Embracing Digital Innovation: How Topgolf Callaway Brands is Transforming the Golf Industry

March 20, 2023

Embracing Digital Innovation: How Topgolf Callaway Brands is Transforming the Golf Industry

Callaway Brands is a world-renowned company that specializes in golf equipment, apparel, and accessories, and has been a staple in the industry since 1982. In recent years, the company’s focus has shifted towards new strategic opportunities for growth and expansion through Topgolf and other lines of business. To enable this strategic shift and growth, Callaway has embarked on a digital transformation journey to streamline its systems and deliver intelligent, personalized customer experiences.

Legacy Systems and the Digital Transformation Journey

As is common with many companies, Callaway inherited numerous legacy systems as a result of acquisitions over time. These systems were disparate and challenging to manage. The company’s current journey towards digital transformation has been driven by the need to migrate these disparate legacy systems to a single system, streamlining operations for more efficient service delivery.

Shifting Revenue Mix and Direct Customer Engagement

In 2016, Callaway generated 84% of its revenue from golf equipment. However, by 2021, the revenue from golf equipment had shifted to 38%, with 38% being attributed to Topgolf and 24% in apparel and other lines of business. This ongoing shift makes direct customer engagement increasingly important for the organization. As a result, Callaway is leveraging its organizational data to deliver intelligent, personalized customer experiences to remain competitive.

Collaborative Partnerships for Digital Transformation

To achieve its digital transformation goals, Callaway is working closely with partners GK Software and SAP. GK Software is a specialist in cloud services for retail, while SAP supports Callaway’s modernization initiatives. These partnerships will enable Callaway to leverage cutting-edge technology and modern tools to streamline operations, enhance performance, and improve outcomes.

Streamlining Point-of-Sale Processes and International Expansion

The current push towards digital transformation started with a project to streamline point-of-sale processes for Callaway’s TravisMathew brand. The implementation of the streamlined system laid the groundwork for the international expansion of Callaway’s various brands. Since 2020, the company has undertaken six significant international rollouts, replacing all systems and installing all stores in a new country, taking about three months for each rollout.

On-Premises Infrastructure and Transition to Public Cloud

For now, Callaway still runs everything on-premises, using its infrastructure, as the company is not yet ready, from a structural standpoint, to make the transition to the public cloud. Over the coming year, the company plans to migrate the backend from its on-premises infrastructure to the public cloud. This migration will help Callaway to leverage the power of cloud technology for greater flexibility, scalability, and reduced overhead costs.

In conclusion, Callaway Brands’ digital transformation journey is emblematic of the importance of technology in the world of business. Through partnerships with GK Software and SAP, the company is streamlining systems and leveraging modern tools to enhance performance and improve the customer experience. As Callaway continues to shift its revenue mix and expand internationally, its digital transformation journey will remain a key enabler of its strategic growth and expansion.

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