Management of Digital Transformation

 

Managing igital Transformation in Enterprise

 

CANALYSIS ASE ST STUD UDY Y

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Yash (1802220)

 

ABOUT P&G •

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P&G stands stands for Procter and Gam Gamble ble.. The partners partnership hip agreement between Will William iam Procter and Jam James es Gam Gamble. ble. wass sig wa signed ned on October 31 31,, 18 1837 37..  pledgi  pled ging ng $3 $3,5 ,596 96.4 .47 7 eac each h to start a soap and ca cand ndle le  busin  bu siness ess toge together ther.. Procter & hGamble’s first vent ure inand advertising  be  begin ginss wit with a print ad ad forventure machine mach ine lamp lam p oi oil. l. By 201 2012 2 these brands brand s represent re present 90% of P&G P& G sale saless and an d more more tha than n 90% of th thei eirr pro profi fits ts,, and and 25 of them are Billion Billion-Do -Dollar llar bran brands. ds. 2

 

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P&G is one of the biggest consumer goods companies in the world because of its ability to create market and sell major consumer produc productt brand brandss . It has 127 000 employees across 180 countries 300 brands and $82 billion in revenues reve nues in 2011. 201 1.

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Major reason for P&G successes from the time it was founded in 1837 has been its strength in information techn technology ology and willingness to pursuit new IT innovation. Its goal is to digitize its processes from end to end and has also fundamentally changed the way it gathers reports and interprets interp rets data data wh while ile redu reducing cing cost from other areas areas of bus busine iness. ss.

 

Management, Organiz Management, Organizati ation, on, and and Technologi Technological cal issue issuess Management Issu Issues es inv involv olved: ed: 1. Planning: With operations spread across 180 countries, meeting the business services needs of the organizati organization on was challengi chal lenging. ng. Ne Need ed fo forr re real al time data to make real time decisions and for formu mulat latee strategy. Proposed Solutions:

2. HRM: Having open minded, skilled workforce, workforce, and need to get qu quic icke kerr solut solutions. ions.

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3.  Ne  Need ed fo forr management to clearly see clearly se e all parts parts through dataa in rea dat reall time.

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P&G has a Global business services services division that is building building anal analytic yticss expertise that undertaki under taking ng new analy analytica ticall solutions and employee services like people management to business services. Outsourcing important only noncore  business processes 5

 

Out Outsou sourcin rcing g - Par Partne tnersh rships ips Benefits Jones Lang LaSalle for facility Man gement 1. Jones Lang Lasalle is a financial and  professio  prof essional nal serv services ices firm speci specializ alizing ing in in real real estate.

2. Real Estate sites in 60 countries from 750 locations worldwide and 180 corporate offices. 3.

Focus on Outcomes and not transactions

Focus on what and not how

Agreement between the companies covered facility management, project management

Clearly defined and measurable desired outcomes

and strategic occupancy portfolio management, transactionservices, management, real estate brokerage, lease administration

Pricing models and incentives

4. This new agreement spread across more than various countries across Asia Pacific, Europe, North America & South America.

Insight versus oversight governance structure 6

 

Out Outsou sourcin rcing g - Par Partne tnersh rships ips IBM for Employee Services

Contract of 10-year-old for Human Resources Business Transformation Outsourcing services like pay roll  processin  proc essing, g, benef benefits its administration, administrati on, compensation  planning,  plan ning, expa expatria triate te and and relocation services and HRM data. Benefits Improved service and reduced HR cost

HP for IT Infrastructure •

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This was a bold initiative to consolidate accounting and finance operations that that were once spread spread across the enterprise in in a single, global organizat organization ion HP managed managed P&G’s P&G’s IT infrastructure, data data centers, desktop and end user support, network management and applications development and maintenanc maintenance. e. Benefits Improved service levels, functionality, flexibility and capabilities Improved turn around time in various continents Retained 75% of in scope TAP personnel

Leader in BTO marketplace

HP utility data center and Adaptive network architecture 7

 

Digi Digital tal Tech Technolo nologie gies= s= ESS + DSS 1.ESS: Executive Support System, is a system fr from om th thee constituen cons tituency cy per perspe spectiv ctive. e.

What Busi What Business ness sufficiency is about:

- Ma Make kess predictio predictions ns for ex execu ecutiv tives. es.

Support senior management. Address Addresses es strategic issues and long-term trends (no routine decisions requiring judgment, evalua eva luation tion,, and insi insight ght). ).

- Aids them in making plans and decisions.

2.DS Decision support DSS S: Decision systems, Focus on problems that are unique and rapidly rapidly chan changing ging

technology technolog y proble problem. m. - Issues: (Intelligent software, removes sluggishness, aids strategizing.)

- In act actual uality ity so solve lvess a big big portion portio n of initial initial managemen managementt and

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ech hnolo log gies= MIS + TPS Digital Tec -

MIS IS:: Manag Managemen ementt Inf Inform ormati ation on Syst Systems ems

Serve middle management to help with monitoring, controllin controlling, g, decisio decision n mak making ing and administr admi nistrative ative act activit ivities ies.. Provide reports on firm’s current performance, based on data from TPS. -

TPS: TP S: Transa ransactio ction n Processing systems:

Allow manager Allow managerss to monito monitorr status of operations and relations relations with with external environment

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P&G’s Business •

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Strat ateegy & Con oncclu lusi sion on

Manage Managers rs and em are now able to make mak e faster and better decisions decisio ns thanemployees weployees were re pre previo vious usly ly pos possib sible. le. The company is is also also abl ablee to better anticipate future events affe affectin cting g the  busine  bus iness ss and more quickl quickly y respond to marke markett stimuli.

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Boosted high levels of employee supplier suppl ier satisfaction

Improved decision making

Improved customer and supplier intimacy

New product service businessand mobility

Competitive advantage

Operational excellence

Survival

 

Invest o

Framework used for the introduction introducti on of digital marketing materials in order to expand strategic marketing options :

InvestCo

 

Impact of digitized marketing materials on customer, process and business model

Customers

Process

Business Model

• Availability of more choices

• Increase channelsin no of

• Strong brand awareness

• Transparent and trustworthy relationship

• More focus on development of marketing content with digital tools and connected data

• More control over the marketing massages

• Reduced delivery time

InvestCo

• Shift in roles and responsibilities of sales representatives

 

IT Infrastructure change

Digital technologies used

Investment banking industry thrives on o n the flow, analysis and interpretation of information and technology has the power to deliver competitive advantage

Virtual advisors: Leverage next-generation technologies to digitalise the client-advisor relationship, providing automated investment portfolio with on-demand access to advisors

Concurrently enabling interdependent business functions, such as risk management, settlement and financial reporting, these technologies are transforming the way organizations ‘think’ ‘think’,, ‘react’ and ‘operate’

White label advisory platforms: Purchase or partner with platforms to provide an end-to-end solution to independent advisors. Enable machines to handle complicated investment management tasks, asset allocation and rebalancing

Triggering a cascade of changing attitudes, roles, and relationships

InvestCo  

Digital technologies used • Highly focused on customer-facing blockchain blockchai n and data analytics

Role of leadership • To have transformative vision • To ensure smooth change management process • Grabbing the opportunity to reimagine the business • Identify obstacles and address them timely & effectively • Empower the workforce to embrace the

change

InvestCo  

PharmaCo

 

Framework

 

Customer (Pharmacies, Patients) • Reduction in constraint to call doctors & pharmacies or time available in the doctor’s chamber • Call planning and order placing is very efficient with the help of

Impact on

tabs/handheld devices tabs/handheld • Patient convenience convenience through therapy-specific apps & social media platforms such as webinars, online portals, video chats Process

customer, process and business model

• Reduces effort to document its development and manufacturing

operations • Access to historical record of mistakes and successes • Data archives for medicine development • Time of high-quality people freed up from the burden of keeping up with regulations Business Model • Aim of rapid innovation of new medical solution can be achieved with the

help of digitisation • From a patient angle, healthcare is becoming more personalized and services are enabling 24X7 digital environment • Patient value will be delivered more through digitized services rather than through products

 

IT infrastructure change Then

Now

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No databa database se manage managemen mentt tools tools used used

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No Da Data ta meas measur urin ing g tool tool

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Re Repea peated ted tasks tasks reduc reduced ed eff effici icienc ency y

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Re Repea peated ted tasks tasks had low re relia liabil bility ity

 

 

 

 

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Effe Effecti ctive ve datab database ase manage managemen mentt tool tool

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Data Data mini mining ng tool toolss are are us used ed

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Effe Effecti ctive ve data data man manage agemen mentt impro improved ved eff effici icienc ency y

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Au Auto toma mati tion on im impr prov oved ed ma manu nufa fact ctur urin ing g proc proces esss reliability

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Au Auto toma mati tion on is not not co corre part part of IT

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Diffe Dif fere rent nt platfo platform rm used used for for proce processes sses

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Physical Phy sical document documentation ation followed followed

 

 

 

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RP RPA A impro improved ved proce process ss manage managemen mentt

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Sing Single le plat platfo form rm is us used ed in or orga gani niza zati tion on

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Digita Dig itall doc docume ument ntati ation on is used used

Advantages: Effective resource utilization through structured task distribution and automation Process reliability improved through RPA tools and Database management tools •

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Coordination increased through platform development Productivity improved through IT enabled documentation process

 

ERP platform implementation

Cloud based application for real time access

Digital technologies and tools

Dashboard technology and advance analytics to effective time utilization

Supply chain automation and integration

Database management tools like SCADA, LIMS are used

used Patient friendly online presence

Platform technology to coordinate marketing marketing and sales to distribution

 

Strategic vision and senior management sponsorship is important

PharmaCo should start with several small projects and assignments in diverse areas then scale big

Long Term commitment is mandatory

Role of leadership

Selection of resources both internal & external, starting from the CIO is an important consideration

Real-time analytics of business can enable tactical and strate strategic gic view

High Tech 360-degree view of market, competition, prices, market shares, portfolio, capacities, supply chain, human resources and everything else to see whether each part of the business is growing its sales and profits in line with the targets

 

Digital Transformation

 

Focused on Digitization of Clinical areas, generating high quality data

Primary Goal: “Improving patient outcomes by eliminating information as a cause of patient

Framework Used

harm” rather than focusing on financial metrics

Digitizing the complete procedure from the time patient gets admitted to being treated treated

While treating a patient, all the test ,scheduling and staffing were committed digitally, digitally, which helps to free extra nursing hours

 

Impact on Customer, Process and Business Model

PROCESS

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More focus and care given to the patients Easy Access to patient history Scheduling and resource allocation for patient’s treatment done efficiently Reduced communication gaps which were causing patient harm Enhanced Customer Experience by putting in additional nursing hours back into patient care

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Implementation of digital technology to support staff and equipment performance Integration of platforms enabled seamless flow of data leading to better planning and scheduling Processes were made more efficient saving 66000 nursing hours Hours freed up by digitalization of the staff were invested back on patient care and outcomes

BUSINESS MODEL •

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Higher efficiency in the processes lead to higher productivity of staff and resources Good service brought in new customers and retained previous customers The use of information was streamlined and redundant data was eliminated Value to the patients was made the main focus point of the business Healthier and happier patients and an enhanced ability to win more research grants and attract more world-class researchers because of the volume and quality of high quality data available from its digital density

 

Integration of information, supporting staff with devices and connecting them through medical grade communications network

Providing the staff with smart handheld devices to connect them with digital network spread across the hospital

IT Infrastructure Change

Increased R&D expenditure and recruiting world class researchers researche rs to strengthen the IT capabilities of the hospital

The digital capabilities associated with the electronic medical record opened opportunities to further enhance patient outcomes

Collection of relevant data helped CHLA to carry out real-time analysis of data to make their processes much more efficient

 

VR and AR technology to help train residents and nurses more quickly, efficiently and at a lesser cost than setting up live demos using real experts

Digital Technologies and Tools Used

Cloud-based, interoperable electronic health records for seamless data access to any patients past history and medication

AI incorporated into the application helps physicians, medical staff, and patients converge on decisions such as modulating staffing needs, selecting room type, stocking required medication, determining diagnostic choices, and meeting non-medical support based on the patient’s socio-demographic profile

 

THANK YOU