This article briefly describes the expected developments of data-driven improvement and the connection between the three topics of Supply Value’s campaigns, from the Mobility and Logistics market, in 2023: data-driven improvement, Integrated Business Planning (IBP) and optimal chain collaboration. Three essential components that in conjunction can achieve the strategic objectives of organisations.
Data-driven improvement in the near future
It is difficult to predict exactly what the difference will be between ‘data-driven improvement’ now and 10 years from now. Especially as technological developments and other factors, such as the way we use and interpret data, will change significantly. What is clear, however, is that data-driven improvement will be much more sophisticated and refined by 2030. For more companies and industries, data-driven improvement will be a ‘must’ to stay competitive. We can expect huge amounts of data to be available due to the increasing digitisation of our daily lives and the further emergence and development such as the Internet of Things (IoT). This will result in larger, more complex and detailed datasets, making it challenging for organisations to make even more accurate and targeted decisions. With larger and more complex datasets, organisations can use data, more often in real-time, to improve their processes, and ultimately performance. The extent to which organisations can make decisions based on reliable and detailed data and insightful information is supportive of, and in some cases conditional to, successful implementation of IBP and optimal chain cooperation. Therefore, successively data-driven improvement, IBP and optimal chain cooperation are topics of the campaigns that Supply Value’s Mobility and Logistics industry focuses on. You can request our whitepaper ‘Data-driven improvement in Mobility and Logistics’ here.
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Developments
Artificial Intelligence (AI), Machine Learning (ML) and advanced technical big data analytics and integration capabilities are rapidly developing technologies used to build data models that can automatically generate insights from big data. This can help organisations optimise processes, identify patterns and perform predictive analytics, for example. It can help organisations take a holistic view of their operations and improve their processes.
Data privacy and security combined with data ethics are, even more, gaining importance. With the growth of data collection and analysis, there is also a growing concern about data privacy and security. Organisations also need to be aware of the growing potential impact of their data-driven improvements on people and society at large. Also, read our insight ‘Points of Attention for a Successful Implementation of Data-driven Improvement‘ here.
Data-driven improvement, Integrated Business Planning and optimal chain collaboration
Data-driven improvement, Integrated Business Planning (IBP) and optimal chain cooperation are essential components that, in conjunction, can support the strategic objectives of organisations. Think not only about improving business processes and increasing efficiency and productivity but also about achieving other strategic objectives such as sustainability and responding flexibly to external developments such as customer demand. Although each strategy is important in its own right, they can reinforce each other and thus ensure even better performance. Also across company boundaries. It often starts with how a company uses data and information.
Figure 1. Better data as a basis for decisions on IBP and optimal chain cooperation.
1. Data-driven improvement promotes the use of data analysis and insights to continuously improve processes. However, collecting and analysing data is not enough, it is also important to use and share this data appropriately. Data-driven improvement promotes a culture of continuous improvement, using feedback and data data to make decisions and optimise operations. Data-driven improvement strengthens Integrated Business Planning and, if the data and information can be shared with other parties, optimal chain cooperation.
2. Integrated Business Planning involves the coordination and integration of different departments within a company. Companies need to ensure the alignment of objectives and strategies between departments. The main purpose of IBP is to gain insights into the different business activities and how they are aligned. Joint strategic planning creates synergies and opportunities to improve and optimise business performance. IBP promotes collaboration and internal communication. For many organisations, especially in the Mobility and Logistics sectors, sharing data with other organisations is attractive to pursue common objectives. So that processes in, for example, the supply chain or urban mobility can be aligned by sharing data and information. For publication, see Supply Value’s market research IBP tooling: Market Research: Integrated Business Planning Tooling – Supply Value.
3. Optimal chain cooperation. Companies choose to cooperate when it benefits both (or several) parties. This could increase efficiency, reducing costs and increasing profits. Or it could be about common sustainability goals or pursuing coordinated management of the entire chain. To respond quickly to external developments (e.g. customer demand). For these reasons, chain cooperation is becoming increasingly important and, in many cases, can provide a competitive advantage. Especially in the mobile and logistics sector. In optimal chain cooperation, the processes of companies in the supply chain are integrated and managed to jointly deliver more value to customers. This collaboration must be well-coordinated and accompanied by having companies’ internal processes in order (IBP) and sharing and analysing jointly created data and information.
Figure 2. Process steps towards process optimization, IBP and optimal chain collaboration.
By sharing data it becomes possible to identify inefficiencies and optimize processes with chain partners. When we combine all three strategies, we create a powerful combination that takes business performance to the next level:
1. When using data for data-driven improvement, the results of these analyses are used to improve internal processes;
2. Integrated business planning (IBP) aligns the processes, goals and performance of the various departments to achieve a common strategy that strengthens performance in all areas;
3. Optimal Supply Chain Collaboration brings together companies in the supply chain to increase efficiency, save costs and manage the entire supply chain.
In short, thanks to the three strategies, it becomes possible for companies to continuously improve their business operations, support strategic objectives and achieve growth. Combining data-driven improvement, IBP and optimal chain collaboration can provide a real competitive advantage for companies that strive for optimization and growth. Especially if they can achieve that growth with chain partners.
