Colgate Palmolive - Spirit of Enterprise

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Spirit of Enterprise

INFORMATION TECHNOLOGY IN THE REAL BUSINESS WORLD

Information is the Lifeblood of Business

Information is the lifeblood of business. Managers make business decisions every day and these decisions must be based on sound information. Information is sound if it is accurate, timely and relevant.

Vast quantities of data must be organised and classified so that people can get the information they want whenever they need it. In modern times this is accomplished by the skilful use of Information Technology (IT).

What is Information Technology?

In general terms IT is the means by which computers and telecommunications (often called telecoms for short) are used to store, organise, retrieve and share information. Because this area of business involves computers and telecoms, many people think that people who work in IT are technical and that the work they do is somehow mysterious. This is a mistaken and old fashioned view. The central mission of IT is to support the business. Therefore, IT people must have a deep understanding of the various business functions .

The Real World of IT

Colgate Palmolive is a famous global company with a vast range of consumer products which are marketed in over 200 countries. It would be impossible for such a large company to operate without the services offered by their IT

Department , part of which is based in Dublin, supporting the Euro-

Africa region. The various business managers around the world expect the IT Department to provide services which:

Global Brand

• Improve business processes

Business activities are often classified as processes . For example, a retailer ordering a shipment of toothpaste is a process. Recruiting a new staff member might involve a number of processes. The company often reviews and reorganises processes in order to improve them. This is called Business Process Re-engineering (BPR) .

• Improve efficiency

Efficiency is improved if the same outputs can be achieved using fewer inputs or resources . IT can produce high gains in efficiency if it is well managed. Colgate Palmolive are world leaders in this area.

• Includes external partners

The company operates with many external partners such as suppliers. When partners are included in business processes they become closer to the company and this means better service and better relationships.

IT adds value to the company because it saves a great deal of time and money by allowing the right decisions to be made at the right time, anywhere in the world. In Colgate Palmolive, the

IT person who ensures that these things happen is called a

Business Analyst .

What Skills Does A Business Analyst Need?

A Colgate Palmolive team at work

A Business Analyst spends a great deal of time working with other people on crossfunctional business teams .

These team members normally work in functions such as marketing, finance, training, production etc.

They are experts in their own fields and the Analyst must be capable of debating issues with them. This requires good interpersonal skills, of which communication is very important.

When attempting to solve a problem, the Analyst must decide whether the solution lies in the use of existing software or whether a totally new application is needed. This demands analytical and creative abilities.

If a large scale change is required, a special project team is set up to deal with it. In this case a Project Manager is also appointed to the team. The first challenge is to decide exactly what the project is meant to accomplish. This is called scoping and is very important in the IT world. In Colgate Palmolive, the remaining stages of a project are called design and build , within which system testing is a critical element. This is followed by the preparation for and execution of the go live . It could take months to go through all these stages and meetings can take place in many different countries.

A Typical Working Day

Since Colgate Palmolive is a global company work goes on twenty four hours a day. When it’s night time in Ireland, people are at work in the United States and elsewhere.

Consequently, when the Analyst gets into the office in the morning, there are plenty of emails to deal with. This is usually the first thing on the daily agenda. Then there is a video conference with members of a project team who are located in

Europe. This team is developing new reports to track stock levels and some new programming appears to be necessary.

The team members decide on the next steps and fix the date for the next discussion. Following this, the Analyst joins a meeting in the next room where a team is discussing issues found in system testing. These issues are concerned with processing customer deliveries for a major implementation. Delivering products to the customer makes up an important element of the supply chain . There are various opinions on the best solution and the Analyst comes away with several tasks to be completed before the next meeting. It’s lunch time now and the opportunity to check flight details for a next month’s trip to

Africa for a training conference.

The people in the US have arrived at work and some of them are on the phone. One colleague wants to know if retailers will be able to include customer comments on the new order forms. She feels that this would be a good idea because it would provide customer feedback and also build relationships with the retailers. The Analyst can immediately see serious difficulties with this and promises to get back with comments in the next few days. Next, there is a request from a manager who wants a training course on spreadsheets for all his staff. They can’t all attend at the same time and some can only attend at certain times of the day. The Analyst promises to prepare a training plan to meet the requirements. Next week, a project status presentation must be delivered to senior management.

The Analyst will work on this at home tomorrow. This is possible because all the necessary files can be accessed using the laptop and a broadband connection. IT brings personal benefits also.

Your Task

The work of the Business Analyst interests you. You like computers but you don’t like to work on technical issues only, so the idea of solving business problems is appealing. You have been asked to suggest some ways in which IT can support the following activities.

• Let all dentists in Ireland know about a new toothpaste that has antiseptic qualities.

• Conduct a promotional event for a new household detergent.

• Recruit some new Business Analysts.

IT Serves the Whole Business

The IT Department in Dublin is part of a global IT organization, supporting Colgate Palmolive’s business functions across the globe.

In a strategic partnership with SAP, the company continues to implement leading edge business software solutions to support the development of the business.

SAP is the world’s largest business software company.

Colgate Palmolive is the first company to implement

SAP software in over 100 countries. Each year over a million orders are processed in the European system alone. Hardware for the companies IT systems is provided by IBM in another major strategic partnership.

Colgate Palmolive is a global consumer products company with annual turnover of nearly $14 billion . The company has customers in more than 200 countries and owns some of the most famous brands in the world.

The company’s strategy is to focus on four clear lines of business.

These are:

• Oral Care – toothpaste, toothbrushes etc.

• Personal Care – including soaps, deodorants and antiperspirants

• Home Care – products such as detergents, cleaners and fabric conditioners

• Pet Nutrition – specialty pet food

Colgate Palmolive places great stress on its business values which include Caring (for people and communities),

Continuous Improvement (constant improvement in efficiency and effectiveness) and Global Teamwork . The company sees innovation in all business areas as a driving force behind its successful growth strategy.

Staff training and development is also central. The company employs some 37,000 people around the world and encourages their continued development through a comprehensive suite of internal and external training courses.

In Ireland, Colgate Palmolive operates its commercial business from offices in CityWest which it shares with the

IT division. From here, Colgate people have developed a very successful business and can claim market leadership in toothpaste, toothbrushes and liquid hand soaps with strong and challenging shares in the other categories in which it operates.

You can find out more about Colgate Palmolive at www.colgate.com

Colgate-Palmolive Ireland

Unit 3054, Lake Drive

CityWest Business Campus,

Naas Road, Dublin 24.

Tel: 01 403 9700

This case and all teaching components can be printed from the CD or the Spirit of Enterprise website www.soe.ie

.

Spirit of Enterprise

INFORMATION TECHNOLOGY IN THE REAL BUSINESS WORLD

Case Summary

The case deals with the central importance of IT to the efficient conduct of a business. The function of the IT

Department in Colgate Palmolive is discussed and the role of the Business Analyst is described.

The student is required to identify some ways in which IT can support certain business processes.

Syllabus links

Leaving Certificate Business

Unit 4: Information Technology; Unit 7: International Trading/

International Business.

LCVP

Preparation for the World of Work: Unit 1 – Introduction to Working Life; Unit 3 Career Investigation

Enterprise Education: Unit 2 – Information and

Communications Technology.

The case can also be used for related topics in Junior

Certificate Business Studies and Leaving Certificate

Applied and during relevant activities in Transition Year .

Learning Outcomes

Having studied the lesson and carried out the related exercises, students should be able to:

• Identify the Colgate Palmolive main product lines.

• Describe the function of an IT Department.

• Identify some of the services provided by the

IT Department.

• Outline the role of the Business Analyst in

Colgate Palmolive.

• Discuss the skills required by a Business Analyst.

Building on the Case

The following points can be used to provide additional information and stimulate group discussion around the case.

Colgate Palmolive

The company was founded over 200 years ago and has a fascinating history.

• In 1806 , William Colgate founded a starch, soap and candle business on Dutch Street in New York City.

• Colgate placed an advertisement in a New York newspaper as early as 1817 .

• In 1864 , B.J. Johnson opened a soap factory in

Milwaukee, which later became the Palmolive

Company.

• In 1911 , Colgate actually distributed two million tubes of toothpaste and toothbrushes to schools and provided hygienists to teach children how to brush their teeth.

• In the same tradition, the Bright Smiles, Bright Futures oral health education program still reaches over 50 million children annually.

Information Technology

IT brings benefits of effectiveness and efficiency by streamlining business processes . Students may not realise the difference between effectiveness (often defined as

‘doing the right things’ and efficiency (‘doing things right’).

Efficiency can easily be measured as a ratio of outputs to inputs . Effectiveness is more troublesome to define and measure.

Strategic Partnerships

The strategic IT partnerships with SAP and IBM play an important part in the company’s achievement of Best in

Class status for IT costs. Strategic Partnerships also ensure that Colgate Palmolive can benefit from their partner’s commitment to Research and Development , whilst also enabling the partner to get closer to the real world operations of a global company.

Networks

Students will obviously be familiar with the internet , but may not realise that it is made up of thousands of interconnected networks running a common protocol called IP (internet protocol) . An intranet is the internal company network, which may also be international and serve many locations. When external business partners are connected to the intranet these connections are called the extranet .

Student Exercises

The following student activities can be undertaken by individuals, pairs or group assignments requiring written reports, discussion or presentations. Most of the exercises can also be used to assess learning following a class session.

The Case Analyses

The question posed at the end of the case will stimulate an analysis of the case material and exercise the ability to use judgment, make decisions and support these decisions with a rationale. It is also an opportunity to review any knowledge on IT that may have been gained in other classes.

Student Reflection

What have we learned from the case?

This is a powerful exercise, especially when done individually, followed by group discussion. It aids understanding, retention and recall . The teacher can use the learning outcomes listed above when giving feedback.

Possible reflection questions include:

• What did I learn about Colgate Palmolive?

• Can I describe the mission of the IT Department?

• What do I know about IT that I didn’t know before?

• Can I define the role of the Business Analyst and identify some of the skills necessary for the job?.

• How does the information in this case relate to what I have learned in any other classes I have attended?

Applied Business Question (LC Business)

a) Describe the role of an IT Department.

b) Same some of the services provided by an IT

Department. c) Identify three main business functions and suggest what IT services they might require. d) What management skills does a Business Analyst need?

Case Study (LCVP)

a) Identify some of the services that IT provides to a business.

b) What skills does a Business Analyst need to be effective in the role.

c) Identify any opportunities you feel exist for the provision of IT services to enterprises in your area. d) Identify three benefits that the IT Department delivers for Colgate Palmolive.

Business Terms

The following True/False and Multiple Choice questions can be used as quizzes to engage in a review of case terminology. They can be printed out from the CD or website

(www.soe.ie) for handout purposes.

True or False?

• It is not necessary for an IT person to understand other business processes.

• Colgate Palmolive is a global advertising agency.

• An IT project team in Colgate Palmolive is usually a cross-functional team.

• The network that connects a company’s computers is called an intranet.

• One of Colgate Palmolive’s lines of business is CD production.

• A Business Analyst needs technical skills.

• Colgate Palmolive market, oral, household and pet care products.

• The IT Department never deals with the business’s external partners.

Multiple Choice

1) Which one of the following services is not usually provided by an IT Department?

• Email • Telephony • Computer Maintenance • Catering

2) Which of the following people are likely to serve on a business team?

• Accountant • Enginee • Marketer • Trainer

3) The programmes which run on a computer are called:

• Hardware • Software • Hard Disks • Keyboards

Presentation Skills

An individual student or pair is asked to prepare a two minute presentation outlining the services which the IT

Department provides to the business.

Career Investigation

The following question can be posed for individual or group consideration. Would you like to work as a Business

Analyst? List your strengths and weaknesses (areas for development) under the following headings.

• Technical Knowledge

• Knowledge of Business Functions

• Interpersonal Skills

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