Hershey, Kellanova, Diageo & Giant Eagle Execs Strategize on How to Prove AI Value
Striking a balance with artificial intelligence continues to pose challenges for consumer goods and retail leaders. While the technology offers transformative potential, the execution roadmap is anything but linear, and proving its value is harder than ever.
Leaders from the Hershey Co., Diageo, Kellanova and Giant Eagle recently took on the topic at CGT’s Analytics Unite event, held in Chicago.
Among the biggest questions asked is, “How can I extract value from AI?” Should it begin with a canned solution that provides broad functionality, or should it start with a specific use case?
For Jens Taylor, senior director of software engineering and strategy at Hershey, it’s as simple as, “What is the problem you are looking to solve and what will help get us there?”
For Carlos Pineda, head of data, analytics and insight for Diageo’s North America and global markets, investment in data foundation should be a non-negotiable, but companies first need a hero use case that will allow stakeholders to see the value.
Also: Ahold Delhaize’s Karin Chu talked moving from AI possibility to impact
By focusing solely on data foundation, he said, you can be wasting resources. “It’s finding that balance of dual velocity. What needs to be done on the foundation? What needs to be done in use cases?”
Chris Edwards, director of GetGo technology and IT innovation and R&D at Giant Eagle, said AI investment should center around the customer and helping team members complete a high-value task by freeing up their limited time.
“Many IT initiatives lack because they are looking for what’s shiny and bright,” said Edwards. “We are supporting the customer; that’s the business.”
Getting Into AI Applications
Taylor expedited what would be a years-long process by throwing modeling at a problem around sourcing. As prices have gone up threefold, modeling has allowed the company to better structure how it manages its hedging positioning and commodities buying in cocoa.
This approach helped the company show the business case and potential impact so stakeholders could see the value before spending time and money building out the foundation.
Pineda is taking a start-small approach in his company’s AI investment, using the technology within demand forecasting to solve significant pain points around accuracy and productivity. The team is applying the tech in one state to see if it will save people time before deciding whether or not to expand to several states.
For Jena Anton, senior director, commercial OE, Kellanova, AI has been used as a prioritization tool, helping the company to determine the next best action for retail execution reps and what insights reps can get with a picture of the shelf. Additionally, if there are any executional issues, how can AI be used to understand the root cause?
Determining the Value & Measuring Success
AI and advanced analytics haven’t changed the spectrum of how the company drives the business, said Taylor. What’s fairly new for Hershey is the concept of measuring automation combined with human touches and manual interventions. The company has been trying to build out some of those metrics into its process flow.
It’s about fully understanding the opportunity you are trying to capture and problem you are trying to solve, and adopting those measures in your use case, said Pineda. “Define them at the very beginning and make sure it’s very clear.”
Edwards reminded the audience that it’s more about getting incremental wins and building out the broader solution along the way, particularly with newer technology like generative AI.
“You have to moderate expectations by showing a relative view of where we are in the process right now,” said Edwards. “Walk them back. … We are doing this because we need to have foundational elements in place.”
