P& G case study analysis

CASE STUDY ANALYSIS

20121543 Dilara Rasulova20121072 Sandra Obiora 20121789 Mwangala Mulamata

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ABOUT P&G • P&G stands for Procter and Gamble.• The partnership agreement between William

Procter and James Gamble.• was signed on October 31, 1837. • pledging $3,596.47 each to start a soap and

candle business together.• Procter & Gamble’s first venture in

advertising begins with a print ad for machine and lamp oil.• By 2012 these brands represent 90% of P&G

sales and more than 90% of their profits, and 25 of them are Billion-Dollar brands.

SUMMARY OF CASE STUDY • P&G is one of the biggest consumer

goods companies in the world because of its ability to create market and sell major consumer product brands .

• It has 127 000 employees across 180 countries 300 brands and $82 billion in revenues in 2011.

• Major reason for P&G successes from the time it was founded in 1837 has been its strength in information technology and willingness to pursuit new IT innovation.

• Its goal is to digitize its processes from end to end and has also fundamentally changed the way it gathers reports and interprets data while reducing cost from other areas of business.

• P&G has a Global business services division that is building analytics expertise that undertaking new analytical solutions such as business sufficiency business sphere and decision cockpits.

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Q1: What management organization, and

technology issues had to be addressed when

implementing Business sufficiency, Business sphere,

and Decision cockpits?

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Management, Organization, and Technological issues

Management Issues involved: 1. Planning: Need for real

time data to make real time decisions, and formulate strategy.

2. HRM: Having open minded, skilled workforce, and need to get quicker solutions.

3. Need for management to clearly see all parts through data in real time.

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Management, Organization, and Technological issues

Organization Issues involve: 1. Need for speedy, and

detailed data processing.

2. Need for uniform data set.

3. Need for management to focus on the same set of information.

Technology issues Involved4. Need for proper

hardware to suit program (terabyte worth of info.)

2. Need for more intelligent software program.3. Need for uniform information system.

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P&G terabyte worth of information

1024 bytes = 1 kilobyte

1024 kilobytes = 1MB,

1024MB = 1GB

In approximation,

1000GB = 1TB.

A 1TB hard drive has the capacity to store 1,000,000,000,000 bytes.

Thus at 200TB P&G software processes, and stores:

200, 000, 000, 000, 000 (trillion) bytes worth of data.

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Business sufficiency = ESS + DSS

1. ESS: Executive Support System, is a system from the constituency perspective.

Support senior management. Addresses strategic issues and long-term trends (no routine decisions requiring judgment, evaluation, and insight).

2. DSS: Decision support systems, Focus on problems that are unique and rapidly changing

What Business sufficiency is about:- Makes predictions for

executives.- Aids them in making plans

and decisions. - In actuality solves a big

portion of initial management and technology problem.- Issues: (Intelligent software,

removes sluggishness, aids strategizing.)

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Business Sphere and Decision cockpits

= ESS + DSS + MIS + TPS- MIS: Management

Information Systems Serve middle management to help with monitoring, controlling, decision making and administrative activities. Provide reports on firm’s current performance, based on data from TPS.- TPS: Transaction

Processing systems: Allow managers to monitor status of operations and relations with external environment

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Business Sphere and Decision cockpits

= ESS + DSS + MIS + TPS• What business sphere

does:

- Reveals Insights, trends, opportunities to executives. Shows sales, market share, budget plans.

The decision cockpits- Gives more of its employees

access to the same common data source.

- Display easy to read charts.

- Has ability to drill down to more detailed data.

- Solves management, organization and technological issues at large.

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Q2: How did these decision-making tools

change the way the company ran its

business? How effective are they and why?

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How did these decision-making tools change the way the company run its

business? New decision-making tools:• Are based on a transformation in the way P&G uses data for decision making.• Allow leaders to focus on immediate business decisions.• Brought people together and experts give their solutions.• Help both managers and employees be able to make faster and better decision now than were previously possible.

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Continued: How effectives are they? Why?

•P&G can devote time and energy where it is most needed.•Faster and better decision making.•Reduced complexity.•Cost reduction.•Decision Cockpits reduced cost of development by 30%.•High performance delivered.

Why: The company is also able to better anticipate future events affecting the business and more quickly respond to market stimuli.

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Q3. How are these systems related to P&G

business strategy?

P&G’s systems and Business Strategy • Managers and employees are now able to make

faster and better decisions than were previously possible.

• They now have benefits of reduced complexity involved in generating a statistical report.

• They have cost reductions from maintaining one standardized set of data across the enterprise instead of duplicated redundant data .

• More workers can answer their own question and obtain their own information using decision cockpits .

• The company is also able to better anticipate future events affecting the business and more quickly respond to market stimuli.

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P&G,the business strategies, and Conclusion

1. Improved decision making

2. New product service and business mobility

3. Operational excellence

4. Improved customer and supplier intimacy

5. Competitive advantage

6. Survival

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Bibliography

• P&G Official Website. N.p., n.d. Web. <http://us.pg.com/who_we_are/heritage/history_of_innovation>.

• What Are Bytes? N.p., n.d. Web. <http://www.whatsabyte.com/>.

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ANY QUESTIONS OR CONTRIBUTIONS?

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