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A.T. Kearney 82/7478 1
Supply Chain Technologies
Dr. Dale S. RogersNevada Logistics Institute
Supply Chain Technologies19 August 2011
2
Flow Management
PhysicalFlows
FinancialFlows
InformationFlows
3
Analytics
Analytics
BusinessIntelligenceCompetency
Center
DecisionSupportSystems
PredictiveModeling
StatisticalAnalysis
DataMining
4
Consolidation and Complexity
WMS
TMS
OrderManagement
SCV
DataSynchronization
&Warehousing
NetworkLocationSupply
ChainPlanning
SoftwareCompany
SoftwareCompany
SoftwareCompany
SoftwareCompany
SoftwareCompany
SoftwareCompany
SoftwareCompany
Analytics
5Source: Erik Brynjolfsson, MIT E-Commerce Center
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“Rules of Thumb”
Total company IT costs should equal approximately 1% of total revenue
Supply chain IT costs should consist of 15-20% of total IT budget
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2010 AMR Supply Chain Top 251. Apple2. Procter & Gamble3. Cisco Systems4. Wal-Mart Stores5. Dell6. PepsiCo7. Samsung Electronics8. IBM9. Research In Motion10.Amazon.com11.McDonald’s12.Microsoft13.The Coca-Cola
Company
14.Johnson & Johnson15.Hewlett-Packard16.Nike17.Colgate-Palmolive18.Intel19.Nokia20.Tesco21.Unilever22.Lockheed Martin23.Inditex24.Best Buy25.Schlumberger
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“The Network is the Computer”
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“The Network is the Computer”
Movement away from traditional software
Transparent ASPs
Focus on Middleware
The Network is the Computer
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Always On, Always Connected
Converting information into insights
Managing time and staying focused on high priority tasks
Staying on the same page as colleagues
Managing the balance between work and family lifeSource: Digital Workstyle: The New World of Work. (2005) A Microsoft White Paper
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Knowledge
Data Information Insight
Simplification and Insight
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Business Rules
Restrictions
Triggers
TimingInference
Computations
Heuristics
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Bucket Brigade
Information can move quickly inside the walls. Data flow to “information machine” a bucket brigade. Web allows move to shared data pipeline. Linkages are the key
1858 Rumsey fire wagon. Supplied with water by bucket brigade.
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Types of SCM Planning
StrategicNetwork Planning
Demand Planning
DemandFulfillment
&APS
Master Planning
Production Planning
&Scheduling
Purchasing&
MaterialsRequirements
Planning
Transport Planning
&Distribution
Planning
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19th Century Electricity Generator
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Computing as a Utility
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Amazon Web Services
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Amazon Web Services
Computing power for $.10 an hour
Storage $.15 per gigabyte per month
Revenues of $100 million for Amazon
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Cisco Supply Chain
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Cloud Computing
Reduced need to own software
Have computing and data in the “cloud”
3,000 firms per day moving to Google Apps
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Software as a service (Saas)
Traditional Software On-Demand Utility
Build Your Own Plug In, Subscribe
Pay-per-Use
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Cost Avoidance
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Cloud Adoption The long-term shift toward Web-based software is apparently taking a bit longer
than expected. According to a new survey from research outfit NPD, 73% of PC users have never tried a Web-based office productivity suite. And of those who have, only a paltry 0.5% have been impressed enough to abandon their desktop office applications.
”It would seem, then, that while 90% of computing will someday reside in “the cloud,” as Google CEO Eric Schmidt recently claimed, it isn’t going to reside there for quite a while.
“Maybe in the next 30, but not in the next five,” says Burton Group analyst Guy Creese, who suggests consumer adoption of SAAS will follow a path similar to that of consumer adoption of electricity in the late 1800s. “If you look at the electricity-adoption curve, it mimics what is happening now,” Creese explains. “People made their own electricity for the first 30 years. It was only in 1910, when Samuel Insull began creating electricity holding companies, that businesses and people decided it was easier and cheaper for someone to take over the task. If you figure usable PCs were invented in 1975, we’re about 30 years into a 50- to 60-year adoption cycle. People move a lot slower than technologists want them to; that’s why I think Microsoft’s ’software and services’ viewpoint is the less exciting but more sensible one.”
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2/10 Rule
2 years of excited “buzz”
10 years before technology “blossoms”
2 Years
10 Years
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