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Digital Business Strategies’ Comparison and Analysis

Two businesses that have used technology to enhance their supply chain management are

Coda Coffee and Bossard AG. In addition to pursuing the best coffee beans, Coda Coffee

supports environmentally friendly growing practices. On the other hand, Bossard AG is a well-

known supply chain service provider that attempts to streamline order processing and C-parts

flows in order to assist clients increase efficiency. Both businesses have adopted digital

transformation to improve productivity and streamline their supply chains despite the differences

in their core business activities.

Elements that Contributed to Their Digital Transformation

Coda Coffee’s attempts to adapt digitally were concentrated on forging connections with

farmers and utilizing technology to raise the caliber of their output. In order to inform farmers

and encourage quality improvement, the firm developed the Farm2Cup certification program,

which enabled qualified farmers to receive premiums while Coda supported community projects

(Youngdahl 2). Additionally, Coda Coffee collaborated with coffee cooperatives to offer

resources and a single point of contact for sales to smallholder farmers. Additionally, the
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business attained B-Corp certification, which called for organizations to achieve certain levels of

social and environmental performance. In order to separate and sort coffee cherries according to

quality, Coda Coffee collaborated with Bext360. To target coffee sourcing and guide attempts to

work with specific growers, the machines’ data was used (Youngdahl 6). The blockchain data

could be used by banks and microfinance organizations to audit financials and evaluate loan

risks. Through this relationship, Coda Coffee was able to use machine learning and artificial

intelligence to assess the quality of coffee cherries, record lot quality and quantity using

blockchain, and ultimately enhance its sourcing practices.

On the other hand, Bossard AG’s digital transformation efforts were focused on

innovating logistics systems with real-time data analytics and algorithms to optimize C-parts

flows and order processing, helping customers enhance productivity. Bossard AG supplied

products to customer warehouses and directly to factories, enabling intelligent interaction

between production and supply chains. Customers could choose from a range of different

logistics systems, such as “Bossard 2Bin” with barcodes and “SmartLabels” connected by

wireless networks (Meyer and Han 4). Bossard’s SmartBins automate material flows, and

integrated weight sensors, Wi-Fi connection, and ARIMS software enable remote monitoring of

bins, automatic triggering of orders, and optimization of interim storage.

Elements that Hinder Their Digital Transformation

The digital transformation efforts of Coda Coffee were not without difficulties. The

business had to come up with a strategy to persuade farmers to take part in the Farm2Cup

certification program. Additionally, there were difficulties in using blockchain technology to

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increase supply chain transparency. Due to worries about data security and privacy, some

stakeholders were reluctant to deploy the technology, which needed time and resources to

implement.

In turn, Bossard AG has trouble breaking into the Chinese market and persuading

customers to use their services. The Chinese market remained difficult despite investments, and

skilled worker compensation rose more quickly than productivity. In order to build trust with

potential customers and persuade them to change their logistics system, the company needed to

design an effective marketing plan (Meyer and Han 7). A major investment in infrastructure and

technology was also necessary for the installation of SmartBins and SmartLabels.

Elements that Shaped Their Strategy and How

Both Coda Coffee and Bossard AG’s digital transformation strategies were influenced by

their primary lines of business. Coda Coffee’s attempts to raise the caliber of their goods and

their sourcing techniques were motivated by their focus on sustainability and fair trade

principles. Through their collaboration with Bext360, the organization was able to use machine

learning and artificial intelligence to increase the effectiveness and transparency of its supply

chain management. Similar to Bossard AG, their efforts to restructure their business digitally

were driven by a focus on supply chain logistics and optimization. By implementing SmartBins

and SmartLabels, the company was able to automate material flows, save order management

expenses by 40%, boost delivery efficiency, and enhance product offerings and logistics (Meyer

and Han 10). Real-time data analytics and algorithms employed by the corporation played a

significant role in their digital strategy.

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Data Privacy and Security Approach

It is crucial for businesses to protect the safety and security of their data in the current

digital era, where data breaches and cyber attacks are becoming more prevalent. The

implementation of blockchain technology by Coda Coffee to increase supply chain transparency

necessitated careful examination of data security and privacy issues. A decentralized, immutable

ledger that tracks transactions among a network of computers is what blockchain technology

does (Youngdahl 3). It offers a transparent and secure method of storing data that cannot be

changed or removed without the network’s approval. However, using blockchain technology has

its own set of difficulties, particularly in terms of data protection. The technology requires time

and resources to implement, and some stakeholders may be hesitant to use it due to concerns

about data privacy and security (Bansod and Ragha 1). Thus, Coda Coffee had to address these

concerns and ensure that the data collected through the blockchain was secure and used ethically.

However, the deployment of SmartBins and SmartLabels by Bossard AG requires the

business to make infrastructure and technology investments to protect data privacy and security.

IoT-enabled SmartBins automate material flows and incorporate weight sensors, Wi-Fi, and

ARIMS software to allow remote bin monitoring, automatic order triggering, and interim storage

optimization. On the other hand, SmartLabels are RFID-enabled labels that assist in streamlining

the logistics and material management procedures (Meyer and Han 4). To ensure that the data

obtained through them was secure and used responsibly, the installation of these technologies

needed a large investment in infrastructure and technology. Bossard AG had to make sure that

the security of the data gathered by the SmartBins and SmartLabels was maintained as well as
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the privacy of their clients.

Despite the fact that both businesses had to deal with data privacy and security issues as

part of their digital transformation initiatives, their strategies varied as a result of the nature of

their company operations and the particular technology they adopted. While Bossard AG had to

invest in infrastructure and technology to guarantee data privacy and security for their SmartBins

and SmartLabels, Coda Coffee had to make sure that the data obtained through the blockchain

was secure and used appropriately (Huynh-The et al. 401). By successfully addressing these

issues, both businesses were able to enhance their supply chain management and boost

productivity.

People's skills

Both Coda Coffee and Bossard AG used contrasting approaches to digital

transformations in recent years, and Coda Coffee focused on improving its online presence and

streamlining its operations, while Bossard AG enhanced its logistics operations with customer

experience. In terms of people's skills, both companies recruited highly skilled and competitive

workforces that demonstrated commitment to providing high-quality products and services. Coda

Coffee maintained a strong digital marketing team that allowed it to improve its online presence,

while Bossard AG shaped a skillful digital team that developed and implemented new

technologies. Eventually, their focus on people's skills and their connection with digital

transformations fundamentally improved their operations and provided better products and

services to their customers.

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Management skills

Coda Coffee did not fully leverage the potential of technology to transform their

business., and its management did not implement any data analytics systems or AI-powered

solutions that could assist them by optimizing supply chain or improving marketing strategy.

This management mistake was a result of limited resources, though it became a missed

opportunity regarding the concern. In turn, Bossard AG embraced the potential of technology to

transform their business, and they implemented a predictive maintenance system that used IoT

sensors to monitor the performance of their fasteners, which reduced downtime and improved

their product quality. These contrasting approaches to the management affected their

performance, though it would be essential to consider the scale of their operations and type of

businesses that affected these decisions.

Governance

Coda Coffee and Bossard AG introduced different governance practices, reflecting their

size, industry, and organizational structure. Coda Coffee's flat organizational structure and focus

on openness and collaboration allowed it to embrace digital transformations and innovative

technologies. In contrast, Bossard AG's hierarchical structure and emphasis on efficiency and

compliance was a challenge in adopting new technologies, though it still made significant

investments in digital transformation. Eventually, Coda Coffee and Bossard AG provide

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examples of different approaches to governance in the context of digital transformations,

highlighting the importance of tailoring governance practices to each organization's specific

needs and goals.

Culture

Both Coda Coffee and Bossard AG had strong cultures that aligned with their values and

mission, though they differ in terms of organizational structure, leadership style, and employee

engagement. Coda Coffee's flat organizational structure and collaborative culture encouraged

innovation and creativity, and the company's focus on sustainability and community engagement

resembled its use of digital technologies to promote its values and engage customers. In turn,

Bossard AG's hierarchical organizational structure and professional culture emphasized

accountability and efficiency, and its use of digital technologies to optimize its operations and

improve customer experience exhibited its inclination toward innovation and customer service.

Consequently, Coda Coffee and Bossard AG are two businesses that have improved their

supply chain management using technology. Bossard AG concentrated on supply chain logistics

and optimization, whereas Coda Coffee concentrated on sustainability and fair trade principles.

Both businesses encountered difficulties while putting their digital transformation goals into

practice, but they overcame them to boost productivity and improve supply chain management.
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Works Cited

Bansod, Smita, and Lata Ragha. “Challenges in Making Blockchain Privacy Compliant for the

Digital World: Some Measures.” Sādhanā, vol. 47, no. 3, 2022, pp. 1–17,

https://doi.org/10.1007/s12046-022-01931-1.

Huynh-The, Thien, et al. “Blockchain for the Metaverse: A Review.” Future Generation

Computer Systems, vol. 143, 2023, pp. 401–419,

https://doi.org/10.1016/j.future.2023.02.008.

Meyer, Klaus, and Alexandra Han. “Bossard AG: Enabling Industry 4.0 Logistics, Worldwide.”

Richard Ivey School of Business Foundation, 29 Sept. 2017, pp. 1–12.

Youngdahl, William E. “Coda Coffee and Bext360 Supply Chain: Machine Vision, AI, IoT, and

Blockchain.” Thunderbird School of Global Management, 2022, pp. 1–9.