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Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 1
Resilience, Technology, Sustainability
Competing ...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 2
shared.value.chain is a think tank and
management...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 3
Value Chain Realities Accelerators
Market
Volatil...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 4
Volatility in the Market
Global Value Chains
Ecol...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 5
Companies need to master customer and internal ex...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 6
Challenges to master service, visibility and effi...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 7
RESILIENT TECH SAVVY SUSTAINABLE
COLLABORATIVE
CA...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 8
Resilience is important to keep the momentum
The ...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 9
Source: Dobbs, Manika and Woetzel: No ordinary di...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 10
Source: ‘Global Outsourcing & Supply Chain Risk’...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 11
Source: BCI Supply Chain Risk Report, November 2...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 12
1. Understand the risks in your end-to-end
value...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 13
Being ‘Tech Savvy’ means to be clever in using t...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 14
The world is changing at a rate at
which the sys...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 15
Mobile technologies, the Internet of Things and ...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 16
Source: Supply Chain Insights, Big Data Study 20...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 17
3 recommendations to build tech savvy capabiliti...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 18
Being sustainable means to have a business model...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 19
Source: United Nations Environment Program, Foot...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 20
Source: Ellen MacArthur Foundation, Circular Eco...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 21
3 recommendations to implement a sustainable val...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 22
The ability to collaborate across the boundaries...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 23
Many people drive
important change
Action that i...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 24
3 recommendations to drive a culture of collabor...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 25
2nd tier
Suppliers
1st tier
Suppliers
1st tier
C...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 26
Economic,
ecological
and societal
value
Economic...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 27
Resilient
Tech savvy
Collaborative
Sustainable
“...
Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 28
Muito obrigado - Please join the conversation an...
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Resilience, Technology, Sustainability: Competing in the age of disruption, big data and ecological overshoot (Logitrans 2015 Porto Keynote)

Resilience, Technology, Sustainability: Competing in the age of disruption, big data and ecological overshoot (Logitrans 2015 Porto Keynote)

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Resilience, Technology, Sustainability: Competing in the age of disruption, big data and ecological overshoot (Logitrans 2015 Porto Keynote)

  1. 1. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 1 Resilience, Technology, Sustainability Competing in the age of disruption, big data and ecological overshoot Michael D’heur | shared.value.chain Logitrans 2015 Conference | Porto | 13 May 2015
  2. 2. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 2 shared.value.chain is a think tank and management advisory firm. We help companies to embed sustainable value creation in their core business (products and supply chains). We believe that there is significant potential for globally operating corporations to bring together ecological, economic and societal value creation. Sustainable products, flexible and resilient supply chains as well as collaboration are the backbone of companies‘ core business and subsequently the platform for sustainable growth. Michael D‘heur Founder & Managing Director shared.value.chain Munich, Germany Advisor, Author, Architect shared.value.chain: We are Advisors, Authors and Architects for Sustainable Value Creation
  3. 3. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 3 Value Chain Realities Accelerators Market Volatility Natural Disasters Key Questions Source: Adapted from Sustainable Value Chain Management (D’heur et al., Springer, 2015) The ‚new realities‘ of value creation, put the current business models under pressure Global Value Chains Scarce Resources Profit versus Purpose Technical Innovation Man made crises x What value do we want to create? How viable is the current model? How do we build the capabilities to cope?
  4. 4. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 4 Volatility in the Market Global Value Chains Ecological Crisis (Storms, Draughts, ...) Profit versus Purpose? Constrained Resources Financial Crisis (Lehmann, Euro, ...) Technology Supply Chain ‘Scandals’ & Trust Issues “How shall we cope and create value in this environment ?”
  5. 5. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 5 Companies need to master customer and internal expectations to stay ahead of the competition „I want it today“ „We need to know upfront“ „Make it faster & cheaper, please“ • Superior service experience • Instantly available offering across multiple channels and customer groups • Expectations of a growing global middle class • Full value chain visibility (from source to store) • Anticipate changes in demand • Timely product feedback /service • Manage the supply network for performance • Effective and efficient setup • Trimmed for increased performance • Continuous cost reduction in product & supply chain • Management of Complexity
  6. 6. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 6 Challenges to master service, visibility and efficiency are coming from multiple areas How do we protect, respond, recover? How do we become proactive and predictive? How do we build a sustainable model? SUPERIOR SERVICE VALUE CHAIN VISIBILITY EFFECTIVE & EFFICIENT • Technical, weather and supplier disruptions • Increasing product proliferation • Fast changing demand patterns • End-to-end value chain visibility • New/disruptive business models • Longer and more interdependent value chains (n-tier networks) • Scalability of the operations • Increasing cost
  7. 7. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 7 RESILIENT TECH SAVVY SUSTAINABLE COLLABORATIVE CAPABILITIES OF A FUTURE PROOF OPERATING MODEL A new set of capabilities is required, to be able to respond to the challenges How do we protect, respond, recover? How do we become proactive and predictive? How do we build a sustainable model?
  8. 8. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 8 Resilience is important to keep the momentum The ability to absorb the impact of a business interruption, and continue to provide a minimum acceptable level of service. It requires a business culture that encourages resilience building as an ongoing practice, aimed to strengthen processes & plans RESILIENT Definition
  9. 9. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 9 Source: Dobbs, Manika and Woetzel: No ordinary disruption; McKinsey Global Institute, May 2015 Our global economy is interconnected, like never before – and the pace is accelerating
  10. 10. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 10 Source: ‘Global Outsourcing & Supply Chain Risk’ Survey (Demand Chain Executive Magazine, 2014) Companies are operating in a high risk and volatile environment 7% 6-9 3-5 27% 1-2 10+ 4% 12% 39% 0 88% of companies surveyed experienced more than 1 disruption with material impact on the ability to operate since 2011 Number of supply chain disruptions
  11. 11. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 11 Source: BCI Supply Chain Risk Report, November 2013 (n=519) / Other: Energy scarcity, Cyber attacks, Environmental incidents, Industrial disputes, healt & Safety, Civil unrest IT/Telecom disruptions and adverse weather are the main disruptors across many industries Unplanned IT / Telecom outage Outsourced service failure Adverse weather Product Quality Transport network disruption Loss of talent / Skills Financial Services 64% 38% 21% 20% Professional Services 70% 68% 47% 43% 35% Public Administration 50% 24% 36% 22% 28% IT & Telecom 48% 25% 33% 25% Manufacturing 35% 33% 42% 43% Energy & Utility 44% Retail & Wholesale 40% 71% 31% 39% Health Care 43% 50% 43% 50% Transport & Storage 44% 56% 67% 56% Engineering & Construction 57% 57% 57% 43%
  12. 12. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 12 1. Understand the risks in your end-to-end value chain 2. Collaborate and engage with key partners to limit/share the risks 3. Develop business continuity plans, that are practical and enable you to predict, respond, recover 3 recommendations to build resilient capabilities RESILIENT Recommendations
  13. 13. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 13 Being ‘Tech Savvy’ means to be clever in using the right technologies and data to compete The ability to use emerging technologies, including big amounts of data to make the end-to-end value chain transparent and to understand/capture market opportunities TECH SAVVY Definition
  14. 14. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 14 The world is changing at a rate at which the systems, structures and cultures built over the past century can no longer keep up.
  15. 15. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 15 Mobile technologies, the Internet of Things and Big Data are already changing the game Source: Dobbs, Manika and Woetzel: No ordinary disruption; McKinsey Global Institute, May 2015
  16. 16. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 16 Source: Supply Chain Insights, Big Data Study 2014/2015 Mobile technologies and big data will be key drivers for supply chain excellence in the years to come
  17. 17. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 17 3 recommendations to build tech savvy capabilities 1. Understand the opportunity that big data offers for your company (based on your industry needs and competitive position) 2. Use partnerships to share infrastructure cost 3. Don’t be a slave to the data – use common sense and manage the risks (privacy) TECH SAVVY Recommendations
  18. 18. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 18 Being sustainable means to have a business model, that delivers economic, ecologic and societal benefits The ability to structure all aspects of a companies core business (ie. products and supply chains) in ways that deliver economic, ecologic and societal value at the same time SUSTAINABLE Definition
  19. 19. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 19 Source: United Nations Environment Program, Footprint Network Mankind is already exceeding the limits of the planet. Where do we get the all the Planets from, to survive in the future?
  20. 20. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 20 Source: Ellen MacArthur Foundation, Circular Economy, 2012 Implementing the vision of a circular economy is already driving transformative change
  21. 21. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 21 3 recommendations to implement a sustainable value chain 1. Question the Status Quo of value creation in your company and collaborate across product development, supply chain and customers to find more sustainable solutions 2. Reduce the resource intensity of the value chain system (Actions might include asset sharing, multi-modal transports, Cradle-to-Cradle products, Closed-loop value chains) 3. Measure a balance set economic, ecologic and societal metrics SUSTAINABLE Recommendations
  22. 22. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 22 The ability to collaborate across the boundaries of the value chain is the key to success The ability to managing all internal and external stakeholders in a collaborative manner, to allow the organization to manage risks, change and to capture opportunities COLLABORATIVE Definition
  23. 23. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 23 Many people drive important change Action that is head & heart driven More leadership, not just management Partnership of hierarchy and network Constant flow of information Not a project: A “get-to” mindset, not “have-to” Collaborating in a Network Model, helps to adapt faster to changing needs than traditional models Source: Adapted from John Kotter, Accelerating Change, 2014
  24. 24. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 24 3 recommendations to drive a culture of collaboration 1. Use the experience of your team and expand it with external experience -> overcome internal boundaries 2. Define internal and external relationships in a new way – you win and lose together 3. Test the network model as operating model for accelerated change COLLABORATIVE Recommendations
  25. 25. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 25 2nd tier Suppliers 1st tier Suppliers 1st tier Customers 2nd tier Customers SOURCE MAKE DELIVER PLAN RETURN Value Creation Strategy (Product, Value Chain, Communication) Enterprise Architecture (Organisation, Reporting, Systems) Stakeholder Collaboration Sustainable Business Planning Supplier & Partner Networks Sustainable Cost Reduction © shared.value.chain Cradle-to-CradleCo-Creation Sustainable Operations Sustainable Products RESILIENT TECH SAVVYSUSTAINABLE COLLABORATIVE The new platform for sustainable value creation is built on value chain and collaboration capabilities
  26. 26. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 26 Economic, ecological and societal value Economic value Ecological value Societal value Revenue growth Reduced costs Reduced use of primary materials Improved societal value of the product Reduced impact of products on the environment Reduced negative social impact of value creation • Reduced working capital • Fewer fixed assets • Improved use of capital • Reliable supplier base • Sustainable innovation • Improved brand image • Premium prices via segmented customer offerings • New business models for solving social problems • Improved localisation and income opportunities • Avoidance of child labour • Alleviation of poverty • Substitution and simplification of materials • Reduced environmental impact and costs • Closed material cycles • Internalisation of environmental costs • Habitat regeneration • Preservation of biodiversity Source: Sustainable Value Chain Management (D’heur et al., Springer, 2015) Thriving for sustainable value creation, is delivering several economic, ecologic and societal benefits
  27. 27. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 27 Resilient Tech savvy Collaborative Sustainable “Are you ready for the race?”
  28. 28. Logitrans 2015 Conference | Porto | 13 May 2015 shared.value.chainPage 28 Muito obrigado - Please join the conversation and discover how you can make your value chain more sustainable @SharedxValue info@sharedvaluechain.com https://www.facebook.com/sharedvaluechain https://plus.google.com/+sharedvaluechain/ https://www.linkedin.com/company/shared-value- chain-management-consultants CSR und Value Chain Management (Springer, 2013) Corporate Social Responsibility (Springer, 2015) Sustainable Value Chain Management (Springer, 2015) Publications: https://sharedvaluechain.com/publications/

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