Digital Strategy of Procter & Gamble: Becoming More Agile and Efficient

            
 
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : ITSY069 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges

Themes

Digital Strategy/ Information Technology / Operations Management
Case Length : 19 Pages
Period : 2000-2012
Pub Date : 2012
Teaching Note : Not Available
Organization : The Procter & Gamble Company
Industry : Consumer Packaged Goods
Countries : US; Global

Abstract:

This case discusses the extent of application of information technologies (IT) at The Procter & Gamble Company (P&G), the world's largest consumer packaged goods company. P&G was on course to achieve 100% digitization of all its activities: collaborations among employees, market research, evolution of new products, production systems, supply structures, distribution, advertising and customer relationship management. The case further throws light on the organizational changes that had facilitated this process, including reorganization of divisions, human resources management, and the re-orientation of the IT workforce. It also elucidates the benefits that the company had derived from extensive digitization, including cost savings, and the speedier roll-out of new products.

IT and Systems Case Studies | Case Study in Management, Operations, Strategies, IT and Systems, Case Studies

But the case also explores the potential downside to excessive focus on digitization, including diluting the human touch in the company's interactions with its customers. Also, it raises the all-too-important issue of P&G's operations and its reputation being crippled in case its IT infrastructure crashes. This case is meant for MBA students as a part of the Information Technology/ Operations Management curriculum. It can also be used in a core Strategy curriculum.

Issues:

Understand the significance of accessibility to information in an organization.

Discuss the ways in which smart devices could be productively employed an organization.

Understand how the information technology know-how can be effectively exploited in some of the key business functions.
Understand how an organization's functioning can be transformed through the availability of real-time data.
Understand how information technology can be employed to manage inventory.
Understand how a company can use information technology to engage consumers with its products.
Understand the limitations of employing information technology to satisfy customer requirements.

Contents:

  Page No.
Introduction 1
Background Note 2
Global Business Services Division 2
Streamlining the Business Operations 3
P&G's Technological Innovations 3
Digitizing Internal Collaborations 4
Digitizing External Collaborations 5
Modeling & Simulation 5
Digitizing the Supply Chain 7
Analytics - the Core 8
Digital Marketing Initiatives 9
The Part Played by Data 10
The Role Played by the IT Team 10
Changing the Mindset of the Internal Customers 11
Changes in the Organizational Structure 11
Is it Foolproof? 11
The Road Ahead 12
Exhibits 13

Keywords:

Digital strategy, Digitization, Information technology, Automation, Standardization, Data management, Knowledge-sharing, Innovation, Collaboration, Delivery mechanisms, Analytics, Social media/ Social networking, Bayesian Analysis/ Bayesian Inference, Cloud computing, Category management Modeling, Simulation, Process manufacturing, Visualization, 3D technology, Product development, Prototyping, Performance modeling, Computation Fluid Dynamics, Finite Element Analysis, Manufacturing intelligence, Inventory management, Demand planning, Demand sensing, Supply chain, Inventory cycle, Operations research, Decision making architecture, Flow model, Predictive analytics, e-commerce, Marketing-mix modeling

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