Digitally Enabled Enterprise - Summary of Mckinsey Quarterly Article

I read an interesting Mckinsey quarterly article titled “Inside P&G digital revolution” highlighting the thoughts of CEO Robert McDonald on how he wants to make P&G as most technologically enabled company. I thought of writing summary of digital initiatives that P&G has taken to enable multiple operations.  

·         P&G has built a platform called “Consumer Pulse” which uses Bayesian analysis to scan universe of comments posted on web and social media sites and generate relevant reports for multiple stakeholders in the organization. This platform provides real time insights of consumer preferences and trends and applies them in multiple operations such as market communications, promotions, product development, distribution etc.

·         Plant supervisors are provisioned with tablets like iPad to get/update real time information about operations such as Inventory, labor activities, shop floor performance etc. Collected information can also be aggregated for future improvement activities

·         P&G has implemented a program called “Control Tower” to have end to end visibility of transportation including Inbound, Outbound, Raw Materials and Finished Goods. They were able to reduce “Deadhead movements” by 15% using this program

·         For distributors they have implemented a “Distributor Connect” interface for all their information related needs. Using this portal assist both P&G and its distributors to reduce inventory levels without impacting customer service.

·         P&G has started using GDSN (Global Data Synchronization Network) to collaborate with retailers for all data exchanges. Using this standard data network assist in reducing order variations to near zero levels.

·         Digital technology is also being utilized to create winning assortments. P&G support retailers in comparing and simulating various assortments that will drive higher sales.

·         Product innovation is also impacted by usage of digital technology. For example developing and testing a new product prototype required thousands of dollars of investment but with modeling and simulation multiple prototypes can be developed in seconds.

The essential premise for all these initiatives is to have right data. Companies have started multiple initiatives internally or outsourced to get appropriate data for digital initiatives. With right data, digital initiatives offer immense potential for future improvements and growth.

For more information on the article please visit http://www.mckinseyquarterly.com/Inside_PGs_digital_revolution_2893