Assignment PPT

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INFORMATION SYSTEMS & E-COMMERCE –GST5083
CASE STUDY 3 :
PILOTING PROCTER & GAMBLE FROM DECISION COCKPITS
LECTURER: PROFESSOR DR RUSLI BIN ABDULLAH

2. Introduction & Background
 Procter & Gamble Co., also known as P&G, is an
American multinational consumer goods company
headquartered in downtown Cincinnati, Ohio, United
States, founded by William Procter and James Gamble,
both from the United Kingdom.
 Founded in 1837.
 One of the biggest consumer goods companies in the
world, with 127,000 employees across 180 countries.
 Marketing for 300 brands
 Generates $82 billion in revenues in 2001
William
Procter
James
Gamble
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3. Case Study Summary
 This case focuses on how P&G use information system to
improve decision making. P&G is investing in analytic talent,
even as the company cuts in other areas, to speed up business
decision making. True leaders develop the capabilities required
for making good and timely decisions in unpredictable and
stressful environments.
 P&G analytic platform is a part of a wider strategic initiative
which aims to support, provide deliver insights to meet the
needs for P&G in multi-channel, multi-devise, multi-format,
multi-language, multi-country of the world that it operates.
P&G is investing in analytics expertise because the model for
using data to run a company is changing.
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4. P & G Products And Brands
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5. CASE STUDY QUESTIONS
1. What management, organization, and technology issues
had to be addressed when implementing Business
Sufficiency, Business Sphere and Decision Cockpits?
2. How did these decision-making tools change the way the
company ran its business ? How effective are they? Why?
3. How are these systems related to P & G’s business
strategy?
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6. 1. What management, organization, and technology issues had
to be addressed when implementing Business Sufficiency,
Business Sphere and Decision Cockpits?
a). Management issues
 The management dimension of information system involves
leadership, strategy and management behaviour.
The issues had to be addressed are :
1. Human Resources Management
 Training – how to train the existing employees to adopt and
use the new tools
 Hired skillful employees
 Maintain skillful employees
 Compensations
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7. CONTINUE
2. Strategy
Strategy to make sure that data did not leaked and obtained
by competitors.
Strategy to make sure that data obtained have been fully
utilized by managers and executive to make a decision.
3. Management Behaviour.
Management integrity
b). Organization issues
The organization dimension of information systems involves
the organization’s hierarchy, functional specialities, business
prcesses, culture and political interest groups.
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8. The organization dimension of information systems involves
the organization’s hierarchy, functional specialities, business
prcesses, culture and political interest groups.
Since P & G pursue new IT innovation to maintain the
competitive advantage, the management issues that need to
be addressed involves such as :
i. functional specialities – P & G need to structure back the
functional specialities especially in IT department.
ii. business processes – Business process will be change
and spouse to be in line with the new approach.
iii. culture – New culture will be created and how fast the
employees can adopt the change
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9.  The organization dimension of information systems consist of
computer hardware, software, data management technology and
networking/ telecommunications technology (including the internet).
 By implementing Business Sufficiency, Business Sphere and
Decision Cockpits, P& G change the way its gathered, reports and
interprets data. Hence, the technology issues need to be addressed
consists of :
- computer hardware – suit the program
- software – to upgrade accordingly
- data management technology – to store the huge data and
- networking/telecommunications technology – to support the
solutions.
c). Technology Issues
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10. 2. How did these decision-making tools change the way the company ran its
business ? How effective are they? Why?
a). Business Sufficiency:
 This program furnished executives with predictions about P&G market share
and other key performance metrics six months to one year into the future.
Based on a series of analytic models showing what’s occurring in the business
right now (shipment, sales, market share)
 The effectiveness of the tool is based on the analytic models as follows : -
The “why” models highlight sales data at the country, territory, product line
and store levels along with drivers such as advertising and consumer
consumption, factoring in specific economic data at the regional and country
levels.
- The “actions” show ways that P&G can adjust pricing, advertising and
product mix to respond to the predictions.
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11. So, this program helps the CEO and executives to
examine the top categories of products and country
markets that are responsible for 60 percent of sales.
This tool provides data visualizations that show
changes in sales and market share.
Moreover, this program furnish more detailed data
as required by executives such as : Is the sales dip in
detergent in Germany because of one large retailer?
Is that retailer buying less only in Germany or across
Europe
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12. b). Business Sphere:
 Interactive system designed to reveal insights,
trends, and opportunities for P&G’s leaders and
prompt them to ask focused business questions that
can be addressed with data on the spot.
Thousands of algorithms and analytical models
aggregate data, organizing it by country, territory,
product line, store level, and other categories and
monitor trends like response to advertising and
consumer consumption within individual regions and
countries.
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13. This tool allows top executives to answer their own
specific business questions and to visualize data in a
more intuitive way. It was envisioned as a kind of
command center, where top managers gather either
in person or via high-quality video conferencing, and
immediately determine the biggest problems facing
the business and who can fix it as soon as they arise.
P & G now has more than 50 Business Sphere around
the world.
This tool is effective because P&G now can obtain
data about sale, inventory, ad spending and shipment
data much faster and more frequent time intervals.
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14. c). Decision Cockpits:
It gives more of its employees the access to the same
common data sources, these cockpits are dashboards
displaying easy-to-read charts illustrating business status
and trends.
It feature automated alerts when important events occur,
control charts, statistical analyses in real time, and the
ability to “drill down” to more detailed data.
By providing a one-stop source of accurate and detailed
real-time business data, all employees are able to focus
instead on decisions for improving business.
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15. 3. How are these systems related to P & G’s business strategy?
Procter & Gamble uses “Distributed development” as part of
their global model. This model allows for the adaptation in a
set of tools and practices that fit an organization’s needs.
To success, P & G has been robust information technology
and willingness to pursue new IT technology to maintain a
competitive advantage in its industry.
The Business Sufficiency program, Business Sphere and
Decision Cockpits, give managers and executives the faster
and better decision making. The systems have been reduced
complexity involved a statistical report, as well as cost
reductions.
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16. The implementation of these systems has able
P&G to better anticipate future events
affecting the business and more quickly
respond to market stimuli.
These systems eliminate time spent debating
different data sets, and instead use a system
that allows management and employees to
focus on immediate business decisions using
the most accurate data available at that
precise moment.
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17. THANK YOU
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