Colgate Palmolive - Spirit of Enterprise

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 Business Analyst spends
a great deal of time working
with other people on crossfunctional
business teams.
These team members
normally work in functions
A Colgate Palmolive team at work 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