{"id":6735,"date":"2012-03-05T17:29:00","date_gmt":"2012-03-05T17:29:00","guid":{"rendered":"http:\/\/www.smartdatacollective.com\/index.php\/post\/proctor-gamble-case-study-business-analytics\/"},"modified":"2012-03-05T17:29:00","modified_gmt":"2012-03-05T17:29:00","slug":"proctor-gamble-case-study-business-analytics","status":"publish","type":"post","link":"https:\/\/www.smartdatacollective.com\/proctor-gamble-case-study-business-analytics\/","title":{"rendered":"Proctor &#038; Gamble &#8211; A Case Study in Business Analytics"},"content":{"rendered":"<div class=\"entry single\">\n<p><em>B<\/em><em><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" id=\"img-1330969232997\" class=\"alignRight\" style=\"height: 162px; width: 216px; float: right;\" src=\"http:\/\/www.saama.com\/Portals\/94553\/images\/shutterstock_91851365-resized-600.jpg\" border=\"0\" alt=\"describe the image\" width=\"216\" height=\"162\" \/><\/em><em>est-in-Class Analytics Innovation Case Study\u2026Interesting article about P&amp;G and Business <\/em><em><\/em><em><\/em><em>Analytics from InformationWeek, Feb 6, 2012. &nbsp;Illustrates the way Business Analytics is becoming more central as decision making speeds up. &nbsp;<\/em><\/p>\n<p><!--more--><\/p>\n<div class=\"entry single\">\n<p><em>B<\/em><em><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" id=\"img-1330969232997\" class=\"alignRight\" style=\"height: 162px; width: 216px; float: right;\" src=\"http:\/\/www.saama.com\/Portals\/94553\/images\/shutterstock_91851365-resized-600.jpg\" border=\"0\" alt=\"describe the image\" width=\"216\" height=\"162\" \/><\/em><em>est-in-Class Analytics Innovation Case Study\u2026Interesting article about P&amp;G and Business <\/em><em><\/em><em><\/em><em>Analytics from InformationWeek, Feb 6, 2012. &nbsp;Illustrates the way Business Analytics is becoming more central as decision making speeds up. &nbsp;<\/em><\/p>\n<p><em>P&amp;G\u2019s has 127,000 employees and 300 brands sold in 180 countries. &nbsp;P&amp;G averages about 4 billion transactions&nbsp;daily.&nbsp;P&amp;G CEO Bob McDonald has staked out a strategy to \u201cdigitize\u201d the company\u2019s processes from end to end, and Business Sufficiency, Business Sphere and Decision Cockpits is enabler of that agenda.&nbsp;<\/em><\/p>\n<p><em>P&amp;G is building analytics expertise at a time when P&amp;G is cutting costs in other areas, including eliminating 1,600 non-manufacturing jobs. The company\u2019s IT organization itself has cut $900 million in total spending over the past nine years.<\/em><\/p>\n<p><em>P&amp;G&nbsp;is investing in analytics talent, even as the company cuts in other areas, to speed up business decision making. &nbsp;CIO Filippo Passerini says he plans to increase fourfold the number of company staff with expertise in business analytics.<\/em><\/p>\n<p><em>CIO Passerini who leads the Global Business Services (GBS organization) is investing in analytics expertise (almost like a business competency center or center of excellence) because the model for using data to run a company is changing.<\/em><\/p>\n<h2>Business Sphere and Decision Cockpits<\/h2>\n<p><em>P&amp;G has made available to 38,000 users analytical solutions called Business Sphere and Decision Cockpits.&nbsp;&nbsp;The&nbsp;Business Sphere was developed in partnership with&nbsp;BOI, Cisco, HP, SAP, Nielsen and TIBCO Spotfire.<\/em><\/p>\n<p><em>The first project, launched in 2010, is the Business Sufficiency program, which gives executives predictions about P&amp;G market share and other performance stats six to 12 months into the future. At its core is a series of analytic models designed to reveal what\u2019s happening in the business now, why it\u2019s happening, and what actions P&amp;G can take.&nbsp;The \u201cwhat\u201d models focus on data such as shipments, sales, and market share. The \u201cwhy\u201d models highlight sales data down to the country, territory, product line, and store levels, as well as drivers such as advertising and consumer consumption, factoring in region- and country-specific economic data. The \u201cactions\u201d analysis look at levers P&amp;G can pull, such as pricing, advertising, and product mix, and provide estimates on what they deliver. (source:&nbsp;<a href=\"http:\/\/www.informationweek.com\/news\/global-cio\/interviews\/231600959\" target=\"_blank\" data-wpel-link=\"external\" rel=\"external noopener noreferrer ugc\">P&amp;G Turns Analysis Into Action<\/a>).<\/em><\/p>\n<p><em>Business Sphere is the further integration of technology, visualization, and information enables leaders to drill-down into data to get answers in real-time.&nbsp;<\/em><\/p>\n<ul>\n<li>To answer a set of questions, the program &nbsp;analyzes and connects as much as 200 terabytes of data (equal to the amount of information contained in 200,000 copies of Encyclopedia Britannica), allowing for unprecedented&nbsp;granularity and customization.<\/li>\n<li>The way the data is presented uncovers insights, trends, and opportunities for the business leaders and prompts them to ask different and very focused business questions. If one question elicits a follow-up question, it can be addressed with&nbsp;data on-the-spot.<\/li>\n<li>The visualization helps people to \u201csee\u201d the data in ways they would not have been able to with just numbers and spreadsheets. It challenges assumptions while simultaneously presenting the data in different ways, revealing potential solutions that previously may have not been apparent.<\/li>\n<\/ul>\n<h2>Evolution of the P&amp;G Decision Making model<\/h2>\n<p><a href=\"http:\/\/practicalanalytics.files.wordpress.com\/2012\/02\/businesssphere.jpg\" data-wpel-link=\"external\" rel=\"external noopener noreferrer ugc\"><\/a><em>The old IT model was to figure out which reports people wanted, capture the data, and deliver it to the key people weeks or days after the fact. \u201cThat model is an obsolete model,\u201d Passerini&nbsp;says.<\/em><\/p>\n<p><em>The new model Passerini envisions is something of a virtual, instant-on war room, where people huddle in person or by video around the needed data, pulling in the right experts to fix a problem the moment it arises.<\/em><\/p>\n<p><em>This decision-making environment requires better collaboration via easy-to-use video, more real-time data, and business analytics expertise.<\/em><\/p>\n<p><em>A new building block is high-quality videoconferencing, because people solve hard problems faster and better when they can see one another, Passerini maintains. P&amp;G has been an avid user for several years of room-sized Cisco telepresence systems. The video is used as part of a collaboration environment P&amp;G calls Business Sphere, which CEO Bob McDonald and his executive council use to collaborate with colleagues worldwide. It combines video with large screens that display data visualizations on sales, market share, ad spending and the like, so everyone in the meeting is seeing the same information. In the past year, P&amp;G added 50 smaller Business Sphere systems around the world, giving more people access to the technology.<\/em><\/p>\n<p><em>Passerini\u2019s team is working on a video platform that broadens access even more by letting people join in regardless of the video system they\u2019re using, whether it\u2019s Cisco telepresence or WebEx or FaceTime. That would mean a key team member can video in from an iPad, Droid smartphone, or PC if need be.In terms of data, this strategy needs the right real-time data.<\/em><\/p>\n<p><em>What\u2019s real time? The goal P&amp;G\u2019s working toward is that as soon as data is collected, it\u2019s available for use, Passerini says. P&amp;G isn\u2019t after new data types; it still wants to share and analyze point-of-sale, inventory, ad spending, and shipment data. What\u2019s new is the higher frequency and speed at which P&amp;G gets that data, and the finer granularity. Passerini says P&amp;G has about two-thirds of the real-time data it needs.<\/em><\/p>\n<p><em>Passerini talks about the what, why, and how of a problem. \u201cWhat\u201d is the problem itself \u2014 is market share stable or has it shrunk two points? He thinks P&amp;G has beaten the what problem by giving 58,000 employees business intelligence \u201ccockpits,\u201d which are dashboards that link to common data sources so people spend little time arguing over whose data to use. \u201dWhy\u201d is the cause of a problem \u2014 was it a bad TV ad, out-of-stock shelves, or a competitor\u2019s new product or price cut that caused a problem? Right now, the P&amp;G IT team is working on automating analysis of the why, so employees get alerts when key events like a supply chain snafu or rival product launch happen.<\/em><\/p>\n<p><em>If P&amp;G can eliminate \u201cwhat\u201d discussions and some of the \u201cwhy,\u201d and decision-makers can jump right to how to solve a problem, \u201cthat radically increases the pace at which they do business,\u201d Passerini says.<\/em><\/p>\n<p><em>The final piece is bringing in that business analytics expertise. These are people \u201cat the intersection of business and IT,\u201d Passerini says. They need to be as well versed in P&amp;G business issues as a marketing pro. And they need to be skilled in finding information, building data models, and creating simulations. For example, when CEO Bob McDonald and his executive committee meet each Monday, one data slice they look at is the \u201ctop 50\u2033 \u2013 combinations of products and country markets (Brazil hair care, perhaps, or U.S. pet care) that are the company\u2019s 50 largest, making up about 60% of sales. Data visualizations show at a glance if sales or share are moving materially. If they are, and executives want to drill down, Jeffrey Goldman is the business analyst in that key meeting who delivers those insights, delivering analysis in real time on screens that all the executives see. Is a sales dip in detergent in France because of one retailer, so that\u2019s where to focus? Is that retailer buying less only in France, or across Europe? Did P&amp;G cut promotions or raise prices, letting a rival grab share, or is the category overall losing sales? Goldman delivers this kind of data so executives can decide how to respond. Passerini pictures analytics experts like Goldman sitting in on more meetings to make sure the \u201chow\u201d to solve problems gets sorted out right then and there, not postponed until everyone gets more information. The old model would mean \u201clet\u2019s get back to this in two weeks,\u201d he says. \u201cYou need to be able to answer that question immediately. \u201dPasserini describes the video and data collaboration efforts, and the role of the business analysts, as \u201charmonizing\u201d how people do business across P&amp;G. It\u2019s the opposite of creating standard reports. It\u2019s about creating a standard environment with the right tools, then it\u2019s up to the experts in that room to use whatever data they need to make the right decisions.<\/em><\/p>\n<address>&nbsp;<\/address>\n<address><strong>References<\/strong><\/address>\n<ol>\n<li>Chris Murphy,&nbsp;&nbsp;<a href=\"http:\/\/www.informationweek.com\/\" target=\"_blank\" data-wpel-link=\"external\" rel=\"external noopener noreferrer ugc\">InformationWeek&nbsp;<\/a>&nbsp;February 16, 2012 &#8211;&nbsp;<a href=\"http:\/\/www.informationweek.com\/news\/global-cio\/interviews\/232601003\" target=\"_blank\" data-wpel-link=\"external\" rel=\"external noopener noreferrer ugc\">http:\/\/www.informationweek.com\/news\/global-cio\/interviews\/232601003<\/a><\/li>\n<li><a href=\"http:\/\/www.informationweek.com\/news\/global-cio\/interviews\/231600959\" target=\"_blank\" data-wpel-link=\"external\" rel=\"external noopener noreferrer ugc\">P&amp;G Turns Analysis Into Action<\/a><\/li>\n<li>Here is a&nbsp;<a href=\"http:\/\/www.youtube.com\/watch?v=aobNqqeUWR4\" target=\"_blank\" data-wpel-link=\"external\" rel=\"external noopener noreferrer ugc\">YouTube video<\/a>&nbsp;with Bruno Aziza interviewing P&amp;G BI leadership about Business Sphere.<\/li>\n<\/ol>\n<div>\n<address><strong>Further Reading<\/strong><\/address>\n<p>1) <a title=\"Saama SixthSense\" href=\"http:\/\/www.saama.com\/strategize\/sixthsense\/\" target=\"_blank\" data-wpel-link=\"external\" rel=\"external noopener noreferrer ugc\">Saama SixthSense<\/a> for a Saama&#8217;s point of view presentation on Big Data and why you need to listen to your Big Data.<\/p>\n<p>2) <a title=\"CIO Analytics: Managing Business Value of IT\" href=\"http:\/\/www.saama.com\/visualize\/cio-analytics\/\" target=\"_blank\" data-wpel-link=\"external\" rel=\"external noopener noreferrer ugc\">CIO Analytics: Managing Business Value of IT<\/a> for a whitepaper on how to measure, Plan and Cost Business Value of IT using a Service Oriented Delivery Model.<\/p>\n<p>3) <a title=\"Big Data is the Answer - What was the Question?\" href=\"http:\/\/www.saama.com\/big-data-webinar-feb2012\/\" target=\"_blank\" data-wpel-link=\"external\" rel=\"external noopener noreferrer ugc\">Big Data is the Answer &#8211; What was the Question?<\/a> for a recorded version of the webinar hosted on February 17, 2012<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Best-in-Class Analytics Innovation Case Study\u2026Interesting article about P&amp;G and Business Analytics from InformationWeek, Feb 6, 2012. &nbsp;Illustrates the way Business Analytics is becoming more central as decision making speeds up. &nbsp;<\/p>\n","protected":false},"author":239,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[15,27,2,38,5,26,43,25],"tags":[],"class_list":{"0":"post-6735","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-analytics","7":"category-best-practices","8":"category-business-intelligence","9":"category-cultureleadership","10":"category-data-quality","11":"category-market-research","12":"category-marketing-automation","13":"category-social-data"},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.smartdatacollective.com\/wp-json\/wp\/v2\/posts\/6735","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smartdatacollective.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.smartdatacollective.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.smartdatacollective.com\/wp-json\/wp\/v2\/users\/239"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smartdatacollective.com\/wp-json\/wp\/v2\/comments?post=6735"}],"version-history":[{"count":0,"href":"https:\/\/www.smartdatacollective.com\/wp-json\/wp\/v2\/posts\/6735\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.smartdatacollective.com\/wp-json\/wp\/v2\/media?parent=6735"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.smartdatacollective.com\/wp-json\/wp\/v2\/categories?post=6735"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.smartdatacollective.com\/wp-json\/wp\/v2\/tags?post=6735"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}