FMI’s “Daunting Data Dilemma” report investigates why data science has posed such a challenge to industry The food industry needs to take a hard look at what data provides a competitive advantage and what foundational, core information would be best shared to lift all boats.For any business operating in our rapidly evolving, digitally transforming, increasingly AI-powered world, there is only one certainty: Data is king. For the food industry –– and food retailers in particular –– there’s no shortage of data to mine. There’s data on consumer purchasing habits and the effectiveness of marketing efforts in shaping those habits. There’s supply chain data on how efficiently products are produced and transported to store shelves, and data on which products perform best on those shelves. Those examples barely cover the totality of what’s available. But if all that data is just the tip of the iceberg, then the businesses that are unable to manage, analyze and effectively operationalize those insights run the risk of becoming the Titanic. The good news is that unlocking this data is the key to various opportunities across the industry, but at present, the food industry is unquestionably missing out on ways to capitalize on this ocean of data. But the urgency doesn’t just apply to serving customers and optimizing profitability. The fact is that not having a data strategy is no longer an option, and an effective one has wide-ranging benefits, from reduced costs to increased efficiency, more effective partner collaboration, improved business operations and better chances of industry-wide success. So why has data science posed such a challenge to the food industry? FMI collaborated with Accenture on the “Daunting Data Dilemma” report to investigate this question further. First and foremost is simply the sheer volume of information available today, which on a global scale is now being measured in zettabytes, or 1 billion terabytes. This growth shows no sign of slowing down. Investment management firm Blackstone has forecast $1 trillion in investments into the U.S. data center industry in the next five years just to store and handle all of this information. [RELATED: Podcast – Data Makes the Grocery World Go Round]Second is a broad lack of both data standards across the industry and systems that can give organizations a comprehensive view of the data that they do have. There’s no quick fix. Not only will the effort and cost required to upgrade legacy systems or design new ones be significant, but success will also require a philosophical shift in the way that different organizations collaborate and share data among themselves. The Right StuffTackling both issues requires the right talent, something that poses further challenges and opportunities for the food industry. Simply collecting the right data isn’t enough. Companies must also have the expertise to manage and turn data into insights, which will require rethinking how t
