Kellanova and WK Kellogg’s cloud-powered transformation with AWS (RCG201)
Kellogg's to Kellanova and WK Kellogg: A Digital Transformation Journey
Overview
Kellogg's, a 100+ year old consumer goods company, recently split into two separate companies: Kellanova (global snack business) and WK Kellogg (North American cereal business).
This transformation involved a complex migration of over 300 applications, 5,000+ test cases, and a 24/7 effort to ensure zero business disruption.
The journey to this split involved several key phases, from a cloud-first approach to the enablement of new digital capabilities.
Phase 1: Cloud Migration and SAP Transformation
Kellogg's began its cloud journey about 7 years ago, with a focus on cloud-first and migrate-first principles.
By 2022, the company had completely migrated to the cloud, moving over 2,500 servers and 1,000+ applications.
This cloud migration also enabled the company to reduce its technical debt, consolidating from 1,000 to 600 applications.
A key enabler was the company's focus on capability building, with initiatives like the "YODA" (Year of Development Always) program and the creation of new centers of excellence.
Phase 2: Preparing for the Split (October 2023)
In preparation for the split, the teams had to separate the company's network, logistics, and IT systems.
This included separating the SAP landscape and "SAP and Friends" applications, as well as marketing, data, and analytics systems.
The teams worked tirelessly for over 10 months, creating multiple data centers in AWS and running a $3 billion business in the cloud.
The split was executed seamlessly, with zero business disruption, as recognized by the company's customers.
Phase 3: Enabling the "117-Year-Old Startup" (Post-Split)
With the split complete, the teams are now focused on building the foundation for the future, leveraging AWS services for data ingestion, analytics, and AI/ML.
The goal is to enable a more agile, data-driven, and innovative approach, with a focus on empowering the sales, marketing, and supply chain teams.
Key initiatives include architecting the analytics platform, driving application rationalization, and implementing disaster recovery and resiliency measures.
The teams are embracing a "117-year-old startup" mindset, leveraging the scale and capabilities of AWS to drive transformation and innovation.
Conclusion
Kellogg's transformation journey from a legacy consumer goods company to two digital-native businesses, Kellanova and WK Kellogg, is a testament to the power of cloud-enabled modernization and the strategic use of technology.
With the support of AWS, the teams were able to navigate the complexities of the split, build a robust foundation, and set the stage for future growth and innovation.
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