How o9 Solutions is helping Arla Foods transform its revenue management
Tuomas Penttinen, Head of Revenue Management Function at Arla Foods, discusses how o9 Solutions is helping the dairy cooperative transform its revenue management operations. He explains how o9's platform is providing Arla with a single point of truth for all commercial data, and how this is enabling the company to make better-informed decisions about pricing, promotion, and other revenue management levers. Penttinen also discusses the challenges of change management and the importance of data democratization in the digital transformation journey.
- Arla is embarking on a massive program to transform its commercial digital transformation.
- o9 Solutions is the technology partner that Arla has chosen to help with this transformation.
- Arla has a lot of existing capabilities that it is enhancing and bringing into a digital world.
- The company is also bringing its colleagues on board and co-designing the platform together.
- The biggest challenges that Arla faces are change management and data integration.
- The key benefits of consolidating the view on different levers in revenue management are that it will help Arla to talk the same language as its customers and see the category as a whole rather than as an individual element of the business.
- Arla's guiding North Star is to be the true number one partner for its customers and consumers.
My name is Tuomas Penttinen and I head up the Revenue Management Function at Arla. I think that our commercial digital transformation is actually quite massive. We're looking at around 1,200 colleagues across six core markets that we have at Arla in Europe. And again, 350 of those are really heavily impacted day-to-day users of the platform.
So I think we're actually embarking on a massive program here together with o9. So we believe that we've picked the right tech partner with o9. We have the right change management support from Bain, as well as we have a really invested central team at Arla that can help in the transformation and that is experienced in doing it. As any business who comes with a bit of legacy, we have a lot of fragmentation around our commercial tools especially.
So it's actually nice to get everything into one place and really have that one single point of truth for all our commercial users. I think that there are several external reasons why the digital transformation that we've embarked on makes a lot of sense. So of course there's a lot of consumer demand that is affecting how we do business and how they are changing in the world. Also our competitors, they're changing all the time and investing in the digital capabilities.
Our customers are getting more and more demanding. But at the same time, I think we have a lot of internal possibilities with our data and how we can utilize that even better to generate better insights that generate win-wins with our customers. We'll definitely gain some competitive advantage on having the data available real-time in the platform across the levers that we want to generate value with together with our customers. We have a lot of existing capabilities, but again enhancing them and bringing them into a digital world is something that is super key for us and something that I'm personally really keen on.
But also some of the things on bringing our colleagues on board and co-designing the platform together is something that will actually make it a success at Ola as well. For us planning the journey and making sure that we have the right resources across ourselves as an Arla team, but also our external partners with o9 and Bain. So I think that's been a key success for us so far where we can actually make sure that we have the right people in the right places and get the right input from the business as well. Some of the biggest challenges that we face is of course that getting all our commercial colleagues on board and making sure that we actually nail the change management journey on this.
But of course there's a lot of technical back work that has gone into this as well. So getting all the data in order and making sure that we have it in the right place, in the right format, in the right accessibility. It's actually something that is quite crucial for a program like this. So some of the key benefits for consolidating a bit the view on different levers in revenue management.
It comes across that our customers see these as interlinked activities. So again you can have a price without promotion and so on. I think that it's just something that we need to as a business also move towards where we talk the same language as the customers and see the category as a whole rather than as an individual element of the business. I think there's a couple points that I could give as advice.
One of them is definitely that don't underestimate the change management journey. It's a lot of work to get a lot of colleagues on board and change ways of working and how we reflect towards our customers as well. A second point probably is that the data is key. Where we actually need to make sure that the decision is data based and democratizing that data is actually a big part of our program as well.
For us the guiding North Star is that we aim to be the true number one partner for our customers and also for our consumers. So again that's something where we want to really make sure that we bring the right insights at the right times to our customers so we can be that trusted partner across our categories.
How CPG companies use control towers to regain control from chaos
CPG companies can proactively identify and address disruptive demand and supply shifts and emerging trends.