Philip Morris Focuses on Becoming a Digital Leader

The second annual ARC Industrial Digital Transformation Top 25 report continues to highlight companies that are succeeding at integrating digital technology into all areas of business, fundamentally changing the way they operate and deliver value to customers. ARC developed a rigorous process based on financial performance, a community intelligence based ranking system, and software and sustainability data. Leading companies take a strategic approach, integrating digital technology throughout their value chains. Philip Morris focuses on becoming a digital leader, and it ranks #24 in this report.

Digital transformation is a whole new way of transacting businesses, supporting customers, leveraging the available services, and adapting to a volatile and fiercely competitive marketplace. The digital transformation journey has its share of challenges for both suppliers and end users. Technology is only part of the equation. People, capability, willingness, process simplification, and adopting a multidisciplinary approach are also required. Transforming to an organization where constant change and adjustment define normal operations is still very conceptual for some industrial companies. Each company is at a different stage of digital maturity, so there is no “one-size-fits-all” approach. Digital transformation leaders can be found across many different industries, sharing common traits and visions, helping them overcome complex challenges to innovate and stay agile. The companies mentioned in this report not only have their transformation initiatives well underway, but they also have their eye to the future tackling the next set of challenges on their journey.

This is the twenty-fourth in a series of blogs in the digital transformation space.

Philip Morris International

Philip Morris is a formidable player in the global tobacco industry and has been focusing on becoming a digital leader. The company believes the industry cannot continue with its current business model and must embrace digital transformation to drive efficiency and change how it develops and markets new products. The company is driving its change around three pillars. The first one is about how to deal with legacy built over the past 10 – 20 years. Reducing the legacy footprint is step one in opening the door for change. The second pillar is centered on bringing state-of-the-art technology (such as AI and cloud) into the organization. Third is the leadership and messaging. The CIO is quoted as saying “We are not transforming for the sake of technology. We are transforming for the sake of creating products and better experiences for our customers and consumers.” The company keenly recognizes the importance of culture change in leadership, organization, and processes.

Going Forward

Digital transformation has emerged as the fulcrum of business operations. This year’s Top 25 companies include many who made the list last year, together with some new companies and reshuffling of positions. ARC will continue its research in all areas related to digital transformation and analyze the outcomes. The ARC Industrial Digital Transformation Top 25 report will be published annually. With this being our second year, your feedback is very important to us as we will continue to investigate new approaches and measures to adjust our methodology, identify successful digital transformation initiatives, and help the industry as a whole digitally transform. Let’s travel together!

Learn more about ARC’s Digital Transformation Council

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