Digitalization Covers all Aspects of Nestle’s Business

The second annual ARC Industrial Digital Transformation Top 25 report continues to highlight companies that are succeeding at integrating digital technology into all areas of business, fundamentally changing the way they operate and deliver value to customers. ARC developed a rigorous process based on financial performance, a community intelligence based ranking system, and software and sustainability data. Leading companies take a strategic approach, integrating digital technology throughout their value chains. Digitalization covers all aspects of Nestle’s business, and the company ranks #8 in this report.

Digital transformation is a whole new way of transacting businesses, supporting customers, leveraging the available services, and adapting to a volatile and fiercely competitive marketplace. The digital transformation journey has its share of challenges for both suppliers and end users. Technology is only part of the equation. People, capability, willingness, process simplification, and adopting a multidisciplinary approach are also required. Transforming to an organization where constant change and adjustment define normal operations is still very conceptual for some industrial companies. Each company is at a different stage of digital maturity, so there is no “one-size-fits-all” approach. Digital transformation leaders can be found across many different industries, sharing common traits and visions, helping them overcome complex challenges to innovate and stay agile. The companies mentioned in this report not only have their transformation initiatives well underway, but they also have their eye to the future tackling the next set of challenges on their journey.

This is the eighth in a series of blogs in the digital transformation space.

Nestlé

Nestlé is one of the largest food companies in the world, with operations in 191 countries and a portfolio of over 2,000 brands. Digitalization covers all aspects of Nestle’s business from internal organization to external engagements. The company is advancing as a digitally enabled data powered business. Digital transformation is business-led and consumer-centric. This includes using analytics, automation (all factories are equipped with collaborative robots), artificial intelligence and e-business. The IT organization is part of the digital transformation program delivering value to the business, rather than simply IT systems and services that meet operational targets. Nestle’s digital transformation strategy is known as Vision2Life and has four key priorities: bring value to the people who receive IT services; operate as one global IT team but with local expertise; interlock product management with business stakeholders; and make IT a technology differentiator not just a provider. Their transformation exists in several ways including leadership, culture, technology and ESG. Everyone from procurement, manufacturing, sales, and marketing are involved. Digital transformation at Nestle is about business outcomes: increasing capacity, decreasing cost, increasing product innovation and availability of goods. Empowering people with information to make faster decisions is at the core of Nestle’s culture. 

Going Forward

Digital transformation has emerged as the fulcrum of business operations. This year’s Top 25 companies include many who made the list last year, together with some new companies and reshuffling of positions. ARC will continue its research in all areas related to digital transformation and analyze the outcomes. The ARC Industrial Digital Transformation Top 25 report will be published annually. With this being our second year, your feedback is very important to us as we will continue to investigate new approaches and measures to adjust our methodology, identify successful digital transformation initiatives, and help the industry as a whole digitally transform. Let’s travel together!