DnA Value Creation in Packaging

(3 minute read)

The Covid-19 pandemic has transformed packaging industry dramatically, especially in accelerating digital adoption. This article draws from research to outline out data and analytics can enhance value creation opportunities in packaging industry.

The packaging industry has historically lagged others in digital adoption. Like many other industries, the pandemic has impacted packaging drastically, creating opportunities for greater uptake of digital and analytics (DnA). There is greater need for the entire value chain to be more digitised and a greater interest in finding intelligent solutions and creating new packaging requirements.

McKinsey’s research uncovers four major findings. First, the industry is in early days of digital adoption and lagging many other industries but DnA is seen as a clear priority going forward. Second, firms are looking to expand DnA adoption beyond manufacturing and supply chains to accelerate value capture. Third, digital is being harnessed to enhance tech features in the packaging itself such as aspects of consumer interaction, track-and-trace features etc. Fourth, DnA adoption is viewed as leading to significant cost improvements.

DnA adoption is not without its challenges though. Weak aspirations, poorly communicated transformation stories, poor visibility of transformation benefits, unclear accountability structures, resource constraints, scarcity of talent, lack of digital knowledge, misaligned objectives, and transformation that focuses on the technology rather than business and user needs are all barriers.

There are four key imperatives that kickstart the digital transformation journey.

Developing the strategy with clear goals and objectives

Deciding on targets but with a clear view of where value is captured and without overreach

Ensuring key enablers are in place to gain a strategic advantage – agile delivery, data, talent, technology

Driving execution for adoption and business model change

With the right strategic approach to DnA, packaging companies can overcome challenges to pursue value creation and capture opportunities in cost efficiencies, growth, and productivity.