Kesko: Leading the Way in Digital Innovation
Kesko, a Finnish retailing conglomerate, has established itself as a trailblazer in the realm of digital transformation. With a strategic focus on leveraging AI and digital services to drive sales growth, enhance customer experiences, and improve operational efficiency, Kesko has positioned itself at the forefront of innovation in the grocery industry.
Almost everything Kesko does has a digital dimension.
Strategic Alignment and Data-driven Decision Making
One of the key success factors of Kesko’s AI journey has been its strategic alignment. By closely tying AI initiatives to overall business strategies, priorities, and processes, Kesko ensures that AI is not just a standalone technology but a crucial enabler of its strategic objectives.
Data and AI tools play a pivotal role in creating value for customers, independent retailers (“K-retailers”), and partners at Kesko. Through a modular, cloud-based data platform, Kesko leverages high-quality data and deep insights from a variety of sources to inform business decision-making. Transparency about investments in data and technology is also a core tenet of Kesko’s strategy, as evidenced by the publication of a data balance sheet in its annual report since 2021.
Key Figures from the Data Balance Sheet
In 2023, Kesko recorded impressive figures in terms of customer engagement and data utilization. With 1.8 million daily customer encounters across channels, 3.3 million members in its loyalty program, 4.5 million visits in digital channels per week, and nearly 800,000 instances of customer feedback, Kesko’s data balance sheet underscores the company’s commitment to responsible, secure, and compliant data management.
AI and the Future of the Grocery Industry
Looking ahead, key trends shaping the grocery industry include price competitiveness, convenience, demographic shifts, sustainability regulations, and the increasing relevance of AI in consumer engagement and sales optimization. AI is set to play a crucial role in driving growth and efficiency, particularly in enhancing the customer experience through personalization and optimizing business operations.
AI Adoption and Success Factors
Kesko’s success in AI adoption can be attributed to several key factors, including strategic alignment, competency building, and a human-oriented approach to AI usage. By aligning AI initiatives with business strategies, investing in internal competencies and governance models, and prioritizing ethical AI practices, Kesko has positioned itself for continued success in leveraging AI for competitive advantage.
Generative AI and Future Prospects
Kesko is actively exploring the potential of generative AI to drive competitive advantage in the retail sector. Challenges such as technology development pace and business case viability are being addressed through initiatives like the Kesko gen AI days and upskilling programs for employees. By fostering a culture of gen AI adoption and empowering staff to enhance their AI skills, Kesko is paving the way for accelerated AI transformation.
Conclusion
In conclusion, Kesko’s leadership in digital innovation, AI adoption, and data-driven decision-making sets a compelling example for the grocery industry. By strategically leveraging AI and digital services to drive growth, enhance customer experiences, and improve operational efficiency, Kesko is well-positioned for success in a rapidly evolving market landscape.
FAQ
1. What sets Kesko apart in the realm of digital innovation?
Kesko’s strategic alignment of AI initiatives with overall business strategies, its focus on competency building, and its commitment to ethical AI practices are key factors that differentiate the company in the digital innovation space.
2. How does Kesko utilize data and AI to create value for customers and partners?
Through a modular, cloud-based data platform, Kesko leverages high-quality data and deep insights to inform business decision-making, drive customer engagement, and empower independent retailers with data-driven tools for better decision-making.
3. What role does AI play in Kesko’s strategic vision for the future?
AI is a critical enabler of Kesko’s strategic objectives, particularly in enhancing the customer experience through personalization, optimizing business operations, and driving growth and efficiency.
References
- https://www.kesko.fi/en/
- https://www.kesko.fi/en/our-responsibility/data-and-ai/ai/
