Procter & Gamble Carolyn Bearfield Chapter 11 Case Analysis Management Information Systems

Procter & Gamble One of the most trusted consumer goods corporations Carrying over 300 products Four major units of business: Health and Beauty Babies Snacks and beverages Fabric and Home care Well known brands: Tide Mr. Clean Crest Clairol Pringles Ivory Soap

People A.J. Lafley became CEO in June of 2000 and commenced a revitalization of P&G

Knowledge Management and P&G The Problems P&G was not managing their knowledge well enough and ended up losing market share, growth rates slowed dramatically, marketing and advertising was slow, and information was unorganized and useless in the way of storage and accessibility.

Problems Cont. Product innovation too slow – only one new product in 15 years. New competitors were taking away market share and selling products at lower prices P&G’s supply chain needed to be updated

Solution Intranet called InnovationNet Connects all departments (R&D, engineering, purchasing, marketing, legal, business information systems, qualified experts and Ph.D. level scientist. New all-inclusive type software to handle tasks

Software For Product Development Uses Product Lifecycle Management (PLM) software called MatrixOne Used for mechanizing and automating the knowledge components and flow components Previously had 8 IT systems and 29 work processes Now the one database which stores and organizes all product specifications saving time and money

Software Cont. For Marketing P&G uses one software system to carry all marketing activities : Strategic planning, research, advertising, direct mail, events, collection of marketing data, to store, distribute, monitor, track projects, and analysis Allows P&G’s marketing department focus on the creative side rather than so much on the admistrative side

Output THE END Faster times between each department Faster product innovation Ability to get products out to market faster Potentially growth in market share and profits THE END