P&g Statistis – Information and Decision Solutions
1. Is the IDS (“Information and Decision Solutions”) group a source of competitive advantage for Procter & Gamble? Provide specifics on what IDS does and how this translates to (or does not translate to) profits and efficiencies for P&G. What makes IDS distinctive compared with more “traditional” information technology groups you may have encountered in your past experience?Business analytics may refer to as the statistical analysis of the data of a company along the different departments of a company as well as the external environment and then optimizing that information to benefit operations and decision making of a company, it cannot be only summed up to such a short explanation, in case of Procter and Gamble it may play a huge and pivotal role, as it is a series of systems and processes that enables and emphasizes the use of up to date data and advanced analytics to drive decision making, in addition Data analytics were seamlessly integrated in P&G so that at a single click on higher level data can make available a drilled down view of performance by brand, initiative, retailer and also individual stores, also statistical forecasts for the next twelve months can be automatically updated and made available. For every business to stay profitable and competitive in today’s environment they need to be responsive and respond quickly to the customers choices and changing preferences and also take into consideration the competitors moves and all the other internal and external factors, like all companies P&Gs main concerns are a profitable growth through continuous innovation and bring initiatives to global markets more quickly so it is very important for P&G to make real time decisions for P&G to stay responsive which mean adapt to the change in culture, competitive environment and customer preferences as well as other external factors to stay ahead of their competitors and also be able to identify future trends and demand patterns to better forecast the future and reduce costs. Real time information is the only way that can help P&G follow their goals of continuing to profitable growth and continuous innovation because this is an ongoing process because every day there are new developments and new factors that are taking place in the world and in business world, also globally local markets have their own dynamics and change cycles, so as fast as the events are changing, as fast as the environment changes and incorporates new factors, P&G needs real time information about all of that to achieve goals that they have set for them.
2. Bob McDonald, then-CEO of P&G, provides a colorful quote on page 8 of the case: “I gather there are still some MBAs who believe that all the data work will be done for them by subordinates. That won’t fly at P&G. It’s every manager’s job here to understand the nature of statistical forecasting and Monte Carlo simulation.”Do you agree or disagree with the quote? Support your answer with a detailed discussion of the implications of this statement (and the values it represents) on the organization.I agree with Bob McDonald’s point of view. The dramatic change in information processing and business analytics brought a shift in the corporate culture of P&G and how it managed itself, previously, P&G had preview culture which meant that any data could be previewed and digested by middle and business unit managers before business leaders could see it, and there was a time to develop a plan to address any issue. The new approached meant that information could be viewed at the same time by everyone, as said by P&G president this new system was like a performance review of yourself in front of everyone else in a 30 point font. P&Gs culture was to be moved radically towards a fast paced business and higher rate of speed at which the operate and do business. IDS had worked before with human resources on how to best manage this cultural transformation, one leader at a time. The embedded IDS analysts provided coaching to the business leaders on how to use the new management tools effectively. The ability to access information, quickly identify attention areas and rapidly access potential responses provided a new level of transparency to the organization due to these advancements the company reduced the level of senior management employment by 15% resulting in hierarchy of reporting levels to 5 from 7.