Diageo Partners with SAP and IBM on Five-Year Global Digital Transformation Program

The collaboration will leverage SAP and IBM’s expertise to modernize Diageo’s IT environment and standardize its business operations across 180 countries

Diageo, the maker of Guinness, Smirnoff and Johnnie Walker, announced on May 24 a five-year business transformation program in partnership with SAP (NYSE: SAP) and IBM (NYSE: IBM). This new initiative, which marks the company’s most significant ever investment in technology and services, will redesign and improve Diageo’s processes across the 180 countries where it operates.

Fully global in nature, the program will revolutionise Diageo’s IT environment by introducing intuitive processes, powered by market-leading technology, to provide more information to enable the company to make better and quicker decisions. This transformation will enhance Diageo’s business resilience in a constantly evolving external landscape, improve its customer service offering and help the company adapt to a fast-changing consumer base.

The program involves a move to RISE with SAP S/4 HANA Cloud, with the support of IBM Consulting. Diageo’s implementation of the new cloud-based model will ensure its IT infrastructure is simplified and supported in a unified way.

IBM Consulting, which has been selected to lead the project, has a proven track record in the consumer sector and supporting client transformations and migrations to the SAP S/4 HANA Cloud platform. Diageo, SAP and IBM will work together to apply the latest technology to make Diageo’s business more efficient.

The five-year program will transform Diageo’s business finance operations in a number of areas:

• Advanced workflow solutions will allow orders to be tracked in real-time on a global scale and facilitate more effective customer engagement and better customer service.

• By moving to a single operating platform, Diageo will simplify its technology support model and IT landscape, making it easier for the company to do business and evolve amid changing consumer trends and market needs.

• The program will transform Diageo's performance reporting capabilities, giving the company better insight into trade and growth opportunities.

• The digitisation of controls and compliance will make the business more robust, resilient and adaptable to changing market conditions.

Lavanya Chandrashekar, Chief Financial Officer, Diageo, said: “This partnership with IBM and SAP demonstrates our continued investment in digital transformation. It will enable greater agility in how we respond to our global consumer and customer needs. It will provide us with world-class actionable insights and enhanced data capabilities to support growth whilst allowing us to be more efficient in our day-to-day operations.”

Scott Russell, Executive Board Member, Customer Success, SAP, said: “In today's disruptive consumer goods industry, success lies in navigating unpredictable supply chains, managing ongoing macro-economic volatility and staying one step ahead of ever-shifting customer demands. Through our continued partnership with Diageo, one of the world’s leading brand builders, we’re proud to support them in building a more resilient business that is enhancing the customer experience and can adapt to rapidly changing market pressures, realising its vision to revolutionise the consumer goods industry.”

Rahul Kalia, Managing Partner, IBM Consulting, UK & Ireland, said: “The consumer goods industry is striving to address the challenges posed by inflationary pressures and supply chain disruptions, while staying focused on delivering exceptional products and services for its customers and consumers. IBM is proud to partner with Diageo and SAP to bring our global business and digital transformation experience on this exciting journey.”

Commitment to exceptional experiences: Diageo partners with IBM and SAP

Diageo will implement RISE with SAP S/4HANA Cloud, streamlining their IT infrastructure and providing unified support across the 180 countries in which they operate.

IBM Consulting will bring Diageo's decades of expertise in helping consumer product organizations successfully navigate digital transformations. Diageo is bringing together a diverse team of consultants to lead the strategy and help implement RISE with SAP S/4HANA Cloud across Diageo’s global business. This collaboration underscores IBM’s unwavering dedication to delivering exceptional value and driving transformative change for consumer goods companies across the globe.

Enhancing experiences through advanced automation and workflow solutions

At the heart of the collaboration lies a shared goal: to enrich the experiences of customers, employees and suppliers. Leveraging advanced automation and workflow solutions, Diageo will now be able to provide personalization and real-time order tracking worldwide to help ensure a more seamless and transparent purchasing process, and faster and more accurate service.

Data-driven insights and informed decision-making

As with any transformative endeavor, data and data-driven insights will be paramount in Diageo’s journey. By leveraging data-driven insights, Diageo, IBM and SAP will work together to revolutionize Diageo’s operations by enhancing accuracy, optimizing demand forecasting and fostering seamless interactions with customers, suppliers and employees. This forward-thinking approach allows Diageo to stay ahead of the competition and continue providing the products you know and love.

Streamlining operations and adapting to market demands

This collaboration will also streamline Diageo’s operations. By simplifying and standardizing their business, Diageo can sharpen their focus on delivering exceptional experiences to customers and delighting discerning consumers. The result is a more agile and efficient organization, fully committed to delivering products that cater to your preferences.

Maintaining a strong compliance environment

Finally, in an uncertain market, Diageo is taking proactive steps to safeguard its competitive edge by placing an emphasis on maintaining a strong compliance environment. Through digitized controls and compliance measures, together with IBM and SAP, Diageo is creating a robust business environment that can swiftly adapt to emerging market trends.

Looking ahead

Diageo partnering with IBM and SAP marks an exciting step forward. The collaboration will enhance the customer, employee and supplier experience, to help ensure that Diageo not only keeps pace with a changing economic environment but take advantage of rapid advancements in technology and thrive in the digital realm.

With unwavering dedication, Diageo’s vision is to be one of the best-performing, most trusted and respected consumer products companies in the world. Through this collaboration, Diageo will continue to deliver on its mission, shaping the future of the beverage industry, one sip at a time.