We are continuously evolving our digital ecosystem to meet the changing needs of our customers & the industry: Vipin Gupta, CTO, Starbucks

In an exclusive interaction with Express Computer, Vipin Gupta, CTO, Starbucks, speaks about various aspects including digital initiatives taken by the organisation for enhancing infrastructure and leveraging GenAI to tailor experiences for customers, particularly in markets like India. He also highlights prioritising cybersecurity, to protect the organisation from cyber attacks. Furthermore, he adds that the company plans to continue focusing on enhancing customer experiences, leveraging data analytics, and strengthening cybersecurity measures aligning with their tagline of inspiring and nurturing the human spirit through innovative and secure technology solutions.

Here are the edited excerpts:

Can you take us through some of the recent digital initiatives you have implemented? What has been the impact?

When I joined Starbucks, we found ourselves in a position where we needed to address significant gaps in our digital infrastructure. We embarked on a transformation journey aimed at enhancing our digital capabilities to support our aggressive expansion plans, particularly in markets like India. This journey began around two and a half years ago, with a focus on key pillars such as scalability and agility.

Upon assessing our needs, we divided the transformation process into three main buckets. The first bucket was the foundational layer, where we aimed to bolster essential capabilities like the digital ordering platform.

Second was ‘transformation layer’ where the objective was to build capabilities in-line with industry standards such as omni-channel campaign management, advanced analytics, and third was ‘exploratory layer’ where we aimed to explore new technologies such as generative AI to create business differentiation.

Transformation isn’t just about innovation; it’s also about ensuring that our operations are on par with industry standards. Therefore, establishing a solid foundation was crucial for us to remain competitive in the market. Moving forward, our focus is not only on expansion but also on continuously evolving our digital ecosystem to meet the changing needs of our customers and the industry.

What are some of the areas in which you are using generative AI? How are you leveraging its benefits?

GenAI is revolutionising several aspects of our operations at Starbucks. We leverage advanced analytic capabilities to ensure a balanced approach across foundational, transformational, and exploratory initiatives.

One significant project that has positively impacted our business is the development of mobile app features tailored to the Indian market’s specific needs. This includes features like Mobile Order & Pay (MOP) and loyalty programs, as well as live streaming sessions to immerse customers in the coffee culture. These innovations have significantly enhanced the consumer experience, leading to a notable increase in mobile orders.

Another impactful initiative addresses consumer biases toward inconsistent WiFi experiences across our stores. We implemented technology to ensure seamless connectivity and automatic login, enhancing customer satisfaction and loyalty. This project not only improves customer experience but also showcases our commitment to technological innovation and reliability.

Furthermore, our focus on data analytics has enabled us to, get better understanding of consumer behaviour and conduct enhanced demand forecasting. Implementing such advanced technologies has been challenging but underscores our dedication to providing a premium customer experience while staying ahead in the industry.

How do you see the traction for GenAI in the industry? Can you share with us more insights on the role of AI in your operations?

When it comes to the traction for generative AI in the industry, it’s evident that it’s already gaining momentum. However, the key lies in understanding the specific challenges within each organisation and determining whether AI solutions are the most effective way to address them. At Starbucks, we’ve carefully assessed the role of AI in our operations.

While automation can certainly streamline processes, it’s essential to consider whether customers are willing to pay for the added value AI brings. For instance, customers expect personalised experiences and recommendations, but they also prioritise speed of service. It’s about finding the right balance between automation and human interaction to meet customer expectations.

In our case, leveraging AI isn’t just about automating tasks; it’s about enhancing the capabilities of our baristas to better understand and serve our customers. By harnessing AI for tasks like offering personalised recommendations, we aim to improve the overall customer experience without compromising on service efficiency.

Ultimately, the decision to adopt AI should be guided by the specific problems a company faces and how technology can best address them. It’s not a one-size-fits-all solution, but rather a strategic approach tailored to each organisation’s needs.

With the increasing importance of cybersecurity, what measures are you taking to ensure the security and integrity of IT systems and sensitive data?

At Starbucks, ensuring the security and integrity of our IT systems and sensitive data, especially in regions like India, is of paramount importance to us. We recognise the trust our customers place in us with their personal information and their time spent in our stores. Therefore, we take cybersecurity very seriously.

For instance, in India, our retail app implements two-factor authentication, which adds an extra layer of security for transactions. Additionally, we adhere to standard security protocols and practices, including regular security audits and monitoring for potential threats. While our security measures may differ significantly from those of financial institutions due to varying risk profiles, we strive to maintain a robust security posture.

Furthermore, we prioritise customer privacy and invest in measures to protect their data, acknowledging the critical role cybersecurity plays in maintaining their trust and loyalty. Our commitment to cybersecurity remains unwavering as we continue to evolve and adapt to emerging threats in the digital landscape.

In the next six months to one year, what are some of the new digital or technology initiatives planned?

In the next six months to one year, we plan to work around enhancing customer experiences, leveraging personalised recommendations, and streamlining mobile ordering. Data analytics will be central to driving value for both customers and stakeholders, optimising operations and decision-making processes.

Additionally, cybersecurity measures will be strengthened to ensure resilience and compliance with emerging regulations like India’s Data Protection Bill.