Business analytics document questions

GBSA 577 - Business Analytics and Digitalization

Homework #5: 100 points

Due: 4/30/24 before class Relating to case: from IMBD, HBP: IM1190

Loreal: The Beauty of Supply Chain Digitalization and Analytics

Total Points: 100

The goal of this case is to explore and consult the situation of Loreal transformation.

L’Oréal first embarked on its digital transformation journey more than a decade ago. It is one of the largest consumer goods companies in the world, with a global footprint of forty factories that manufacture more than six billion units a year. It has more than 50,000 suppliers upstream and over 500,000 delivery points. L’Oreal has thirty-six brands, selling products in 150 countries with support of 88,000 employees that continuously lead in supply chain, innovation, and customer satisfaction.

L'oreal has four major divisions. 1) Loreal Luxe- High end cosmetics, focused on prestige and sustainability. 2) Consumer Products- Cosmetics sold at mass and drug retail, accessible to all. 3) Active Cosmetics- Nutraceuticals, Dermatologist products address acne and other concerns 4) Professional Products- Professional Hair Care, caters to professionals with hair care focus.

L’oreal has always been known for their innovation and leaning in to provide better products for their customers. Additionally, they have been creative in their marketing efforts - continuously testing new things to reach new customers to give them the support and empower them in the spirit of their tagline, “Because You’re Worth It.” This beauty marketing push was evident in their originally unique beauty posters from artists in the early last century and now is showing up to meet the current customer demands of using tech to provide a glimpse of what beauty could be.

A big part of this case is about the current and future activities of beauty tech. Beauty tech is a relatively new term that has become to be known as the integration of technology into cosmetics and beauty products.1 Similar to what we discussed earlier in the course, Beauty Tech is akin to what the smart toothbrush does by using tech to collect consumer information and make recommendations. Beauty focused consumer electronic appliances and/or VR/AR applications can extend the consumption ecosystem with more data and algorithm based recommendations that can create initial intrigue, deliver value, and build loyalty.

Your team’s objective is to have a fact based approach to analyzing the L’Oreal digitalization efforts and providing some consultation of what they need to do next.

Study score component:

What Detail Points

Case background Give background of industry and strategic choices

10

Analysis of Digital Strategy

Analyze their strategy, highlight positives and negatives. Assess

digital maturity

20

Data Analysis/ Visualizations

Sound logical analysis of data provided to create relevant and

helpful visualizations

20

Recommendations Proposal of a detailed action plan, provide logical evidence

15

Presentation Skills Organization, Telling a story 20

Presentation Format Easy to understand 5

Peer Review See below 10

Total All components 100

Components for peer review grading rubric

# Description Score

1 Preparation 3

2 Contribution 3

3 Collaboration 4

# Total 10

Final Presentation

As a consultant, you want to be able to provide a third party view of L’Oreal’s business, digital and other strategies.

Complete documentation of the project in PowerPoint with no report required

• Executive Summary (Taylor TB) • Digital Strategy overview & Analysis (Taylor TB) • Digital Governance (Taylor T) • Analysis (Taylor T)

o Include relevant visuals. (Taylor T) o Define channel and beauty tech trends. (Ron B) o Evidence supporting insights and recommendations (Ron B)

• Recommendations (Everyone gives one) • Peer review: Can send this via email to me separately with the breakdown.

• Appendices (labelled) (Everyone) o Back up of visualizations

Questions to build your presentation

1. Provide an overview of Loreal’s reasons for a digital transformation with the focus on leadership leading the charge. (Taylor TB)

2. How did L’Oreal foster innovation through goal setting? (Taylor TB)

3. Describe the digital organization governance structure and the challenges. What were the changes of setting up a global digital governance structure? (Taylor T)

4. Highlight any other key developments that allowed L’Oreal to transform from a less mature digitalization level to where they are now as a leader in their industry. (Taylor T)

5. Two of the major shifts in the market is that consumers are exploring new channels for beauty products and that beauty tech will have a bigger influence on brands and products chosen. Use the data provided to summarize your insights on these two trends. (Taylor T)

6. How does the beauty tech address the needs of the organization to be better prepared with demand sensing and to capture these signals for supply chain readiness as well and offer greater value through personalization for their customers? (Ron B)

7. Consumer rankings online from competitors can provide additional information to feed the new product innovation team where product can be reviewed, or elements or product types avoided? How might you use this information, also what additional information would you need to make it better? (Ron B)

8. Recommendations: Based on the data that you have the market understanding you have and the coursework to data build out some ideas for them for the future. What three recommendations do you have regarding their technology, people, and processes for the future. These can be digitally focused or data analytics driven or even more relevant to their organization. Please feel free to be a bit provocative here but also use facts to support your recommendations. (Everyone gives one)

Sources:

1) Tech Target; https://www.techtarget.com/whatis/feature/What-is-beauty-tech-10- trends-shaping-the-cosmetics-industry

2) Global: beauty retail sales share by channel 2027 | Statista

3) https://www.statista.com/statistics/1332962/beauty-tech-market-revenue- worldwide/

Supplemental Reading:

1. https://www.europeanbusinessreview.com/the-real-industry-4-0-challenge/