>Pepsi and Enterprise Architecture

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Pepsi knows and practices User-centric Enterprise Architecture. They plan, develop, and manage their business to meet end-user needs, and the CEO, India-born Indra Nooyi is the mastermind behind their approach.

In Fortune Magazine, 3 March 2008, the article “The Pepsi Challenge” describes how Ms. Nooyi has remade Pepsi into a totally user-driven, architecture astute, mega-food company that is firing on all cylinders.

  • Architecting with a global view—“her South Asian heritage gives her a wide-angle view on the world…Pepsi’s international business grew 22% last year, triple the rate of domestic sales, and now contributes 40% of total revenue ($39 billion last year).
  • Architecting wise acquisitions and divestitures—in 1997, seeing that “the fast-food market was saturated and the real estate a hard investment to maximize,” she spun off Pizza Hut, Taco Bell, and KFC. In 1998, she championed the acquisition of Tropicana, the largest branded-juice producer, and the 2001 acquisition of Quaker Oats, maker of Gatorade.
  • Architecting the corporate culture—Ms. Nooyi is an expert in the art of persuasion and rallying the troops to her cause. “She can rouse an audience and rally them around something as mind-numbing as a new companywide software installation.” “She has created the motto—‘Performance With Purpose’” as a means of ‘herding the organization’ towards her vision.
  • Architecting through good people and demanding performance excellence—Ms. Nooyi relies on the expertise of her staff and has “broadened the power structure by doubling her executive team to 29.” Moreover, “she expects everyone around her to measure up.”
  • Architecting a healthy diet, green environment, and care for her people—“she…puts a positive spin on how she wants PepsiCo to do business…balancing the profit motive with making healthier snacks, striving for a net-zero impact on the environment, and taking care of your workforce.” For example, Pepsi got into healthy foods (such as bottled water, sports drinks, and teas) earlier than Coke and now “commands half the U.S. market share—about twice Coke’s share, according to Beverage Digest. Ms. Nooyi’s plan is continue shifting to healthy snacks (currently at 30% to 50% of the product portfolio).

What I find inspiring about Ms. Nooyi is that she is not only a strategic, big picture minded leader, but that she performs with the eloquence of a master architect that knows her users and their needs, strives to fulfill them, and doing so with an apparent conscience that dictates ethical behavior toward her people, the environment, and the health of her customers.

That is an amazing EA legacy!

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