Tackling Adoption Challenges of New Age Technology in Supply Chain
In the ever-evolving landscape of global commerce, the advent of Artificial Intelligence (AI), Machine Learning (ML), Blockchain Technology, and the principles of Industry 4.0 have heralded a new era in Supply Chain Management. These cutting-edge technologies are not merely incremental improvements but transformative forces reshaping the very fabric of Supply Chain Operations.
AI’s predictive analytics, ML’s pattern recognition capabilities, Blockchain’s immutable ledger, and Industry 4.0’s smart automation are converging to create a proactive, transparent, and self-optimizing supply network. This network anticipates demand fluctuations, mitigates risks, ensures traceability, and delivers unprecedented efficiency.
However, converting a traditional, legacy supply chain into a futuristic one is challenging and cannot be achieved without a very focused and dedicated approach. Organizations often face scale-up challenges with low/slow adoption of modern technologies by end users. The solution to this adoption challenge exists in a mix of change management, upskilling, close looping, addressing fear of job displacement, recruiting required skill sets, and most importantly, reiteration by the top management about its advantages at periodic intervals, among other factors.
Promote network interaction through gamification
- Create communities (e.g. Teams channel, knowledge sharing platforms) to promote collective knowledge building and collaboration (internal, external) across multiple teams. This will encourage the transition to modern business.
- Gamify adoption by promoting healthy competition within/across teams & locations. One way to do it is through open-to-the-crowd competitions for suggesting digital initiatives and recommending adoption methodologies. For example, Hackathons.
KPI Ratings
Establish KPI ratings for successful participation/initiatives for process improvement by use of new-age technologies: Give special brownie points for digital initiatives. Establish ‘then’ vs. ‘now’ vs ‘to be’ KPI tracking for successful participation in the use of new-age technologies. For example, if a business unit has a certain Days on Hand (then) of inventory to service their clients, with the use of new age technology, see where this Days on Hand Inventory is hovering at (now) and where it is intended to reach in the next few months (to be).
Encourage a Flexible Work Environment
Remote/Hybrid working policy will increase dependency on digital tools and help employees embrace digital culture. The adoption of such digital tools will not only ensure continuity of operations but also lead to efficiency enhancements – like finding root causes, getting early warning signals and recommending actions to a user-persona. All of this is practically impossible to get in one view via traditional methods.
Leverage GenAI to Enhance the Ease of Use of Digital Solutions
- The solution should be designed around a user persona and the insights should be democratized and easy to consume. Integration of Gen AI with the tool enables the capability to ask questions and get answers, giving it an extremely attractive interface.
- We can leverage GenAI to define personas, simplify processes, identify bottlenecks, speed up decision-making, strengthen our responses, and much more.
- GenAI can provide the flexibility to adapt to user-specific requirements in the solution.
Ensure End-to-End Integration for Task Completion
- While the idea should always be to start small, one should aspire to achieve connectedness as we expand solutions from one function to another to achieve end-to-end integration of functions.
- Start with small-scale pilot projects or proofs of concept to demonstrate the value of advanced analytics in real-world scenarios. Use these initiatives to gather feedback, iterate on solutions, and build momentum for broader adoption.
- Multiple planning systems and solutions create a disconnect among users and solutions. An end-to-end solution integrated with planning systems puts the user “in control” of the task. When a user is in control of the task, it drives them toward complete ownership of the task.
- Care should be taken to ensure that the impact of a decision made by a function is factored and becomes an input to the tool that is getting used by another function. This will ensure common ground across functions and avoid any disconnect between them.
Deploy Change Management Techniques
- The importance of change management cannot be iterated enough. We know that adopting new ways of doing things is not an easy task for any workforce, especially if the training and change management are not thought through enough. Proper and timely training should be imparted with timely refreshers.
- The importance of workforce training cannot be overstated, particularly in the context of adopting new technologies. Investing in training programs not only brings everyone to a baseline level of proficiency but also boosts productivity and efficiency. With proper training, employees are better equipped to navigate and utilize new technologies effectively, ensuring a smoother transition and maximizing the benefits of innovation.
Moreover, a well-trained workforce is more adaptable to future advancements, maintaining the company’s competitiveness in an ever-evolving market. Companies should also celebrate and create memories of achievement in adopting technology, rewarding and recognizing people who are the frontrunners of these initiatives. By prioritizing training initiatives, organizations can empower their employees and position themselves for success in the digital age.
Adopt a Directive Approach (Executives to Working Staff)
- Create a unified vision across hierarchies for strategic alignment within the organization
- Top-level executives should champion the adoption of technologies and emphasize their importance in achieving strategic objectives.
- Plan for budgets and resources across the organization.
- Organizations should work to create a unified vision across various levels of the company for a strategic alignment. Top executives should champion the adoption of technologies by leading from the front and by emphasizing people’s/team’s importance in achieving this objective. Accordingly appropriate budgets and resources should be planned and allocated for.
Determine Budget Allocation
Determine budget allocation and ROI (return on investment) measurement based on various parameters such as:
- Human Economic Value – The economic value of human resources in digital transformation lies in their role in facilitating the adoption and implementation of digital technologies in organizations. HR practices such as recruiting and developing digital talent, fostering innovative behavior, and supporting organizational innovation are essential in creating a culture that encourages employees to embrace digital transformation. HR also contributes by ensuring employees adopt a digital business culture, embracing change and effectively utilizing digital tools. Moreover, HR plays a strategic role in digital transformation by reengineering HR processes to support business efficiency in alignment with digital transformation goals. The economic value of human resources in digital transformation is significant as they are crucial in driving organizational success in the digital age.
- Digital Economic Value – Digital economic value refers to the economic benefits and value created by the adoption and implementation of digital technologies in various sectors of the economy. Digital transformation has the potential to unlock significant economic value by enhancing productivity, efficiency, and innovation in traditional sectors such as agriculture, healthcare, and retail. Investments in cybersecurity, data privacy, and customer data increase confidence levels across users/customers. This brings more transparency and helps in acquiring future projects/business deals.
- Resource Economic Value – The economic value of resources in digital transformation is about leveraging digital technologies to optimize resource utilization, improve operational efficiency, and ultimately create more value. An Innovation and Environment Safety Goals-focused growth strategy, in alignment with global sustainable development goals (e.g. reduction in greenhouse gas emissions), is a key aspect of the digital transformation journey for many businesses and industries.
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