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Rethinking Supply Chain Analytics - report - 23 JAN 2018


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Executive Overview
Analytic strategies are at the core of digital innovation. It is a building block in digital manufacturing, autonomous supply chains, and digital path to purchase. New forms of analytics are defining new capabilities.
Traditional supply chains do not sense. They respond. The response is usually late, and out of step with the market. Today’s supply chains are dependent on structured data and Excel spreadsheets. Despite spending 1.7% of revenue on Information Technology (IT), Excel ghettos are scattered across the organization. Most organizations are held hostage by long and grueling ERP implementations only to find out at the end of the project that the business users cannot get to the data.
The traditional supply chain paradigm is an extension to the three-letter acronyms which dominated the client-server architected world of the 1990s—ERP, APS, PLM, SRM, and CRM—while the more enlightened business user understands that analytics are not an extension of yesterday’s alphabet soup.
Historically, analytics has only meant reporting. In contrast, today, analytic strategies are at the core. As analytics capabilities morph and change, analytics technologies are at the core of the architecture, sandwiched between the conventional applications and workforce productivity tools as shown in Figure 2.
Figure 2. Analytic Strategies at the Core of Digital Transformation

Current State
Today, the focus of analytics implementations is on data visualization, unstructured data mining, and data lake technologies. As will be seen in this report, this is rapidly changing. Within five years, the most disruptive technologies will be Blockchain and cognitive computing. New forms of analytics will make many of today’s technology approaches obsolete. Few companies, mainly early adopters, are working in these areas.

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