Coca-Cola: A Digital Transformation Success Story

Coca-Cola: A Digital Transformation Success Story

Coca-Cola has dominated the beverage industry for more than 100 years. Over 94% of the world population recognizes the red and white logo. Over 1.9 billion Coca-Cola products are consumed each day. Much of its success over the last century comes from excellent marketing; but almost equally as important, its willingness to innovate. 

Today, Coca-Cola continues to innovate through digital transformation technologies. Consumers are constantly changing and competition is always growing stronger. Although Coca-Cola is the largest brand in the entire world, it recognizes that digital transformation is a necessity for it to continue its success into the future. 

Coca-Cola is digitally transforming every part of the company. From manufacturing to consumer experience, digital technologies are being created to provide value. 

The company uses artificial intelligence to develop new products. Back in 2009, it launched a series of self-serve drink fountains. Customers could pour their favourite drink and also choose from a selection of flavour shots to add. Little did they know, the machines were collecting data on each drink that was poured. After collecting billions of data points, Coca-Cola utilized artificial intelligence to analyze the data. With it came a new product: Sprite Cherry. 

Coca-Cola’s supply chain also uses artificial intelligence for its Minute Maid and Simply Orange drinks. Orange’s only have about 3 peak months of prime harvest, but products must be made year-round. The company collects endless amounts of data to produce a consistent quality year-round. Weather, crop yields, satellite imagery, consumer preferences, and flavour makeup are all captured and analyzed. All of this data is used to influence the taste of the final product so that it meets the quality standards. This highly advanced analytics system uses over 1 quintillion decision variables in order to produce a consistent product any time of year. 

On the consumer side, Coca-Cola is innovating with high tech digital vending machines. Customers download an app that lets them collect and redeem loyalty points every time they purchase from the vending machine. That way customers are more inclined to use Coca-Cola vending machines over the competition. It’s a win-win as customers get a better experience and the company builds more loyalty. This endeavour has proven successful with 1 million vending machines across Japan and over 6 million users on the app. 

Coca-Cola has no plans to stop its digital transformation momentum. In fact, it has partnered with Siemens to continue innovating its production facilities. A new manufacturing information system will be deployed to 100 production lines and 18 different production facilities over the next two years.