FMCG's Digital Dilemma: The Consequences of Insufficient IT Expertise in the Fast-Moving Consumer Goods Industry

Abstract

The Fast-Moving Consumer Goods (FMCG) industry is undergoing a rapid digital transformation, with Information Technology (IT) playing a crucial role in shaping the competitiveness and growth of companies operating in this sector. However, the lack of qualified IT personnel presents a significant challenge, potentially hindering the successful adoption and integration of digital solutions. This study aims to explore the consequences of insufficient IT expertise in the FMCG industry, focusing on the impact on business operations, supply chain management, marketing, data-driven decision making, and cybersecurity. To achieve the research objectives, a mixed-methods approach has been employed, combining quantitative data from industry reports, surveys, and company performance metrics with qualitative insights from in-depth interviews, case studies, and expert opinions. The primary data sources include FMCG companies, IT professionals, industry experts, and relevant stakeholders. Data analysis techniques encompass descriptive and inferential statistics, thematic analysis, and comparative case study analysis. The main findings reveal a substantial IT expertise gap in the FMCG industry, which contributes to a range of negative consequences for companies lacking the necessary IT personnel. Operational efficiency is compromised, with companies experiencing increased costs and reduced productivity due to suboptimal implementation of digital solutions. Supply chain management is also affected, as companies struggle to leverage real-time data and analytics to optimize inventory, logistics, and demand forecasting. In terms of marketing and consumer engagement, the absence of qualified IT professionals hampers the effective use of digital marketing channels, personalized content, and social media strategies. Moreover, the study highlights the importance of data-driven decision making in the FMCG sector and the challenges faced by businesses without adequate IT expertise in harnessing the potential of big data and advanced analytics. Lastly, the findings emphasize the growing significance of cybersecurity and data protection, with companies lacking IT personnel being more vulnerable to cyber threats, data breaches, and regulatory non-compliance. The implications of the research extend to FMCG companies, IT professionals, and policymakers. The study provides actionable recommendations for addressing the IT expertise gap, which include investing in training and development, forging partnerships with IT service providers, and adopting government-led initiatives to bolster IT talent in the FMCG sector. The findings underscore the urgency for FMCG companies to prioritize IT capabilities, as the consequences of insufficient IT expertise could undermine their competitiveness and long-term success in the increasingly digital business environment.