Medienkombination, Englisch, 240 Seiten, Format (B × H): 160 mm x 228 mm, Gewicht: 483 g
A Practitioner's Guide to Successful Digitalization
Medienkombination, Englisch, 240 Seiten, Format (B × H): 160 mm x 228 mm, Gewicht: 483 g
ISBN: 978-3-593-51205-1
Verlag: Campus Verlag GmbH
Concrete instructions for digital transformation in business – eBook (PDF or EPUB/Mobi) included
Supply Chain Management is without question deeply affected by the disruptive forces of a modern organization, positively as well as negatively. Between advanced analytics and AI, agile role models and autonomous warehouses a senior executive is often in danger of losing track in the digital jungle.
In these exciting times, with their many turning points, digital experts aim to share insights around digital supply chains, their application in business and the so vital transformation to successfully prepare organizations for this challenge. This book provides insights into best practices current supply chain and how CSOs apply technologies and advancements. It also makes daring forecasts about how processes and leadership must be designed so that the digital transformation does not fail in its infancy, but leads to a truly agile organization.
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Contents
Part 1
General Introduction 10
To ensure easy reading, we added some icons for you 10
Overview of Interviews 11
Acknowledgement 12
Bring your clients to the digital world—
They expect it from you: Letter from a COO 13
Part 2
Enablers for Future Supply Chains
Building blocks of the Digital Supply Chain 20
Introduction 20
Key terms and their definitions 21
The Digital Supply Chain Pillars 24
Digital applications for SCM today and tomorrow 25
The year 2025: Advanced Analytics and AI will lead the way 27
The author’s perspective 28
A strategy ties it all together 28
Think about people 29
Digital evolution along the supply chain 29
The nine digital technologies in detail 32
Advanced Analytics: Powerful and indispensable 44
Introduction 44
What is Big Data actually? What is Advanced Analytics? 45
Three key enablers build the Foundation for Successful Implementation and Utilization 49
Fields of Application of Advanced Analytics in SCM 57
Challenges 59
Roadmap to successful implementation of Advanced Analytics 60
Conclusion 61
Artificial Intelligence: Supply Chains will never be the same 63
Introduction 63
AI, ML, DL: What does it all mean? 64
Don’t believe the hype (at least not all of it) 68
Why AI in SCM? 71
How to enable your supply chain 73
The drawbacks 77
Conclusion 78
Call to action: A checklist for practitioners 79
Which concepts for the digitalization of the supply chain
are relevant for you? 79
Part 3
Leverage Enablers for Supply Chain Functions
Digital Procurement: A key driver for performance improvement 84
Introduction: More evolution than revolution 84
Procurement 4.0:
Comprehensive transformation beyond technology 85
Triad for success: Structure, Digital Solutions
and People & Skills 87
Evolving capabilities and roles:
The buyer in the future procurement setup 92
Five tips for digital transformation in procurement 100
Outlook 100
Future Supply Chain planning: Faster and smarter 102
Introduction and status quo 102
The future of supply chain planning 105
The impact on planning functions 111
What is required to achive this step into the future? 113
How will planning organizations have to change? 115
Lessons learned from supply chain leaders 117
Roadmap to success 118
Logistics today and tomorrow 121
Introduction 121
Advantages and limits of digitalization 121
New business models and value-added services 123
Business models with value-added services 123
Lessons for Implementation 129
Supply Chain visibility: Connecting the dots 135
B2C has it all—but why? 135
Background: Supply chain visibility isn’t new, but it’s changing 136
The barriers to SC visibility 137
The problems caused by a lack of visibility 140
Visibility matters 142
How visibility creates value 144
A recipe for establishing SCM visibility 146
Tips 148
Call to action: A checklist for practitioners 151
Lessons learned: Procurement 151
Lessons learned: Supply Chain planning 152
Lessons learned: Logistics today and tomorrow 154
Lessons learned: Supply Chain visibility 156
Part 4
Digital Supply Chains in Action
Being a leader in a Digital Supply Chain 160
Introduction 160
Activities today vs. tomorrow 161
Leading in digital times 163
Typical future leadership skills 169
Impact on roles and organization 174
Cultural transformation: The heart and soul of digitalization 178
Why is cultural transformation so important
in the context of digitization? 178
The path to digital transformation—Some statistical evidence 180
Role of a Chief Digital/Transformation Officer
in cultural transformation 182
Managing cultural and digital transformation?
A step-by-step guide 183
Practitioner examples for digital and cultural transformation 186
Cultural Transformation 193
Digital Transformation Office: The engine for success 195
Introduction 195
From Digital Evolution Stage 1 to Digital Evolution Stage 3—
A natural progression 196
Why do we need Digital Transformation Offices? 200
McLaren’s Digital Orchestra—
New value pools for applied technologies 209
Horizontal digital activities to support business units
and functions with digitalization 212
Getting it done: Proven strategies and a survival guide 218
Typical Project (digital transformation) Lifecycle 218
Many digital projects fail—Some statistical evidence 221
Call to action: A checklist for practitioners 230
Lessons learned: Being a leader in a Digital Supply Chain 230
Lessons learned: Cultural transformation:
The heart and soul of digitalization 232
Lessons learned: Digital Transformation Office:
The engine for success 233
Lessons learned: Getting it done:
Proven strategies and a survival guide 234
Endnotes 235
Overview of Interviews
“Bring your clients to the digital world—They expect it from you.”
Martin Zehnder, COO, PALFINGER AG
“People are the most important success factor in digital projects.”
Roland Becker, Managing Director, GLX Logistics
“The development of digital supply chains is an evolution rather than a revolution.”
Peter Dressler, Senior Director Logistics, Infineon
“There’s no quick fix when it comes to transformation.”
Jacob Gorm Larsen, Director of Digital Procurement, Maersk Group
“Digitalization cannot be avoided.”
Hartwig Meinen, Managing Director Logistics,
Elflein Spedition & Transport GmbH
“The goal is to create awareness at management level first.”
Thorsten Rosenberg, Executive Vice President & Head of Global Supply Chain, BSH Hausgeräte GmbH
“It will become increasingly important for people to retrain and learn new skills.”
Alexander Gisdakis, Former Head of HR Leadership Culture, Siemens AG
“There’s no hype when it comes to digitalization—it’s a fundamentally
important topic.”
Erik Wirsing, Vice President Global Innovation, DB Schenker
“Culture has come to occupy a more prominent place in today’s companies than it used to.”
Simon Sagmeister, Founder and CEO, The Culture Institute
We would also like to thank the following people for their active support, contribution, valuable expertise and shared experiences:
Simon Sagmeister (The Culture Institute)
Professor Doctor of Engineering Guido H. Baltes, University of Constance
Philipp Smole, Executive Vice President Corporate Incubator PALFINGER 21st
Dr Christian Rohrdantz, Managing Director, and Johannes Häussler, Data Scientist, Vidatics GmbH
Dr Maximilian Hausmann, Senior Manager, Dr Elena Michel, Manager Data Analytics, rpc—The Retail Performance Company
Acknowledgement
Supply chain management is without question deeply affected by the disruptive forces of a modern organization, positively as well as negatively. Between Advanced Analytics and AI, agile role models and autonomous warehouses a senior executive is often in danger of losing track in the digital jungle.
In these exciting times, with their many turning points, h&z aims to share insights around digital supply chains, their application in business and the so vital transformation to successfully prepare organizations for this challenge. This book provides insights into best practices of current supply chain and how CSOs apply technologies and advancements. It also makes daring forecasts about how processes and leadership must be designed so that the digital transformation does not fail in its infancy, but leads to a truly agile organization.
Fortunately, we didn’t have to do all this on our own. We would like to thank all contributors from leading industry organizations for their opinions and insights about supply chain management. We would also like to thank the entire h&z family, whose patience and dedication made this book possible.
Bring your clients to the digital world—
They expect it from you: Letter from a COO
Dear digital practitioners,
We are in the age of digital transformation. Our lifestyles, the way we work, the way we communicate, and the way we shop are changing and they will never be the same again. One implication of these changes is that those of us in the business of supplying products and services need to adapt swiftly to the rapidly changing requirements of our customers otherwise they will look elsewhere.
At PALFINGER we are innovating and driving transformation to shape the future for us and our clients to make sure they stay with us. In our new digitalization program, we are pooling our digital competencies as well as adopting new approaches to the products and services we supply, all for the benefit of our customers. In addition, it is our ambition that the digital assistance systems and tools we use not only make work processes easier, improve support, and support cost-effectiveness — they also make every day work safer.
These are a few examples of our digital solutions, spanning customer solutions to improved operations:
TELEMATICS: Collect data in real time and turn it into value-add for our customers which can be for example displayed in a web portal so that fleet managers and users always know the current condition of our equipment. This minimizes unplanned machine downtimes and optimizes spare-part management.
FLEET AND OPERATOR MONITORING: We developed digital tools that boost the efficiency and productivity of our fleet loader cranes. The platform shows which machines are in use and where, and how long they have been operating. The system enables site managers to optimize crane use and loading processes and therefore ensures that the fleet is fully connected and all relevant job data is delivered where it is needed while the operator monitor supports the operation in the field or construction site with relevant data.
SAFETY SOLUTIONS: The theft of any of our equipment leads to drastic delays and cost increases for the customers using it, which is why we have developed systems to make sure the risk is dramatically decreased. If machines are moved without authorization, the customer is automatically informed. This not only considerably reduces the risk of theft, it also has the added benefit of potentially reducing insurance premiums.
In parallel to these customer-focused services, we have launched the first technology-based projects to improve certain internal SCM operations, including:
intelligent loading assistant systems for inbound logistics
traceability of production material
connected production plants
production automation
paperless production
and predictive maintenance through fleet monitoring
I am happy to share with you here a few corporate and personal lessons I have learnt in the process of PALFINGER’s digital transformation. My hope is that this could be instrumental in helping some other companies with their journeys to digitalization.
BUILD UP A DIGITAL ECOSYSTEM: With the rapid pace of technological change we see today it is nearly impossible to stay tuned to the most recent and advanced digital solutions on your own. This is why it is important to build up partnership networks within and outside your ecosystem. We founded PALFINGER 21st as incubator, which is an umbrella capturing new possibilities, opportunities and ideas. It is supposed to enable unconventional approaches and fresh fields of expertise. It is a distinct business area that faces up to new technologies and promotes radical ideas with the potential to change our business. It is worth considering setting up a similar kind of organization to help your own company. It should aim to filter out the best ideas, those that would work as part of your company’s digital transformation, and to identify opportunities early on. We established an environment in which our colleagues can experiment together, make mistakes, learn from them — and develop the products and services of tomorrow through a profound understanding of our customers.
One more example of an activity that helped to enlarge our ecosystem and bring in new ideas was Austria’s largest hackathon in 2017, which the PALFINGER Group hosted1. More than 100 participants, grouped in 24 teams, competed for the chance to further develop their ideas.
The participants were challenged to come up with ideas for seven subject areas:
virtual reality, augmented reality, mixed reality
intelligent loading assistant for inbound logistics
predictive maintenance through fleet monitoring
production automation
digital assistance systems
3D printing within production
and PALFINGER as a service
The three winning teams gave short elevator pitches, supported by videos, simulations and prototypes, that aimed to convince the jury about their ideas. They are now developing their solutions together with PALFINGER.
GET THE BASICS RIGHT: If you want to make full use of digital potentials, you must first have a strong IT backbone in place. We are currently running an SAP S/4 HANA project in all our major sites (not all our sites have SAP in place) in a concerted attempt to get uniform and consistent data pools across all regions and sites. Before the decision was made to implement this new ERP system, we carried out a large process excellence project to define standardized projects across the board. I am sure that you agree that it does not make a lot of sense to implement a standard ERP system without having harmonized your process landscape beforehand. You can of course use digital solutions to achieve some momentum where a fully integrated data lake is not needed. But at the end of the day, you need a common IT backbone to be able to scale up successful pilots across the board.
STICK TO YOUR TRAITS: There are numerous examples out there of companies that have transformed their business models from being pure hardware manufacturers to system integrators, where they have orchestrated the whole digital ecosystem using the digital solutions available to them. I am convinced that this transformation is only possible if you have the financial power to make the necessary long-term investments. It might, however, be a better idea to stick to your traits and focus on niche segments and applications where you can win the battle, and also prepare yourself for the big solution or disruption. We have therefore ensured that our products are connectable and platform-ready so they can exchange data with our partners within our ecosystem whatever platform solutions are used.
ACCEPT TWO SPEEDS WITHIN THE COMPANY: Companies with a long history normally have different maturity levels for process and data quality and IT systems between different regions or organizational units. This is also the case with PALFINGER, with 21 acquisitions over the last decade that have operated as independent units. My advice is to go through a three-step approach to fully address these challenges.
STEP 1: Bring all units and regions to the same levels in terms of IT systems and process excellence.
STEP 2: Foster innovative ideas within the more mature units with an explore, test, and implement approach. Identify proof-of-concept projects and pilots so they are ready to be scaled up once more units and regions have achieved higher levels of process and data management excellence.
STEP 3: Once you have closed existing excellence gaps between the units or regions and you have a harmonized process landscape, the next step is to scale up successful pilots. By doing so you can build up a self-financing project pipeline, where successfully scaled pilots will generate savings to finance other pilots or proof-of-concept projects that are in the pipeline.
In general, I would advise you to have a solid framework to support digitalization. Based on the strength of this framework, you can define your ambition level and select individual initiatives from your innovation funnel on the basis of what contribution they will make to achieving the next level of digital maturity.
DON’T FORGET THE PEOPLE: It is imperative that you have the right culture in place to be successful in digitalization. PALFINGER 21st works as a fully independent start-up but it has strong links to PALFINGER so that ideas and project funnels can be aligned with technological capabilities and the overall corporate strategy. For example, it works as a catalyst, but in close collaboration with the mother company, to bring agile ways of working and design thinking approaches to areas such as products, software development, and digital projects in general. Our new organization strengthened cross-functional collaboration and led to a new office concept. Both, together with the fundamental organizational changes we have made, play a vital role in further developing our corporate culture.
MY CONCLUSION: My last piece of advice is that it is important that you find your own way through digital transformation. There is no prescriptive path, no one-size-fits-all solution for digitalization. You should learn from the successes and failures of other companies that have already been through this transformation and when possible, reach out to them and exchange views. Our experience tells us that other companies are open to sharing knowledge. Many companies are more or less in the same situation and depend on external stimuli in such digitally disruptive times.
I hope that you find the best approach for your company and develop a strategic vision to match the level of your digital ambition.
Best regards
Martin Zehnder
COO PALFINGER AG
ABOUT MARTIN ZEHNDER: Born in 1967, Martin Zehnder joined the PALFINGER Group in 2005 as Global Manufacturing Manager for the manufacturing plants. Since January 2008, he has been responsible for the worldwide manufacturing and assembly area as a member of the Executive Board responsible for Production, and since September 2017 for Product Line Management, R&D, Purchasing, Safety & Quality and the Executive Projects Process Excellence and Turnkey Solutions.
ABOUT PALFINGER GROUP: For many years PALFINGER has been one of the world’s leading manufacturers of innovative lifting solutions for use on commercial vehicles and in the maritime sector. As a multinational group headquartered in Bergheim, Austria, the PALFINGER Group, which has more than 11,000 employees, generated total sales of more than €1.6bn in 2018.
