P&G Mini Case Study

Procter & Gamble Mini Case

1) Business strategy: Proctor & Gamble’s company goal is “touching and improving more customers’ lives in more parts of the world…more completely.”

Their innovation model has transitioned from a traditional research and development model into what they call their “Connect & Develop” model. This innovation strategy is aimed at aligning themselves with outside business partners to create greater value for the customer than they could ever produce on their own. They call the idea behind this strategy “sourcing the creativity of the world” (P&G.com).

Proctor & Gamble clearly has a transnational business strategy, with extreme coordination and integration of strategy and operations. They are a company driven by information and technology, and are looking everywhere possible for ideas. In comparison to other companies of this type, P&G has an unusually high percentage of their budget allocated to R&D.

Collaboration & Innovation: Because of the scale of P&G’s operations, collaboration involves stakeholders all over the globe. If efficiently utilized, these partnerships can develop strong networks that will put the right products in the right places every single time. Technology plays a huge part in this. Improving self-service capabilities for suppliers, vendors and customers will allow P&G to share supply and demand information without slowing down other processes—an important step to improving collaboration throughout the entire supply chain.

However, the company recognizes that technology is only valuable if it is properly utilized. According to Proctor & Gamble CIO Filippo Passerini, “It is not about the technology—it’s about the business. We must be businesspeople first and technology experts second. Business Intelligence is a great capability for us because it has value for the business. However, we will not adopt technology for technology’s sake” (Watson).

Innovation: P&G’s global business strategy requires...