MIS CASE STUDYCOLLABORATION AND INNOVATION AT PROCTER AND GAMBLE

PRESENTED BY

• Abdullah Al Faysal (bit 0313)

OUTLINE

• Company Overview

• Competitors in the market

• Business Goals

• Why collaboration and innovation is important ?

• Previous systems and problems

• Information Systems used improving productivity

OUTLINE

• Information Systems used improving collaboration

• Results of using Information Systems

• Case Study Questions & Answers

• Interactive Session

PROCTER & GAMBLE (P & G)

• Procter & Gamble (P & G) is the largest manufacturer of consumer products

• One of the top 10 largest companies by market capitalization

• Founded in 1837, headquartered in Cincinnati , Ohio by William Procter and James Gamble

• Mainstay in American business for over 150 yrs.

• Known for Successful brands, introducing new products and maintaining popularity

• Pampers, Tide, Bounty, Folgers, Pringles Charmin, Swiffer, Crest , food, beverages and many more

• $83.62 billion in sales and $14.48 billion profit by 2012

BUSINESS OPERATIONS

Three main units -

• Beauty care

• House hold care

• Health and well being

Others -

• Baby care

• Pet care

• Grooming segment

BUSINESS GOALS

Three main focuses –

• Maintaining popularity of existing product

• Developing new related products

• Innovating and introducing new products from scratch

MARKET COMPETITORS

• Unilever is the most remarkable competitors

WHY COLLABORATION AND INNOVATION IS IMPORTANT ?

• Huge amount of workers, employees, managers and researchers

• Better management

• Faster and better sharing of information

• Improving Productivity

• Improving quality

• Minimizing production cost

• Reducing R&D costs

WHY COLLABORATION AND INNOVATION IS IMPORTANT ?

• Making better and faster decisions

• Most of all achieving business goals

PREVIOUS SYSTEMS AND PROBLEMS

• Existing methods for collaboration and innovating and developing new ideas wasn’t good enough.

• No better collaborative system. Email was used for collaboration .

- Senders controls the flow of information.

- May fail to send mail to colleagues when they need it most

• processes for sharing knowledge were notoriously inefficient

• For companies like P & G one vendor simply isn’t enough to satisfy their diverse needs. e.g. Google search was inadequate.

- Doesn’t always link information from within the company

PREVIOUS SYSTEMS AND PROBLEMS

- reliance on keywords isn’t ideal for all of the topics for employees might search.

• when P&G executives traveled to meet with regional managers, there was no way to integrate all the reports and discussions into a single document.

INFORMATION SYSTEMS USED FOR IMPROVING PRODUCTIVITY

• Web 2.0 for online activities and websites.

• Blogs for sharing information with others.

- Open for all interested parties

- Attract comments from interested users.

• Custom search engine start-up connectbeam.

- Allows employees to share bookmarks and tag content with descriptive words that appear in future searches

- Facilitates social networks of coworkers to find and share information more effectively

INFORMATION SYSTEMS USED FOR IMPROVING COLLABORATION

• A Complete Collaboration system led by suite of Microsoft products. Service provided includes –

Unified communications (Voice transmission, Data transmission, IM , Email, E-Conferencing)

Microsoft Live Communications Server functionality,

Web conferencing with Live Meeting

content management with SharePoint

• SharePoint to store all presentations to one location, accessible from every parts of the company.

INFORMATION SYSTEMS USED FOR IMPROVING COLLABORATION

• InnovationNet, a browser-based portal, contains over 5 million research related documents in digital format.

• Tele Presence Conference Room by CISCO. An excellent way to foster collaboration between employees across not just countries, but continents.

CHALLENGES OF USING INFORMATION SYSTEMS

• Employers accustomed to email, showed significant inertia to move to a new technology.

• If enough employees didn’t use Collaborative Systems, the tools would be much less useful for those that did use them.

RESULTS OF USING INFORMATION SYSTEMS

• 80000 people using IM, 20000 MS Outlook for mailing, calendaring, contact management, task management, note taking.

• Researchers use the tools to share the data they’ve collected on various brands

• Marketers can more effectively access the data they need to create highly targeted ad campaigns.

• Managers are more easily able to find the people and data they need to make critical business decisions.

• Removed the problem of glue all documents to a notebook.

RESULTS OF USING INFORMATION SYSTEMS

• Using Telepresence managers and officers cad hold high-definition meetings over long distances.

• 35 percent of its employees are using Telepresence regularly.

• Company has saved $4 for every $1 invested in the 70 high-end telepresence systems it has installed over the past few years.

• Reduced amount of travel and cost for travel

• Significant reduction of time and cost in Research and development.

• Faster and more efficient management system.

INTERACTIVE SESSION

CASE STUDY QUESTIONS & ANSWER'S

1. What is Procter & Gamble’s business strategy? What is the relationship of collaboration and innovation to that business strategy?

2. How is P&G using collaboration systems to execute its business model and business strategy? List and describe the collaboration systems and technologies it is using and the benefits of each.

3. Why were some collaborative technologies slow to catch on at P&G?

4. Why is telepresence such a useful collaborative tool for a company like P&G?

5. Can you think of other ways P&G could use collaboration to foster innovation?

WHAT IS PROCTER & GAMBLE’S BUSINESS STRATEGY? WHAT IS THE RELATIONSHIP OF COLLABORATION AND INNOVATION TO THAT BUSINESS STRATEGY?

Procter and Gamble’s follows three prime business strategy. They are –

1. Maintaining popularity of existing product

2. Developing new related products

3. Innovating and introducing new products from scratch

Most of P&G’s business is built around brand creation and management.

It’s critical that the company facilitate collaboration between researchers, marketers, and managers and also inspire and invest on innovation to keep the market place.

P&G is such a big company and makes such a wide array of products, achieving their business goals is a daunting task.

HOW IS P&G USING COLLABORATION SYSTEMS TO EXECUTE ITS BUSINESS MODEL AND BUSINESS STRATEGY? LIST AND DESCRIBE THE COLLABORATION SYSTEMS AND TECHNOLOGIES IT IS USING AND THE BENEFITS OF EACH.

Collaboration systems using by P & G -

1. SharePoint to store all presentations in a single location, that are accessible to the employers, colleagues and researchers from the other parts of company.

2.InnovationNet to store all related research documents in a digital format accessible from a browser based portal.

3. CISCO’s Telepresence Conference room to hold meeting s over long distance

Other technologies from above P & G using are –

Blogs

HOW IS P&G USING COLLABORATION SYSTEMS TO EXECUTE ITS BUSINESS MODEL AND BUSINESS STRATEGY? LIST AND DESCRIBE THE COLLABORATION SYSTEMS AND TECHNOLOGIES IT IS USING AND THE BENEFITS OF EACH.

Custom Search engine

Complete Collaborative System

WHY WERE SOME COLLABORATIVE TECHNOLOGIES SLOW TO CATCH ON AT P&G?

Employees have resisted the changes, insisting that newer collaborative tools represent more work. People are accustomed to a certain technology and there was significant organizational inertia against switching to a new way of doing things.

WHY IS TELEPRESENCE SUCH A USEFUL COLLABORATIVE TOOL FOR A COMPANY LIKE P&G?

Telepresence is an excellent way to foster collaboration between employees across not just countries, but continents. It makes possible to hold high-definition meetings over long distances.

Benefits of telepresence include significant travel savings, more efficient flow of ideas, and quicker decision making. Decisions that once took days now take minutes.

CAN YOU THINK OF OTHER WAYS P&G COULD USE COLLABORATION TO FOSTER INNOVATION?

Yes I do think of two ways that P & G can use to foster innovation & collaboration. And they are –

1. Cloud , to save all their documents and files in a place which will certainly reduce their maintenance overhead and introduce flexibility and speed.

2. Big data manipulation, to gain and analysis huge amount of customer feedback to make the products and services better.

QUESTIONS ???

THANK YOU