Piloting Procter & Gamble From Decision Cockpits

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

        I.            Management issues

-          The management dimension of information system involves leaderships, strategy and management behavior.

-          The issues had to be addressed are:

a)      Human Resources Management

·         Training – how to train the existing employees to adopt and use the new tools

·         Hired skillful employees

·         Maintain skillful employees

·         Compensations

b)      Strategy

·         To ensure the data did not leaked and obtained by competitors.

·         To ensure the obtained data have been fully utilized by managers and executive to make a decision.

c)       Management behavior

·         Management integrity

      II.            Organization issues

-          The organization dimension of information systems involves the organization’s hierarchy functional specialties, business processes, culture and political interest groups.

-          Since 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 department.

·          Business processes – business process will be change and spouse to be in line with the new approach

·         Culture – new culture will be created and how fast the employees can adopt the change.

    III.            Technology issues

-          The organization dimension of information systems consist of computer hardware, software, data management technology and networking telecommunications technology (including internet).

-          By implementing Business Sufficiency, Business Sphere and Decision Cockpits, P&G change the way it’s gathered, reports and interprets data. Hence, the technology issues need to be addressed consists of:

·         Computer hardware – suit the program

·         Software -  to upgrade accordingly

·         Data management technology – to store the huge data

·         Networking & telecommunications technology – support the solutions

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

a)      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 what’s occurring in the business right now, for example shipment, sales and market share. The effectiveness of the tool is based on the analytic models. The “why” models highlighted 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. So, this program helps the CEO and executives to examine the top categories of products and country markets that are responsible for 60% 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.

b)      Business Sphere

Interactive system designed to reveal insights, trends and opportunities for P&G 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.

c)       Decision Cockpits

It gives more of its employees the 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 data. By 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.

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

P&G uses “Distributed development” as part of their global model. This model allows for the adaption in a set of tools and practices that fit an organization’s needs. To success, P&G has been robust information technology and willingness to pursue new IT 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 systems have been reduced complexity involved a statistical report, as well as cost reductions. The implementation of these systems enable P&G 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 most accurate data available at that precise moment.