As digital transformation continues to accelerate along with the deployment of the Internet of Things (IoT), smart machines, mobility and 3D printing, there is increased risk and complexity. Also, according to Gartner, Supply chains continue to grow in complexity amid shifting customer requirements, regulatory changes, demand volatility, and geographic and demographic shifts.
They attribute organizational survival on the ability to anticipate the need for change, adapt, and transform supply chains to deliver reliability and performance. Supply chain leaders must become better prepared for both the predictable and unexpected future events with integrated plans that can respond in an environment where disruption is the norm.
Gartner on Leading in Digital Disruption: ‘In a business-to-business environment, disruption can happen in the supply chain or with the end customer, so it’s best to partner with both the CMO and VP of Supply Chain’.
Why? Visibility: Gaining insights for faster response to disruption is the first step.
They argue the biggest future impact on revenue is set to occur through the digitization of supply chains. ‘In this dimension, full digitization contributes two-thirds of the total projected hit to annual revenue growth and more than 75 percent to annual EBIT growth’.
Despite the cited gains, supply chains, lag behind other go-to-market solutions when it comes to digitization according to McKinsey, and only 2% of companies surveyed are focusing their digital strategies on supply chains. Click to view –> The Case For Digital Reinvention.
Emerging technologies are already demonstrating this: ‘Hyperscale businesses’ are leading the way such as Google, which processes around four billion searches a day; Twitter, handling 500 million tweets a day; or Alibaba, the world’s largest e-commerce market, which facilitated 254 million orders in one day –Billions of interactions and data points mean that events with only a one-in-a-million probability are happening many times a day.
In addition to the technological and business model disruptions occurring, there are other vital factors about these transformations in linking the Industrial Internet of Things (IioT).
As McKinsey highlights: The industrial sector is a vital source of wealth, prosperity, and social value on a global scale. Industrial companies produce about one-quarter of global GDP and employment, and their products are integral to our daily lives. But, roughly 28 percent of global greenhouse-gas (GHG) emissions came from industry in 2014.
The opportunity to leverage these emerging technologies to achieve economic, optimal efficiency goals in addition to sustainability ones such as gains in decarbonization, public health, safety, and security will be breakthrough in terms of overall impact.
Why co-opetition is the new business imperative:
Companies committed to long term and sustainable goals align the vision through continuous innovations and collaborative solutions to meet the needs of the future throughout the enterprise. It transcends mere survivability to gaining a competitive edge as market dynamics continue to experience volatility and exponential growth.
SAP Resources to get started and leverage through hybrid-cloud environments and across the enterprise:
From Computer World: SAP Products Span Chatbots AI Multi Cloud Blockchain:
From the Design-Thinking led launch, SAP Leonardo, offers 23 industry innovation kits that span more than 12 industry areas, conversational artificial intelligence (AI), blockchain and analytics. SAP Conversational AI is the firm’s chatbot toolkit for training, building and monitoring chatbots. These chatbots can be integrated with SAP and non-SAP systems and are available as preconfigured industry-specific bots. launched a formal machine learning foundation along with SAP Cloud Platform Blockchain is a new blockchain-as-a-service.
Emphasis on partnerships and interoperability for an increasingly complex hybrid-cloud supply chain environment:
A multi-cloud strategy with the general availability of SAP Cloud Platform on Google Cloud Platform and Microsoft Azure, AWS, and plans in the works with IBM, SAP says it is now available on all major hyperscale cloud infrastructure providers.
As the Intelligent enterprise expands with the growth of IoT, SAP and Ansys, a seamless digital thread between engineering and industrial asset management.
Not sure where to get started, want to learn more? Register here –> for July 27 online event: SAP Cloud Platform – Enabling the Intelligent Enterprise