CASE STUDY: PILOTING PROCTER & GAMBLE FROM DECISION COCKPITS

 

1.     What management, organization, and technology issues had to be addressed when implementing Business Sufficiency, Business Sphere, and Decision Cockpits?

·         P&G has been a success due to its robust information technology and its willingness to pursue new IT innovations to maintain a competitive advantage. It’s Global Business Service Division is building analytics such as Business sufficiency, Business sphere and Decision Cockpits.

·         The management dimension of information systems involves Human resources management, strategy and management behavior:

·         The issues had to be addressed are:

o   Human Resources Management: Training, (how to train the existing employees to adopt and use the new tools), hired skillful employees, maintain skillful employees and compensations.

o   Strategy:

1.       Strategy to make sure that data didn’t leaked and obtained by competitors

2.       Strategy to make sure that the data obtained have been fully utilized by the managers and make a decision.

o   Management Behavior: To develop leaders with capabilities of making good and timely decisions.

o   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, the management issues that need to be addressed involves such as:

1.       Functional specialties – P & G needs to structure back the functional specialties especially in IT department.

2.       Business processes, it will be changed and aligned with the new approach

3.       Culture, new culture will be created and how fast the employees can adopt the change.

o   Technology Issues: The organization dimension of information systems consists 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), and networking /telecommunications technology (to support the solutions).

 

2.       How did these decision-making tools change the way the company ran its business? How effective are they? Why?

·         The decision making tools change the way P&G ran its business by:

o   Eliminate time spent debating which data to be used, and instead use the system to assist the leaders to focus on immediate business decision by using the most accurate data available.

o   P&G data sharing allowing all level of management to access for decision making according their level of data clearance.

o   Real time solving for every problem occur in the company and it is solved by the expert directly. This is done through video conferencing between department and division.

o   Help the company to analyze the business performance gradually in order to improve its service in every chain of command, from the production till delivery process. This will increase the company efficiency and they can utilize all their sources more efficient to gain higher revenue.

o   The usage of efficient teleconferencing by Cisco TelePresence system has reduce the difficulty to gather related people especially those in the executive level in a meeting in order to make certain decision.

o   The adaptation of Business Sphere has improved the executive management to see more clearly all the related data and performance of the company status in one places.

 

3.       How are these systems related to P&G’s business strategy?

·         The P&G goal is to digitize its process from end to end and the fundamentally change the way its gathers, reports and interprets data. The analytical solution practice by P&G are:

o   Business Sufficiency – to furnish the executives with predictions about P&G market share and other key performance metrics 6 month to 1 year into the future.

o   Business Sphere – 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.

o   Decision Cockpits – to eliminate time spent by P&G employees debating the validity of competing versions of data found in the e-mails, spreadsheets, letters and report by providing a one-stop source of accurate and detailed real time business data.

·         By adopting such analytical strategy P&G target to remain the ‘most admired companies’ for its ability to create, market and sell major product brands. With its effort to improve its information system and pursue new technology innovation also help P&G to maintain its competitive advantage in its market.




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