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.

Mashaweer Case study

What kinds of applications are described in this case? What business functions do they support?

As Mashaweer planned to expand their services with full force so that there would be a high barrier of entry for any competitor they decided that their competitive advantage would have to be in investing in technology.

a)       Enterprise Resource Planning (ERP)

ERP systems are integrated enterprise-wide standard information systems that automate all aspect of an organization’s business process. An ERP systems that enables a company to manage the efficient use of its resources. Among the most important ERP attributes are the ability to:

-          Automated and integrated the majority of an organization’s business process including production planning, cozy and development, sales and marketing, manufacturing, inventory management and shipping payment.

-          Share common date and practices across the entire enterprise.

-          Produce and assess information in real time environment.

At first Mashaweer wanted to get ERP system but the cost is too high. Due to that reason, they started their own information technology company, Innov8 (innovate), where they created a customized ERP system which they then connected to their customized PDAs (Personal Digital Assistants) through a cloud computing system that was made by LinkDotNet and Mobinil. Each rider receives tasks one at a time on the PDA, which also includes a GPS to provide detailed directions.

b)       CISCO

To reduce cost and ensure quality, Mashaweer does not rely on outsourcing in any of its stages as long as it can do the work with the same or better quality. For example, Mashaweer’s in house capabilities is its call center. The company investing in an innovative contact center and using CISCO, which supports up to 3001P phones, a reporting module and a recording system made it much easier for Mashaweer to track its received calls and work on any problem that might face its customer service agents. Mashaweer call center is expected to make up an important revenue stream for the company as their sales and marketing strategy.

c)       Mashaweer’s Server

One of the software developed by Innov8 is Mashaweer Server. It is a centralized application that manages the following elements:

§  Orders (placement, editing, pricing, review, tracking & reports)

§  Routes management and optimization

§  Clients (management, reports, discounts)

§  Packages tracking

§  Contracts

§  Call center

§  Satellite offices

§  Representatives

§  Cash transactions and expenses tracking for representatives and satellite offices

§  Asset tracking of vehicles, PDAs and mobile printers

§  Management reports

d)       Application Programmer’s Interface (API)

API is a method of integrating Mashaweer ordering system with third parties. This allows third parties to automate their delivery system and integrate Mashaweer into their existing CRM/ dispatching systems, opening a wide opportunity for business expansion.

What are the benefits from equipping their riders with PDAs?

PDA is a mobile device that functions as a personal information manager. The Mashaweer PDA application is installed on each representative PDA and manages the following elements:

§  Order items progress tracking

§  Collection of order fees and other costs, against a printed invoice

§  Package handling (barcode scanning and destinations)

§  Messaging

§  Cash and expenses tracking

§  Synchronizing data periodically and at the beginning of each shift

Mashaweer invested in PDAs to enable the operation process to be monitored accurately since is provides date like GPS tracking to track each order and the location or stage the messenger is located. Through this technology, Mashaweer decreases the amount of errors due to the fact that the messenger is tied to an automated process where he receives his tasks through the PDA handled.

Question 3

Was it a good decision to expand the business to Cairo? What are the implications of information systems?

Yes, it was a good decision to expand the business to Cairo. When Mashaweer was first introduced in Egypt, it captured 100 percent of market share for such service because it was the first and only company of its nature. However, the market was not aware or used to such a service, so it started growing slowly in Alexandria until people grasped the idea and got accustomed to the fact that there is a company that can take your errands. In contrast, when the company started operating in Cairo, it grew as surprisingly fast pace. There are several factors are expected to affect the target market and make it easier for Mashaweer to penetrate it aggressively.

At the beginning, people’s assumption is that using Mashaweer is too luxurious and costly. When they use it for the first couple of times, this perception changes and they begin to rely on this convenient service. As more people get accustomed with the service, it creates a cultural change that significantly affects the demand on the service.

Another factor that is expected to facilitate working conditions and reduce costs is the technological advances that occur every day. Mashaweer heavily depends on technological tools and would benefit from the advancements and price reductions that continuously take place. As a result, Mashaweer’s total costs will decrease, enabling it to decrease its prices and further improve its quality to become even more convenient for a larger number of people.

Do you think that Mashaweer will be able to accomplish their future strategy and sustain its market share?

Mashaweer’s future strategy are as follows:

         i.            Mashaweer market – Mashaweer is an online supermarket that will enable people to do their grocery shopping through Mashaweer’s website and get it delivery by its representatives within 30 minutes of placing the order. This will be made possible by having access to a large number of supermarkets around Cairo and Alexandria, so that representatives can pick the order from the closest outlet and deliver it to the customer as quickly as possible. All products will be displayed on the website. Mashaweer is hoping to reach an average of 4000 orders daily in return for a delivery charge of 5 Egyptian pounds per order.

        ii.            Call center – Mashaweer’s call center is expected to make up an important revenue stream for the company in the near future, as the company starts introducing marketing campaigns. In addition, Mashaweer is planning to expand its call center to include other companies other than Mashaweer.

      iii.            Geographical Expansion – Using the technology they have invested in building their infrastructure, Mashaweer now has potential to easily enter and penetrate other markets in different regions at a very low initiation cost. They plan to expand to other regions within Egypt, in addition to expanding to other countries within the Middle East. In October 2013 they will open their first franchise in Beirut, Lebanon. They are also looking to expand to several in the Gulf. The challenge with geographical expansion into other locations is that it’s a costly process to fully capture the market. However, Mashaweer has already proven that is possible to expand into other regions through Egypt with their 2011 expansion from Alexandria to Cario. The suggestion to this strategy would be to expand throughout Egypt and the Middle East with full force to fully capture the Egyptian and Middle Eastern market. Mashaweer need to plan strong strategy to facing local competitors.

These three strategies have the potential to success and will be able to accomplish their future strategy and sustain its market share if these strategies to be implemented and executed correctly.

Do you think in near future, the competition between Mashaweer and Wassaly will be aggressive? Why?

No, because Mashaweer is the only company of its kind in Egypt that operates on this scale. However, there is a company called Wassaly that was established in Cario after Mashaweer’s success in Alexandria. This company operates on a much smaller scale. Their indirect competitors include other courier services (e.g DHL, UPS, TNT and FedEx). However, they have positioned themselves as the flexible courier in contrast to the couriers available in the market today, they offer same day delivery rather than next day delivery. Mashaweer has several other advantages that make it very hard for others to complete:

·         Database of thousands of loyal clients

·         Self-investment in manageable

·         Highly qualified and carefully selected riders due to the high salaries compared to the delivery sector in the Egypt

·         Various revenue streams

·         Being the owner of the IT company Innov8 fosters technology integration in Mashaweer

Mashaweer also has several unique selling propositions. The main two aspects are being the first in the market and the only of its kind. Also the most important differentiator is the flexibility of their service, which addresses all of their customer’s needs and requests.

Big Data, Big Rewards

Describe the kinds of big data collected by the organizations described in this case.

There are four kinds of big data collected by the organizations described in this case. First, IBM BigSheets help the British Library to handle with huge quantities of data and extract the useful knowledge. British Library responsible for preserving British Web sites that no longer exist but need to be preserved for historical purpose. IBM BigSheets helps the British Library to process large amounts of data quickly and efficiently. Second, state and federal law enforcement agencies are analyzing big data to discover hidden patterns in criminal activity. The Real Time Crime Center data warehouse contains millions of data points on city crime and criminals. IBM and New York City Police Department (NYPD) work together to create the warehouse, which contains data over 120 million criminal complaints, 31 million criminal crime records and 33 billion public records. Third, Vestas implemented a solution consisting of IBM InfoSphere BigInsights software running on high-performance IBM System x iDataPlex server. Fourth, Hertz using big data solution to analyze consumer sentiment from Web surveys, emails, text message. Web site traffic patterns and data generated at all of Hertz’s 8300 locations in 146 countries. Hertz was able to reducing time spent processing data and improving company response time to customer feedback and changes in sentiment.

List and describe the business intelligence technologies described in this case.

IBM BigSheets is an insight engine that helps extract, annotate and visually analyze vast amounts of unstructured Web data, delivering the results via a Web browser. State and federal law enforcement agencies are analyzing big data to discover hidden patterns in criminal activity such as correlations between time, opportunity, and organizations or non-obvious relationships between individuals and criminal organizations that would be difficult to uncover in smaller data sets. The Real Time Crime Center data warehouse contains millions of data points on city crime and criminals. Vestas relies on location-based data to determine the best spots to install their turbines. It implemented a solution consisting of IBM InfoSphere BigInsights software running on a high-performance IBM System x iDataPlex server.

Why did the companies described in this case need to maintain and analyze? What business benefits did they obtain?

a.    The British Library

It needed to maintain and analyze big data because traditional data management methods proved inadequate to archive billions of Web pages and legacy analytics tools could not extract useful knowledge from such quantities of data.

b.    New York Police Department (NYPD)

-          Allow the NYPD quickly respond on criminals occurred.

-          Help NYPD to obtain sources of the suspects, such as suspect’s photo, past offences or addresses with maps, can be visualized in seconds on a video wall.

c.    Vestas

-          Vestas is the world’s largest wind energy company.

-          Location data are important to Vestas so that can accurately place its turbines.

-          Areas without enough wind will not generate the necessary power.

-          Area with too much wind may damage the turbines.

-          Therefore, Vestas relies on location-based data to determine the best spots to install their turbines.

-          Vestas’s Wind Library currently stores 2.8 petabytes of data.

d.    Hertz

-          Reducing time spent processing data.

-          Improving company response time to customer feedback.

-          Hertz was able to determine that delays were occurring for returns in Philadelphia during specific time of the day.

-          Enhanced Hertz’s performance and increased customer satisfaction.

The business benefits for maintaining and analyzing big data are as follows:

       i.        Competitive advantages

      ii.        Performance enhancement

     iii.        Increase customer satisfaction

    iv.        Attract more customers and generate more revenue

     v.        Improved decision making (faster & accurate)

    vi.        Excellence operational

   vii.        Reduced cost and time spent

Question 4

Identify three decisions that were improved by using big data.

a.    Optimal uses of resources and operational time

By using the big data, the companies can optimal uses of their resources to enhance performance. Vestas can forecast optimal turbine placement in 15 minutes instead of three weeks, saving a months of developments time of turbine site.

b.    Quick and effective decision making

Decision making improves and can be quickly and effective by using big data. Visitor of The British Library and NYPD can quickly and effectively searches data from the British Library web sites. NYPD can make a faster decision to gather the suspect’s detail by using The Real Time Crime Center.

c.    Reduce operational cost and other related cost

Company quickly makes the right decision and hence will eliminate wrong decision. Example, Hertz was able quickly adjust staffing levels at its Philadelphia office during those peak times, ensuring a manager was present to resolve any issues.

Question 5

What kinds of organizations are most likely to need big data management and analytical tools? Why?

-          Organizations which is responsible to store huge information such as national library, registration department, income tax and so on because these organizations typically be a sources for government and the public.

-          Authorities organization such as police department, custom, immigration because they need to store a big data about criminals and also public to use for safety of the society.

-          Organization to go green need big data about the weather and location because the weather and location data are very useful for the companies to accurately make a decision.

Therefore, Vestas need the data about location and wind to locate their turbines

Apple, Google, and Microsoft Battle for your Internet Experience

Compare the business models and areas of strength of Apple, Google and Microsoft.

Although they have different business models and strategies, Apple, Google and Microsoft are three major companies who seek to dominate the Internet user’s experience. They come to the platform with their own proprietary strengths. In looking at business models, Apple’s business model focuses on the consumer and bringing them a personalized web experience through their hardware (iPads, iPhones, iPods and iMacs), their two major OS systems, Mac OS X and iOS and through internet. Although their model limits what type of software customers can access, they offer over 250,000 apps through their iOS app store.

Apple’s business model mainly focuses on mobile devices such as iPhones and iPads which account for 52% of its profit. They already have a head start on the mobile phone industry where they have over 250000 applications. Apple controls 27% of the mobile market and the iPhone is the highest grossing cellphone ever.

Whereas, Google’s business model focuses the market from the mobile, advertising and operating systems. The strengths of Google are that they dominate in advertising with their search engine and their Android OS controls 41% of the mobile market share. The mobile market is constantly growing three times faster than the iPhone market share. They bought Android Ins. to enter mobile market. They also bought Motorola Ins. for 12.5 billion.

Meanwhile, Microsoft’s business model is operating systems which 95%of all computers use worldwide. The strengths of Microsoft are that they are still the leader in PC operating systems and desktop productivity software. But, has failed miserable with regards towards smartphone hardware and software, mobile computing, cloud-based software apps, its Internet portal.

Why is mobile computing so important to these three firms? Evaluate the mobile platform offerings of each firm.

Mobile computing is so important to these firms because of the fundamental paradigm shift. The environment is a $400 billion e-commerce marketplace and the applications used enrich the experience of using a mobile device. Mobile computing is the most important and critical business segments of both Google and Apple. Apple has gained various advantages in the industry in terms of mobile supremacy which tends to serve it well. People now want to use their mobile phone in the mast sophisticate ways and above all through speech recognition. The most of the new phones allow us to use internet, access email, listen to music and so on. The innovations are to speak to our phone and be able to use it as a personal assistant. The three competitors are fighting hard to give us the best model and platform.

Apple uses a closed proprietary system and apps that only provide through iTunes. Whereas, Google aggressively following the eyeballs. It has introduced Android mobile operating system for a host of non-Apple devices. Open non-proprietary system that allows users to use any apps through any resources unlike iTunes. Meanwhile, Microsoft trying to nr partner with Apple and make Bing, default search engine for both iPhone and Apple’s web browser. That would provide Microsoft with a much needed boost to its fledgling search service.

What is the significance of applications and Apps stores to the success and failures of mobile computing?

The success of the mobile computing relies heavily upon the apps stores and applications of the mobile. In this market, Apple is the one that dominates. The new ecosystem based mobile applications open opportunities for the carriers, who could develop their own apps stores based on user information according to the consumer’s data usage. Apps greatly enrich the experience of using a mobile device and without them, the predictions for the future of mobile Internet would not be nearly as bright. Whoever creates the most appealing set of devices and applications will derive a significant competitive advantage over rival companies. Apple makes money on each app sold through its App store. That’s worth billions of dollars to the company. Even if an app is free, Apple still has an advantage because users must visit Apple’s App store. However, app developers have complained that making money is too difficult. Apple has blocked some apps from its mobile devices. Apple claimed it violated user privacy. Google has worked very hard to increase the number of apps available for Android based mobile devices by encouraging developers to increase the number of apps. Google also makes money by embedding advertising in some of the apps used Droid-based devices.

Which company and business model do you believe will prevail in this epic struggle? Explain your answer.

Google has the major share of the advertising market, however Microsoft and Apple will be major threat to them. As long as there is potential money at stake, Microsoft Corporation and Apple will stop at nothing to overturn and destroy its competitive advantage. Apple has had a significant lead in mobile computing for several years. However, as more companies, Google, Microsoft and others continue to expand into the arena, its lead will be threatened. Google still reins web-based services through their search engine. But like Steve Job’s idea, who dreams and keep continuing to developing new technology will become top.

What difference would it make to business or individual consumer if Apple, Google or Microsoft demands the internet experience? Explain your answer.

Apple is leading apps compare to Google, but Google is catching up through the Android operation system and by encouraging app developer. If there is useful or good apps that consumer demands and right choice of choosing which platform to go for, that will be success for next few years. Switching costs play into both scenarios not just in terms of phone purchases but the price of apps. Once a user purchases and adjusts to using a certain platform it’s difficult and expensive to switch to a whole different system.

Groupon's Business Model Social and Local

How does Groupon take advantage of social networking and location technology?

Groupon is a global e-commerce marketplace connecting millions of subscribers with local merchants by offering activities, travel, goods and services in more than 28 countries. Groupon was launched in November 2008, and the first market for Groupon was Chicago, followed soon thereafter by Boston, New York City and Toronto. By October 2010 Groupon was available in 150 cities in North America and 100 cities in Europe, Asia and South America, and had 35 million registered users. By the end of March 2015, Groupon served more than 500 cities worldwide, nearly 48.1 million active customers and featured more than 425,000 active deals globally.

Groupon works as an assurance contract using the point platform. If a certain number of people sign up for the offer, then the deal becomes available to all. If the predetermined minimum is not met, no one gets the deal that day. This is will reduce risk for retailers, who can treat the coupon as quantity discount as well as same promotion tools. Groupon makes money by keeping approximately half the money the customers pays for the coupon. 

Social Technology:

Groupon combined two of the major new trends in e-commerce localization and social networks. Selling goods and services on the internet in increasingly based on social networking such as recommending friends. Moreover, companies targeting individuals and their friends who are member to social networking communities such as Facebook and Twitter. Other than that, it also can follow up with newsletter, special offer and new release the company. There are mobile applications for Groupon as well as for many other companies that are increasingly pitching and selling over mobile platform and e-commerce is becoming more mobile as well.

Location Technology:

As Groupon armed with detailed knowledge of customer location target special offer of location-based goods and services. Information for the selling of goods or discount of coupons can be access by customer at anytime and anywhere by using mobile applications. Moreover, the business earns revenue by asking people to recruit their friends and acquaintances to sign up to discount to create a critical mass of potential customers for a local products or services.

Do you think this business model is viable? Why or not why?

For my opinion the business model is viable due to it is an inexpensive deal and ability to get more profit.  It is because, by using social connectivity is proven as a platform to selling goods and services on the internet. Groupon also need to strategize the marketing and business in order to maintain their profits and Groupon also need to maintain and increase competitive advantage for their products and services.  

Submit Electric Light Up with a New ERP System

Which business processes are the most important at Summit Electric Supply? Why?

There are several business processes that were used by the Summit Electric Supply company. The most important ones is Enterprise Resources Planning (ERP) which is system from SAP software. The scalability and inventory visibility are the two factors which is most important to Summit Electric Supply keep updated the level of stock and inventory left in their store for a certain time. Second business process used by Summit Electric Supply is Net Weaver Business Warehouse. This SAP Net Weaver offers users many advantages for all aspects of business process management and support the entire life cycle of business process from planning, implementation, monitoring and optimization. This application helps Summit Electric Supply in continually create and manage agreements to maximum charge back recovery and communicate with vendors electronically.

What problems did summit have with its old systems? What was the business impact of those problems?

The problem with this type of system is that integration and response time suffer greatly. It is because batch processing the data from the two systems into an integrated database was a manual process which drained efficiency of process. The system also may be handling in limited number range for documents which are created a problem of having recycle number from time to time. The system more complicated system because it would separate different categories. Moreover, business will impact problems such as not able to keep up with the business, handle a few range of numbers and location and will caused a delay because not enough time handle it.

How did Summit’s ERP system improve operational efficiency and decision making? Give several examples.

Enterprise Resources Planning (ERP) The new system requirement needed to provide the ability to view and manage sales and distribution, material management, scability, inventory management and financial reporting system.  For example, it’s running smaller and frequent inventory update throughout the day. New system provided accurate information of shipping order which Summit able to ship immediately. Moreover, are Business Intelligence whereby it makes a better manage its finance and ordering system. Summit implemented the SAP’s and NetWeaver data warehouse and business intelligence to ensure Summit able to analyse profit of each person, manufacturer, customer and branch. It is because, Summit was able to improve its Return On Investment (ROI). Other than that, Summit also changing on how inventory is manged at job sites. Summit created a “parents-child” warehouse relationship in ERP system to secure the material in inventory as well as premise. .

Describe two ways in which Summit’s customers benefit from the new ERP system.

Firstly, customer can rely on the company for their needs and products because the company now more efficient. The company wants that customers to feel that they can provide that they have produced products the customer want and send in time period. Secondly, is to accommodate, large customers with long term job sites. Summit Electric Supply set up to temporary warehouse on site to supply these customers with its electrical products. Create “parent-child” warehouse relationship to be able to work with customers. It’s also helps to prevents anybody from selling the consigned inventory into the warehouse.

Diagram Summit’s old and new process for handling chargebacks.

Old Process:

In handling charger backs had flaws in it where the company was losing money and sometime barely make any profit. Processing charge back has to compare the sale to contract. Summit Electric Supply need to identify the charge back and which manufacturer with enough documentation of the contract or a lot of manual work. Summit Electric Supply need to go through the customer’s invoice with detailed and put the charge back in Microsoft Excel.

New Process:

In handling charge backs more efficient, it automatically review Summit Electric Supply’s billing activity for the day. All charge backs agreements loaded in the SAP system by the end of every day. There is a match in the system and they are able to claim. These new process able to create a separate charge backs document outside the customer invoice and able tp process more quickly with review in the same day.