Several years ago, I noted the importance of gaining resilience in managing supply chains. The world had entered a new era of trade following the financial crisis of 2007, as multilateral relationships were steadily fragmenting. For decades, sourcing and supply chain management was focused almost exclusively on achieving the lowest cost, and the world’s trade environment supported this approach. However, I observed that the new era of trade, supply chain planning and execution, would be more complex, and organizations needed to shift focus to emphasize business continuity and sustainability, accommodating change with the least disruption at the lowest cost. Sourcing decisions, logistics and product design would be crafted with an eye to a far-from-perfect and changeable world. Higher costs would be balanced against necessary resilience and sustainability, supported by the ability to make changes rapidly with assurance and limited risk.
Ventana Research recently announced its 2021 research agenda for Operations and Supply Chain, continuing the guidance we’ve offered for nearly two decades to help organizations across industries derive optimal value from business technology and improve outcomes.
One of the challenges of being a practically minded technology analyst is squaring the importance of “the next big thing” with the reality of what most organizations are doing. For decades it’s been the case that “the next big thing” in the world of information technology is easily several years ahead of where most organizations are in their use of technology. And before most organizations can realize the benefit of some whiz-bang technology, they frequently need to address a range of more mundane issues, such as data availability and accuracy, employee training and corporate culture, among other impediments. Sometimes, though, advanced technology works to uncomplicate things for organizations.
Topics: Human Capital Management, Marketing, Office of Finance, Analytics, Business Intelligence, Sales Performance Management, Financial Performance Management, Price and Revenue Management, Digital Marketing, Work and Resource Management, Digital Commerce, Operations & Supply Chain, Enterprise Resource Planning, ERP and Continuous Accounting, robotic finance, Predictive Planning, AI and Machine Learning, revenue and lease accounting, subscription management, intelligent sales
In late February I attended Spark, the Scout annual user group meeting. This was the third and likely the last such meeting, as Scout was recently acquired by Workday. Scout’s users represent a new breed of purchasing managers and executives looking to change the role of the purchasing department. This change is critical for businesses. Saving money is the essential job of sourcing and purchasing departments. But departments can go far beyond that, helping support product and go-to-market strategies that are more complex and innovative. To empower this change, the bulk of conference content included experience-driven advice from practitioners who are pioneering the evolution of sourcing and procurement.
Topics: Office of Finance, expense management, Financial Performance Management, Digital Technology, Digital Commerce, Operations & Supply Chain, Enterprise Resource Planning, ERP and Continuous Accounting, purchasing, sourcing
I’ve written before about blockchain’s significant potential. A lot of the current discussion on the topic centers on cryptocurrencies and financial trading platforms, both of which are already in operation. However, my focus is on its applicability to business generally, especially in B2B commerce, where I believe there is significant potential for it to serve as a universal data connector. There’s also a great deal of potential for blockchain to provide individuals with greater power in managing their identity and greasing the wheels of trade. That noted, those designing and planning to implement commerce-related blockchains must address fundamental issues if blockchain technology is to achieve its potential.
Topics: Sales, Human Capital Management, business intelligence, Business Collaboration, Internet of Things, Data, Product Information Management, Digital Commerce, Enterprise Resource Planning, blockchain, candidate engagement, collaborative computing, continuous supply chain
Kinaxis recently held its annual user conference, Kinexions, which focuses on helping the company’s customers improve their execution of supply chain and sales and operations planning (S&OP). Its RapidResponse software handles S&OP, demand, supply, inventory and capacity planning. S&OP is a function sorely in need of improvement: Our research finds that only 22 percent of companies perform it well or very well.
What’s the easiest way to completely immobilize a 500,000-ton ship?
Lose a sheet of paper.
The paperwork that accompanies international trade is a serious source of friction, inefficiency — and therefore cost — in supply chain execution. Trade documentation requires massive amounts of paper that today can be replaced by digital data. In 2018, Maersk, the world’s largest shipping company, teamed up with IBM to create TradeLens, a digital platform that utilizes blockchain technology as a secure, unified source of trade transaction data used by businesses, financial institutions and government authorities. TradeLens is designed to enable all participants to connect, share information and collaborate, providing them with a comprehensive view of the data they need to transact trade. The system makes it possible to digitally collaborate in handling their global supply chains.
Infor recently held their Innovation Summit at Infor corporate headquarters in New York. At this annual event, they spend a good deal of time talking about progress on current initiatives and the exciting parts of the development roadmap. A key focus this year was AI and machine learning with Infor Coleman.
“Platform,” as used in the world of technology, originally referred to an operating system on which one could construct software applications. More recently, its usage has been expanded to apply to two types of business models. One enables third parties to create products and services that are complementary to a company’s core technology. For instance, both Apple and Salesforce have attracted a wide array of third-party software developers whose offerings greatly increase the value of each software vendor’s platform to its customers. The second, such as Amazon’s marketplace, Facebook, Twitter and Uber, facilitates transactions and interactions. This latter type adds value by reducing transaction frictions and increasing efficiency and, in attracting large numbers of people to the platform, enables innovative business offerings to take advantage of Metcalf’s law — the “network effect.”
Topics: Human Capital Management, Marketing, Office of Finance, Voice of the Customer, Continuous Planning, Information Management, Internet of Things, Workforce Management, Financial Performance Management, Price and Revenue Management, Digital Marketing, Digital Commerce, Operations & Supply Chain, Enterprise Resource Planning, ERP and Continuous Accounting, robotic finance, Predictive Planning, revenue and lease accounting, collaborative computing, continuous supply chain
From my perspective there were two significant takeaways from this year’s SuiteWorld. The first is that, almost two years on from the announced acquisition of NetSuite by Oracle, the combination has achieved its immediate objectives in growing NetSuite’s business, especially in Europe and Asia, and accelerating product development efforts. The second takeaway is that, at least for now, the unit appears to continue to operate as if the combination were a private equity investment by a public company.