Courtesy of Susan Hall of IT Business Edge
At a time when it's doing massive cost-cutting and layoffs in
other parts of the business, Procter & Gamble CIO
Filippo Passerini plans to quadruple the number of people on staff
with expertise in business
analytics, InformationWeek reports.
The article doesn't put numbers on how many people that will be,
but it's following a
trend. A survey a few months ago by Accenture SAS
Analytics Group found that 72 percent of respondents plan to
increase spending on business analytics this year, yet 60 percent
said they don't have the needed skills in place to effectively use
analytics.
InformationWeek's Chris Murphy explains that P&G is
switching from preparing reports for key people after the fact to
creating a virtual, real-time war room of people huddled around
video screens. Videoconferencing plays a big role in this, with
players worldwide able to join in even from a smartphone.
The article says P&G isn't looking for new data types for
these meetings - it's still relying on point-of-sale,
inventory, ad spending and shipment data. But it's looking for more
frequent updates faster and with a finer level of granularity. It's
moving beyond what a problem is and why it's occurring to bringing
analytics in to solve problems faster. Writes Murphy:
- Passerini pictures analytics experts ... sitting in on more
meetings to make sure the "how" to solve problems gets sorted out
right then and there, not postponed until everyone gets more
information. The old model would mean "let's get back to this in
two weeks," he says. "You need to be able to answer that question
immediately."
A commenter on the article sees problems with the classic
Dilbert model of "get as much data as possible so that the
executives can ignore it and make decisions based on company
politics." Yet Murphy explains that rather than trying to assemble
by guessing which data executives want, Passerini wants to make all
the most recent data available so there's no questions about whose
data to use and what other information is out there. The analysts
sitting in on these meetings - a breed in
short supply - will be business-IT hybrids.
A second commenter sees the need for more predictive analytics,
writing:
- People used to get reports which told them what happened, but
not why. They now know what and why, but the cutting edge step is
moving to understanding what will happen and why it will happen
using modeling tools before they implement a decision.
- Many organizations, if we are honest, do not even know to a
high level of certainty what happened. They get BI reports and
everyone immediately questions the validity of the numbers. Master
data management and data quality is a necessary first step for many
organizations before they even are serious about BI or
analytics.
In a second, really interesting article on P&G's efforts to
increase transparency and agility, Michael Schrage
at Harvard Business Review writes that
greater transparency in large organizations generally brings on
more micromanaging. At a conference, he asked the P&G execs how
they dealt with that. He was surprised at the answer: have fewer
managers, with the remaining managers too busy to meddle.