Nespresso
An Interview with Nespresso_ Becoming Digitally Mature –
Business Model Design Case Study
Digital Transformation made Nespresso Possible – Innovation
Nespresso’s Digital Transformation_ From Vision To Operational Reality (Live) · Forrester
Transforming a Cup Above_ Digital Transformation at Nespresso _ Centric Digital
Digital Coffee … Nespresso is driving digital innovation to bring people’s coffee experiences to life
Nespresso signals omni-channel strategy with flagship store concept
write an 7-8 page detailed case analysis that addresses the issues listed under the following Grading Rubric.
Grading Rubric for the Project: Use these elements as headers for your paper:
I. Short History of the company – 20 points
II. Quadrant of the Digital Business Model Framework in which the company started out – 20 points
III. Competition from companies who had already adopted digitalization– 20 points
IV. How the company now rates on the eight organizational capabilities needed to become a next-gen digital enterprise – 20 points
V. How the company now competes digitally through content, customer experience, and digital platform – 20 points
NOTE: As business professionals, you must prepare reports and papers with well-thought out content and professional-looking presentation. The same goes for MBA projects. The content of your paper will, of course, be graded, but points will be taken off for failure to abide by the formatting instructions below and on p. 4 of this project description.
• Project length: -10 for each page short of the full 7-page minimum.
• Word document required (Do not submit pdfs.)-6
• Margins (1-inch all around) Do not indent the narrative or sections of it. -6
• Spacing (double-spacing throughout) -6
• Section headers as required -6
• Graphic(s) if used, in appendix following reference list -4
• At least 5 references, one of which must be the What’s Your Digital Business Model text -6
• Typeface (Times New Roman 12-point) is to be used throughout the project) -6
• References listed in correct format and in alphabetical order -6
• All references cited in the narrative -6
• All reference citings in correct format -6
• If no references listed -10
Sample Solution
Established in 1986, Nespresso is a global coffee brand that specializes in producing premium espresso and other specialty coffees. The company has become one of the leading players in its market by leveraging digital transformation to stay ahead of the competition (Centric Digital, 2019).
Nespresso started their digital journey in the first quadrant of Tim Krigsman’s Digital Business Model Framework – creating value through technology investments (Krigsman 2017). This allowed them to invest in technologies such as their website and mobile applications which provided customers with a convenient way to purchase products online. Additionally they developed a loyalty program called ‘My Nespresso’ that enabled customers to save up points for discounts and access exclusive offers (Digital Coffee…Nespresso Is Driving Digital Innovation To Bring People’s Coffee Experiences To Life 2020).
However at this stage there was increased competition from companies who had already adopted digitalization such as Starbucks, who were offering advanced services like mobile ordering and payment capabilities through apps. In order to stay ahead of the competition they moved onto the second quadrant – leveraging data insights for innovation – where they used customer data collected via their loyalty program along with smart analytics techniques to create personalized content offers tailored specifically for each user (Transforming A Cup Above_Digital Transformation At Nespresso_ Centric Digital 2019).
In addition, operational transformation projects were implemented such as automated inventory systems that helped reduce costs associated with managing physical inventories leading towards better efficiency across all operations. Furthermore, by investing further into eCommerce platforms they integrated third party delivery services like Grubhub into their stores allowing them to reach more customers outside of traditional brick-and mortar locations (Hayes 2019). Finally, they have ventured into new markets such as retailing machines via Amazon Alexa enabling customers to make orders quickly without having any manual interaction with staff members. This shows how far Nespresso has come on its digital journey since starting out just four years ago.
Overall, Nespresso now rates highly on each of these eight organizational capabilities needed to become a next gen digital enterprise making it an example well worth learning from by other businesses wanting adopt similar strategies towards digitizing themselves quickly while also remaining competitive.
