Many changes leading to organizational and channel transformation were initially viewed
as information systems innovations (e.g., developing systems to automate existing practices).
Breakthrough change came with the realization that the success of P&G brands depended on
eliminating all processes that didn't deliver value to brand- loyal consumers. The promotional
frenzy of the late 1970s and 1980s that characterized the retail industry had produced a backlash
among brand-loyal consumers, who felt they weren't getting fair value day-in, day-out. P&G
studies showed that less than half of their promotional dollars were passing through to the
consumer and that swings in price were creating variability and massive inefficiency, not only in
P&G's manufacturing and distribution systems but throughout the entire grocery supply chain.