1. IT as a competitive
advantage
at Procter & Gamble
October 28, 2008
Remco Brouwer, Procter & Gamble
Information & Decisions Solutions

2. Agenda
Introduction to P&G
IT: From Commodity to Strategy
Using information to win in the market
Q&A

3. Agenda
Introduction to P&G
IT: From Commodity to Strategy
Using information to win in the market
Q&A

4. P&G
at a Glance • Founded 1837
• HQ in Cincinnati, Ohio
• $83.5 Billion annual sales
• 138,000 employees
• More than 300 brands sold
in 160 countries
• Operations in more than 80
countries
• “Fast Moving Consumer
Goods” industry

5. Brands sold in the Netherlands
FMCG: Ariel, Dash, Dreft, Lenor, Swiffer,
Antikal, Febreze, Pringles, Pantene,
Herbal Essence, Head & Shoulders,
Wella, Oil of Olaz, Max Factor,
Oral-B, Vicks, Pampers, Kandoo,
Always, Alldays, Tampax, Envive,
Gillette, Braun, Duracell, IAMS,
Eukanuba
Fragrances: Hugo Boss, Lacoste,
Laura Biagiotti, Mexx,
Gucci, D&G ….
An average supermarket in the Netherlands has over 300
P&G products in its assortment

6. P&G’s 24 Billion-Dollar Brands

7. Some of our core values
Consumer in the center of everything we do
Superior products, focus on R&D
High speed to market
Leverage our scale as much as possible

8. Focus on two
key moments
In store At home where
where the the consumer
shopper chooses uses our products
First Moment Second Moment
Of Truth Of Truth
Shopper Understanding Consumer Understanding
“Customer Business Development” “ R&D, Marketing”

9. Agenda
Introduction to P&G
IT: From Commodity to Strategy
Using information to win in the market
Q&A

10. Innovation in Business Services…
P&G’s Challenge
Global expansion, between 1985 and 1999 we had
• Entered 55 new markets
• Increased operations to 86 countries
We saw…
• Duplicated services across regions
• Structural inability to take advantage of
economies of scale
• Inefficiently allocated staffing and budgets

11. Innovation in Business Services…
The IT Challenge
We Knew:
• Much of technology was becoming a commodity…
• Often, IT was seen as a cost…
• IT had the potential to do so much more…
Technological
Business Needs IT Capability
• And the business need was so much greater…

12. We set a goal . . .
Transform IT from Back
Office Support to
Board Room Strategist
and
Offer P&G a strong
foundation for growth...

13. Our Approach
UNITE IT and core Business
Services
DRIVE synergies across
Business Services
SHIFT THE THINKING from
“technologies” to “solutions”
UNLEASH the potential of the
back office as a business driver

14. GBS was born…
Global strategy Customer Employee & Cross-functional
for products, relationship; local business services, support: HR, PS,
Marketing, R&D, marketing IT infrastructure, Finance and
& Manufacturing & consumer processes & Accounting, CMK,
understanding. business support Design, External
across P&G Relations, R&D,
Legal, CBD

15. Going Global: Before
Our Starting Point - A Scattered Structure
In 1999:
Brands / Business Units operating
“independently”
Business Services:
“Localized” and dispersed among
business units, brands, geographies
Business Implications:
• Duplicated services across regions
• Inability to take advantage of scale
• Inefficient staffing and budgets

16. Going Global: After
GBS Service Centers and Data Centers
Newcastle
Brussels
Cincinnati
San Jose
Manila
Singapore

17. Global Service Lines
Employee Services Business Services
• Employee Services • Strategic Sourcing &
Procurement
• People Management
• Financial Services & Solutions
• Facility Services
• Product Innovation Solutions
• Computers &
Communications • Supply Network Solutions
• Meeting Services • Consumer Solutions
• Travel Services • Customer Solutions
• Initiative Management
• Business Performance
Solutions

18. Growing in Partnership
• After the creation of
GBS we needed:
Another big step in
our business model
• What we realized:
Could grow stronger,
faster if we tapped
into external partners
Leverage our best, with their best . . .

19. Growing in Partnership
• 3 Partnerships
$4.2 billion agreements IT Infrastructure + Applications +
11 months start-to-finish Transactional Accounts Payable
• Best-in-class industry
leaders
Employee Services
• Strong commitment to
partnership
• Clear measures for Facilities Management
success

20. Within 2 weeks, our
partners added 700
Agility
full-time people to
the P&G business
• Together:
1100 projects
• Completed:
in 15 months
• Synergy
Savings:
$1.2 Billion

21. GBS Running as a Business
Borrowing from P&G’s Management Practices
P&G’s Approach GBS Equivalents
Profit/Loss Cost
Market Share Service Levels
Sales Volume Value Creation
Brand Service Management
Management
Consumer Benefits “Total User Experience”

22. GBS Running as a Business
What this transformation meant to IT
Business IT
Needs Strategies
From technology to solutions
IDS
From what’s needed to what’s
possible
And a new name for our IT organization:
Information Our unique asset
Decisions What we want to enable
Solutions What we want to deliver

23. Agenda
Introduction to P&G
IT: From Commodity to Strategy
Using information to win in the market
Q&A

24. Example 1
Virtualization at Work
Replace physical product mock-ups with virtual reality applications
Commercialization:
Consumers: focus-group
mock-ups replaced by
virtual designs
Customers: increased
engagement with virtual
shelving
Engineering and
Production: modeling
Our Virtual Solutions tools were used on 79% of all P&G initiatives

25. Example 2
Customer Collaboration
Work with our customers to better understand and serve the
shopper
Use the following data types:
• Point of Sale Data
• Loyalty Card Data
• Household Panel Data
• Market Share Data
We have global systems to load, enrich,
store, integrate and analyze these data types.
Key theme : From data to information

26. Example 3
Real Time Decision-Making at Work
Decision Cockpits:
Example 2
• Revolutionized Running as a Business
http://decisioncockpit.pg.com/shirley
delivery of business Real TimeCockpit
My Decision Making @ Work
Decision Cockpit
Decision Cockpits
information Alerts
• LonDarco down 4% this
quarter.
•
• Shipments 2.25% behind
expectations.
Shipments - Quick Overview
Choose Region:
Revolutionize delivery of business
GM Net
• CEMEA Monthly –one day ago
• NEA Monthly –one day ago
• LA Monthly –three days ago
• WE Monthly –five days ago
(RSS Feed)
• Action Plan meeting
announced.
information by anticipation
View old alerts… SRAP
• Empowers executives
My Reports
• All Outlet Share - US Market - Global
•
through Aug 2006
Available to everyone
P&G (including Gillette)
US All Outlet P3M value
share ending Augus
t 2006 is estimated. NA Daily O&S Report NA Market Measurement - Control Chart
to anticipate what is • Eliminate / reduce “standard
• Board of Directors Share
Reports - July '06
Globally, X of X Categories are flat or
reports”
growing share in the Past X Months vs.
Year Ago.
Competitive Intelligence
happening in the •
My Links
Anticipate what is happing in the
business NA MDO Scorecard
My NewsStand Folders
Fabric Care - Multicompanies - North
America - Competitors
• HSBC Investor Global Fixed Income
Fund - Class I - Part 1
Consumer • Unilever Announces Third Quarter and
business
• Media Coverage Nine Month Results 2006 and Interim
• Commercial Innovations Dividends
• Claudia's Design Blog • Unilever changes claim 265 suburban
• Marketing Net
Customer
Need image of a cockpit here jobs
• Top Customer Stock Quotes
• Retailer Brands
• JVC-CDSN
• Available to everyone,
based on a common
data set

27. Example 4
Tailored reporting where needed
End to End Reporting Services:
• Enabling better local decision making
by integrating data from different
(global or local) sources
• Turn data into actionable
information
• Display the information following
local business / market structures, use a
“simplified version of the truth”
• Deliver the information through our global decision
cockpits

28. Example 5
Personalization at Work
Began as support
for one site
Built pampers.com
into the most
successful
marketing site in the
Company
49 countries, 50% of
world’s population
26 million visitors a
year
Reapplying customization to advance
other brands in the Company.