Digital transformation has become a graveyard of good intentions, with over 80% of initiatives falling short of their promised returns. Yet amid this sobering landscape, Coca-Cola’s Eurasia and Middle East (E&ME) division has emerged as a beacon of success. Their secret? Breaking free from the technology-first mindset that derails most transformations.
While peers focused on digital trends, Coca-Cola E&ME pursued a different path. They recognized that engaging their complex ecosystem of consumers, retailers, and bottlers online wasn’t about deploying the latest tech – it was about mastering the fundamentals of business execution. Their playbook rested on four pillars that any executive can replicate: razor-sharp business objectives, rigorous Key Performance Indicators (KPIs), structured governance, and the ability to evolve without losing focus.
This article explains how they got it right.
The Achilles’ heel of many digital transformation projects is unclear goals. Our research suggests that organizations should define and prioritize objectives in four areas: operational efficiency, workforce engagement, customer engagement, and new value creation.
At Coca-Cola E&ME, while digital initiatives were present in all these areas, management had prioritized customer engagement as part of a drive to increase consumption. Digital projects were assessed based on their impact on three key groups of customers: consumers, retailers, and bottlers. Upon joining Coca-Cola as VP and Head of the Digital Acceleration Office, Yves Filippucci – a seasoned executive with many years in the food and beverage sector – prioritized consolidating fragmented consumer insights spread across multiple mini websites. He enhanced retailers’ e-commerce capabilities with technologies such as cooler beacons and AI-powered services. Later, he tackled the unique legal and business challenges faced by bottlers. By maintaining well-defined objectives, Filippucci ensured that digital initiatives remained aligned and effective.
For objectives to be meaningful, they must be measurable. Yet, many digital transformations struggle with vague metrics, contributing to high failure rates.
At Coca-Cola E&ME, measurement was a priority. The company tracked more than 30 KPIs aligned with its business goals, with nearly half focused on engagement with consumers, retailers, and bottlers, for instance through customer apps and personalized recommendations. These KPIs had three defining traits:
Crucial KPIs included total user base, monthly active users, monthly active buyers, digital revenue, and sales uplift. User-related KPIs provided insights into the full purchase journey, digital revenue demonstrated the direct impact of digital initiatives, and sales uplift measured their contribution to overall company sales.
Data collection was managed collaboratively: the Digital Acceleration Office requested data from the Data and Analytics team, which aggregated internal and external sources.
“During annual planning sessions, the E&ME leadership team set priorities and facilitated workshops to define digital initiatives and their related KPIs.”
Coca-Cola’s leaders took an active, hands-on role in guiding the transformation. During annual planning sessions, the E&ME leadership team set priorities and facilitated workshops to define digital initiatives and their related KPIs. They reviewed progress quarterly, discontinuing underperforming initiatives. The goal was to ensure that all efforts contributed meaningfully to the broader business objectives.
Filippucci’s office played a critical role, focusing beyond just transitioning from offline to online. The emphasis was on understanding customer segments, addressing retailer challenges, collaborating with executives, and coordinating with key functions like marketing, sales, strategy, and digital technology services. His six-year tenure, far exceeding industry norms, demonstrated the value of stable leadership in digital transformation success.
Recently, Coca-Cola introduced a new KPI: Sales uplift through GenAI, monitored monthly for retailers and bottlers.
Coca-Cola’s digital transformation approach balanced flexibility with consistent principles. KPIs were adjusted only when necessary to maintain relevance. Even during the economic challenges of 2024, including conflict in the Middle East and high inflation in Turkey, the company retained its existing KPIs, reinforcing its commitment to structured measurement.
Recently, Coca-Cola introduced a new KPI: Sales uplift through GenAI, monitored monthly for retailers and bottlers. The company and its bottlers integrated a GenAI-powered sales assistant to engage retailers by suggesting products, quantities, and promotions based on multiple data sources, including past orders, sales performance, hotspot proximity, weather, and peer retailer trends. The expectation is that this system would enhance ordering efficiency, allowing sales representatives to focus on relationship-building rather than manual transactions.
This adaptability helped Coca-Cola E&ME navigate common challenges such as data accuracy, security, privacy, and regulatory compliance. The ability to evolve measurement systems ensured digital initiatives remained aligned with business needs. A strong, flexible data foundation was essential, requiring regular updates to incorporate new data sources and improved measurement techniques. Additionally, having a team proficient in business, data, and technology – led by someone who could seamlessly integrate these perspectives – was crucial for success.
In an era where AI and digital tools dominate headlines, Coca-Cola E&ME’s experience proves that old-school business fundamentals still make the difference between success and failure. Their formula? Clear objectives that drive every decision. Metrics that matter, measured relentlessly. Leaders who stay in the trenches. And the flexibility to adapt without losing sight of these core principles.
This experience corresponds with findings from IMD’s Digital Transformation KPI Project an ongoing initiative that leverages years of academic research and practical field experience, seeking to unravel the factors behind successful digital transformations and identify the key metrics.
The message for executives is unmistakable: your digital transformation will only be as strong as your business foundation. In Coca-Cola’s case, they didn’t just deploy new technology – they transformed their business with digital as the enabler, not the end goal.
That’s a recipe worth bottling.
All views expressed herein are those of the authors and have been specifically developed and published in accordance with the principles of academic freedom. As such, such views are not necessarily held or endorsed by TONOMUS or its affiliates.
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