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Danone's digital transformation: Empowering growth and enhancing operational performance
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Danone’s mission is “to bring health through food to as many people as possible.” Our digital ambition is to harness the power of data and tech for the benefit of our employees, consumers, patients, and customers. Bringing digitally enhanced and personalized experiences with impact. Designing superior and healthy products by being consumer-centric, science-based, and AI-empowered, leveraging the expertise and innovative capabilities of our R&I centres.
Producing our products in highly digitized manufacturing sites, having leapfrogged to Industry 5.0 with customer-connected manufacturing and delivery systems. Bringing our products to market through AI and data driven field sales teams. Ensuring seamless planning and execution through AI-empowered and integrated planning hubs and highly automated shared services.
Our digital & AI enabled field sales force drives in store excellence thus creating a win-win for Danone and our customers.
Pablo PERVERSI President Europe
In today's fast-paced business environment, the need to streamline operations is more critical than ever. A key focus area in our digital ambition is the enhancement of Danone’s Operational Core covering our daily transactional activities across our key functions. Bringing productivity and excellence through harmonization, integration and automation while embedding data and AI for faster and improved decision making.
Modernizing our Enterprise SAP backbone together with the deployment of new integrated platforms for Financial and Operational Planning, Product Life Cycle Management, and Sales Planning & Execution, is creating a new digital operating model for Danone’s value chain. This is strengthening our performance and increasing our corporate agility, as well as improving our ability to adopt data and tech trends fast and cost effectively.
As we accelerate our AI and digital transformation, we ensure that sustainability remains at the heart. Danone's award-winning factory in Opole, Poland, for example, has implemented AI-driven technologies to develop eco-friendly materials and optimize packaging processes. This approach supports our Danone Impact Journey goals of reducing our environmental footprint and leads to significant improvements in energy efficiency and waste reduction across our operations.
Our digital transformation provides integrated visibility to demand opportunities and supply availability, enabling us to run scenarios based on real time data, from buying materials to manufacturing to customer fulfillment.
Vikram AGARWAL Chief Operations Officer
Since 2021 Danone has invested in OneSource, our corporate data platform. Here we construct our single sources of truth and build use case specific data products, fueling and accelerating digital capabilities like our consumer and patient engagement platform. This platform is a key driver of our digital marketing strategy and growth ambitions. We are revolutionizing consumer engagement by developing innovative brand platforms, apps like the Aptamil Growth Tracker, and various services. Utilizing AI and enriched data sets, we create personalized, immersive experiences that educate, inspire, and promote healthier choices.
By leveraging first, second, and third-party data along with new AI models, we deliver hyper-personalized consumer journeys at scale, gaining deep insights into consumer preferences and behaviours. A recent Actimel campaign in the UK saw a 50% increase in engagement, a 6% uplift in sales, and a 70% surge in search volume. Next to the increased engagement, with Gen AI we are achieving up to a 50% reduction in asset production time and a 25% gain in related cost efficiency.
Using data and AI to personalize consumer journeys, we build lasting relationships that enhance health outcomes and drive business growth.
Christine SIEMSSEN Chief Marketing & Digital Officer
In line with Danone’s Corporate Strategy (Renew), to bring science at the core of our innovation model, another key data centric evolution is taking place in our Research & Innovation (R&I) centers. By harnessing consumer and health data, we redefine science, applying advanced AI models to drive innovation and change the way we design, create and test our products, enhancing speed to market, and ensuring our consumers and patients receive high-quality and wholesome products.
By integrating science, consumer insights, and advanced AI, our R&I centers drive groundbreaking innovation, ensuring our products are both superior and healthy.
Isabelle ESSER Chief HR, R&I, Quality and Food Safety Officer
Our digital ambition and the related process, data and tech transformations, requires for Danone to reinvent itself in terms of how we best embrace the latest trends and how we most effectively design, build and bring new capabilities to life, thus leveraging new organizational structures, governance bodies, roles, and methodologies, all inside a new data and tech centric corporate culture.
With our focus on fast adoption and engagement, Danone is training all its employees in AI while making AI tools available to support everyone’s daily activities. Driving efficiency while at the same time “learn and embrace AI by doing”.
Recognizing the importance of upskilling its employees, Danone is partnering with Microsoft in launching a joint AI Academy. This initiative is designed to equip all Danone employees with the skills needed to thrive in an AI-powered economy, ensuring that Danone's workforce is prepared for the future. It underscores our commitment to innovation and continuous improvement, positioning the company at the forefront of the industry.
Digital value at scale requires process simplification, harmonization and integration, data standardization and tech rationalization. Ideally in that sequence.
Erwin LOGT Chief Information Officer
To support and enable Danone’s digital journey and to ensure we build, deploy and run our new capabilities with the right levels of integration, security, and with sound process, data and technical architecture, we have - at corporate level - organized ourselves through Centers of Excellence (COEs) for key topics like AI, Cyber Security, ERP Transformation, Data Governance, and the Modernization of our Technology Landscape.
With higher levels of automation and data dependency, resilience and operational excellence of our technology application landscape is of utmost importance. The daily need to serve 90K users and 5M transactions, while managing 8 petabytes of data, all at the right service levels avoiding business disruption, makes the modernization and future proofing of our corporate technical foundation the proud cornerstone of all digital plans.
Danone’s digital transformation is a testament to our commitment to innovation, sustainability, and excellence. We are proud to be at the forefront of digital and to be empowered and inspired by data and tech, driving productivity, growth and making a positive impact on the world.