Team A: Week 4-5 Global Supply Chain

Business Analytics and Expert Systems for Small and Medium Enterprises: New Product Development Value Federations for

Creating Innovative Supply Chain Management Systems

Robert L. Brown

Global Supply Chain Management/DDBA 8510-1Moutaz Abou-Robieh, PhD

January 2016

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Table of Contents

• Synthesis of Ideas from Literature• Gaps in Literature• Research Topic• References• Annotated Bibliography• Summary• Questions

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Synthesis of Ideas from Literature(1) Supply Chain Value Mapping

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1. Profiling2. Mapping3. Creating Regional Hubs4. Collaborative Governance5. Communication6. Seamlessly Networking7. Training 8. AlignmentWisma, M. (2008). Global Business Management: Current Trends and Practices. The Journal of Applied

Business and Economics, 8(1), 96-109. Retrieved from the ABI/INFORM Global database

Synthesis of Ideas from Literature(2) Learning Supply Chains.

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1. Inter/Intra Organizational Learning.2. Supplier Innovativeness.3. Outsourcing for Tangible vs. Intangible Resources.4. Supplier Learning Styles. Explorative vs.

Exploitative. 5. Learning Traps and Out Sourcing Tangible

Resources 6. Erosion of Exploration of Outsourcing of

Resources.Azadegan, A., Dooley, K. J., Carter, P. L., & Carter, J. R. (2008). Supplier innovativeness and the role of

Interorganizational learning in enhancing manufacturer capabilities. Journal of Supply Chain Management, 44(4), 14-35. Retrieved from the ABI/INFORM Global database

Synthesis of Ideas from Literature(3) Strategic and Tactical Collaborative Actions

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1. Product Innovations.2. Process Innovations.3. Relational Innovations.4. Data Collection Strategy.5. Downstream Collaboration 6. Descriptive Statistics 7. IBM SPSS-Walden Quantitative Class 8. (Watson, Cortana, SIRI, Avatars, Second Life and

Google Analytics).Cassivi, L., Hadaya, P., Lefebvre, E., & Lefebvre, L. A. (2008). The role of collaboration on process,

relational, and product innovations in a supply chain. International Journal of E

-Collaboration, 4(4), 11-32. Retrieved from the ABI/INFORM Global database.

Synthesis Ideas from Literature(4)

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1. Importance of Collaboration.2. Strategic Alliances.3. Joint Ventures.4. Cooperative Arrangements.5. Virtual Collaboration. 6. Vertical, Horizontal and Lateral Integration.7. Reduced Administrative Costs.8. Example. Bonded Enterprises and Health Insurance.Soosay, C. A., Hyland, P.W., & Ferrer, M. (2008). Supply chain collaboration: Capabilities for continuous

innovation. Supply Chain Management, 13(2), 160-169. Retrieved from the ABI/INFORM

Global database.

Synthesis of Ideas from Literature

Figure 1.1. Learning Supply Chain and Protection of Innovation. Preventing Exploitation of Logistics Members. (Parker, Zsidisin, Ragatz, 2008).

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Capital Preservation

Revenue Stability

Real Time Expert System

Decisions

Learning Organization

Expert Systems

24/7 Monitoring

Political Economic

EnvironmentalUnforeseen

Events (Terrorism)

Creation of New Ideas

Learning Supply Chain

Expert Systems Logistics

Agile Business

Explorative vs.

Exploitative

Global Supply Chain

Warning

Market Instabilities

Synthesis of Ideas from LiteratureOriginal Ideas

• The core proposals in this presentation are supply chains can become in the a learning consortium of companies.

• Synthesis and creation of new business models through supply by the creation of learning cooperative value creation chains (Value Federation).

• Value Stream Mapping to find optimal partnerships for particular projects within the Value Federation of Companies.

• Flexible workforces, moving employees throughout the supply chain.

• Flexible workforces could present an answer to global unemployment issues and severe market variabilities.

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Synthesis of Ideas from LiteratureOriginal Ideas

• The core proposals in this presentation are business analytics coupled with the new online Expert Systems such as IBM’s Watson can give Small and Medium Size Businesses insight to predict and prevent business disruptions caused by supply chain issues. Synthesis and creation of new business models.

• Proposals for Early Detection of Idea Theft:• IBM SPSS Connection to IBM Watson (Head’s Up Warning)• “FITBIT” Sensors for Businesses. Monitoring and Analyzing. • Early Warning of Global Supply Chain Disruptions• Market Instability Warning Signs• Real Time Expert Systems 24/7 Supply Chain Order Adjustments

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Gaps in Literature: Research Topics

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• Expert Systems and Artificial Intelligence Systems are needed to manage the complex web of supply chains.

• Detection of fraud, waste and abuse in supply chains is a National Priority. Expert Systems will be necessary to monitor supply chains.

• Planners in the near term will be a combination of human and artificial intelligence systems.

• Microsoft Cortana and IBM Watson, Google are all developing intelligent assistants. How will virtual employees change supply chain management? Social, economic and employment impact of new intelligent computer controlled supply chain systems.

Gaps in Literature: Research Topic Areas

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•Employees, Suppliers, EBay, Amazon and Free Agent Suppliers.

•Peter Senge’s Systems Thinking.•Second Life, Virtual Supply Chains, Virtual Products and Services.

•Federations of Value Producers.

•Supply Chains that are intelligent or meta-intelligent collaborative systems.

•Virtual Employees. Artificial Intelligence Systems inter communicating.

Artificial Intelligence

Intelligent Value

Federations

Innovative Creative Supply Chains

Learning and

Sharing Supply Chains

Week 4-5 References Articles

• Wisma, M. (2008). Global Business Management: Current Trends and Practices. The Journal of Applied Business and Economics, 8(1), 96-109. Retrieved from the ABI/INFORM Global database.

•  • Azadegan, A., Dooley, K. J., Carter, P. L., & Carter, J. R. (2008). Supplier innovativeness and the role of Interorganizational learning

in enhancing manufacturer capabilities. Journal of Supply Chain Management, 44(4), 14-35. Retrieved from the ABI/INFORM Global database.

• .• Cassivi, L., Hadaya, P., Lefebvre, E., & Lefebvre, L. A. (2008). The role of collaboration on process, relational, and product

innovations in a supply chain. International Journal of E-Collaboration, 4(4), 11-32. Retrieved from the ABI/INFORM Global database.

•  • Soosay, C. A., Hyland, P.W., & Ferrer, M. (2008). Supply chain collaboration: Capabilities for continuous innovation. Supply Chain

Management, 13(2), 160-169. Retrieved from the ABI/INFORM Global database.•  • Handfield, R. B., & Lawson, B. (2007). Integrating suppliers into new product development. Research Technology

Management, 50(5), 44-51. Retrieved from the ABI/INFORM Global database.•  • Parker, D. B., Zsidisin, G. A., & Ragatz, G. L. (2008). Timing and the extent of supplier integration in new product development: A

contingency approach. Journal of Supply Chain Management, 44(1), 71-83. Retrieved from the ABI/INFORM Global database.•  

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Annotated Bibliography 1 of 10 Virtual Inventory Test methods

Chen, J.-X. (2012). Multiple criteria ABC inventory classification using two virtual items. International Journal of Production Research, 50(6), 1702–1713.

The authors describe inventory systems as living organism that contains multiple items that can impact the entire system.

Traditional inventory management techniques are based on the ABC classification method. (A) very important, (B) moderately

important and (C) relatively unimportant which are used for human planners to maintain safety stocks. Determining the importance

of item has been dependent on unit cost, lead time a commonality and scarcity. The authors recommend a newer method entitled

Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). Planners using the TOPSIS concept of negative hypothesis

along with the hypothesis. Advances neural networks will be needed as many of the advanced material scheduling methods within

Enterprise Resource Planning (ERP) systems are often beyond the capability of material planners within small and medium size

enterprises.

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Annotated Bibliography 2 of 10

Ecological Supply Chain Simulation Systems

Cirullies, J., Schwede, C., & Toth, M. (2012). Intra-simulative ecological assessment of logistics networks: Benefits, concepts, and tool

enhancement. Proceedings Title: Proceedings of the 2012 Winter Simulation Conference (WSC), 1.

Environmental impact according to the authors is now a critical component of ERP supply chain managers. Ecological planning

dynamics to predict and prevent inefficiencies, such as express shipping, air freight from China to the United States and

transportation of resources from ecologically fragile environments. Carbon emission calculations methods are becoming necessary

skill for material and logistics planners to understand. If the introduction of carbon taxes are adopted, then the least carbon cost or

impact material, good or services will become the preferred method. ERP systems will be required to manage multiple supply chains

and their environmental impact.

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Annotated Bibliography 3 of 10 Artificial Intelligence Systems Driving Supply Chain Innovations

Gunasekaran, A., & Ngai, E. W. T. (2014). Expert Systems and Artificial Intelligence in the 21st Century Logistics and Supply Chain

Management. 21st Century Logistics and Supply Chain Management, 41(1), 1–4. http://doi.org/10.1016/j.eswa.2013.09.006

The authors argued that the complexities of supply chains, Enterprise Resource Planning (ERP) systems, Radio Frequency

Identification (RFID), and Reverse Logistic Planners (RLP) are increasing the educational pressure on businesses. In the case of

RLP logistic systems, environmental laws require the tracking of the end product back through the supply chain tro understand the

full impact and carbon cost to produce, transport and to power or use the product by the final customer.

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Annotated Bibliography 4 of 10

Mobile Applications and Social Capital Within Supply Chains

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Leber, M., Weber, C., & Adam, F. (2014). Mobile Application as an Innovative Supply

Chain Concept and the Impact of Social Capital. International Journal

of Simulation Modelling (IJSIMM), 13(2), 135–146.

The European Union according to the authors cannot compete in the global textile market do to the low cost of imported

Goods from Indiana and Asia. The authors propose that using web based order systems that include the customer and

multiple and in some cases traditionally competing businesses to create a cooperative and mutually profitable market

along with advanced planning systems will neutralize the current paradigm of low cost wage jobs that are increasingly

Exploiting human beings and the environment.

Annotated Bibliography 5 of 10 Software Agents as Disruptive Agents of Innovation and Insight Within Supply Chains

Mandić, K., & Delibašiś, B. (2012). Application of Multi-Agent Systems in Supply Chain Management. Management (1820-0222), (63), 75–84.

Software Agents (SA) or Agents are programs that can interact within its business environment and is capable of autonomous

action and decision making. Dynamic and unpredictable events within a supply chain can be dealt with by an Agent and real time

decisions can be controlled even when the human staff is not available. Software Agents from different companies can now interact

and determine the potentially the most optimal course of action. Software Agents are shown by the authors to have the ability to

negotiate, pricing, transportation, delivery dates and country of origin that has the least costs in terms of ecological impact.

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Annotated Bibliography 6 of 10

Innovative Green Supply Chains as a Low Wage Labor Equalizer

Rehman, M. A. A., & Shrivastava, R. L. (2011). An Innovative Approach to Evaluate Green Supply Chain

Management (GSCM) Drivers by Using Interpretative Structural Modeling (ISM). International Journal of

Innovation & Technology Management, 8(2), 315–336.Green supply chains are increasingly becoming a priority for businesses. Manufacturing processes that minimize waste and pollution

have been called Lean Manufacturing and also are recognized as Green Supply Chain Management (GSCM). Just in Time or JIT

manufacturing processes are not necessarily LEAN or GSCM. In many cases badly performing suppliers inside a complex supply

chain will often be required to provide overnight or expedited shipping to keep a customer supplied. The contractual agreements

do not take into account the impact on the environment if the supplier has issues or is inefficient. Innovative supply chains should

fully understand the impact of contract, covenants and undocumented understandings between companies to mitigate the double risk

imposed on suppliers. Suppliers that are inefficient can be fined by their customers and by governmental agencies for environmental

impact.

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Annotated Bibliography 7 of 10 Detecting Cognitive Biases in Supply Chains.

Norshakkira, A. A. (2015). Web Based Expert System to Identify Trusted Partner for B2B

Collaboration. Journal of Theoretical & Applied Information Technology, 79(3), 365–369.

The authors propose using web based Expert Systems (ES) to evaluate the trust a business can place into a potential supplier

or business partner. In many cases, human emotional or issues of favoritism can cause a business to enter into a suboptimal

agreement. Web based ES system that are trained to become a consultant for a business can examine agreements and weigh

the proposals based on objective standards that are able to bypass potential human cognitive bias.

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Annotated Bibliography 8 of 10 Ontological Knowledge Modeling for Material and Supply Chain Management

Plinere, D., & Borisov, A. (2014). Development of Ontological Knowledge Model for Raw Materials Management Task. Darja Plinere, Arkādijs Borisovs. Ontoloģiskā Zināšanu Modeļa Izstrāde Izejvielu Pārvaldības Uzdevumam., 17, 61–65.

Ontological knowledge based systems differ from more traditional taxonomy knowledge bases in that ontological systems

are able to share common information across multiple software systems, software agents and human beings. Multiple agents

across a domain of systems are able to interact and exchange data directly with each other, versus going through a centralized

exchange or single point of control. In traditional supply chains, a small group of human beings can make decisions that can

have long lasting an in some cases negative impact on a business. Ontological software systems can be taught to examine the

business reality and maintain impartial unbiased decisions on purchasing, shipping and discounts for customers. In tense business

decisions, human beings can make emotional decisions. Interactive well designed ontological based knowledge systems can check

the decisions of human beings in or near real time and advise on potential business course corrections.

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Annotated Bibliography 9 of 10

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Sharma, G., Qiang, Y., Wenjun, S., & Qi, L. (2013). Communication in virtual world: Second life and

business opportunities. Information Systems Frontiers, 15(4), 677–694.

Second Life is an Online Virtual Reality computer network that allows users to interact with each other inside the Virtual

World. Second Life according to the journal article authors allows traditional human communication methods of business

That include word of mouth, billboard advertising and testimonials to be used to connect buyers and suppliers together.

Suppliers and customers can meet within Second Life, create simulations or supply chains and enhance communications.

Annotated Bibliography 10 of 10

Visich, J. K., Gu, Q., & Khumawala, B. M. (2012). B2C Mass Customization in the Classroom. Decision Sciences Journal of Innovative

Education, 521.

The education process of the entire supply chain is often overlooked during business negotiations between customers and vendors.

The authors propose that students of Supply Chain Management Systems research the web sites of businesses that offer

customized versions of their products. This concept is known as Mass Customized and was first proposed in 1987. Three

dimensional printing for example is a disruptive technology that has the capability for manufacturers and vendors to produce

different customized parts using the same large scale metal, plastic or ceramic 3D printer. Customers now are able to design

their products online. For example Dell computer allows customers to design and virtually build their computer. Dell then

takes the online order and the Dell manufacturing centers create the finished product. The educational process will need to extend

to the end customer, who if they have a 3D printer could create additional features, which further extends and expands the capability

of the entire supply chain. Customer now with a 3D printer can make their own customized Smart Phone Cases.

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Summary Supply Intelligent and Individual Supply Chain Management. 3D Printer, Second Life, Virtual Inventory.

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People, Process, Programming, Procedures, Production

Supply Chains Intelligent Creative

Dynamics.

The return of cottage industry in the Age of

the Internet? Disruptive Forces.

3D printing and Innovative Teams.

Questions? Comments?

Questions? Please contact me.Thank you for your time.Robert L. BrownWalden University DBA Program 2016.Professional Information.Information Technology Manager at Indiana Limestone Co.Interests in Artificial Intelligence, Expert Systems, My Contact Informationrobert.brown9@waldenu.edumetacomputer@yahoo.com

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