

es

Solutions leveraging Digital Technologies

Differentiated Approaches

Business Sustainability

and Recovery

Digital Maturity

Supply Chain

Changing Customer

Behavior/ Preferences

Evolving Working Culture

Data HarmonizationCloud, AI, and

Analytics

A cloud platform leveraging AI/ML to reduce

cost of data analytics, and improve data

reliability and insights

Digital Transformation solutions Analytics

Intuitive, interactive and user-friendly interface

for measuring opinion of the brand to enable

faster data-driven decision making

Alternate pick-up models CloudEnable online or curbside pickup from stores

using Skava Commerce platform

Contactless SolutionsDigital

Transformation

Enable stores with contactless ordering,

payment, checkout, delivery, and customer

feedback for early functioning

New way of working Automation, IoTAutomated thermal screening, remote

desktops, and collaboration tools.

• Developed automated thermal screening

solutions by leveraging existing technologies for

forest fire spotting and autonomous vehicle

solutions.

• Offering business re-structuring options

(rebadging) for business stability and recovery.

Darker color indicates higher coverage through digital services

Commercial Models

Infosys: Response to COVID-19

Output-based

Input-based

Fixed fee

Hybrid

Outcome-based/

Gain-share

Self-funded

Pay as you go

Monthly Subscription

Flexible payments

Shared services

buy-out

35

Client Capability Summary Business Impact

A European global sports and

lifestyle goods company

• Advanced

Analytics

• Need to upgrade to advanced CRM analytics for omnichannel

campaigns and increase multi-purchase transaction customers• Infosys implemented advanced CRM analytics using concepts like

consumer DNA/gene to derive customer insights.

• Improved data science lifecycle by 70%• Reduced TCO by 50%• Improved email delivery from 35% to

98.7%

A leading beauty

and personal care marketing

company

• Cloud• Analytics

• The client was experiencing issues with expansion, reduced revenues, a

shrinking customer base, and a legacy technology stack.

• Infosys assisted in the development of multi-channel social selling

platform. The solution included Azure cloud platform, analytics module,

and a personalized dashboard for a better customer experience.

• Increased download-to-conversion rate

by 50% and cart-to-order conversion

rate by 70%• Increased average order value by 18%

An American global

manufacturer of confectionary and pet foods

• Advanced Analytics

• AI

• Need to upgrade the outdated market traceability solutions which had

critical operational gaps. Also, about 60% of the business units did not

comply with regulatory requirements in regards to tracing and holding

finished product.• Infosys conducted design thinking workshop to develop a solution that

leverages AI-based data lakes(for driving intelligent insights), predictive

analytics with ERP systems integration, and automation for seamless

testing.

• Reduced time to track product by 95%• Reduced cost of market traceability

deployment• Laid down foundations for other next

gen technologies.

A global sports and lifestyle

goods company in Europe

• AI

• Need to reduce the product cost at the concept stage by eliminating the

manual efforts and iterations in the product development cycle.• Infosys deployed its NIA platform to analyze the variables (merchandiser

and brand managers) that determine the material and labor cost. Also,

developed visualizations for the development lifecycle using prediction

analytics.

• Reduced product development

lifecycle by about 70%• Reduced costs by 60%• Reduced dependencies on brand

managers and merchandisers.

Infosys: Case Studies

36

Infosys: RadarView Profile

• Infosys’s 20% annual growth in the Retail & CPG industry is driven by its ability to integrate design thinking with digital solutions to achieve clients’

goals like transforming operations, building new capabilities, or removing non-performing assets by leveraging industry-specific IP like TradeEdge

and Skava. For example, for a renowned food and beverage company,it introduced a new business model by mining and analyzing data assets.

• Infosys leverages its wide products portfolio to provide differentiating solutions in supply chain, store operations, and data monetization. For

example, it built product traceability solutions on Live Enterprise platform and created a new fan experience by opening AR, VR store in Melbourne.

• With Retail & CPG accounting for 16% of the company’s total revenue, Infosys has been deploying next-gen digital technologies across the sub-

industries. For example, for a logistics company, it deployed AI and analytics capabilities for real-time data feeds, and for a restaurant chain, it

deployed edge computing and cloud for managing IT operations on a daily basis.

• Infosys has leveraged AI and ML to create predictive models and data platforms to elevate capabilities in sales, inventory, supply chain, and

pricing. In the context of pandemic, Infosys re-purposed existing solutions and enabled work from home for employees.

Practice Maturity

Investments & Innovation

• Infosys acquired companies to fill strategic gaps in some capabilities. It acquired WongDoody in 2019 and Brilliant Basics in 2018 to add to its

existing customer management portfolio through an innovation-led approach.

• Improving client engagement and co-developing solutions with clients through its Living labs (innovation centers). It partners with clients to monitor

and respond to industry dynamics, and redesign marketing and e-commerce models, etc. For example, it is designing boundless stores (automated

store for self-checkout) and for a leading sportswear company, it developed a Product Wall (virtual showcase of products on the wall) by

leveraging camera vision and other digital technologies.

Partner Ecosystem

• Infosys is developing industry-specific solutions in partnership with niche technology providers. It partnered with AIMIA to gain access to their loyalty

management suite, AWS for store analytics solutions, and POS solution companies like Enactor, GK Software, and Infor Starmount for integration.

• Infosys leverages its global alliances with technology providers like SAP, Demandware, and Magneto for e-commerce platforms. It has partnered

with Microsoft for scaling IT operations for its Azure stack.

• It has tie-ups with several startups like Trifacta, Waterline Data, and TidalScale for using their digital capabilities to co-develop industry-specific

solutions.

Analyst Insights

37

Disclaimer

Avasant does not endorse any provider, product or service depicted in its research

publications, including RadarViewTM, and does not advise users to select only those providers recognized in these publications. Avasant’s research publications are based on

information from best available sources and Avasant’s opinion at the time of publication,

and their contents should not be construed as statements of fact. Avasant disclaims all

warranties, expressed or implied, with respect to this research, including any warranties of

merchantability or fitness for a particular purpose.

38

Key Contacts

Carlos Hernandez

Partner

Carlos.hernandez@avasant.com

Joe Frampus

Partner

Joe.frampus@avasant.com

Pooja Chopra

Research Leader

pooja.chopra@avasant.com

Swapnil Bhatnagar

Research Director swapnil.bhatnagar@avasant.com

GET CONNECTED

www.Avasant.com

Empowering Beyond

Washington DC

New YorkDallas

Los Angeles

(Headquarters)

Toronto

London

Port of Spain

Bangalore

Mumbai

Hong Kong

Tokyo

Delhi

Dubai

Johannesburg

Kampala

Madrid