Kesko's Integrated Data Balance Sheet 2024: Data as Strategic Capital Across All Business Sectors

Data and artificial intelligence have become strategic assets for Kesko. The fourth Integrated Data Balance Sheet, now published, illustrates how data-driven operations are reflected across its business sectors and create a comprehensive competitive advantage.

"The Integrated Data Balance Sheet provides a concrete overview of how we create value for customers, our business, and stakeholders, and ensure a secure and reliable digital foundation," says Kesko's Minna Vakkilainen.

The Integrated Data Balance Sheet describes Kesko's strategic choices regarding the utilization of data, data analytics, and artificial intelligence. The strategic and economic value of data is based on its high quality and broad-based utilization in business operations.

"Data and its highly effective utilization are Kesko's strength. We are improving the omnichannel customer experience and streamlining our operations. We are also strengthening the data-driven decision-making capabilities of our business units and retailers," says Minna Vakkilainen, Kesko's Director of Data and Digital Development, Customer Relationships, and E-commerce.

Significant results across all sectors

The increase in data-driven operations and automation is yielding concrete results. In 2024, the number of users of the K-Ruoka app grew by 38 percent, and online food sales by 13.5 percent.

Already three-quarters of Kespro's sales take place digitally. Approximately 80 percent of Onninen's order lines are processed digitally. Over 90 percent of K-Auto's customers begin the car-buying process through digital channels. NPS scores measuring the user experience of digital services are at a high level.

"We have made significant progress in developing our digital services. The K-Ruoka app already serves over two million Finns. Kespro supports the success of foodservice professionals through business and customer insight. In the construction and building services trade, digital solutions enable continuous improvement in the customer experience and productivity of industry professionals. K-Auto's revamped digital services make buying and maintaining a car easier than ever," says Vakkilainen.

Kesko's data strategy operates on three levels: data foundation technologies ensure reliability and compliance; processes drive efficiency and productivity; services create competitive advantage — powered by growing data capital and AI.

AI brings efficiency and competitive advantage

With advanced data analytics and AI, Kesko's retailers can deliver a multi-channel and personalized customer experience. A significant competitive advantage stems from the efficiency of chain operations and a local, customer-centric approach.

"We have adopted artificial intelligence in a determined and responsible manner, and the ethical principles for AI that we have established guide our operations.

Advanced analytics and new AI tools help us leverage our strong data capital. This enables retailers to forecast demand, optimize their product ranges, and streamline logistics," Vakkilainen emphasizes.

Responsibility and transparency as the foundation of data use

Responsibility and transparency are key principles in Kesko's use of data. The Integrated Data Balance Sheet illustrates how data supports sustainable development and more responsible choices.

"We are committed to a high level of data protection and cybersecurity. We also help our customers make more sustainable choices. We provide data-driven information on the climate impact, domestic origin, and healthiness of purchases," Vakkilainen notes.

At Kesko, sustainability data is integrated into business processes. This optimizes energy consumption, manages waste, and streamlines waste management, resulting in both cost savings and environmental benefits.

The data balance sheet concretizes value creation

At the heart of the Integrated Data Balance Sheet is Kesko's data balance sheet, which combines data capital and its applications — data assets. The data balance sheet illustrates how data capital generates concrete value for the business, customers, and stakeholders.

Kesko's data balance sheet: data capital (in-house and external data) generates data assets — services, products, and processes — whose value is measured through direct and indirect benefits to the business and stakeholders.

"Data has no intrinsic value; rather, its value is based on the benefits it generates for customers and the business. The Integrated Data Balance Sheet is used to examine the balance between data and its utilization in business operations. When the balance sheet is actively managed, the value of both sides increases," explains Mikko Merisaari of Functos, who is responsible for the Integrated Data Balance Sheet methodology.

Kesko's growth strategy is based on continuously improving the multichannel customer experience by developing digital services.

"Data enables us to differentiate ourselves through the customer experience. It's about quality and convenience, both in stores and across digital channels. Our goal is to significantly increase our use of data. We are continuously investing in data-related capabilities," Vakkilainen emphasizes.

AI supports Kesko's future

By 2024, Kesko had taken significant steps in leveraging AI. The AI Center of Excellence ensures the effective and responsible use of technologies as well as the sharing of best practices across business sectors.

"We have a practical and business-driven approach to generative AI. Balancing a culture of experimentation with controlled implementation enables new innovations. We always ensure the safe implementation of technology," Vakkilainen explains.

Functos has been developing the structure and process of the Integrated Data Balance Sheet together with its client companies since 2019. The rapid growth and diversification of digitalization and AI make the preparation of the Integrated Data Balance Sheet a strategic process for companies.

"An Integrated Data Balance Sheet is not just another report. Preparing it regularly gives a company the opportunity to comprehensively understand its strategic goals and benefits related to data. It crystallizes and accelerates the company's own digital transformation journey. It is a necessity for companies seeking a competitive edge in their industry," says Mikko Merisaari of Functos.

Functos developed the Integrated Data Balance Sheet methodology in 2019. Kesko is the first listed company to publish an Integrated Data Balance Sheet as part of its annual reporting.

The comprehensive Integrated Data Balance Sheet 2024 is available on Kesko's website.

What Is an Integrated Data Balance Sheet?

What is Kesko's Integrated Data Balance Sheet?

Kesko's Integrated Data Balance Sheet is an annual report that maps how the K Group's data capital and AI capabilities create measurable value for customers, business operations, and stakeholders. It is produced using Functos' Integrated Data Balance Sheet methodology, developed in 2019.

Who produces Kesko's Integrated Data Balance Sheet?

Functos, led by partner Mikko Merisaari, has developed the structure and process of Kesko's Integrated Data Balance Sheet since 2019. Kesko is the first listed company to publish an Integrated Data Balance Sheet as part of its annual investor reporting.

How does the Integrated Data Balance Sheet differ from a traditional sustainability report?

A sustainability report focuses on ESG metrics. The Integrated Data Balance Sheet maps data capital and data assets — showing how data and AI generate direct business value, competitive advantage, and responsible operations across all business sectors.

About the author:

Mikko Merisaari is a partner at Functos Oy and the author and architect of the Integrated Data Balance Sheet methodology, developed in 2019. He has led Integrated Data Balance Sheet projects for listed companies including Kesko and OP Financial Group.