Philip Morris builds a digital service ecosystem in Ukraine: How it works and what it changes
Artem Konik, CEO of Philip Morris Ukraine (photo: pmi.com)
Philip Morris in Ukraine handles 2.8 million consumer interactions and nearly one million deliveries annually. The company has built this infrastructure virtually from scratch over the past seven years as part of its strategic shift away from cigarettes towards a new product category - electronic tobacco heating systems.
Artem Konik, General Manager of Philip Morris Ukraine, noted that the company operates in an industry that has historically been relatively conservative but is now undergoing a large-scale technological transformation.
Every year, the company’s contact center and chat services in Ukraine handle approximately 2.8 million consumer inquiries and interactions, while its services facilitate nearly one million deliveries.
“We actively use artificial intelligence, which helps us not only respond to consumer issues but also anticipate their needs. This enables us to improve service quality and reduce the workload on our teams,” Konik emphasized.
According to him, the company’s contact center and chat services provide personalized, one-to-one communication with each consumer. To manage such large volumes of information and gain meaningful insights, the company relies on data analytics and artificial intelligence.
“We started with absolutely no experience in digitalization. Today, we work with large-scale data systems and can even predict the future to some extent: we know when a consumer may need to replace their device or when potential issues might arise,” the speaker explained.
Another key area of focus has been the development of a digital ecosystem for the company’s retail partners. Through a mobile app, Philip Morris maintains direct communication with more than 25,000 retailers. This enables the company to engage with partners efficiently by sending notifications, sharing product information, and providing relevant services.
“And it works. We can see that we have built an infrastructure that allows us to establish communication channels across Ukraine very quickly. Nothing like this existed five to seven years ago. It simply was not possible back then,” Konik noted.
The mobile app enables Philip Morris to provide a consistent level of service to retail outlets operating under very different conditions, whether in the Kharkiv region near the front line or in Lviv. According to the General Manager, this creates new opportunities for the business.
“During the war, digitalization has also become a tool for ensuring safety. Thanks to digital platforms, we can continue working with our retail partners even in frontline regions, where the physical presence of our employees is limited or unsafe. Automated monitoring of product displays in retail outlets using cameras also allows us to reduce the number of in-person visits by our staff,” said the General Manager of Philip Morris Ukraine.
“For us, innovation is therefore not only about efficiency but also about protecting people and ensuring business continuity,” he added.
Konik believes that Ukraine is ahead of many other markets in terms of digitalization. This positions the Ukrainian affiliate of the international corporation as a leader among its counterparts in other countries.
The TECHNOVATION conference took place on October 27 as part of the 12th Kyiv International Economic Forum. Organized by Diia.City Union, the event brought together more than 250 representatives of government, Ukrainian businesses, and international companies.