PepsiCo CEO on data and analytics investment

PepsiCo CEO Ramon Laguarta has revealed the beverage and snack maker has invested in advanced data and analytics to enhance consumer and shopper insights and sharpen the precision of the execution.
PepsiCo digital transformationPepsiCo, the beverage and snack maker, said its revenue rose 2.2 percent to $16.45 billion in the second quarter ended June 15 from a year earlier.

PepsiCo has generated just over $1 billion during the quarter from its online business. Jody Davids is the chief information officer (CIO) of PepsiCo driving the IT functions. She is supported by a global network of 3,100 associates.

PepsiCo’s IT team focuses on delivering and supporting capabilities that improve business processes, enable associates to connect and collaborate more easily, collect and mine data for analytical insights, and enhance performance across all aspects of PepsiCo’s value chain.

PepsiCo’s 2018 annual report said the company plans to invest in five key areas to make the business stronger. PepsiCo is adding manufacturing and selling capacity to meet growing consumer demand; advancing the digitalization of processes to become more efficient; and increasing supply-chain speed and flexibility to better serve customers’ business models.

E-commerce has changed how impulse purchases are made, and with approximately 30 percent of beverage sales coming from impulse buys, according to Ali Dibadj, an analyst at Bernstein, PepsiCo, Coca Cola, and other competitors need to find a way to inspire more of them online.

PepsiCo’s 2019 Productivity Plan, announced on February 15, 2019, will leverage new technology and business models to further simplify, harmonize and automate processes; re-engineer go-to-market and information systems, including deploying the right automation for each market; simplify organization and optimize manufacturing and supply chain footprint.

PepsiCo does not have a strong focus on digital transformation. In fact, PepsiCo admitted that the growth in e-commerce and discounters may result in consumer price deflation, which may affect relationships with key retail customers.

Sales to retail chain Walmart, including Sam’s Club, represented approximately 13 percent of its consolidated net revenue in 2018, PepsiCo said.

Rajani Baburajan

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