Managing With Analytics At P&G Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Importance of Analytics in Context of P&G

Procter and Gamble has been a leader in its industry and it is one of the contributing factors in the success of Procter and Gamble is its leadership in analytics. The management of the company has always focused on innovation and excellence in its business operations to focus on continued innovation. Bob McDonald was the one who had first identified that in order to sustain the success and growth of the company it was necessary to understand the importance of the analytic capabilities of IDS which were the most critical component of the company.

Procter and Gamble has a long history in the field of analysis and the marketing data. However, it was after 2009 when Bob McDonald had become the CEO of the company a new culture of sophisticated analytics was formed within the organization which was completely based upon mathematical simulations and predictive models. After the CEO, Filippo Passerini, who was the head of the service business unit and CIO of the company, had renamed IT at Procter and Gamble as Information and Decision solutions.

This change in the name of the IT suggested the shift in how much importance the company placed over making the decisions based upon the data and information of the customers. To support this purpose and the vision of Bob, business sphere rooms have been designed that perform the decision making and executive information review based upon analytics and data. Filippo had also outsourced the transactional data systems and commodity functions. This all has resulted in successful decision making for Procter and Gamble which is based on the development of visual languages for the data.

If the whole sets of data need to be analyzed by the management of the companies, then it might be impossible to get to the area of the operations where the problem has been created but if there are proper visual displays such as those displayed in the business sphere rooms at Procter and Gamble, then the management attention could be easily directed towards the areas where the actual issue lies and it supports for bolster decision making.

Using Information to provide added value

Information-driven DNA means emphasizing over the right data set, skill set, mindset and the most appropriate tool set to develop a major brand of the company and capitalize and take advantage of the Omni-channel opportunities that are evolving in the markets. No matter if we talk about retraining and retooling in order to grab the attention of the multi screen economy or whether digital innovations based upon business intelligence are introduced in the markets to transform the different segments of the market such as healthcare or even retail, Procter and Gamble has brought data at each stage of the corporate strategy of the company and incorporated the extensive use of information to meet the needs of their customers.

The importance of information as a value creating mechanism is evident from the culture that has been developed at Procter and Gamble. Everyone at Procter and Gamble believes that the use of the information is critical to innovation and it is the most critical asset that is used to enhance the level of the customer service, strategy, marketing and operations. This vision has been emerging since the beginning but the current senior managers of the company are strongly supporting the use of analytics in order to make the most critical data driven decisions. The passion of Passerini and Bob regarding the data driven decision making based on real time information was further supported by the Decision Cockpit developed at Procter and Gamble.Managing With Analytics At P&G Case Solution

Based on these data cockpits which were attached to the centralized data warehouse, the information was analyzed and as soon as the new information was there it was updated as it became available. The analysis of the data that was made available on these decision cockpits, improved decisions could be made regarding what and why was happening beyond the original plans of the company. For instance, if the sales for a particular brand dropped then the whole marketing mix of that product could be analyzed within a few clicks over the decision cockpit.

Furthermore, the consumer pulse was devised by IDS to perform sentiment analysis for the consumers regarding each of the brand of Procter and Gamble. Therefore, it could be clearly seen that digital strategies, digital tools, simulation, data modeling are all reshaping the environment of the company and all these components based on information defines the true worth of the company’s brands and connects it in the best way with its customers. ................