This website does not support Internet Explorer. Please, switch to Edge, Chrome, or Firefox browser to view this page.

Learn about IE support
Best Practices

Driving greater efficiency in decision-making and execution at PepsiCo

Pepsi 21 (1)
Published: Reading time: 5 min
Stijn-Pieter van Houten SVP of Consumer Products and Knowledge Innovation Lead, o9
Stijn-Pieter van HoutenSVP of Consumer Products and Knowledge Innovation Lead, o9
Follow on LinkedIn
Published:

PepsiCo, one of the world's leading food and beverage companies, has been on a journey to drive greater efficiency in decision-making and execution. In a session hosted by aim10x, Dr. Athina Kanioura, PepsiCo's Chief Transformation and Digital Officer, shared some key insights into how the company is achieving this goal through its Integrated Business Planning (IBP) process and investments in data analytics, digital transformation, and ESG metrics. No time to listen to the full session? This is the (bitesized) blog for you.

A Four-Pillared Approach

The first step, according to Dr. Kanioura, was to structure the organization into four pillars: corporate strategy, transformation group, digital group, and data analytics and AI.

This structure enables PepsiCo to align its business strategy with its digital and data capabilities, ensuring that the company is well-positioned to drive growth and innovation.

The transformation group focuses on driving change across the organization, while the digital group is responsible for PepsiCo's digital transformation initiatives. The data analytics and AI pillar is focused on leveraging data and AI to drive insights and inform decision-making.

Embedding Data Analytics into Planning and Decision-Making

PepsiCo has made significant strides in embedding data analytics into planning and decision-making processes. One of the key factors that has enabled PepsiCo to achieve this is the company's investment in cloud, modernization, and operationalization. By investing in these areas, PepsiCo has been able to improve its data management capabilities, make better use of available data, and ultimately, improve its decision-making processes.

However, according to Dr. Kanioura, in addition to simply investing in technology, companies must also have a prioritization framework in place, which helps to ensure that those investments are aligned with overall business priorities. This approach helps to ensure that resources are being used effectively, and that the company is making progress towards its goals.

Another key factor is the importance of being thoughtful about the number of initiatives being pursued. Too many initiatives can lead to a loss of focal clarity and can ultimately result in a failure to achieve desired outcomes. It's crucial, therefore, to be selective and to focus on initiatives that are most likely to deliver the biggest impact.

Dr. Kanioura also emphasized the importance of embedding change management from day zero. This means that companies should be thinking about how they can best manage change from the very beginning of any initiative. By doing so, companies can help to ensure that employees are engaged and that initiatives are implemented smoothly.

Finally, Dr. Kanioura stressed the importance of embedding service design principles in business priorities. This means thinking about how to deliver value to customers and stakeholders, and designing processes and initiatives with their needs in mind. By doing so, companies can help to ensure that their initiatives are customer-focused and that they deliver real value to the organization.

Integrated Business Planning (IBP)

IBP is a key component of PepsiCo's strategy to drive greater efficiency in decision-making and execution. The company has been using IBP for several years, but its adoption has accelerated recently as PepsiCo has integrated the process into its broader strategy.

The company's IBP program brings together cross-functional teams from across the enterprise for program alignment sessions twice a year. These sessions are facilitated by an experienced facilitator who helps ensure alignment on priorities and goals so that everyone is working toward the same end goal.

The resulting plans are then reviewed by senior leadership before being rolled out across the organization through training programs and other communications channels like town hall meetings or newsletters sent directly to employees' inboxes (or "inbox zero," as they call it).

Incorporating ESG Metrics into the IBP Process

PepsiCo has been working to incorporate ESG metrics into the IBP process since 2016. To do this, the company has developed a methodology that uses ESG data from o9 to inform planning decisions and drive alignment around top and bottom-line commitments.

By leveraging o9's platform for reporting, benchmarking, and analytics purposes - as well as incorporating ESG metrics into planners' workflows - PepsiCo is able to ensure that they are delivering against their targets while maintaining a focus on growth at scale.

Addressing the Challenges of Digital Transformation

The first step in addressing the challenges of digital transformation is to start with the team. You need people who are open to change and willing to experiment, as well as those who can help drive it forward.

To effectively communicate this change, ensure that you are communicating your vision clearly and effectively. Your team needs to understand what's expected from them, how they can contribute and what success looks like for them personally - not just for the company as a whole.

Upskilling employees is another important part of driving greater efficiency in decision-making and execution. It is important that everyone on your team has access to training opportunities so that they can develop their skillset over time in addition to learning new skills when necessary.

Establishing a Digital Academy was one way in which this was achieved at PepsiCo, as well as encouraging employees' growth through cross-training opportunities within various departments throughout the organization

Conclusion

In summary, PepsiCo's Integrated Business Planning (IBP) process, investment in data analytics, digital transformation, and ESG metrics are driving greater efficiency in decision-making and execution. PepsiCo is set up for growth and innovation by organizing into four pillars, integrating data analytics into planning and decision-making, prioritizing initiatives, implementing change management, and embracing service design principles.

The company's IBP program brings cross-functional teams together for integrated planning sessions, which are reviewed by senior leadership and communicated throughout the organization. Additionally, PepsiCo is currently working on incorporating ESG metrics into the IBP process. PepsiCo's approach serves as a model for other companies looking to drive greater efficiency in their decision-making and execution.

Watch the full on-demand aim10x session for free here.

O9 pov dairy mockup

Next-generation Dairy Planning

Download our Point of View for a break-down of the key planning capabilities needed for dairy companies to unleash growth, resilience, and sustainable success.

About the author

Stijn-Pieter van Houten SVP of Consumer Products and Knowledge Innovation Lead, o9

Stijn-Pieter van Houten

SVP of Consumer Products and Knowledge Innovation Lead, o9

With over 20 years of experience in supply chain management, strategy, and operations, Dr. Stijn-Pieter (SP) is a global leader and innovator in the field of next-generation planning solutions for the manufacturing industry. He holds a PhD in computer simulation and mathematical models from Delft University of Technology and has completed executive education programs at Berkeley, Stanford, and Cranfield.

Resources

View our related articles, white papers, use cases & videos

video4 min

How o9 Solutions is helping Arla Foods transform its revenue management

Auto draft thumbnail
Industry POV30 min

Tackling meat processing complexity with next-gen planning

o9 pov mockup meat processing
Industry POV

Rethinking Dairy Planning

O9 pov dairy mockup
Case Study

A global CPG company's planning transformation

O9 use case pepsico mockup
Case Study

Learn why one of the world’s largest CPG companies uses IBP

O9 use case nestle mockup
Industry POV

Rethinking Dairy Planning - UG

O9 pov dairy mockup
White Paper50 min

Quality Brand Growth in the Age of Disruption

O9 whitepaper ipa mockup
article6 min

ESG in the Dairy Industry: The Value of Supply Chain Planning

by Sebastien Calais
O9 marcom dairy esg blog header
video26 min

Driving greater efficiency in decision-making and execution at PepsiCo

Driving greater efficiency in decision making and execution at pepsico thumbnail
video20 min

Digitization Leaders: What Differentiates the Best from the Rest?

Digitization leaders: what differentiates the best from the rest? thumbnail
video27 min

How Generative AI Enhances Operational Efficiency and Consumer Engagement

How generative ai enhances operational efficiency and consumer engagement thumbnail
video21 min

AB InBev’s E2E Planning Journey with o9 Solutions

Ab inbev’s e2e planning journey with o9 solutions thumbnail