Yum Brands: Using innovation to focus on customers
Yum Brands is one of the world's largest restaurant companies, with thousands of KFC, Pizza Hut, and Taco Bell restaurants in more than 130 countries. The company had traditionally focused on brand building, with autonomous decisions made at the division level, making it difficult to dictate common technology solutions and facilitate technology adoption.
Furthermore Yum Brands lacked a business and technology strategy to evolve from a traditional mass-marketing approach to new strategies focused on the "digital customer." The company wanted to shift customer interactions from anonymous to intimate, utilizing new technologies such as mobile ordering, social media, mobile ecommerce, loyalty, digital coupons, and nontraditional payment methods.
The EA team, named Technology Innovation & Architecture (TIA), was responsible for raising the awareness of technology innovations that could accelerate or disrupt the business. To encourage thinking about "the age of the digital customer," the EA team began crafting messages, including a short "art of the possible" video that addressed consumer expectations and the impending impact of technology on the restaurant industry.
TIA built on this understanding with customer journey maps overlaid with technology-based opportunities, augmented with best practices employed by other companies along with other market research. The market research TIA presented revealed how Yum Brands compared to competitors, primarily in processes and use of technology. TIA organized a digital summit of more than 300 marketing professionals to promote digital excellence in Yum markets, including increased use of social media.
In the future, digital awareness and experimentation will continue to be an agent of change, particularly as the company plans to identify opportunities to leverage technology platforms across divisions and integrate those platforms. The underpinnings TIA has built -- digital awareness and experimentation leading to implementation -- will provide a foundation from which to truly drive digital transformation across the organization.
Munjal Dave, senior business architect at State Farm, said this about the Yum Brand case study: "They are an example of moving beyond the traditional realms and techniques of EA, embracing customer experience methods and using them to shape and connect technology innovation to business outcomes."