Managing with Analytics at Procter & Gamble Case Study Analysis
Introduction
Procter and Gamble were founded in the year 1837 by William Procter and James Gamble due to the pressure built on them by their mutual father-in-law. By the year 1959, the firm had reached a remarkable sales of $1 million and went on introducing new and innovative products.
Problem Statement
P&G has to work out an effective assessment technique in order to have deep insights into the company conditions and to work out essential analytical tools to analyze the company conditions. Passerini came up with an IDS system for which the company is puzzled about whether it is a strong tool or should be changed.
Primary Metrics to Measure (IDS) Success or Failure
“IDS” (Information and Decision Solution) is a best-fit group support that is used for the decision process around (P&G). Construction of (IDS) inside the organization for decision support and analytics in different areas (supply chain, sales, and marketing) will help the firm produce better results. (P&G) measure the success or failure under two metrics (Propensity model and Time-series based forecasting model). The forecasting model is used by the organization to get accurate and constructed forecasts by using the prior data and results. The propensity model is used to deliver better understanding of “causes and drivers”, which are related to the outcomes. Propensity model is also used to measure the potential impact of management actions.
Looking over the strengths of metrics under the two models it represents an effective business decision, helps in improving market campaigns, and also contributes to predicting the customers mix. “KPI” (Key Performance Indicator) metrics are considered to be most appropriate to evaluate the success or failure of the (IDS) inside Proctor & Gamble. These metrics help the organization to create the most appropriate tracking process over the expected strategic objectives. KPI can be used as a metric inside the organization that helps in evaluating the (IDS) under the activities of information technology and helps in creating the technical capabilities.
“P&G’s” Metrics to Measure (IDS)
(IDS) is proposed by “Bob McDonald” used to change the process of decision-making at the managerial level. There are two metrics used by the organization that are mentioned in the above section that help the organization measure various factors. Looking over the success or failure of (IDS), by using these metrics represents that propensity metrics help in supporting business leaders and building data reachable as probable. Transporting data collection organized (IDS) became able to construct Stanford’s for data type and quality. It helps in the generation of various reports under multiple business units. The overall (IDS) teamwork is a hub inside the (P&G) for sharing analytic techniques and ideas.
Using forecasting metrics as a statistical tool helps the organization in providing a clear image for future times. However, in various situations, forecasting is not considered to be more accurate because in the end the predicted data is created by using the prior results. Moreover, higher chances in (IDS) are to become a failure by using the forecasting metrics. The best and most suited metrics for (P&G’s) that make (IDS) successful are the propensity metrics. By using the propensity metrics the (IDS) presents a success idea as these metrics create a high level of potential for the organization.
Organizational Factors IDS Used Effectively
The company mainly focused on the use of information and technology to analyze the data and utilize data analytics. The firm wants the best technical aspects to be incorporated into the business execution. The company reports were automated across many different platforms all over the firm. This helped to retrieve the data quickly and help to boost the analysis and to better visualize the data for analysis.
The technique used by P&G for the effective utilization of IDS was the singularity of the digital system for effective processing and management. The firm had all the reliable factors for utilizing the IDS system only they needed a reorganization and reassessment for making the best use of technology. As far as analytical techniques are concerned, the company had employees who would perform the demand planning. Later on by the centralized network, they were enabled to easily share data and information across the business units which made processing easier.
Strategies for KPI
The model we suggested was of KPI and it had all the necessary features. The basic strategy would be to study the business area in depth for analyzing the implementation and the second would be to set an analysis for each target to be assessed.
Compact Detergent and Analytical Techniques
The firm composed a new product for laundry detergent which is in the compact form. They are going to launch the product on February 2011, and now packed down forms of different detergents like Tide, Gain, etc. will be utilized. The canister packing was not reliable and the compact versions are out for utilization which also helps save electricity equivalent to providing 34 thousand homes in the town. They could save around 4 million GJs of energy by avoiding traditional packaging and utilizing the smart and compact packaging method........................
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