Innovation & Sustainable Business Development: A P&G Case Study

This essay examines the business model employed by Procter & Gamble (P&G) to maintain economic value and ensure the delivery of high-quality products to customers. It discusses the concept of a business model, highlighting the importance of value proposition and architecture, and explores the impact of disruption, particularly through the introduction of new markets and technologies. The analysis covers opportunities and threats related to smart connected products and the Internet of Things (IoT), emphasizing both the advantages and cybersecurity risks. The essay also references Osterwalder and Pigneur's business model framework, focusing on key activities, value proposition, and client relationships within P&G. Furthermore, it considers business models as a set of capabilities and resources, emphasizing the role of software applications and globalization, and concludes by highlighting P&G's expertise in delivering value propositions to meet customer requirements, ensuring sustainable market value. Desklib offers a wealth of similar essays and study resources for students.

Procter
&
Gamble
INNOVATION AND
SUSTAINABLE
BUSINESS
DEVELOPMENT

 This essay is based on the business model that is
used by almost every organization to maintain
economic value.
 The purpose of this essay is to describe about the
eff ectiveness of a business model for Procter and
Gamble (P & G 2017).
 The company wants to ensure that they deliver best
quality products to their customers.
 Therefore the company is planning to implement a
business model that could provide value to their
organization.
INTRODUCTION

B us i n e s s M o d e l
 T h e ‘ b u s i n e s s m o d e l ’ d e s cr i be s a b o u t t h e b u s i n e s s o p e r a t i o n s t h a t a re
pe r f o rm e d i n a n o rg a n i z a t i o n .
 So c i a l , e c o no m i c a n d o t h e r re l a t e d f a c t o r s a re c o n s i d e re d w h e n
i m p l e m e n t i n g a b us i n e s s m o de l .
 I t i s i m p o r t a n t t o k n o w t h e v a l u e p ro p o s i t i o n t h a t de fi n e s t h e v a l u e o f
t h e b u s i n e s s p ro c e s s e s , p ro d u c t / s e r v i ce s a n d t h e v a l u e a rc h i t e c t u re o f
a n o rg a n i z a t i o n.
D i s r u p t i o n
 D i s r u p t i o n o cc u r s w h e n t h e re i s a n a dd i t i o n o f a n e w m a r ke t w i t h
di ff e re n t i nn o va t i o n .
 T h e i n t ro d u c t i o n o f ne w v a l u e a n d i n f r a s t r u c t u re d i s r u p t s t h e cu rre n t
bu s i n e s s p ro ce s s e s o f a n o rg a n i z a t i o n .
 I t d i s pl a ce s t h e a l l i a n c e s a n d o t h e r re l a t e d a s p e c t s l i ke t h e v a l u e o f a
pro d u c t o f t h e w e l l - e s t a b l i s h e d o rg a n i z a t i o n .
BUSINESS MODEL AND DISRUPTION

Smart connected products
The internet of things technology has provided advanced
in the business processes and has also promoted the use
of smart connected products worldwide (Porter 2015).
Opportunities: The smart connected device allows
companies to build better infrastructure that could
support new and latest technologies.
Threats: These devices are advantageous to the company
but also are a threat when talking about organizational
profi ts. The cybercrimes have now increased with the
advancements taking place in the technology
OPPORTUNITIES AND THREATS

 Key activities- deals in products related to bath essentials
such as showering and shaving, household products and
many more.
 Value proposition- the Procter and Gamble uses cloud
services to manage the information which is secured and
easy to access (Osterwalder & Pigneur, 2010).
 Client-relationships- Procter and Gamble deals directly with
the customers and thus performs business to customer type
of business. The customers has reviewed positively about the
products and brands associated with Procter and Gamble.
BUSINESS MODEL BY
OSTERWALDER AND PIGNEUR

 Businesses that use software applications like that of
Procter and Gamble has to understand the capabilities that
this software could provide to their organization.
 Due to globalization (Rajala & Westerlund, 2004),
 Procter and Gamble also have to implement the internet of
things technology to focus on their core operations.
 The capabilities of a business model aff ect the role
software plays in business growth of an organization.
BUSINESS MODELS AS A SET OF
CAPABILITIES AND RESOURCES

 Procter and Gamble is expertise in a particular
business like selling cleansing products who needs to
create and deliver the diff erent value propositions to
the customers.
 This assures that the products of Procter and Gamble
are meeting requirements of the customers and these
products have a sustainable value in the market
BUSINESS MODEL AS VALUE
PROPOSITION

 Osterwalder, A., & Pigneur, Y. (2010). Business model
generation: a handbook for visionaries, game changers,
and challengers. John Wiley & Sons.
 Rajala, R., & Westerlund, M. (2004). Business Models
and Networks: Assets and Capabilities in Software
Businesses. In Competitive paper, IMP 2004 Conference .
 P & G. (2017). Who We Are. [Online] P & G. Available at:
https://us.pg.com/who-we-are [Accessed: 17 April 2018]
 Porter, M., E., 2015. How Smart, Connected Products are
Transforming Companies. [Online] Hbr. Available at:
https://hbr.org/2015/10/how-smart-connected-products-a
re-transforming-companies.pdf
[Accessed: 17 April 2018]
REFERENCES