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

2. 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

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

4. 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.

5. 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

6. 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

7. 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

8. 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

9. 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