VHS or Betamax - Coca Cola, Adam Forde.
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The IoT space is packed with different technologies and vendors all vying for a piece of your investment budget. Clearly some technologies and vendors will succeed and some will fail, so how best to approach this kind of market and future proof investment decisions, whilst gaining maximum competitive advantage. I will share the approach we are using at Coca-Cola and the learnings we have gathered so far.
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VHS or Betamax - Coca Cola, Adam Forde.
- 1. Technology Decisions in the IoT space VHS or Betamax
- 2. Table of Contents 2 Introduction The analogy The context The approach
- 4. 1943 WORLDWIDE BOTTLING EXPANSION 1916 BIRTH OF CONTOUR BOTTLE 1899 THE FIRST BOTTLING AGREEMENT 1929 FIRST COOLER 1933 FIRST FOUNTAIN 1982 DIET COKE 1978 PET PACKAGING 2005 COKE ZERO 2005 PULPY 2009 COCA-COLA FREESTYLE 2013 COCA-COLA LIFE 1886 COCA-COLA IS BORN 2009 PLANT BOTTLE 130 years of innovation
- 5. 3,500 products worldwide 20 billion-dollar brands #1 worldwide sparkling drinks | juice | coffee
- 6. our network results in a record daily servings of our beverages 1.9 Billion
- 9. For the younger audience members ;-) 9 A time when TV was based on a schedule, if you missed a program, there was no catch-up!!!
- 10. Timeline 10 1976 – VHS and Betamax launched 1980 – War in full swing 1984 – Toshiba plans the DVD 1987 – Betamax concedes defeat 1996 – First film released on DVD 2003 – DVD rental overtakes VHS 2004 – Hollywood stops releasing films on VHS 11 years to win the war, obsolete 17 years later…
- 11. Everything is accelerating 11 MNO’s and (cheap) mobile devices broaden access to the internet Social rides the mobile wave; no “Arab Spring” if demonstrators/activists had to run home and work from a desktop. In 10 years Apple went from the iPod to the iPhone 4s and the iPad2 In 8 years Facebook went from 0 to 900 million users In 6 years WhatsApp went from 0 to 900 million users In 5 years Instagram went from 0 to 500 million users October 2014 – more mobile devices than people in the world This fundamental shift will accelerate again with IoT: Various predictions, but 50B connected devices by 2020 is common - From 14B today!!
- 12. IoT is huge and far-reaching… 12 It’s much bigger than a two format war Transport Office Residential Retail Factory Wherever there is a ‘Thing’ there will be connectivity
- 13. Summary 13 The complexity and scale of the IoT space, combined with the accelerating pace of change means that whilst the Betamax vs VHS analogy is interesting, it probably only has limited value We are dealing with Betamax vs VHS to the power of 8 Or… BV8 Not BB8
- 14. The context 14
- 15. Early success 15
- 16. The Coca-Cola System 16 The system comprises many different companies with their own IT teams and leadership teams
- 17. Assets as opportunities 17 Within the Coca-Cola system we ‘own’ a huge number of potential IoT assets: • General cold drink equipment (fountains, coolers etc…) • Fleet (trucks, cars) • Production Facilities • Freestyle • Customers • The package (can, bottle, PET, etc…) Scale becomes an issue
- 18. The problem… 18 • Highly complex system, with multiple decision makers, aligned strategically, but with legitimate tactical and operational variation • Risk of ‘shadow’ IT • Emerging technology spaces with BV8
- 19. The approach 19
- 20. High Level 20 • Break IoT up into manageable chunks Supply chain optimisation is very different to real-time proximity marketing • A focus on connecting existing infrastructure • Review governance models to enable fast decisions on low risk • Be comfortable with a blended approach to partners - Carefully managed investments - Multiple solutions ok (for now) – competitive, but low risk - Best in class for small problems - Move fast - Tolerate failure • Ensure procurement are aligned Always, and only, to solve business problems
- 21. An ecosystem of partners 21 IoT Core platform Big Data Platform Data ‘lake’ Content Management System Content Image AV Endpoint Management Platform/s Endpoints Beacons Cars Equipment Etc… Enterprise Infra platform/s Core Infrastructure Network Cloud Existing platforms, mainly mature partners Emerging space, many partners, domain specific
- 22. Let’s take an example - Beacons 22 What can we control… - The hardware - Create global agreements that are easy to use - Managed pool of partners What can we influence… - The software - In-house? - Purchased? - Blended? Test, fail, pivot, succeed – fast and cheap
- 23. Conclusion 23 ‘…the inescapable reality is that the future is here. It’s present now. It’s in the spaces we move though and, at the same time, are invisible and working silently but powerfully in the background’ - Tom Daly Group Director of Mobile Coca-Cola
- 24. At Coca-Cola, IT = Intelligent Technology. We deliver the world’s most sophisticated technologies to enable human intelligence to flourish. CONTACT Thank You! Adam Forde Regional CIO Global IT adforde@coca-cola.com M + 44 776.017.1784 24
Notes de l'éditeur
- The year ATMS went online – also the year I was born! The number of brands owned by the Coca-Cola company Years since John Pemberton invented Coca-Cola Number of minutes I’m going to be talking Months in The Coca-Cola Company Years of IT Experience Number of IoT devices my family owns (connected or autonomous machines) Number of coke products I consume on an average day Children
- 130 years of incredible innovation… we would need to have new thinking, dreams – and courage – to ensure this timeline continues on – and what role do we as IT Leaders play in this
- It’s what has gotten us to where we are today. Most people think of us as red Coke, but we actually sell 3500 products worldwide, including 20 billion-dollar brands. We’re #1 worldwide in sparkling beverages, ready-to-drink juice and juice drinks, and ready-to-drink coffee.
- These products are everywhere. The Coca-Cola brand includes over 700K system associates helping us make, distribute, and sell products in over 200 countries. That’s a lot of on-the-ground impact—and it’s why our network results in a record 1.9 billion daily servings of our beverages. – what would that look like if every product had a digital component
- So how do we shift gears? How do we take something that’s been around for over a century—like classic Coca-Cola—and discover new ways to refresh more people and their communities, in more places, in more ways? And what role does the IT leader play in this journey… Film
- GSMA intelligence – 7.22B devices US census bureau – 7.19 to 7.2B ppl
- Put some pictures in here Millions of CDE Tens of thousands of trucks 900 factories Xxx freestyle machines 25 million Consider adding customers as “assets”; quotes numbers range from 22 million to 25 million, but either way it’s big and it only reflects “direct” relationships. The true number of locations where one can buy a Coke is easily 10x. Furthermore, adding customer synchs better with the marketing language on this topic
- Let’s talk about the Coca-cola approach