Managing with Analytics at Proctor and Gamble Case Study

Running head: MANAGING WITH ANALYTICS: PROCTOR AND GAMBLE 1
Managing with Analytics at Proctor and Gamble: Case Study
Name of Author
Institutional Affiliation
MANAGING WITH ANALYTICS: PROCTOR AND GAMBLE 2
Managing with Analytics at Proctor and Gamble: Case Study
a) Proctor and Gamble IT Organization
From a previously decentralized system of business operations, the management at
Proctor and Gamble decided to introduce radical changes that would increase the market reach of
the company through IT and allow managers easy time by availing data through a centralized
management system. Initially, the company had used two organizational models in Europe and
the United States. In Europe, three key dimensions had been used. These included geography,
functionality, and brand (Serels, Iansiti & Davenport, 2013). On the other hand, the American
model depended on two key descriptors including functions and brand. This was improved with
Global Matrix system in the 1990s which consolidated country functions.
The key problems associated with the European model included the fact that the
corporate functionalities were disconnected both in Europe and with the United States. To a large
extent, different functionalities of P&G functioned in isolation with lack of standardization in the
American and European markets. There was extreme unreliability in functionalities and the
realization of poor and sub-scale productions. Because of these variables, country R&Ds
remained very expensive to maintain and run. The application of the Global Matrix still
sustained de-facto controls in country lines. Lack of coordination and emergence of divergent
strategic agenda from different countries also remained a challenge. Because regional manages
were accountable, they would hesitate to implement new decisions (Serels, Iansiti & Davenport,
2013).
In aligning its IT organization P&G introduced the use of collaborative technologies
which would ensure centralized global management. It invested in business-to-consumer (B2C)
MANAGING WITH ANALYTICS: PROCTOR AND GAMBLE 3
commerce in which technology would facilitate electronic commerce, and introduced web-
enables systems for data warehousing (Serels, Iansiti & Davenport, 2013).
The Global Business Units and Global Business Services were for consumer brands and
the provision of business support services. Their rationale for introduction included innovation,
increase of pipeline profitability, and utilization of talent expertise. These would drive businesses
from their conservative, lethargic, and bureaucratic nature to modern, quick-moving and internet
savvy approaches.
b) The Role of IDS at P&G
Information and Decision Solution (IDS) acted as a key enabler of business processes at
the core of the functionality of P&G. It acted to avail to all managers and P&G decision makers
standardized data in real time form for decision analytics. Notably, IDS functions as a repository
system that centralizes data from disparate and divergent lines. Its capabilities include the
aggregation and data comparison that is unified across divergent product lines and the
standardization of types and qualities of data. This linked the GBU and MDOs to allow their
systems to access the data in a centralized and efficient source (Serels, Iansiti & Davenport,
2013). Being user friendly and easy to manipulate, IDS allowed key players in the business
system to access a wide database, achieve visual analytics, understand divergent business
situations in different product regions, and make competent decisions.
An example of the solution systems developed by the IDS was the Decision Cockpit
which was based on a web-based real time analytics of all data processes and news information
from individual employee activities. Its uniqueness and customization allowed each customer the
opportunity to prepare specified data display on personal dashboards. One unique element of the
Decision Cockpit as a solution tool was the ability to give alerts. This occurred in the events of
MANAGING WITH ANALYTICS: PROCTOR AND GAMBLE 4
new data relating to important information on production, competition, or others. An example of
this is the case of a competitor posting information with similarity or competing content to a
product or line (Serels, Iansiti & Davenport, 2013). Because all functional dashboards for
employees and managers were connected with the central data warehouse, any new information
became available to all parties instantaneously.
c) How P&G management ensure everyone up and down the chain used real-time data
Notably, the evolutions in the IT organization would automatically ensure that individual
employees and managers across P&G used real-time data in decision making. First, the company
created a network for all the business departments that had access to real-time data. This took the
data to all players. Secondly, key processes were made IT-savvy, thereby making it only possible
to generate, access, and deliver data through the systems. This made it easy for compulsory for
all players to use the data. Perhaps, the greatest innovation in the system of data processing was
the case of creating personalized and customized dashboards for employees. Besides allowing
access to information, the presence of system alerts allowed the access and use of updated
information, thereby summoning the involved parties to data access (Serels, Iansiti & Davenport,
2013). In simple terms, the creation of systems and their use eased and ensured access to real-
time data.
d) Applications
Most of the learning in the P&G case remains relevant in business management for success.
There are three core reasons and goals I may apply these processes to a business. First would be
to improve functional competencies. Second, involves developing an effective business strategy.
Lastly, I would use them to marshal resources and build execution plans for the established
strategies. In the first case, I would use IT systems to facilitate employee buy in, proactive
MANAGING WITH ANALYTICS: PROCTOR AND GAMBLE 5
communication and facilitate manager-employee interactions. I would create systems that
enhance implementation speed through real-time access. By ensuring unification and
centralization of systems, I would achieve centralized management with access to data that is
relevant for decision making.
MANAGING WITH ANALYTICS: PROCTOR AND GAMBLE 6
References
Serels, A., Iansiti, M., & Davenport, T. (2013). Managing with Analytics at Proctor and Gamble.
file:///C:/Users/user/Downloads/Procter&Gamble.pdf

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