The health, nutrition and beauty markets are increasingly driven by innovation and digitalization. Research indicates that digital health technologies could reach a market size of over $500 billion by 2025. Today consumers seek products that not only meet their immediate needs but also align with their values regarding sustainability and transparency. Digital tools, such as AI and data analytics, are enabling companies to personalize offerings and enhance customer engagement.
HCLTech Trends and Insights recently had the privilege of speaking with Ipek Ozsuer, Chief Digital and Information Officer at dsm-firmenich, about the company's bold initiatives in digital transformation. At the forefront of addressing the world's most pressing challenges, dsm-firmenich stands out as a leading co-creation and innovation partner in these vital sectors. With a legacy spanning over 150 years, the company excels in meeting consumers' dynamic needs at the intersection of what is essential for life, desirable for society, and sustainable for our planet.
During our conversation, Ipek shared insights into how the company is leveraging digital transformation to advance its mission of bringing progress to life. She emphasized the synergy between their initiatives and HCLTech’s commitment to innovation and technology-driven solutions, highlighting a collaborative approach that promises to redefine industry standards.
Digital transformation for a better future
When discussing dsm-firmenich’s digital transformation journey, Ipek emphasized its alignment with the company's mission to improve health, nutrition and beauty while considering the planet’s well-being. “We define ourselves as a leading co-creation and innovation partner,” she stated. “Our aim is to bring what is essential for life, including nutritional elements and sustainable solutions.”
She outlined two primary components of their multi-year digital strategy: building solid foundations and delivering transformative change. “To transform and reimagine, we need robust foundations in data, processes and technology. At the same time, we’re focused on becoming more efficient and customer-centric,” she explained.
This focus on a strong infrastructure allows the organization to enhance customer understanding and drive innovation. “Our goal is to better understand our consumers and differentiate ourselves through innovative products,” she noted.
Further, she discussed the strategic initiatives that underpin their growth ambitions. “Our big bets include finalizing a carve-out by the end of next year,” she revealed. This initiative will allow the company to focus on consumer-centric processes, enhancing their operational backbone. A key component of this strategy is the implementation of a comprehensive ERP system to bolster their data management capabilities.
“We are strengthening our data foundations by establishing robust data governance,” she explained. This foundational work is critical as it supports four key areas: customer obsession, product innovation, operational efficiency, and empowering employees. By prioritizing these areas, her company aims to align its business strategies—especially in perfumery and beauty—toward promoting well-being and sustainability.
Moreover, she highlighted the importance of creating affordable and delicious food options in their health and nutrition sector. “We are moving towards preventative care, focusing on self-care to drive healthier lives,” she stated. Each business unit has its vision, and technology plays a crucial role in bridging the gap between consumers and better products.
Navigating challenges and opportunities
As dsm-firmenich transitions to a platform and product-based model, Ipek recognized both the challenges and opportunities that lie ahead. “In this rapidly changing world, having a flexible and scalable model is crucial,” she stated. The organization must serve multiple business units while preparing for future acquisitions and mergers.
She pointed out that co-creation is vital in this journey. “Organizations can no longer afford to be order-takers; we must co-create with our business functions,” she emphasized. This collaborative approach not only fosters innovation but also enhances transparency and accountability.
However, transitioning to a platform model is not without its hurdles. “We are a product company, not a digital-native one like Spotify or Netflix,” Ipek explained. “Moving to a platform-based model is complex, particularly on the business side.”
Ipek highlighted the importance of defining practical products and governance structures. “Change management is essential. There needs to be a cohesive structure to ensure that all multidisciplinary teams align with the company’s goals,” she said.
The role of AI in shaping operations and offerings
“AI will help us become much more personalized,” she noted, enabling her organization to gain deeper insights into customer needs and emerging trends. This technology facilitates the development of tailored solutions, positioning the company as a customer-obsessed leader in the industry.
She also highlighted the transformative impact of AI on product development. “With AI, we can gather evidence on why certain products are superior,” she explained, referencing recent advancements in protein discovery awarded with Nobel Prizes. This illustrates how AI is not just a tool for operational efficiency but also a catalyst for innovation, reshaping how products are conceived and brought to market.
In addition to enhancing customer focus and innovation, AI plays a crucial role in operational efficiency. Ipek shared how integrating GenAI can increase productivity within the workforce, allowing employees to streamline their tasks and improve overall performance. “Our IT organization is committed to leveraging AI to optimize our operations,” she stated, underscoring the importance of a robust digital backbone in today’s business environment.
As organizations adopt AI technologies, ethical considerations must be at the forefront of their strategies. She stressed the importance of responsible AI usage, noting that algorithms must be scrutinized to ensure they do not harm anyone. “We must ask, could this harm anyone?” she urged, emphasizing the need for transparency regarding data sets and potential biases.
For dsm-firmenich, ethical AI usage is a core principle and they are committed to using technology for good. “We want to ensure full transparency and traceability in our AI initiatives,” she added, reinforcing the responsibility companies hold in navigating the complexities of digitalization.
Aligning digital transformation with sustainability goals
Given dsm-firmenich's commitment to sustainability, Ipek elaborated “We recognize that this needs to be a twin transformation—digital and sustainability,” she explained. This approach integrates sustainability into every facet of their operations, from product development to data management.
The first phase of their strategy focuses on establishing robust data foundations for accurate reporting. She pointed out that effective sustainability efforts require comprehensive data from various sources, enabling the company to meet regulatory requirements and track their progress. “We need to embed sustainability into our processes from the outset,” she noted, highlighting the necessity of proactive data collection rather than retrospective reporting.
As dsm-firmenich continues to refine its digital transformation journey, the emphasis on sustainable practices will remain central. “By default, we are embedding sustainability into the way we operate,” she affirmed. This holistic approach ensures that as the company evolves, it remains aligned with its mission to bring progress to life.
Commitment to diversity, equity and inclusion (DEI)
In addition to digital transformation, Ozsuer is passionate about driving diversity, equity, and inclusion within the organization. She recognizes the tech world, particularly STEM fields, as male-dominated and emphasizes the importance of role models. “It's crucial to encourage girls to study STEM from an early age,” she noted. Her personal journey has motivated her to become a visible advocate for women in leadership roles.
To address DEI, dsm-firmenich has established talent programs aimed at increasing the representation of women in their workforce. “We aim to create a balanced pipeline by hiring early talent from universities,” she explained. These initiatives extend beyond recruitment; they focus on ensuring that promotional processes are equitable and that mentorship opportunities are provided throughout careers.
She believes that DEI is not solely an HR responsibility but a leadership imperative. “It's about ensuring equal representation from the start,” she asserted. By emphasizing the importance of a balanced candidate pool and supporting diverse talent, her organization aims to foster an inclusive workplace culture.
