Generating Business Value Through IT

Group No 7
Name

Roll No

Magy
Abraham

A002

Aditya
Agrawal

A003

Rubal Dhawan

A016

Monika Reddy

A028

Aniket Pallav

A035

Creating
Strategic Value
from IT

Introduction MIT Sloan

The IT unit of the Future: Creating Value
from IT
- Vol XI, Number X, October 2011

Digitize platforms to provide foundation

Commit to using IT Strategically
Exploit the digitized platforms
Build & Run platforms

Focus of IT units Build and commit

Commit and Exploit less understood
What is it?

Commit

Allocating
business and IT
resources to
Enact the
companys
strategic
priorities

Challenges

Driving
additional
benefits from

Executives focus on financial goals and not

best use of resources
Often related to annual business plans
addressing short term goals rather than multi
year strategic goals
Leaders turn attention to building new
system rather than using existing
systems
Few companies adapt to changing

Introduction - Article

Locating IT Value Creation Capabilities

As IT becomes ubiquitous and business becomes increasingly

digital, responsibility of IT value becomes enterprise-wide

Types of Innovation HBR

Sustaining
Incremental improvements to existing
products. Important to sustain shares
among current consumers and getting
new people to try a product

Commercial
Commercial innovations use creative
marketing, packaging, and promotional
approaches to grow existing offerings.
During the 2010 Winter Olympics, P&G
ran a series of ads celebrating mothers
covering 18 brands and drove $100
Types of million in revenues.

Four
Innovation in
Transformational Sustaining
P&G
Transformational-sustaining innovations

reframe existing categories. Typically bring

order-of-magnitude improvements and
fundamental changes to a business and
often lead to breakthroughs in market
share, profit levels, and consumer
acceptance. E.g. Olay Pro-X

Disruptive
Disruptive innovations represent new tothe-world business opportunities. A
company enters entirely new businesses
with radically new offerings, as P&G did
with Swiffer

Data modeling, simulation, and other digital tools are reshaping how they innovate
Creation of molecules: For example, in the research and development for their
new dishwashing liquid, they used modeling to predict how moisture would excite
various fragrance molecules so that throughout the dishwashing process consumers
get the right fragrance notes at the right time. They did that all virtually.

Digitizing innovation
OVERALL

Disposab
le diaper

BEFORE

AFTER

BEFORE

AFTER

Traditionally, by the time

you get to the point
where you make a
prototype, the prototype
itself has cost thousands
of dollars, if not more,
and it was all made by
hand

Now, using modeling

and simulation, P&G can
go through thousands of
iterations in seconds.
The key is that theyve
got to have the data. So
the advantage for P&G
is their scale.

Impact:
Upto 20% reduction in R&D times for the family of brands like
Personal Care

Virtual wall : from customer testing to popup retailing

Among its IT tools to get better consumer
insights, P&G uses virtual wall enabled
by several projectors tosimulate store
shelves for consumer testing.
Busy consumers on their way to and from
work can purchase essentials such as
razors, shampoo and diapers via their
mobile phones. How does it work?
Consumers
capture
QR
codes
for
whichever items they'd like to purchase,
and the orders are submitted to mall.Cz
(the biggest online store in the czech
republic). Consumers then receive a
message to confirm a delivery time -- all
while waiting for the next train.

Impact:
7 % market share gain in 12 months in Canada ; 9 % market share gain in Czech
Republic

Improving Data at Source

Cockpit An Interface
alarm set to
be triggered when
the metrics grow
beyond the
tolerance level
Real time
monitoring to gain
competitive
advantage

A high-tech conference room

to allow company leaders to
harness massive amounts of
data to make real-time
business decisions.

Weekly Audits
Physical and
virtual meetings
with focus on real
time and
continuous
innovation
A constraint
theory trace the

Impact Improved speed

and accuracy in the
decision making system

Partnerships
Joint business
planning with
retailers and other
SCM partners
Creating value for
self and the
partners through
analytical
capabilities

Security/Privacy
A board level
enterprise risk
management issue
Clear firewalls
defined between
retailers and strict
policies defines to
ensure security

IT Architecture Competency
It is the ability of a firm to create a mutually reinforcing pattern of evolving,
tightly aligned business strategy & IT capabilities

IT Architecture competency should be developed to dynamically adjust the

strategies & technologies

Procter & Gambles new approach to

product development
Despite investing $2 billion annually on R&D annually, across the 26 labs around
the world, P&G was not reaching its goal for new products
Why not use the World as our
labs? Let us create mechanism
to find innovations, ideas and
new products anywhere.

Tripling of the innovations

success rate

P&G started sourcing innovation from its supply chain & partner network and
Customers
beyond
Website
IDEA Suppliers
Pgconnectdevelop.c
S
Partners
om
General
Public
P&G , thus added a revolutionary approach in product development in todays open
innovation world

Big Data and P & G

OBJECTIVE
To become the most technologically enabled business in
the world
To be digitally connected to all of their retailers and
consumers
To track the products in the manufacturing line

Big Data
Simulation
analytics to
design new
products

Predictive
analysis and
simulation
models to
design new dish
washing liquid

big data
analytics is also
Pampers
used to create
village
global customercentric
marketing
campaigns
Big data analytics and the visualization of
the data -> data visualization
as a primary tool of management
P&G created so called Business Spheres at over 50 locations where
decision-makers can view real-time information on large displays.

Social Media and P & G

Collaborat
e
Examples
Social Media Approach
Connected
ness

Communit
y

Impact:
11 %

market
share gain in
12 months

Impact:
1.5 million likes
5 % market share
jump

16 % increase in
sales

Thank You