Share with your friends










Submit

Analytics Magazine

Challenges facing supply chain execs: leadership, labor, legacy technology

Challenges facing supply chain execsWhile most companies recognize the value of a digitally enabled supply chain – empowered by new technologies like artificial intelligence, blockchain, big data and analytics – many chief supply chain officers (CSCOs) are not leveraging their C-suite counterparts to help reinvent the supply chain function and transform it into an engine of new growth models and customer experiences, according to new research from Accenture.

The research report, “Drive Your Own Disruption: Is your supply chain in sleep mode,” reveals that the 900 supply chain executives surveyed were more likely to say that they see their function in two years as a cost efficiency driver (60 percent) or a support function (68 percent) than as a competitive differentiator (48 percent) or a growth enabler (53 percent) within their organizations, which can leave significant value on the table.

“Supply chain executives should take no comfort in being categorized as a support function,” says Mohammed (Mo) Hajibashi, a managing director at Accenture and global Supply Chain lead in its products industry practice. “In this digital era where customers demand speed to market and hyper-personalization, these executives need to ensure that their supply chain function is not only a key differentiator but also ensures the sustained growth of their organizations. The fast and efficient adoption of the right new technologies that enable a new way of working, along with increased C-suite engagement with the supply chain function, are the keys to achieving growth via new digital business models that create new customer experiences, craved by the consumer.”

Accenture research found that 80 percent of the supply chain executives surveyed identify the chief information officer or chief technology officer – not the CEO, chief operating officer (COO) or chief financial officer (CFO) – as key stakeholders, even despite the major role the CFO has in making technology investment decisions and the COO’s role in designing the operating model. Furthermore, in many organizations, the supply chain isn’t seen as a driver of differentiation and aggressive growth. Meanwhile, the CSCOs blame the absence of a clear business strategy (cited by 43 percent of CSCOs surveyed), together with an inadequately skilled workforce (48 percent) and incompatible legacy systems (44 percent), for their function’s inability to drive value for the organization.

According to the report, CSCOs have an opportunity to work with the full C-suite to overcome three core challenges – leadership, labor and legacy technology – and move their function toward better and more strategic partnerships that will provide the organization with increased value-driving potential.

Leadership: The CSCO will need to be better aligned with business strategy and build a new and productive working relationship with the executives responsible for long-term digital investment: the CFO and COO.

Labor: CSCOs need to build a workforce that focuses on core supply chain workers, “adaptive” (part-time and on-demand) workers and artificial intelligence/robotics – all working together to drive productivity at speed. The CSCO will also need to leverage their C-suite connections to secure support for a reskilling strategy founded on continuous learning.

Legacy technology: Digitally decoupling legacy systems provides a less-resource-intensive and more impactful way to drive agility than spending on new, more compatible systems. CSCOs can start by decoupling data from their legacy IT systems, replicating it and moving it, in real time, to cloud-based data “lakes” that are accessible to customers.

To see the complete report, visit Accenture.com/wakeupyoursupplychain.

Related Posts

  • 51
    With the rise of big data – and the processes and tools related to utilizing and managing large data sets – organizations are recognizing the value of data as a critical business asset to identify trends, patterns and preferences to drive improved customer experiences and competitive advantage. The problem is,…
    Tags: data
  • 45
    The Internet of Things (IoT) is considered to be the next revolution that touches every part of our daily life, from restocking ice cream to warning of pollutants. Analytics professionals understand the importance of data, especially in a complicated field such as healthcare. This article offers a framework on integrating…
    Tags: data
  • 44
    It’s long been popular to talk about customer interaction data such as clickstream, social activity, inbound email and call center verbatims as “unstructured data.” Wikipedia says of the term that it “…refers to information that either does not have a pre-defined data model or is not organized in a pre-defined…
    Tags: data
  • 42
    Nearly 40 percent of data professionals spend more than 20 hours per week accessing, blending and preparing data rather than performing actual analysis, according to a survey conducted by TMMData and the Digital Analytics Association. More than 800 DAA community members participated in the survey held earlier this year. The…
    Tags: data, percent
  • 41
    International Data Corporation (IDC) recently released a worldwide Big Data technology and services forecast showing the market is expected to grow from $3.2 billion in 2010 to $16.9 billion in 2015. This represents a compound annual growth rate (CAGR) of 40 percent or about seven times that of the overall…
    Tags: data, technology, percent, growth


Headlines

Closer C-level collaboration needed to bridge gap in cyber readiness

With the proliferation of more and more sensitive data, expanding connectivity, and the adoption of automated processes, new research from Accenture reveals that C-suite and IT decision-makers need to embrace a different approach to cybersecurity to effectively protect against future cyber risks. While most companies have a chief information security officer (CISO) or assigned cybersecurity to a C-suite executive, such as a chief information officer (CIO), often, these leaders have limited influence on cybersecurity strategy outside their departments. Read more →

Report: Automotive industry to invest $3.3 billion in big data in 2018

Big data investments in the automotive industry are expected to surpass $3.3 billion in 2018, according to a report by SNS Telecom & IT. Amid the proliferation of real-time and historical data from sources such as connected devices, web, social media, sensors, log files and transactional applications, big data is rapidly gaining traction from a diverse range of vertical sectors. Read more →

UPCOMING ANALYTICS EVENTS

INFORMS-SPONSORED EVENTS

INFORMS Annual Meeting
Nov. 4-7, 2018, Phoenix

OTHER EVENTS

Applied AI & Machine Learning | Comprehensive
Sept. 10-13, 17-20 and 24-25


Advancing the Analytics-Driven Organization
Sept. 17-20, 12-5 p.m. LIVE Online


The Analytics Clinic: Ensemble Models: Worth the Gains?
Sept. 20, 11 a.m. -12:30 p.m.

CAP® EXAM SCHEDULE

CAP® Exam computer-based testing sites are available in 700 locations worldwide. Take the exam close to home and on your schedule:


 
For more information, go to 
https://www.certifiedanalytics.org.