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Introduction to Business 2e

Critical Thinking Case

Introduction to Business 2eCritical Thinking Case

Critical Thinking Case

Innovation and Employee Involvement

This chapter provides insights into how manufacturing and service organizations can implement processes and controls to increase efficiency, manage expenditures, and increase profits for the organization. For companies such as Dell that need to manage suppliers and make sure that all components are procured on time and at the best costs to ensure the final assembly runs efficiently, and for service organizations such as Hilton Hotels, which wants to have clean rooms and an efficient check-in process when guests arrive, the main lessons of this chapter are readily apparent.

All companies, however, need to innovate continuously to improve their products and services. Automobile companies such as Ford have to constantly measure customer tastes and needs and provide products that meet and exceed their expectations. Likewise, Marriott needs to cater to the needs of business and leisure travelers in a variety of locations.

Procter & Gamble, a leader in the consumer goods industry, has a long history of innovation and employee empowerment. In 2022, the company embarked upon a project partnering with Microsoft to integrate AI technologies into their manufacturing processes. These technologies increased productivity and quality, reduced waste, automated processes, and put a focus on sustainable usage of energy and water. Through the data management power of AI, P&G was able to integrate data from manufacturing facilities worldwide to facilitate improved efficiencies.

At the heart of implementing a change of this scale was employee buy-in. To facilitate this, the company created IT-embedded teams in all business categories and global markets. These embedded teams were a part of the larger IT group responsible for the AI integration, but because they were embedded into the various business units and markets, they worked with employees in those units to develop solutions specific to their area. Another key strategy was P&G's "insourcing" approach where they recruit from within their current workforce for key positions in the areas of data analytics and computer engineering.

Critical Thinking Questions
  1. What is the business value to P&G as a result of their approach to garnering employee buy-in?
  2. What are the potential problems that could arise out of this approach?
  3. Can you think of alternative ways that P&G could have secured employee support through the transition to AI supported processes?

Sources: Thor Olavsrud, "P&G Turns to AI to Create Digital Manufacturing of the Future," CIO, https://www.cio.com, September 30, 2022.

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