Sections

Is Your Supply Chain Prepared For The Digital Future?

Kristin Ulrich

Ninety percent of CEOs believe the digital economy will have a major impact on their industry, but only 25% have a digitalization plan in place, according to SAP research.

Most global supply chains are unequipped to cope with the world we’re entering. For that reason, supply chain managers need to shift their attention from cutting costs to enabling new processes and increasing connectivity and agility. Speed is also crucial, as product cycles are becoming shorter and more fluid. Additionally, as customers demand faster product and service development and delivery, organizations must transform their existing business processes to reduce response times.

A key part of this transition includes the transformation of traditional supply chains into demand-sensitive business networks. Standardized supply chain and logistics approaches pose threats for companies. Enterprises can use the latest digital technologies to overcome these threats a couple of different ways:

  1. Gaining a better understanding of what the customer wants while enhancing customer relationships
  1. Transforming supply chain processes and responding to the rising tide of global uncertainties and business complexities

The big move toward digitalization is coming sooner than many companies expect, according to Digital Supply Chain Management – 2020 Vision. This white paper presents an overview of supply chain digitalization best practices, courtesy of several leading enterprises. The document also provides a view of today’s challenges and trends versus the vision of a digital supply chain in 2020.

We have developed a digital maturity assessment tool based on our findings. By filling out this brief questionnaire designed for IT, operations, and supply chain managers, you’ll be able to evaluate your company’s level of digital maturity in the following categories:

  • Design
  • Plan
  • Respond
  • Produce
  • Make
  • Deliver
  • Operate

Following the completion of the questionnaire, you will receive a customized summary of your individual results, free of charge. We’ll also send you a global analysis of industry and peer-group maturities at the end of the year.

Early adopters of digital transformation have increased revenue by nine percent, market valuation by 12%, and profitability by 26%, according to SAP research.

Take your first step toward digitalizing your supply chain today by completing your very own digital maturity assessment.

Comments

Kristin Ulrich

About Kristin Ulrich

Kristin Ulrich is a business consultant for Supply Chain Management of Business Transformation Services at SAP. As part of her responsibilities, Kristin developed a digital maturity model, the underlying concept behind the SAP Digital Supply Chain Maturity Assessment. Prior to her role at SAP, Kristin has worked in different industries in operations management, procurement, and supply chain management while gaining a broad understanding of trends and challenges of the digitalization of business processes. For further inquiries, please contact her at kristin.ulrich@sap.com.

Flash Briefing: Why 3D Printed Food Just Transformed Your Supply Chain

Peter Johnson

Today, we’re talking 3D printing and how it could disrupt operations and supply chains in markets around the world.

 

Tune in Monday through Friday for more Digitalist Flash Briefings on disruptive technologies and trends on your favorite device or app.

  • Amazon Echo or Dot: Enable the “Digitalist” flash briefing skill, and ask Alexa to “play my flash briefings” on every business day.
  • Alexa on a mobile device:
    • Download the Amazon Alexa app: Select Skills, and search “Digitalist”. Then, select Digitalist, and click on the Enable button.
    • Download the Amazon app: Click on the microphone icon and say “Play my flash briefing.”

Find and listen to previous Flash Briefings on Digitalistmag.com.

Comments

Peter Johnson

About Peter Johnson

Peter Johnson is a Senior Director of Marketing Strategy and Thought Leadership at SAP, responsible for developing easy to understand corporate level and cross solution messaging. Peter has proven experience leading innovative programs to accelerate and scale Go-To-Market activities, and drive operational efficiencies at industry leading solution providers and global manufactures respectively.

3D Printing Gives U.S. Manufacturer A Leg Up On Competitors

Robin Meyerhoff

You might not have heard of Jabil, but you have probably have a product made by the company that you use daily in your home or office. As one of the largest and most technologically advanced manufacturers, Jabil creates products for more than 250 well-known global brands.

Founded in Michigan 50 years ago, Jabil started out making electronic parts for the automotive industry. Since then, the company has grown from a small family business on the outskirts of Detroit to one of the largest global manufacturers, working with industries ranging from household appliances to healthcare–and almost everything in between.

Over the past several years, manufacturers have been digitizing operations, embracing Industry 4.0 using new technologies like Internet of Things (IoT) to improve performance and efficiency. But as consultancy KPMG points out, “The vast majority of leading manufacturers admit they are not yet prepared to fully integrate the lessons of Industry 4.0 into the way they view and manage their products.”

Jabil is bucking that trend. Recognizing that manufacturers need to be more nimble and personal in how they relate to customers, Jabil has been adopting new technologies like 3D printing to help clients meet those challenges head on.

“The digital transformation in manufacturing is going to be enormously impactful for companies like Jabil,” said John Dulchinos, vice president of digital manufacturing for Jabil. “We see it as a tremendous opportunity for us to respond to customers more quickly, to build products in regions that are closer to where the end customers are and to open up entirely new business models.”

Touring Jabil’s Blue Sky Innovation Center and manufacturing operations in San Jose, evidence of how these digital technologies can impact products was everywhere. The lobby displayed smart watch bands and electric toothbrushes in personalized colors, and tailored packaging for household products. There was a room of robots, including one that was creating Disney MagicBands. Most impressive were the 3D printers, which ranged from small (comparable to a microwave) to HP printers the size of a small room.

John said, “3D printing is one of those really amazing technologies. As we look at where 3D printing will take us in the future, we think it’s going to impact the entire product lifecycle from very early innovation and ideation, through manufacturing and product introduction. Ultimately we can provide support for spare parts and other needs later in the product lifecycle. We think 3D printing will impact all of that.”

He continued, “What really excites us about 3D printing is it gives us the ability to free up designers to create the most optimized, intricate designs. We now have a way to bring manufacturing options closer to where customers are, and deliver goods that are more targeted and responsive to their needs.” 

John explains that Jabil has been on top of the transition to digital and computer-driven manufacturing since the 1980s. It shows in Jabil’s strong numbers: For the past 30 years they’ve continued to grow, and their stock price recently hit a 52-week high.

As Jabil embarks on its next growth phase, John believes “a digital backbone is the most important asset for manufacturers like us to achieve those goals.”

Jabil relies on an enterprise resource planning (ERP) system to support critical supply chain and manufacturing operations. Supply chain experts at Jabil use an in-memory computing platform for real-time analytics and reporting.

Manufacturers around the world like Jabil are facing similar issues: They want to optimize their supply chain, bring production closer to customers and offer new personalized products and services. The company is using a distributed manufacturing solution and a digital innovation system that brings together the Internet of Things, machine learning, blockchain and advanced analytics to its cloud platform. Through this technology, Jabil is helping its customers deliver innovative, locally manufactured and customized goods. The entire process – from inception to delivery – is transformed into a 100% digitally native process.

In addition, the company is integrating 3D printing into procurement, sales, inventory, and logistics systems with greater ease. By combining this rising technology with an Internet of Things-based distributed manufacturing solution, Jabil is better positioned to evaluate which parts should be digitized and can more easily collaborate to approve parts for 3D printing.

For more on digital transformation strategies, see Five Pillars Of Digital Transformation: Invest In Digital Technology Capabilities.

Comments

Robin Meyerhoff

About Robin Meyerhoff

Robin Meyerhoff is the Senior Director, Content Team, Global Corporate Affairs, at SAP, responsible for telling key corporate stories via multiple formats: cartoons, video, infographics, opinion pieces. Lead integrated internal-external approach to rolling out content, including comprehensive editorial calendar, regional coordination and alignment with key business objective.

Running Future Cities on Blockchain

Dan Wellers , Raimund Gross and Ulrich Scholl

Building on the Blockchain Framework

Some experts say these seemingly far-future speculations about the possibilities of combining technologies using blockchain are actually both inevitable and imminent:


Democratizing design and manufacturing by enabling individuals and small businesses to buy, sell, share, and digitally remix products affordably while protecting intellectual property rights.
Decentralizing warehousing and logistics by combining autonomous vehicles, 3D printers, and smart contracts to optimize delivery of products and materials, and even to create them on site as needed.
Distributing commerce by mixing virtual reality, 3D scanning and printing, self-driving vehicles, and artificial intelligence into immersive, personalized, on-demand shopping experiences that still protect buyers’ personal and proprietary data.

The City of the Future

Imagine that every agency, building, office, residence, and piece of infrastructure has an entry on a blockchain used as a city’s digital ledger. This “digital twin” could transform the delivery of city services.

For example:

  • Property owners could easily monetize assets by renting rooms, selling solar power back to the grid, and more.
  • Utilities could use customer data and AIs to make energy-saving recommendations, and smart contracts to automatically adjust power usage for greater efficiency.
  • Embedded sensors could sense problems (like a water main break) and alert an AI to send a technician with the right parts, tools, and training.
  • Autonomous vehicles could route themselves to open parking spaces or charging stations, and pay for services safely and automatically.
  • Cities could improve traffic monitoring and routing, saving commuters’ time and fuel while increasing productivity.

Every interaction would be transparent and verifiable, providing more data to analyze for future improvements.


Welcome to the Next Industrial Revolution

When exponential technologies intersect and combine, transformation happens on a massive scale. It’s time to start thinking through outcomes in a disciplined, proactive way to prepare for a future we’re only just beginning to imagine.

Download the executive brief Running Future Cities on Blockchain.


Read the full article Pulling Cities Into The Future With Blockchain

Comments

Dan Wellers

About Dan Wellers

Dan Wellers is founder and leader of Digital Futures at SAP, a strategic insights and thought leadership discipline that explores how digital technologies drive exponential change in business and society.

Raimund Gross

About Raimund Gross

Raimund Gross is a solution architect and futurist at SAP Innovation Center Network, where he evaluates emerging technologies and trends to address the challenges of businesses arising from digitization. He is currently evaluating the impact of blockchain for SAP and our enterprise customers.

Ulrich Scholl

About Ulrich Scholl

Ulrich Scholl is Vice President of Industry Cloud and Custom Development at SAP. In this role, Ulrich discovers and implements best practices to help further the understanding and adoption of the SAP portfolio of industry cloud innovations.

Tags:

4 Traits Set Digital Leaders Apart From 97% Of The Competition

Vivek Bapat

Like the classic parable of the blind man and the elephant, it seems everyone has a unique take on digital transformation. Some equate digital transformation with emerging technologies, placing their bets on as the Internet of Things, machine learning, and artificial intelligence. Others see it as a way to increase efficiencies and change business processes to accelerate product to market. Some others think of it is a means of strategic differentiation, innovating new business models for serving and engaging their customers. Despite the range of viewpoints, many businesses are still challenged with pragmatically evolving digital in ways that are meaningful, industry-disruptive, and market-leading.

According to a recent study of more than 3,000 senior executives across 17 countries and regions, only a paltry three percent of businesses worldwide have successfully completed enterprise-wide digital transformation initiatives, even though 84% of C-level executives ranks such efforts as “critically important” to the fundamental sustenance of their business.

The most comprehensive global study of its kind, the SAP Center for Business Insight report “SAP Digital Transformation Executive Study: 4 Ways Leaders Set Themselves Apart,” in collaboration with Oxford Economics, identified the challenges, opportunities, value, and key technologies driving digital transformation. The findings specifically analyzed the performance of “digital leaders” – those who are connecting people, things, and businesses more intelligently, more effectively, and creating punctuated change faster than their less advanced rivals.

After analyzing the data, it was eye-opening to see that only three percent of companies (top 100) are successfully realizing their full potential through digital transformation. However, even more remarkable was that these leaders have four fundamental traits in common, regardless of their region of operation, their size, their organizational structure, or their industry.

We distilled these traits in the hope that others in the early stages of transformation or that are still struggling to find their bearings can embrace these principles in order to succeed. Ultimately I see these leaders as true ambidextrous organizations, managing evolutionary and revolutionary change simultaneously, willing to embrace innovation – not just on the edges of their business, but firmly into their core.

Here are the four traits that set these leaders apart from the rest:

Trait #1: They see digital transformation as truly transformational

An overwhelming majority (96%) of digital leaders view digital transformation as a core business goal that requires a unified digital mindset across the entire enterprise. But instead of allowing individual functions to change at their own pace, digital leaders prefer to evolve the organization to help ensure the success of their digital strategies.

The study found that 56% of these businesses regularly shift their organizational structure, which includes processes, partners, suppliers, and customers, compared to 10% of remaining companies. Plus, 70% actively bring lines of business together through cross-functional processes and technologies.

By creating a firm foundation for transformation, digital leaders are further widening the gap between themselves and their less advanced competitors as they innovate business models that can mitigate emerging risks and seize new opportunities quickly.

Trait #2: They focus on transforming customer-facing functions first

Although most companies believe technology, the pace of change, and growing global competition are the key global trends that will affect everything for years to come, digital leaders are expanding their frame of mind to consider the influence of customer empowerment. Executives who build a momentum of breakthrough innovation and industry transformation are the ones that are moving beyond the high stakes of the market to the activation of complete, end-to-end customer experiences.

In fact, 92% of digital leaders have established sophisticated digital transformation strategies and processes to drive transformational change in customer satisfaction and engagement, compared to 22% of their less mature counterparts. As a result, 70% have realized significant or transformational value from these efforts.

Trait #3: They create a virtuous cycle of digital talent

There’s little doubt that the competition for qualified talent is fierce. But for nearly three-quarters of companies that demonstrate digital-transformation leadership, it is easier to attract and retain talent because they are five times more likely to leverage digitization to change their talent management efforts.

The impact of their efforts goes beyond empowering recruiters to identify best-fit candidates, highlight risk factors and hiring errors, and predict long-term talent needs. Nearly half (48%) of digital leaders understand that they must invest heavily in the development of digital skills and technology to drive revenue, retain productive employees, and create new roles to keep up with their digital maturity over the next two years, compared to 30% of all surveyed executives.

Trait #4: They invest in next-generation technology using a bimodal architecture

A couple years ago, Peter Sondergaard, senior vice president at Gartner and global head of research, observed that “CIOs can’t transform their old IT organization into a digital startup, but they can turn it into a bi-modal IT organization. Forty-five percent of CIOs state they currently have a fast mode of operation, and we predict that 75% of IT organizations will be bimodal in some way by 2017.”

Based on the results of the SAP Center for Business Insight study, Sondergaard’s prediction was spot on. As digital leaders dive into advanced technologies, 72% are using a digital twin of the conventional IT organization to operate efficiently without disruption while refining innovative scenarios to resolve business challenges and integrate them to stay ahead of the competition. Unfortunately, only 30% of less advanced businesses embrace this view.

Working within this bimodal architecture is emboldening digital leaders to take on incredibly progressive technology. For example, the study found that 50% of these firms are using artificial intelligence and machine learning, compared to seven percent of all respondents. They are also leading the adoption curve of Big Data solutions and analytics (94% vs. 60%) and the Internet of Things (76% vs. 52%).

Digital leadership is a practice of balance, not pure digitization

Most executives understand that digital transformation is a critical driver of revenue growth, profitability, and business expansion. However, as digital leaders are proving, digital strategies must deliver a balance of organizational flexibility, forward-looking technology adoption, and bold change. And clearly, this approach is paying dividends for them. They are growing market share, increasing customer satisfaction, improving employee engagement, and, perhaps more important, achieving more profitability than ever before.

For any company looking to catch up to digital leaders, the conversation around digital transformation needs to change immediately to combat three deadly sins: Stop investing in one-off, isolated projects hidden in a single organization. Stop viewing IT as an enabler instead of a strategic partner. Stop walling off the rest of the business from siloed digital successes.

As our study shows, companies that treat their digital transformation as an all-encompassing, all-sharing, and all-knowing business imperative will be the ones that disrupt the competitive landscape and stay ahead of a constantly evolving economy.

Follow me on twitter @vivek_bapat 

For more insight on digital leaders, check out the SAP Center for Business Insight report, conducted in collaboration with Oxford Economics,SAP Digital Transformation Executive Study: 4 Ways Leaders Set Themselves Apart.”

Comments

Vivek Bapat

About Vivek Bapat

Vivek Bapat is the Senior Vice President, Global Head of Marketing Strategy and Thought Leadership, at SAP. He leads SAP's Global Marketing Strategy, Messaging, Positioning and related Thought Leadership initiatives.