Piloting Procter & Gamble From Decision Cockpits

1. G S T 5 0 8 3
INFORMATION SYSTEMS & ELECTRONIC COMMERCE
Group Members

2. • P&G has made available to 38,000 users analytical solutions called Business
Sphere and Decision Cockpits.
• The Business Sphere was developed in partnership with BOI, Cisco, HP, SAP,
Nielsen and TIBCO Spot fire.
• The first project, launched in 2010, is the Business Sufficiency program, which
gives executives predictions about P&G market share and other performance
starts six to 12 months into the future.
• At its core is a series of analytic models designed to reveal what’s happening in
the business now, why it’s happening, and what actions P&G can take.
• The “what” models focus on data such as shipments, sales, and market share?
The “why” models highlight sales data down to the country, territory, product
line, and store levels, as well as drivers such as advertising and consumer
consumption, factoring in region- and country-specific economic data.
• The “actions” analysis look at levers P&G can pull, such as pricing, advertising,
and product mix, and provide estimates on what they deliver. Business Sphere
is the further integration of technology, visualization, and information enables
leaders to drill-down into data to get answers in real-time.
Introduction

3. P&G's success has been due to its robust information technology and its
willingness to pursue new IT innovations to maintain a competitive
advantage. Its Global Business Service Division is building analytics
expertise such as Business Sufficiency, Business Sphere and Decision
Cockpits.
Question 1 :
What management, organization, and technology issues had to be
addressed when implementing Business Sufficiency, Business Sphere,
and Decision Cockpits?
Management Issues:
Human resource management (HRM or simply HR) is a function in
organizations designed to maximize employee performance in service of
their employer’s strategic objectives. HR is primarily concerned with how
people are managed within organizations, focusing on policies and systems.
HR departments and units in organizations are typically responsible for a
number of activities, including employee recruitment, training and
development, performance appraisal, and rewarding (e.g. managing pay
and benefit systems.

4. Organization Issues :
The organization dimension of information systems involves the
organization’s hierarchy, functional specialties, business processes, culture
and political interest group. Since P & G pursue new IT innovation to
maintain the competitive advantage.
Technology 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.
CONT’S

5. These solutions eliminate time spent debating different data sets, and
instead use a system that allows leaders to focus on immediate business
decisions using the most accurate data available at that precise
moment. The Business Sufficiency program, furnishes executives with
predictions about market share and other key performance metrics six to
twelve months into the future. It’s based on analytic models that show what
is occurring in the business right now, why it’s happening, and what actions
the company can take to mitigate the situation. By providing the “why,” the
company can take a more appropriate action.
Question 2 :
How did these decision-making tools change the way the company ran
its business? How effective are they? Why?

6. The Business Sphere interactive system reveals insights, trends and
opportunities for leaders, and prompts them to ask focused business
questions that can be addressed with the right data on the spot.
Thousands of algorithms and analytical models aggregate data, organize
them appropriately and then monitor trends. Everyone in the meeting or
organization sees the same information.
The Decision Cockpit eliminates time spent by employees debating the
validity of competing data versions. Employees are able to focus instead
on decisions for improving the business. The Business Sphere and
Decision Cockpits encourage P&G employees and managers to manage
by exception and devote their time and energy where it is most needed.
CONT’S

7. Managers and employees are able to make faster and better decisions than
were previously possible. The company enjoys a reduced complexity
involved in generating a statistical report, as well as cost reductions from
maintaining one standardized set of data across the enterprise instead of
duplicated, redundant data. Employee-generated emails have dropped
sharply since more workers can answer their own questions and obtain
their own information. The company is also able to better anticipate future
events affecting the business and more quickly respond to market stimuli.
Question 2 :
How are these systems related to P&G’s business strategy ?

8. THANK YOU