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Digital Disruption and the Next Generation of
Shared Services
Julio Nemeth President, Global Business Services
The Procter & Gamble Company
© 2018 Procter & Gamble
How much do you think the software for an iPhone 5S would have cost in 1991?
Why not expect Moore’s Law in GBS’s domain?
1991
Memory: Processing: Connectivity:
32 GB = $ 1.5MM 20,500 MIPS = $ 600M
15 Mbps = $ 1.5MM
Total = $ 3.6MM
IPhone 5S ~ $300 3.6MM/300 = 12,000 x (214 = 16,384) Bret Swanson – Feb 2014
© 2018 Procter & Gamble
P&G GBS 14 years old, 9 MLC, 29 = 512
Aggregate ~2x, best case 5-6x
That’s what we’re here to talk about today.
A Company of Leading Brands
© 2018 Procter & Gamble
Sales $65.1 Billion
Net Earnings $15.3 Billion
Countries of Operations ~70
Countries where our 180+ Brands are Sold
P&G Today Fiscal Year 2017
© 2018 Procter & Gamble
* 38 defined recessions since founding
© 2018 Procter & Gamble
VA
LU
E
CR
EA
TI
ON
F
OR
P
&G
T I M E
Strategic Sourcing
Run as a Business
Going Digital
Initiate GBS
Build Capability
P&G’s implementation
approach to Digital Automation and
Digitally Augmented Decision Making
© 2018 Procter & Gamble
Source: McKinsey Global Institute 2017. 40% automation potential “below the blue line”
The Model The work to do above the blue line:
Prepare Leadership to operate in a digitally augmented world.
The work to do below the blue line: Execute/materialize the task automation to its full potential.
% A
utom
atio
n P
oten
tial
100
80
60
40
20
0 0 10 20 30 40 50 60 70 80 90 100
% of Tasks
A U T O M A T I O N P O T E N T I A L
Tasks Performed by Humans and
Augmented by Technology
Tasks Performed by
Software
© 2018 Procter & Gamble
E2E Processes Driven GBS
Order to Cash
Source To Pay
Supply Network Planning
Master Data Management
Real Time Artwork
5 P R O C E S S E S
3 T R A N S F O R M A T I O N
S T E P S
S I Z E O F P R I Z E
O R G A N I Z A T I O N
A single integrated organization running the
full E2E work process
D I G I T I Z A T I O N
Cognitive technology to automate tasks and
augment decision making
W O R K P R O C E S S
A clearly defined end to end work process with
loss elimination applied
Top Line Growth
Margin Growth
Cash Generation
Quality
© 2018 Procter & Gamble
© 2018 Procter & Gamble
Bringing it Together
How P&G is approaching
Disruption and the Next Generation
of Services
© 2018 Procter & Gamble
Disruptive Innovation Model
Iterative/Agile Operating
Model Focus on
10X
Create a process
“firewall” for innovation
Open Ecosystem
© 2018 Procter & Gamble
Dashboard
© 2018 Procter & Gamble
Big Idea / Concept
A/Rex
• AI to Transform Accounts Receivable Process
• Stay ahead of advancing AP Technologies
Business Benefits Targeted
• Reduce Cash Leakage from P&G by 10-12%
• Eliminate 90% of manual touches
• Reduce DSO by 1 day (P&G Best-in-Class)
© 2018 Procter & Gamble
© 2018 Procter & Gamble
Seamlessly Combine the best of Human and Machine Intelligence
Big Idea / Concept
• Data Automation
• Intelligence Suggestion
• Predictive Analytics
Business Benefits Targeted
• Customer Satisfaction (+10% in CX)
• Advisor Efficiency (+30% productivity)
• Cost Reduction (-50% operation costs)
Big Idea / Concept
Global Ocean and Air Transportation
• Undisputable Transparency & Trust in Global Transportation Invoices and Payments
• Use blockchain to ensure visibility of freight services, container movements & authenticate contracted rates to automate invoice creation and payment
Business Benefits Targeted
• Freight Audit & Compliance
• Solving the problem will result in 10% reduction in global trade’s transportation cost
© 2018 Procter & Gamble
Big Idea / Concept
Employee Platform
• Single personal virtual assistant for all employee needs (cross domain/function)
• Accessible on multiple channels e.g. voice, text, web, Skype, etc.
Business Benefits Targeted
• Reduce front office call volume by 80% over the next 2 years across all of P&G
• Improve employee productivity by 20%
© 2018 Procter & Gamble
© 2018 Procter & Gamble
In Closing
1.2X on Performance 0.5X on Price
>2X in
3 years cycle
5-10X in Specific Sub-processes
© 2018 Procter & Gamble
Thank You
