This paper discusses the transformation of digital resources for business organizations and the relationship between digital transformation and effective supply chain management. It explores the use of Internet of Things (IoT) in improving information sharing processes and overcoming supply chain issues.
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Running head: MANAGING THE DIGITAL ENTERPRISE Managing the Digital Enterprise Name of the Student Name of the University Author Note
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1MANAGING THE DIGITAL ENTERPRISE Table of Contents Introduction......................................................................................................................................2 Supply chain issues in organizations...............................................................................................2 Relationship between digital transformation and effective supply chain........................................4 Internet of Things and supply chain management...........................................................................6 Conclusion.......................................................................................................................................8 References and Bibliography...........................................................................................................9
2MANAGING THE DIGITAL ENTERPRISE Introduction The aim of the following paper is to describe about the transformation of the digital resources for the development of the business organizations. In the current times, companies are using the digital transformation process because they have to take the competitive advantage over their rivals in their industry. This has become an essential component because of the multinational organizations since they will have to advance to other countries to increase their profits and make their presence felt. While intending to make higher profits in other targeted countries, the multinational companies will have to improve their supply chain management policies (Da Xu, He & Li, 2014). Otherwise, they will not be able to provide their services and products to their customers effectively. In order to do this, they must make some plans by using Internet of Things (IoT) to implement better information sharing processes. The exchange of information sharing properly has always been one of the most important factors for the success of the organizations. In this paper, the effectiveness of the development of IoT and its connection with the supply chain issues will be discussed in this paper. The different supply chain issues will be discussed in this paper along with the ways to overcome it. Supply chain issues in organizations The digital transformation has been considered as one of the most effective components for the overall success of the organizations. The supply chain management is a very effective component for delivering the services and products to the customers (Da Xu, He & Li, 2014). This is why the management of the organizations will look to implement a proper supply chain andlogisticsmeasureforbetterservice.Thedevelopmentoftechnologyhasgiventhis
3MANAGING THE DIGITAL ENTERPRISE phenomenon a better shape. Therefore, the reality of the organization has to catch up with the role of the digital strategies within the organization because technology is improving very highly indeed (Al-Fuqaha et al., 2015). Many changes have been taking place in the organization so the organizations should be able to cope up with these issues positively. The digital supply network (DNS) should be implemented within the organizations so they can yield the better results within their respective industries. The supply chain networks will have to be practiced for the better outcomes since linear improvements should be made. However, these transformations are very muchimportantforthebettermentoftheorganization(Al-Fuqahaetal.,2015).Many multinational firms have been trying to make the proper implementation of these strategies so they can utilize the most of it. Some issues have been observed in this scenario. Theorganizationalmanagershaveunderstoodthatdigitaltransformationisvery important for the organization’s success but they do not realize this will drive the digital innovation in a new manner altogether (Ben-Daya, Hassini & Bahroun, 2017). Some critics have studied on this matter and they have found out that the supply chain network is not at all a positive driver of the digital transformation. Therefore, they are reluctant to make use of this factor in the most positive ways. Many organizations do not include their top managers in the strategic decision making in the complex business environments. The lack of improvisation in the strategic decision making using digital transformation is felt properly in this scenario. The controlling of costs is not done properly within supply chain framework of the organization. This is ignored and managers do not realize that this should have been done with the use of rising technologies.
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4MANAGING THE DIGITAL ENTERPRISE There are several risks within the companies in the complex business environment. Therefore, they should be managed effectively to get the best outcomes. The planning and risk management initiatives should be taken positively with the help of digital transformations for the betterment of the organization (Ben-Daya, Hassini & Bahroun, 2017). In order to find very qualified talents to serve for better supply chain networks. Without these talents it will be impossible to make the best efforts. Therefore, the need of implementing the digital transformation strategies is immense. The use of Internet of Things (IoT) should be done so things could be made better (Zhou, Chong & Ngai, 2015). Relationship between digital transformation and effective supply chain The effective performance of the supply chain levels is a very important thing for the overall success of the organizations. The organizations will be able to work better if they can implement digital technologies to confront with these issues. Very few organizations in the recent times have implemented the digital technologies for the overall betterment of their supply chain strategies (Zhou, Chong & Ngai, 2015). The companies must learn to use the recent and upgraded technologies so they can work very effectively for the betterment of their systems. In thisscenario,employeesmustbetrainedproperlyaswell(Abdel-Basset,Manogaran& Mohamed, 2018) Employees must be able to cater to the betterment of the organization by insisting on proper decision making abilities by their managers. Studies have revealed that a little over 40% of digitalization has taken part in the supply chain strategies (Kshetri, 2017). Therefore, it will be important to increase the level and shift their focus on implementing the digital processes in their digital strategies.
5MANAGING THE DIGITAL ENTERPRISE Critics are of the opinion that the managers should realize that implementation of these digital technologies in their operations will relatively increase their annual growth as well. This will help them to recruit more employees and take their organization to a larger level. There are many organizations that have implemented this strategy of digital transformation for better knowledge sharing (Kshetri, 2017). One of these is the e-commerce giantsAlibaba. The rolle of logistics and supply chain network is immense in their organization as they have to supply their products and services to the doorstep of their customers. Therefore, they will have to implement these technologies so they can provide better services. The use of Internet of Things (IoT) has been very much evident in this scenario. Alibaba’s efforts have changed the entire scenario in this regard. Their use of IoT technology has taken apart all their competitive rivals. An example can be given in this scenario.. Alibaba has improved their services in a way that they can actually determine the range of products to be placed in a particular van. This is done even before the customers complete their orders. This saves the time from each end and saves money as well (Dodgson, 2018). There are instances of other companies as well. These companies areInfor, H&M, Unilever, McDonaldsand other companies. The improvements by using the supply chain through technologies have given them the boost to grow in the international competition. Therefore, these organizations will have to make the most of these opportunities to cater to their growth (Abdel-Basset, Manogaran & Mohamed, 2018). Therefore, employees must learn to apply some strategies that will surely make the things work and solve the problems using the Internet of Things (IoT). Therefore, it is pretty clear that managers should be largely dependent on technological innovation and make it reflect on the improved service delivery for their customers (Bahga & Madisetti, 2016).
6MANAGING THE DIGITAL ENTERPRISE Internet of Things and supply chain management The application of digital technologies through the Internet of Things (IoT) has really becomeatrendintherecenttimestoaggravatetheservicedeliveryprocessesofthe organizations. The organizational managers have a huge role to play in this scenario. Therefore, they must incorporate some systems that will have a long lasting impact in solving the above mentioned problems of the supply chain management (Bahga & Madisetti, 2016). There are some industries in which the application of IoT has become a very unique part. The examples of these industries are service industries, retail, e-commerce, manufacturing and others. Therefore, it will be a very important matter to make proper use of internet connected physical devices in their services. Therefore, these organizations should learn to include their managers to involve in the decision making process so they can work very effectively. The strategic decisions should be taken after seeking proper feedbacks from their customers (Zhao et al., 2015). Only then they would be able to locate the objects and persons who will take part in the overall supply chain process. Various global firms have recognized the fact that they will need to address the relevance of the IoT in their supply chain networks. They will be able to make faster delivery of their products and services (Camisón & Villar-López, 2014). This is why they will need to address this issue very seriously. Especially e-commerce companies and retailers would like to increase their online presence and connect with their customers’ faster and smoother manner. There are lots of uncertainties regarding the use of the IoT within their business because orders can be delayed because of the problems in using internet connection (Zhao et al., 2015). Another uncertainty i.e. related in this issue is that of the traffic problems or shortages of stocks. Therefore, it will be very much important for the organizations to find out those real problems
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7MANAGING THE DIGITAL ENTERPRISE within the organization so that issues could be resolved with the help of these technologies as soon as possible (Hugos, 2018). Due to the use of IoT within the business organizations, it will be very much important to identify the locations of the vehicles by which all the products would be delivered. The technological devices will surely help in locating the place of the vehicles along with the speed it is running at. If needed, customers can ask for a faster delivery (Kogan et al., 2017). The organizational authorities will be able to track those vehicles to find out if there are any technical problems with the vehicles. Some alerts can also be sent to the organization if any maintenance is needed. Another important thing that can be discussed in terms of supply chain framework is that of inventory management. It is not all the time that the suppliers can have an idea over the exact demand of the products (Hugos, 2018). They also cannot say the availability of stocks every time. Therefore, the use of technological devices will surely be highly helpful in this concern. Therefore, use of technological innovation and devices developed with Internet of Things (IoT) would help the organizations to trace the levels of demand by the customers and availability of stock as well. This will be more accurate means of sharing the proper information with all the customers (Mangan, Lalwani & Lalwani, 2016). Employees will have to keep a note of all this so they can ask their suppliers to provide more products. New and fashionable things should also be supplied. The use of internet can be done through social media platforms as well. Companies will be able to collect information about several new designs of the products. Therefore, they could supply their products to the customers in very quick time in times of peak demands as well (Mangan, Lalwani & Lalwani, 2016). The close monitoring will also be possible and definite knowledge can be shared between the suppliers, vendors, stakeholders and customers. Thus it is clear that deployment of Internet of
8MANAGING THE DIGITAL ENTERPRISE Things (IoT) and technological innovation will be a boost for the service delivery and supply chain framework within the modern organizations. Conclusion On a concluding note, it can be said that service delivery, supply chain management and technological innovation are very closely related. The managers have to get involved in all sorts of decision making procedure to ensure smooth service delivery among customers. The Internet of Things (IoT) will indeed be very much helpful for the organizations. Some companies have implemented this procedure and they have been largely benefitted due to this as well. It is a matter of no surprise that employees will need to play a huge role in this process along with their managers. Only then a smooth and accurate process can be ensured. Alert systems using the technology will have to be implemented within the organizations. Therefore, the organizations will be able to work smoothly and provide the desired products to their customers. Finally, managers will have to implement the things Real time information could be provided to customers with automated technologies. Therefore, knowledge sharing will become easier.
9MANAGING THE DIGITAL ENTERPRISE References and Bibliography Abdel-Basset, M., Manogaran, G., & Mohamed, M. (2018). Internet of Things (IoT) and its impactonsupplychain:Aframeworkforbuildingsmart,secureandefficient systems.Future Generation Computer Systems,86, 614-628. Al-Fuqaha, A., Guizani, M., Mohammadi, M., Aledhari, M., & Ayyash, M. (2015). Internet of things:Asurveyonenablingtechnologies,protocols,andapplications.IEEE communications surveys & tutorials,17(4), 2347-2376. Anadon, L. D., Chan, G., Harley, A. G., Matus, K., Moon, S., Murthy, S. L., & Clark, W. C. (2016). Making technological innovation work for sustainable development.Proceedings of the National Academy of Sciences,113(35), 9682-9690. Bahga,A.,&Madisetti,V.K.(2016).Blockchainplatformforindustrialinternetof things.Journal of Software Engineering and Applications,9(10), 533. Ben-Daya,M.,Hassini,E.,&Bahroun,Z.(2017).Internetofthingsandsupplychain management: a literature review.International Journal of Production Research, 1-24. Camisón,C.,&Villar-López,A.(2014).Organizationalinnovationasanenablerof technologicalinnovationcapabilitiesandfirmperformance.Journalofbusiness research,67(1), 2891-2902. Da Xu, L., He, W., & Li, S. (2014). Internet of things in industries: A survey.IEEE Transactions on industrial informatics,10(4), 2233-2243.
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10MANAGING THE DIGITAL ENTERPRISE Datta,A.,Mukherjee,D.,&Jessup,L.(2015).Understandingcommercializationof technological innovation: taking stock and moving forward.R&d Management,45(3), 215-249. Dodgson,M.(2018).Technologicalcollaborationinindustry:strategy,policyand internationalization in innovation. Routledge. Hakansson, H. (2014).Corporate Technological Behaviour (Routledge Revivals): Co-opertation and Networks. Routledge. Hugos, M. H. (2018).Essentials of supply chain management. John Wiley & Sons. Kogan, L., Papanikolaou, D., Seru, A., & Stoffman, N. (2017). Technological innovation, resource allocation, and growth.The Quarterly Journal of Economics,132(2), 665-712. Kshetri, N. (2017). Can blockchain strengthen the internet of things?.IT professional,19(4), 68- 72. Mangan,J.,Lalwani,C.,&Lalwani,C.L.(2016).Globallogisticsandsupplychain management. John Wiley & Sons. Zhao, X., Fan, H., Zhu, H., Fu, Z., & Fu, H. (2015, April). The design of the internet of things solutionforfoodsupplychain.In2015InternationalConferenceonEducation, Management, Information and Medicine. Atlantis Press. Zhou, L., Chong, A. Y., & Ngai, E. W. (2015). Supply chain management in the era of the internet of things.International Journal of Production Economics,159, 1-3.