CASE STUDY

ANALYSIS
20121543 Dilara Rasulova
20121072 Sandra Obiora
20121789 Mwangala Mulamata
 ABOUT P&G
• P&G stands for Procter and Gamble.
• The partnership agreement between William
Procter and James Gamble.
• was signed on October 31, 1837.
• pledging $3,596.47 each to start a soap and candle
business together.
• Procter & Gamble’s first venture in advertising
begins with a print ad for machine and lamp oil.
• By 2012 these brands represent 90% of P&G sales
and more than 90% of their profits, and 25 of
them are Billion-Dollar brands.
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 SUMMARY OF CASE STUDY
• P&G is one of the biggest consumer • P&G has a Global business services
goods companies in the world because of division that is building analytics expertise
its ability to create market and sell that undertaking new analytical
major consumer product brands . solutions such as business sufficiency
business sphere and decision cockpits.
• It has 127 000 employees across 180
countries 300 brands and $82 billion in
revenues in 2011.
• Major reason for P&G successes from
the time it was founded in 1837 has been
its strength in information technology
and willingness to pursuit new IT
innovation.
• Its goal is to digitize its processes from
end to end and has also fundamentally
changed the way it gathers reports and
interprets data while reducing cost from
other areas of business.
 Q1: What management
organization, and technology
issues had to be addressed
when implementing Business
sufficiency, Business sphere,
and Decision cockpits?
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Management, Organization, and Technological issues
Management Issues involved:
1. Planning: Need for real time
data to make real time
decisions, and formulate
strategy.
2. HRM: Having open minded,
skilled workforce, and need to
get quicker solutions.
3. Need for management to
clearly see all parts through
data in real time.

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Management, Organization, and Technological issues
Organization Issues involve: 2. Need for more intelligent
software program.
1. Need for speedy, and detailed
data processing. 3. Need for uniform information
system.
2. Need for uniform data set.
3. Need for management to
focus on the same set of
information.
Technology issues Involved
1. Need for proper hardware to
suit program (terabyte worth
of info.)

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 P&G terabyte worth of information
1024 bytes = 1 kilobyte
1024 kilobytes = 1MB,
1024MB = 1GB
In approximation,
1000GB = 1TB.
A 1TB hard drive has the capacity to
store 1,000,000,000,000 bytes.
Thus at 200TB P&G software
processes, and stores:
200, 000, 000, 000, 000 (trillion)
bytes worth of data.

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 Business sufficiency = ESS + DSS
1. ESS: Executive Support
System, is a system from the
constituency perspective.
Support senior management.
Addresses strategic issues and
long-term trends (no routine
decisions requiring judgment,
evaluation, and insight).
2. DSS: Decision support
systems, Focus on problems that
are unique and rapidly changing
What Business sufficiency is
about:
- Makes predictions for executives.
- Aids them in making plans and
decisions.
- In actuality solves a big portion
of initial management and
technology problem.
- Issues: (Intelligent software,
removes sluggishness, aids
strategizing.)
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 Business Sphere and Decision cockpits
= ESS + DSS + MIS + TPS
- MIS: Management
Information Systems
Serve middle management to help
with monitoring, controlling,
decision making and administrative
activities. Provide reports on firm’s
current performance, based on data
from TPS.
- TPS: Transaction Processing
systems:
Allow managers to monitor status of
operations and relations with
external environment

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 Business Sphere and Decision cockpits
= ESS + DSS + MIS + TPS
• What business sphere does:
- Reveals Insights, trends, opportunities
to executives. Shows sales, market
share, budget plans.

The decision cockpits

- Gives more of its employees access to
the same common data source.
- Display easy to read charts.
- Has ability to drill down to more
detailed data.
- Solves management, organization
and technological issues at large.
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 Q2: How did these decision-
making tools change the way
the company ran its business?
How effective are they and
why?

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How did these decision-making tools change the
way the company run its business?
New decision-making tools:
• Are based on a transformation in the way
P&G uses data for decision making.
• Allow leaders to focus on immediate business
decisions.
• Brought people together and experts give
their solutions.
• Help both managers and employees be able
to make faster and better decision now than
were previously possible.

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Continued: How effectives are they? Why?
•P&G can devote time and energy where it is
most needed.
•Faster and better decision making.
•Reduced complexity.
•Cost reduction.
•Decision Cockpits reduced cost of development
by 30%.
•High performance delivered.

Why: The company is also able to better

anticipate future events affecting the business
and more quickly respond to market stimuli.

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Q3. How are these systems
related to P&G business
strategy?

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 P&G’s systems and Business Strategy
• Managers and employees are now able to make faster
and better decisions than were previously possible.
• They now have benefits of reduced complexity
involved in generating a statistical report.
• They have cost reductions from maintaining one
standardized set of data across the enterprise instead of
duplicated redundant data .
• More workers can answer their own question and obtain
their own information using decision cockpits .
• The company is also able to better anticipate future
events affecting the business and more quickly respond
to market stimuli.
P&G,the business strategies, and Conclusion

1. Improved decision making

2. New product service and business
mobility
3. Operational excellence
4. Improved customer and supplier intimacy
5. Competitive advantage
6. Survival

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 Bibliography

• P&G Official Website. N.p., n.d. Web.

<http://us.pg.com/who_we_are/heritage/history_of_innovation>.
• What Are Bytes? N.p., n.d. Web. <http://www.whatsabyte.com/>.

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ANY QUESTIONS OR CONTRIBUTIONS?

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THANK YOU FOR LISTENING 

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