Digital Transformation at Aramark

John Fisher

Game Plan 2014

Agenda

Introduction: Former hybris client

First: Aramark’s Digital Outcomes

Original “Office Coffee” Business Model

Challenges & Fears

Break-through Moment

Launch

Along the way: Ah-Ha Moments

John Fisher

Global Head of B2B Marketing, hybris Software

Ecommerce Platforms

1994

2000

2004

2006

2007

2009

2014

Coffee Business

Drink Coffee Occasionally?

Coffee is Big Business

4

Drink CoffeeDaily?

In US:- 400 million cups per DAY- 4,600 cups every second

- Worldwide:- $60 Billion industry

Aramark

$14B Global Food Services:

# 3 food service provider# 2 uniform supplier

#1 office coffee service

~$1B Office Coffee Service:

100k customers10k products

100 warehouses

Soldier Field is one of 200 venues worldwide

Deliver 1 Billion cups coffee/year

5

Digital Transformation Journey

6

“If you want to build a ship, don't drum up people to collect wood and don't assign them tasks and work, but rather teach them to long for the endless immensity of the sea.”

“I open at the close”

Aramark: Ecommerce KPIs

“Would Definitely Recommend”

Ecommerce Customers

Non-Ecom Users

~10%

More Satisfied Overall

Avg Order Value (AOV)

Ecommerce Customers

Non-Ecom Users

10%-15%

Higher Avg Order Value (AOV)

40% Usage25% Ordering

6 mos

$100m

$60m

$ Sales

12 mos

18 mos

$25m

7

Aramark: Digital Marketing KPIs

600% Increase in Leads

Tripled Lead Gen Conversion

Doubled Website Traffic

8

Aramark: Original Business Model

9

Sales spent time knocking on doors

100k Customers called in their orders

Customer Tied to Warehouse

Set delivery

schedules

CRM was a rolodex

Digital Transformation Goals

Channel Shift: Reduce Calls

Customers Ordering Online

10

Cross-sell/Up-sell

Increase Revenues/ Average Order Value (AOV)

Enable Field: Sales/ Customer Service

Increase New Business/Keep customers satisfied

Two Enabling Projects

11

Customer Enablement:- Ordering- Self-service- Account management

EcommerceSales Force Automation/

CRM

Employee Enablement:- Sales pipeline management- View all aspects of

customer relationship

One Common Element: Data

1

2

Ecommerce Sales Force Automation/CRM

- Every picture,- Price, Description- Customer purchase- Customer contact

If 1 is wrong, everything on the site called into question

Digital Transformation: Ah-Ha Moment

1st Ah-Ha Moment

“DATA is the User Experience”

1

3

RFP: User Needs

Digital Transformation Project Cycle

Researched:Customers, competitors,

stakeholders

Crunched the Numbers/ROI/ Biz Case/ Created Plan

Presented Internally, Met with Resistance

ROI: Business Drivers

Fears!

Employee Resistance

Resistance to Ecommerce

“Customers won’t go online to order”

15

“Customers are already satisfied

with their service”

“Customers like talking to us”

Resistance to SFA/CRM

“It takes too much time to input all of my sales activities”

“It’s a system that’s only designed to eliminate jobs”

“I don’t want to learn another system (flavor of the month)”

Digital Transformation: Ah-Ha Moment

2nd Ah-Ha Moment

“We have met the enemy, and they are us”

16

Needed Employee Buy-In

Needed a Break-Through

Told group let’s quit and form a company to compete Aramark

Told them to start with a blank sheet of paper

17

How would you start the company today?

Market Assessment

18

Reviewed the competition:Traditional…and disruptive

Marketing/Lead Gen Logistics

“How Would YOU Compete with Aramark?”

Result: Envisioned a nimble, mobile and digitally-enabled competitor1

9

Mobile Optimized Ecommerce

Social/Email/Digital Marketing Next Day Delivery

CRM/Sales Force Automation

Break Through Old Business Model

20

Digital Transformation: Ah-Ha Moment

3rd Ah-Ha Moment

“If you don’t disrupt your business, someone else will”

2

1

1930-2004

Change Culture: Understand Fears

Sales and Customer Service

Supply Chain Operations

Fear of losing personal connection with customer

(lost jobs/commissions)

Fear of using images for “non-preferred” products(loss of volume discounts)

Fear of overnight delivery without knowing success

(loss of efficiency)

22

Organizations Move Slowly

Sales and Customer Service

Supply Chain

Operations

23

2 Markets with SFA/CRM

1 Market with Overnight Shipping

Missing 40% of Images

At Launch

Digital Transformation: Ah-Ha Moment

4th Ah-Ha Moment

“Don’t Code a Bad Process”

24

Launch Day!

It’s Over!

Nearly On TimeOnly slightly over budget

It went Too fast

Management Will Stop Asking Me Questions!

Senior ManagementYou

It’s Finally Begun!

Over timeOver budget

Went too slow

Can Finally Get Some Answers!

Change Management Began After Launch

Align with leadership

Train the trainers

Baseline current performance

Engage functional leaders

Rollout training

Reinforce behaviors

Monitor performance

Digital Transformation: Ah-Ha Moment

5th Ah-Ha Moment

“Technology is the easy part, it’s the people and processes that are difficult”

27

Aramark: “NEW” Business Model

2

8

Sales Force Automation & Mobile

App for Sales Team

Marketing Automation/ Online lead gen

Ecommerce Portal

Overnight delivery

CRM Solution

Aramark: Digital KPIs

29

Digital Transformation: Ah-Ha Moment

Final Ah-Ha Moment

“It’s a Journey, Not a Destination”

30

“…teach them to long for the endless immensity of the sea”

Aramark Digital Transformation

Thank You!