Course Involvement Preparation (CI Prep 2)
Part 1: Managing with Analytics at Procter & Gamble
The Role of Analytics Software in Organizations
Analytics software serves as the backbone of modern decision-making by converting vast
quantities of raw data into actionable insights. At P&G, analytics is not just a support tool; it is
embedded into the operational DNA. As described in the case, the Business Sufficiency analytic
models and Decision Cockpits are used across functions to visualize trends and gaps against
forecasts in near real-time. These tools reflect what LaValle et al. describe as a transformation
from "insights to value," where data is no longer peripheral but central to strategic execution.
Difficulties in Development and Implementation
Developing and deploying analytics platforms is complex. P&G had to invest in both the
technological infrastructure and organizational change. One major challenge, echoed by
Ransbotham et al., is the analytics gap — the distance between the ability to produce analytics
and the ability to consume them effectively. Managers often lack the statistical literacy to
interpret sophisticated models, and analysts may not fully grasp business contexts. P&G had to
address this through extensive training, change management, and leadership support.
Has P&G Been Successful in Using Analytics?
Yes, P&G has demonstrated considerable success. Business Sufficiency and Decision Cockpits
helped P&G shift from lagging to leading indicators, enabling proactive interventions. These
systems supported both strategic (long-term portfolio management) and operational (sales and
supply chain) decisions. This success aligns with the findings of MIT Sloan’s study showing that
top-performing firms are twice as likely to use analytics in decision-making across all levels of
the organization.
Challenges Ahead
Despite successes, P&G faces evolving challenges:
● Scaling and consistency: As more functions adopt analytics tools, maintaining
consistent use and avoiding redundant metrics will be vital.
● Adoption and trust: As highlighted in "Keeping Up with Quants," decision-makers must
learn to ask the right questions, interpret model assumptions, and integrate analytics
with judgment.
● Data governance and ethics: As data sources grow, ensuring accuracy, privacy, and
ethical use becomes more difficult.
Should Torres Override the Forecast Models?
This is a central tension in the case. Torres, relying on field insight, believes the current forecast
underestimates demand. This scenario underscores the classic debate between intuition and
analytics. As emphasized in “Big Data, Analytics, and the Path from Insights to Value,” analytics
should be embedded into decisions but not treated as infallible.
Torres should not blindly override the model. Instead, she should:
● Explore the assumptions in the model.
● Collaborate with the analytics team to adjust inputs or test scenarios.
● Use judgment in combination with data — not in opposition to it.
Part 2: How Does Digital Transformation Happen? The
Mastercard Case (A)
What Works Well in MC’s Innovation Approach?
Mastercard’s success stems from its portfolio of experiments and support for adaptive
innovation. Similar to DBS in the Ross reading, MC fosters rapid testing and learning cycles.
They fund innovation through the Digital Future program and support agile teams, aligning with
Ross’s argument that experimentation is crucial for digital success.
Furthermore, Mastercard encourages customer-centric innovation — understanding latent
customer needs through design thinking and testing. Their focus on engaging external partners
and internal cross-functional teams helps generate diverse ideas and scalable pilots.
What Does Not Work Well?
However, MC’s innovation process faces limitations:
● Idea overload: A flood of concepts without a strong filtering mechanism leads to
resource dilution.
● Lack of clarity: Some internal teams feel unsure about which ideas will get support,
leading to inertia.
● Cultural resistance: As noted in the "Digital Transformation" paper, digital change often
outpaces organizational culture.
Should the Smart Stickers Concept Move Ahead?
The Smart Stickers concept faces a paradox: it is innovative, but uptake is uncertain. Similar to
the Schneider Electric example from Ross, the issue is not feasibility but customer adoption.
Customers often struggle with unfamiliar value propositions.
Given this, MC should not scale Smart Stickers immediately. Instead, they should:
● Run targeted pilots with early adopters.
● Conduct behavioral analysis to understand usage patterns.
● Iterate the product based on real-world feedback.
What is an Adaptive Ecosystem and Why Adopt It?
An adaptive ecosystem is a network of internal and external actors collaborating dynamically to
respond to change. It allows MC to:
● Rapidly sense market shifts.
● Co-create solutions with fintech partners and merchants.
● Avoid monolithic innovation approaches.
This concept is emphasized in Jeanne Ross’s work, where evolving strategy through
interactions between what's possible and what's desirable is key.
Stated vs. Emergent Strategy
● Stated strategy: As articulated by the CEO, MC aims to “build a world beyond cash”
through secure, seamless transactions.
● Emergent strategy: The real-time dynamics of their experimentation suggest a deeper
goal: platform leadership in the digital economy, driven by data, partnerships, and
customer experience innovation.
This mirrors Ross's idea that digital strategies must emerge from iterative learning — they are
not planned top-down but discovered through action.
Key Pillars of the Emergent Strategy
1. Customer experience: Omni-channel, personalized services.
2. Data leverage: Using analytics to drive personalization, fraud detection, and
value-added services.
3. Ecosystem engagement: Fintech partnerships, open APIs.
4. Agile innovation: Decentralized, iterative experiments.
