DKBanwet Feb4 KeyNotePresPPT UPES
DKBanwet Feb4 KeyNotePresPPT UPES
Discussant
Professor Emeritus Dr. D. K. Banwet, FIE
B.E.(Mech Engg), M.E.(Indl Engg), PhD (Indl Engg/OM), FIE
Email: [email protected]
AGENDA for Discussion
Need to work in a DYNAMIC DUAL VUCA / SMACK ENVIRONMENT
VUCA Environment: Volatile V , Uncertain U , Complex C, Ambiguos Environment.
SMACK (Social media , Mobile , Analytics, Cloud & Knowledge)
In fact VUCA and SMACK need to be suitably enmeshed. Schemes galore with poor implementation plans
that clearly indicate the urgent need for the adoption for an Integrated Holistic Systems Perspective and
Approach .
There is a dire need for a paradigm shift to have innovative programmes on Systems Thinking , Engineering
and Management.
We are all too familiar with the recent select disruptions of Demonetisation, Digitisation, GST, Make in
India , Transportation Odd Even, Supreme Court strictures NCR Diwali celebrations sans crackers, Idol
immersions etc. & the dreadful Black Swan Covid 19 Pandemic
Disruption dynamics for sustainable inclusive development : Need for entrepreneurial vibrant visionary
leadership
I do not think about the future, all too often it is already here” : Albert Einstein
• Disruption Dynamics need innovative responses in various
Sectors whether it be Education, Transportation, Energy, Legal,
Communication, ICT, SCM, Construction, Health, Functional /
Sectoral Management etc.
• In fact Sustainability and Inclusivity are now the Driving Force for
many Disruptive Technologies.
• Though seemingly in conflict to each other, both disruption and
sustainability needs to reinforce each other holistically to
envisage and achieve the future.
• This fourth revolution with exponential
expansion is powered by the emergence of the
INTERNET and DIGITALIZATION .
• The extent and depth of these changes have
the potential of severely disrupting the entire
political, social and economic world order.
The future as can be already seen
is that of Digitization, Digitialization
leading to Digital Transformation.
Digitization to Digitalization to Digital Transformation
What Is Digitization?
• Digitization is the process of transforming non-digital analog information from a physical format to a digital
version that enable computer systems to automate operations or workflows.
• The goal of digitization is to make information more easily accessible, storable, maintained, and shared.
• Organizations can increase their business operations efficiency and automate their day-to-day activities through
digitalization.
Digitization Examples
• The conversion of handwritten or typewritten text into digital form.
• Conversion of analog VHS tapes to digital data-containing CDs, DVDs, or Blu-Ray discs.
• One of the most important digitization examples is using a digital signature instead of a
wet signature.
• The conversion of paper maps to digital scanned ones including automatic data capture.
Efficiency, dependability, predictability, and operational excellence are all important advantages of
digitization.
What are the Pros of Digitization vs. Digitalization?
Digitization Digitalization
Utilizing technology to
Definition Transforming analog data t enhance corporate
o digital processes
is known as digitalization
Digitalization examples
• Some examples of digitalization include the ability to digitally stream movies on platforms such as Netflix, music
on platforms such as Spotify, create a bank account instantaneously from your mobile, and buy and sell products
on platforms such as eBay.
• Digitalization boosts efficiency and production while lowering expenses. It enhances rather than transforms an
existing business process or processes. That is, it converts a process from a human-driven event or series of
events to a software-driven event or series of events.
• Manufacturing will be transformed by digitalization. But it’s not without its drawbacks. While any type of
business transformation is difficult, McKinsey estimates that more than a third of businesses fail to digitalize.
Digitization and digitalization are parts of a digital transformation.
• Digitization is concerned with events that have already occurred.
• Digitalization is concerned with current events.
Digitization, Digitalization and Digital Transformation
Concerned with events which have Concerned with current trends and Concerned with gearing up for future
Context
already happened in the past events events
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1. Source: https://www.boldare.com/blog/5-examples-of-digital-transformation/
2. Source: https://heptagon.in/2021/11/25/the-difference-between-digitization-digitalization-and-digital-transformation/
Benefits of digital transformation:
1- Improved customer experience 2- Increased productivity 3- Improved business models
4- Improved agility and innovation 5- Greater collaboration across departments 6- Improved competitiveness
7- Increased transparency 8- Faster time to market 9- Improved analytics
During the COVID19 pandemic, only digitally mature organizations that had reaped the benefits of digital
transformation were able to operate and make quick adjustments to allow their employees to work from
home without interruption.
Digital transformation can help organizations improve how they operate. It entails utilizing digital technology
to transform your business models or processes and should be seen as a core digital adoption strategy that
must be implemented in all areas of an organization.
SCM: Some Definitions
Supply Chain Management deals with the management of materials, information, and financial flows in
a network consisting of suppliers, manufacturers, distributors and customers.
Stanford Supply Chain Forum
Logistics involves “managing the flow of items, information, cash and ideas” through the coordination
of supply chain processes and through the strategic addition of place, period and pattern values.
MIT Center for Transportation and Logistics
Supply Chain Management is primarily concerned with the efficient integration of suppliers, factories,
warehouses and stores so that merchandise is produced and distributed in the right quantities, to the
right locations and at the right time, and so as to minimize total system cost subject to satisfying
service requirements. Simchi-Levi
Call it distribution or logistics or supply chain management. By whatever name, it is the sinuous,
gritty, and cumbersome process by which companies move, materials, parts, and products to
customers. Fortune (1994)
Product
Customer
Funds
Digitalization of Supply Chain and Industry 4.0
The ability to optimise planning, sourcing, procurement strategies are all enhanced by using these
technologies
Big data and advanced analytics are important components of i4.0 and are recognised as big "game Waller and Fawcett, 2013
changers,”, especially for SCM. Yin, Stecke, and Li 2018
It is anticipated that other technologies, such 3D printing, robots, and autonomous cars, would
supplement i4.0-enabled SC systems
The supply chain can benefit much from digitization, including better information accessibility, Bigliardi et al. "The digitalization of
improved logistics procedures, real-time data collecting, more effective inventory management, and supply chain: a review." Procedia
more transparency. Computer Science 200 (2022): 1806-
1815.
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Digitalization of Supply Chain and Sustainability
Digitalization enables the effective implementation of sustainability-related actions, including: Bigliardi et al. "The digitalization of
o Optimizing the use of resources and machinery supply chain: a review." Procedia
o Selecting eco-friendly components and materials Computer Science 200 (2022): 1806-
o Designing products in accordance with the circular economy's guiding principles 1815.
Digital technologies make it possible to monitor industrial facilities and raw materials to
dramatically increase efficiency, decrease waste, and lower CO 2 emissions.
Adopting Industry 4.0 technologies delivers pertinent information throughout entire life cycle of Kumar et al (2021) “To identify
products. These technologies include cyber-physical systems, IoT, big data, etc. industry 4.0 and circular economy
adoption barriers in the agriculture
supply chain by using ISM-ANP”
Journal of Cleaner Production 293:
126023.
The use of digital technology can encourage the adoption of circular economy models that rely on Ghobakhloo M. (2020) “Industry 4.0,
processes like recycling and remanufacturing digitization, and opportunities for
sustainability” Journal of Cleaner
Remanufacturing is a praiseworthy illustration of how technologies can be used to increase Production 252: 119869.
efficiency. Some academics believe that remanufacturing (based on the reuse of products and
components in a way to recover up to 100% of their capacity to fulfil their job) is the most advanced
paradigm of the circular economy.
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Service Supply Chain Management : SSCM
Healthcare ,
Education ,
Telecommunication,
Tourism and Hotel Management
Transportation,
Energy
Banking
Public Systems,
Defence ,
Disaster Management
Consulting
Logistics ,Application Services
Others etc…
Services value chain in
Sustainable SCM framework
Sustainability services are those that provide planning and
benchmarking, communications and reporting, assessment, training
and possibly certification to companies.
BUT
• It is being seen that the current instability has not deterred the focus
on sustainability. In fact, these events seem to have strengthened
determination:
The traditional view of a linear supply chain and optimizing for your own business is transforming into digital
supply networks (DSNs) to enable end-to end visibility, collaboration, responsiveness, agility, and optimization.
Sustainable service supply chain framework
ISM based hierarchical model for hurdles in implementing SSCM practices in Indian automobile sector
• In present work, hurdles in implementing SSCM in Indian automobile
sector have been recognized and analyzed using Interpretive Structural
Modelling & MICMAC Analysis
• Ten hurdles in implementing SSCM have been identified from the
exhaustive literature review. Further, these identified hurdles have been
validated through a decision team of experts (Academia and Indian
automobile sector) by taking Indian automobile sector viewpoint.
• ISM methodology has been used for finding contextual relationships
among hurdles and developing a hierarchy of hurdles in implementing
SSCM in Indian automobile sector.
Application Areas Of Service Supply Chain Management
• Health , Hospital, Medical Services SCM
• Telecommunication, Social media Services SCM
• Energy ,Transport Sector Services SCM ,
• Hospitality, Tourism, Hotel SSCM
• Educational Sector, Entrance JEE, NEET , CAT, UPSC Civil Services exams
Service Supply Chain Management
• Disaster, Flood / Earthquake, Humanitarian Relief Logistics Services Supply
Chain management
• General & State Elections Service SCM
• Public Distribution PDS, Agri Service, Milk Collection & Distribution,
Contractual Services SCM
• Financial Services, Banking, Cooperatives & Legal Service SCM
• Infrastructure, Demonetisation & Digitization Service SCM
• Defence Services SCM
• Projects / Construction / Consultancy Service SCM
• Case Studies
• The economic environment has
become more challenging, and
sustainability is being emphasized.
• Customers can expect to see shortages
of products on shelves and price
increases of those products, writes an
expert.
• This has resulted in significant
geographical shifts in supply and
demand, which in turn has created
problems for finely tuned global supply
chains.
• Trends that were apparent pre-
pandemic, such as increases in
online shopping and
driver and other skill shortages, are
now causing real problems.
• Business as usual is simply no longer
an option if a sustainable future is to be
achieved.
Sustainability research in pre
& post COVID-19
Lack of resources
Environmental performance
Customer perspective
Customer perspective - Increase in product safety
-Customer query time Internal perspective
Internal perspective - No. of accidents/
Inventory turn over Vision and incidences/ year
ratio Economic Performance Health and Safety Performance
strategy for Learning and growth
Learning and growth sustainability perspective
perspective - Information transparency
Employee training yearly
Financial perspective
Financial Perspectives - % of revenue allocated
Return on Investment
to H &S
Social Performance Cultural and ethnic Performance
Customer perspective Customer perspective
- Code of conduct and - Increased pride
ethical guidelines Internal perspective
Internal perspective - Employment to minorities
- Use of child labour Learning and growth
Learning and growth perspective
perspective - No of events arranged
-Social auditing Financial perspective
Financial Perspective - Cost of culture conscious
- Fare wage scheme initiatives
Sustainable service supply chain framework
ISM based hierarchical model for hurdles in implementing SSCM practices in Indian automobile sector
• In present work, hurdles in implementing SSCM in Indian automobile
sector have been recognized and analyzed using Interpretive Structural
Modelling & MICMAC Analysis
• Ten hurdles in implementing SSCM have been identified from the
exhaustive literature review. Further, these identified hurdles have been
validated through a decision team of experts (Academia and Indian
automobile sector) by taking Indian automobile sector viewpoint.
• ISM methodology has been used for finding contextual relationships
among hurdles and developing a hierarchy of hurdles in implementing
SSCM in Indian automobile sector.
Based on Literature review – Identification and grouping of Enablers and Inhibitors
Sr. Other similar enablers from the literature
Parent Enabler Category Sr. Other similar inhibitors from the
No. review Inhibitor Category
No. literature review
Top management support, leadership
1 C-Suite/Board Involvement Strategic
involvement
Departments, Verticals, Special Business
1 Organizational silos Strategic
2 Capital Allocation Strategic Funding, Budget Allocation Unit
9 Mobile (4G/5G) Technical Telecommunications, 6 Lack of funds Strategic Capital allocation, Budget
12 Enterprise Software Technical Enterprise Resource Planning (ERP) 8 Skills shortage Strategic Recruitment, Talent
15 Digital Infrastructure Progress Technical Databases, Storage, Server 10 Insufficient data Technical
– ISM Diagraphs For Enablers and Inhibitors
Final ISM Model for Enablers With Variable Names Final ISM Model for Inhibitors With Variable Names
A more sustainable
supply chain
Thank you!
[email protected]