PILOTING PROCTER & GAMBLE FROM DECISION COCKPITSBy group 7Nittiaraj A/L PerumalSamihah AhmedAliaa Mohd Ziyadi

About Procter & Gamble (P & G)Founded in 1837 and currently one of biggest consumer goods companies in the world127000 employees across 180 countriesMarketing approximately 300 brands ( beauty and household care, health and well-being segmentGenerates $82 Billion in revenues in 2011The Procter & Gamble Company, also known asP&G,is an Americanmultinationalconsumer goodscompany headquartered indowntown Cincinnati, Ohio, USA. Its products include pet foods,cleaning agentsandpersonal care products.

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P&G History: A Legend of Firsts1837Brothers-in-law William Procter and James Gamble start a partnership, making and selling candles and soap in Cincinnati1859P&G sales reach $1 million1879The inexpensive, but high-quality Ivory soap is introduced1924P&G is one of the first to create a market research department to study consumer preferences and buying habits1955Crest, the first toothpaste with fluoride clinically proven to fight cavities, is introduced1961Pampers is introduced and eventually replaces cloth diapers1980Sales reach $10 billion2002P&G develops Naturally feminine pads specifically to meet the needs of low-income women in Latin America.2005High Frequency Stores, Consisting of nearly 20 million stores across the world, FS represents a particular opportunity in fast-growing low income markets.TodayP&G operates in 80 countries worldwide, employing more than 100,000.Has 13 billion dollar brands in its portfolio: Charmin, Tide, Pantene, Iams, Folgers, Crest, Olay, Always, Ariel, Bounty, Downy, Pringles, Pampers.5In 2012, P&G recorded $83.68 billion dollars in sales.Fortunemagazine awarded P&G a top spot on its list of"Global Top Companies for Leaders", and ranked the company at fifth place of the "World's Most Admired Companies" list.Chief Executive Magazine named P&G the best overall company for leadership development in its list of the "40 Best Companies for Leaders

6FOUNDERSWilliam Procter, a candle maker, andJames Gamble, a soap maker, emigrated from England and Ireland respectively.

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P & G Products & BrandsCase Study questionsWhat management, organization, and technology issues had to be addressed when implementing Business Sufficiency, Business Sphere, and Decision Cockpits?How did these decision-making tools change the way company ran its business? How effective are they? Why?How are these systems related to P & Gs business strategy?Q1: What management, organization and technology issues had to be addressed when implementing Business Sufficiency, Business Sphere, and Decision CockpitsManagement Issues:The management dimension of information systems involves Human resources management, strategy and management behavior:The issues had to be addressed are: Human resources management:Training how to train the existing employees to adopt and use the new toolsHired skillful employeesMaintain skillful employeesCompensationsStrategy:Strategy to make sure that data didnt leaked and obtained by competitorsStrategy to make sure that the data obtained have been fully utilized by the managers and make a decisions.Management behavior:Management integrity

Q1: ContinuedOrganization issues:The organization dimension of information systems involves the organizations hierarchy, functional specialties, business processes, culture and political interest groupSince P & G pursue new IT innovation to maintain the competitive advantage, the management issues that need to be addressed involves such as:Functional specialties - P & G need to structure back the functional specialties especially in IT departmentBusiness processes Business process will be change and spouse to be in line with the new approachCulture New culture will be created and how fast the employees can adopt the changeQ1: ContinuedTechnology issues: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 gathers, reports and interprets data. Hence, the technology issues need to be addressed consists of:Computer hardware to suit the program,Software to upgrade accordingly,Data management technology to store the huge data, andNetworking/telecommunications technology to support the solutions.Q2: How did these decision-making tools change the way the company ran its business? How effective are they? Why?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 whats occurring in the business right now ( shipment, sales, market share ) :Why its happening ?What actions can take ?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.As such, 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?

Q2: ContinuedBusiness Sphere:Interactive system designed to reveal insights, trends, and opportunities for P&Gs 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.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.Q2: ContinuedDecision Cockpits:Give more of its employees 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 dataBy 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.Q3: How are these systems related to P& Gs 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 organizations 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 system have been reduced complexity involved a statistical report, as well as cost reductionsThe implementing of systems also able 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