Case Study 3: Piloting Procter & Gamble From Decision Cockpits
INTRODUCTION
Procter & Gamble (P&G) is one of the biggest consumer goods companies in the world, with 127,000 employees across 180 countries, 300 brands, & $82 billion in revenues in 2011. P&G is regularly ranked near the top of lists of "most admired companies" for its ability to create, market, and sell major consumer product brands. A major reason for P&G's success has been its robust information technology and willingness to pursue new IT innovations to maintain a competitive advantage in its industry.
CASE STUDY QUESTIONS
Question 1:
What management, organization, and technology issues had to be addressed when implementing Business Sufficiency, Business Sphere, and Decision Cockpits?
Answer
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Business Sufficiency
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Issues
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Management
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o Provides
executives with prediction about market shares and key performance metric six
month to one year in the future
o Manage
sales data at the country, territory, product line and store level, along
advertising and consumer consumption, factoring in specific economic data at
the regional and country level. Enable P&G to adjust pricing, advertising
and product mix to respond to the prediction
|
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Organization
|
o
Enable the P&G to set their goals and
needs accordance to the company’s vision and mission.
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Technology
|
o The
systems visualized the data of changes and market shares.
o Sales
data allows pricing adjustment, advertisement and product mix
|
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System
Lacking
|
o
The data is not detailed to lead the top
executives to examine specific sales and market shares.
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Business Sphere
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Issues
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|
Management
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o
Moved from traditional way of holding a
meeting to virtual meeting to gather data to relevant parties
|
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Organization
|
o
Adapting new technology accordance current
trend which enable them to deliver the data faster and more efficient.
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Technology
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o Interactive
system designed to reveal insight, trends and opportunity for P&G’s
leader and prompt ask focus business question that can be address with the
data on the spot.
o The
program managed to analysed 200 terabytes P&G data and display
information quickly and clearly.
o The
system enables top managers gather via high quality video conferencing
technology like Cisco TelePresence and immediately determine the biggest
problem facing the business and who can fix those problem as soon as they
arise.
o Able
to point of sales inventory at advertisement spending and shipment data that
it did years ago much faster and at more frequent time intervals.
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System Enhancement
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o
Determine to extend the same principle deeper
within the business.
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Decision Cockpits
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Issues
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Management
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o
Eliminate time spend by P&G employees
debating the validity of competing version of data formed in emails,
spreadsheet, letters and reports.
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Organization
|
o
Provide one stop sources of accurate and
detailed real time business data, all P&G employees are able to focus
instead of an decisions for improving the business.
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Technology
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o Dashboard
displaying make easy to read chart illustrating business status and trend.
o Automate
alert when important event occurs, control chart, statistical analysis in
real time, and ability to “drill down” more detailed levels of data.
|
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System Enhancement
|
o
Encourage P&G employees and managers to
manage by exception.
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Question 2:
How did these decision-making tools change the way the company ran its business? How effective are they? Why?Answer
These decision-making tools help managers and employees to make faster and better decision. It also reduce the complexity involved in generating a statistical report as well as cost reduction from maintaining one standardized set of data across the enterprise instead of duplicate, redundancy data. The systems also allows better messaging and video to make decision and enable to better anticipate future event affecting the business and more quickly respond to market stimuli.
Question 3:
How are these system related to P&G's business strategy?Answer
These system leads P&G to achieve the business strategy by moving to digitalization the process from end to end and fundamental change the way its gather reports, and intemperate data. It also helps to trim cost from other areas of the business.
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