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20081028 Nl Pg Ci Onetet

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  • 1. IT as a competitive advantage at Procter & Gamble October 28, 2008 Remco Brouwer, Procter & Gamble Information & Decisions Solutions
  • 2. Agenda Introduction to P&G IT: From Commodity to Strategy Using information to win in the market Q&A
  • 3. Agenda Introduction to P&G IT: From Commodity to Strategy Using information to win in the market Q&A
  • 4. P&G at a Glance • Founded 1837 • HQ in Cincinnati, Ohio • $83.5 Billion annual sales • 138,000 employees • More than 300 brands sold in 160 countries • Operations in more than 80 countries • “Fast Moving Consumer Goods” industry
  • 5. Brands sold in the Netherlands FMCG: Ariel, Dash, Dreft, Lenor, Swiffer, Antikal, Febreze, Pringles, Pantene, Herbal Essence, Head & Shoulders, Wella, Oil of Olaz, Max Factor, Oral-B, Vicks, Pampers, Kandoo, Always, Alldays, Tampax, Envive, Gillette, Braun, Duracell, IAMS, Eukanuba Fragrances: Hugo Boss, Lacoste, Laura Biagiotti, Mexx, Gucci, D&G …. An average supermarket in the Netherlands has over 300 P&G products in its assortment
  • 6. P&G’s 24 Billion-Dollar Brands
  • 7. Some of our core values Consumer in the center of everything we do Superior products, focus on R&D High speed to market Leverage our scale as much as possible
  • 8. Focus on two key moments In store At home where where the the consumer shopper chooses uses our products First Moment Second Moment Of Truth Of Truth Shopper Understanding Consumer Understanding “Customer Business Development” “ R&D, Marketing”
  • 9. Agenda Introduction to P&G IT: From Commodity to Strategy Using information to win in the market Q&A
  • 10. Innovation in Business Services… P&G’s Challenge Global expansion, between 1985 and 1999 we had • Entered 55 new markets • Increased operations to 86 countries We saw… • Duplicated services across regions • Structural inability to take advantage of economies of scale • Inefficiently allocated staffing and budgets
  • 11. Innovation in Business Services… The IT Challenge We Knew: • Much of technology was becoming a commodity… • Often, IT was seen as a cost… • IT had the potential to do so much more… Technological Business Needs IT Capability • And the business need was so much greater…
  • 12. We set a goal . . . Transform IT from Back Office Support to Board Room Strategist and Offer P&G a strong foundation for growth...
  • 13. Our Approach UNITE IT and core Business Services DRIVE synergies across Business Services SHIFT THE THINKING from “technologies” to “solutions” UNLEASH the potential of the back office as a business driver
  • 14. GBS was born… Global strategy Customer Employee & Cross-functional for products, relationship; local business services, support: HR, PS, Marketing, R&D, marketing IT infrastructure, Finance and & Manufacturing & consumer processes & Accounting, CMK, understanding. business support Design, External across P&G Relations, R&D, Legal, CBD
  • 15. Going Global: Before Our Starting Point - A Scattered Structure In 1999: Brands / Business Units operating “independently” Business Services: “Localized” and dispersed among business units, brands, geographies Business Implications: • Duplicated services across regions • Inability to take advantage of scale • Inefficient staffing and budgets
  • 16. Going Global: After GBS Service Centers and Data Centers Newcastle Brussels Cincinnati San Jose Manila Singapore
  • 17. Global Service Lines Employee Services Business Services • Employee Services • Strategic Sourcing & Procurement • People Management • Financial Services & Solutions • Facility Services • Product Innovation Solutions • Computers & Communications • Supply Network Solutions • Meeting Services • Consumer Solutions • Travel Services • Customer Solutions • Initiative Management • Business Performance Solutions
  • 18. Growing in Partnership • After the creation of GBS we needed: Another big step in our business model • What we realized: Could grow stronger, faster if we tapped into external partners Leverage our best, with their best . . .
  • 19. Growing in Partnership • 3 Partnerships $4.2 billion agreements IT Infrastructure + Applications + 11 months start-to-finish Transactional Accounts Payable • Best-in-class industry leaders Employee Services • Strong commitment to partnership • Clear measures for Facilities Management success
  • 20. Within 2 weeks, our partners added 700 Agility full-time people to the P&G business • Together: 1100 projects • Completed: in 15 months • Synergy Savings: $1.2 Billion
  • 21. GBS Running as a Business Borrowing from P&G’s Management Practices P&G’s Approach GBS Equivalents Profit/Loss Cost Market Share Service Levels Sales Volume Value Creation Brand Service Management Management Consumer Benefits “Total User Experience”
  • 22. GBS Running as a Business What this transformation meant to IT Business IT Needs Strategies From technology to solutions IDS From what’s needed to what’s possible And a new name for our IT organization: Information Our unique asset Decisions What we want to enable Solutions What we want to deliver
  • 23. Agenda Introduction to P&G IT: From Commodity to Strategy Using information to win in the market Q&A
  • 24. Example 1 Virtualization at Work Replace physical product mock-ups with virtual reality applications Commercialization: Consumers: focus-group mock-ups replaced by virtual designs Customers: increased engagement with virtual shelving Engineering and Production: modeling Our Virtual Solutions tools were used on 79% of all P&G initiatives
  • 25. Example 2 Customer Collaboration Work with our customers to better understand and serve the shopper Use the following data types: • Point of Sale Data • Loyalty Card Data • Household Panel Data • Market Share Data We have global systems to load, enrich, store, integrate and analyze these data types. Key theme : From data to information
  • 26. Example 3 Real Time Decision-Making at Work Decision Cockpits: Example 2 • Revolutionized Running as a Business http://decisioncockpit.pg.com/shirley delivery of business Real TimeCockpit My Decision Making @ Work Decision Cockpit Decision Cockpits information Alerts • LonDarco down 4% this quarter. • • Shipments 2.25% behind expectations. Shipments - Quick Overview Choose Region: Revolutionize delivery of business GM Net • CEMEA Monthly –one day ago • NEA Monthly –one day ago • LA Monthly –three days ago • WE Monthly –five days ago (RSS Feed) • Action Plan meeting announced. information by anticipation View old alerts… SRAP • Empowers executives My Reports • All Outlet Share - US Market - Global • through Aug 2006 Available to everyone P&G (including Gillette) US All Outlet P3M value share ending Augus t 2006 is estimated. NA Daily O&S Report NA Market Measurement - Control Chart to anticipate what is • Eliminate / reduce “standard • Board of Directors Share Reports - July '06 Globally, X of X Categories are flat or reports” growing share in the Past X Months vs. Year Ago. Competitive Intelligence happening in the • My Links Anticipate what is happing in the business NA MDO Scorecard My NewsStand Folders Fabric Care - Multicompanies - North America - Competitors • HSBC Investor Global Fixed Income Fund - Class I - Part 1 Consumer • Unilever Announces Third Quarter and business • Media Coverage Nine Month Results 2006 and Interim • Commercial Innovations Dividends • Claudia's Design Blog • Unilever changes claim 265 suburban • Marketing Net Customer Need image of a cockpit here jobs • Top Customer Stock Quotes • Retailer Brands • JVC-CDSN • Available to everyone, based on a common data set
  • 27. Example 4 Tailored reporting where needed End to End Reporting Services: • Enabling better local decision making by integrating data from different (global or local) sources • Turn data into actionable information • Display the information following local business / market structures, use a “simplified version of the truth” • Deliver the information through our global decision cockpits
  • 28. Example 5 Personalization at Work Began as support for one site Built pampers.com into the most successful marketing site in the Company 49 countries, 50% of world’s population 26 million visitors a year Reapplying customization to advance other brands in the Company.