The document discusses how operational innovation and innovators are often underappreciated compared to consumer technologies. It provides several examples of impactful innovations in mobile computing, analytics, global delivery, and sustainability that receive little attention from the mainstream media and analysts. These include UPS's mobile technology deployment, Union Pacific's use of sensors and algorithms, and supply chain sustainability initiatives. The author encourages operational executives to publicly discuss their logistics and technology work to better recognize these innovations.

1. My heroes have always been
operational folks
Today’s true innovators
Vinnie Mirchandani
www.florence20.typepad.com

2. We are living in a New
Renaissance
My innovation blog has
cataloged 2,500 entries across
40 categories in last 5 years
• Infotech
• Biotech
• Cleantech
• Healthtech
• Nanotech
It celebrates
• New algorithms
• New medicine
• New energy

3. Innovation is becoming more
science, less art
My books have:
• 40 detailed case studies
• Wide range of sources
(1,200 end notes)
They showcase innovation
everywhere:
• Unfamiliar places (e.g.
Estonia)
• Unpopular processes (e.g.
Maintenance)
• Unglamorous industries (e.g.
City government)

4. But, recognition of innovators is
uneven
700 followers (2009)
6,000 today
5.7 million (2009)
22.8 million today

5. Operational executives and
innovation underappreciated
“The CMO (Chief Marketing Officer) will spend more on
IT than the CIO ”
“Golden age of design: Things 'just work‘”
“Workday IPO Shows Investor Confidence in Business
Cloud”
“The consumerization of IT- The next-generation CIO”
“Big Data Was A Data Play, Now It's A Developer Play”

6. Mobile Computing – what gets
attention
• Endless stream of
devices
• The apps
ecosystems
• Massive telco
advertising

7. Mobile Computing – UPS DIAD
• 5th generation, first
introduced in 1990
• Has allowed UPS
to scale massively
and efficiently
• UPS also largest
buyer of mobile
minutes
• Could have
launched its own
“smartphone” way
before Apple!

8. Mobile Computing – Tesco in
S.Korea
• Homeplus virtual
store in subway
• Descartes Route
Planner allows for
“on the fly” flexibility
in same day delivery
• Also shows how far
ahead some mobile
networks are
compared to US

9. Analytics – what gets attention
• NoSQL
• Storage exploding
• SAP/Oracle - new
screaming frontier
• “Big Data” – as in
2012 US elections

10. Analytics – Union Pacific
• 20 million
temperature
readings a day using
trackside infrared
sensors
• Algorithms allow
within 5 minutes to
slow/stop suspect
trains
• With ultrasound
imaging, predictive
wheel maintenance

11. Analytics – Mondelez (Kraft)
• Thousands of
merchandisers used VRU
for “honor based” time
and mileage reporting
• Descartes and GPS
technology – over 4 billion
data points last year -
now provides visibility
• Triangulation of GPS
and payroll data allows for
finer ABC customer
analysis, workload
modeling, labor savings

12. Global Delivery – what gets
attention
• Outsourcing
beyond India
• Manufacturing
beyond China
• Trickle-up
innovation
• Balance of Trade

13. Global Delivery – Boeing 787
• Highly innovative
plane – composites,
passenger comforts
• Spurred by Airbus
cross-country
supplier success
• Dreamlifter –
modified 747 – large
components from
Japan/Italy
• Cross supply-chain
testing

14. Global Delivery – The New “Silk
Road”
• Chongqing in W.
China to Duisberg,
Germany
• “Southern” route via
Kazakhstan, Russia,
Belarus, and Poland.
• Less than half time
of ocean shipments,
much cheaper than
air
• Next: high-speed rail

15. Global Delivery – Maersk EEE
class ships
• 18,000 20 foot
containers (v. 500
container ships half
a century ago)
• 50% less CO2,
35% less fuel per
container compared
to today’s Asia-
Europe
benchmarks

16. Social Enterprise – what gets
attention
• Social media
• Sentiment
analysis/Marketing
analytics
• “Systems of
engagement”
• Self-promoting
Social “Mavens”

17. Social Enterprise – Toyota Friend
• Moving social from people to product
• Private social network of EVs, dealers, owners, with
Salesforce Chatter

18. Social Enterprise – Descartes
Global Logistics Network
• 63,000 parties in
160 countries
• Connected to 50
other networks
• Seed for
Descartes
Community (Cloud)
• Art Mesher =
“federated networks’
in 90s

19. Business Model Innovation –
what gets attention

20. BMI – what about?
“Shipping and handling” costs
a non-factor for consumers
Prime Decade of Amazon supply
chain innovation like “postal
injections”
Evolving to digital products
Same-Day Delivery?
Changed from back office
overhead to revenue
opportunity
Home Descartes’ Reservations and
Delivery Route Planner
Charge more for “premium”
delivery hours
Customers like more choice

21. Agility – what gets attention

22. Agility – what about?
“Out-Delled” Dell’s Build to
Build to Cash received
“Constant “Out-P&Ged” P&G’s Build to
Course Demand Forecast
Correction” Foxconn, Fedex, others =
agile supply chain
Supply chain of 2 PCs a
Iceland second, 2 printers a second,
and more
Volcano
Instant buy of charter
Japan capacity to S. Europe
Tsunami airports. Instant command
center for tsunami

23. Sustainability – what gets
attention

24. Sustainability – what about?
Wind for many DCs, Solar
Every for corporate campus,
renewable Geothermal, biomass, high-
form of altitude wind
energy PUE, location analysis for
DCs
SEC focus on reporting of
“conflict minerals”
Audit trail of mineral
Tantalum sourcing/refining path
Capacitors
Opportunities for others
around “rare earths”

25. Sustainability – what about?
Wind for many DCs, Solar
Every for corporate campus,
renewable Geothermal, biomass, high-
form of altitude wind
energy PUE, location analysis for
DCs
SEC focus on reporting of
“conflict minerals”
Audit trail of mineral
Tantalum sourcing/refining path
Capacitors
Opportunities for others
around “rare earths”

26. Ok to toot your own horn
• MSM more interested in consumer
and social tech stories
• Industry analysts mostly want to
write about technology products, not
complex projects
• Your PR is more comfortable with
product and financial news
• You have to find your own friendly
outlets
• Don’t fret too much about
“competitive advantage”
• Sharing spurs even more innovation

27. Encourage execs to publicly
talk logistics and technology
• Amazon CEO annual shareholder letter
• Union Pacific to Fortune: “we are an infotech company”
• HP supply chain presentation to Wall Street
• Apple’s face to non-consumers even under Steve Jobs
• UPS Global TV campaign

28. Your turn to shine
Next-gen logistics/supply chain innovation stories should
be even more impressive:
• Global energy/manufacturing epicenter moving towards
US
• Post-Sandy reconstruction projects
• Retail/groceries going through radical changes
• China infrastructure inspiring many other countries
• More veterans in our workforce