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Paper sharing_Digital transformation of maritime logistics- Exploring trends in the liner shipping segment

Mar. 29, 2023
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Paper sharing_Digital transformation of maritime logistics- Exploring trends in the liner shipping segment

  1. Digital transformation of maritime logistics: Exploring trends in the liner shipping segment C O M P U T E R S I N I N D U S T R Y A u t h o r s : Z e e s h a n R a z a , J o h a n W o x e n i u s , C e r e n A l t u n t a s V u r a l , M i k a e l L i n d ( 2 0 2 3 ) P r e s e n t e r : C H E N , Y O U - S H E N G ( S h a n e ) 2 0 2 3 / 0 3 / 2 9
  2. JCR COMPUTERS IN INDUSTRY /30 2
  3. Vocabularies 1/3 P. English Chinese 1 quest to 尋求 1 underlying challenges 潛在的挑戰 1 fragmentation 分散 1 stringent 嚴格 1 road hauliers 公路營運商 1 freight forwarders 貨運代理 2 door-to-door movements 門到門運輸 2 disruptive 顛覆性 2 spell out 說明清楚 P. English Chinese 3 digital native 數位原生代 3 Fashionistas 另一方面 3 inertia 慣性 3 silos 孤立的 4 stifle 扼殺 4 autonomous vesse 自主船艦 4 emissions 排放 4 pandemic 疫情 5 turnover 營業額 5 anatomy 剖析 6 promising 有前景的 /30 3
  4. Vocabularies 2 /3 P. English Chinese 6 reflecting on 反思 6 paper trail 系列文件 7 get away 擺脫 7 panacea thinking 萬靈丹想法 7 reluctance 不願 8 vivid across 擺脫 8 hampering 阻礙 8 hindering 阻礙 8 competency traps 能力陷阱 8 monolithic 整體 8 itinerant seafarer life 流動的船員生活 P. English Chinese 9 right competence 合適能力 9 afloat 業務 9 victims 受害者 10 accountable for 對…負責 10 accountability 問責制 10 no bulletproof 沒有實現 10 placing bets 引入下注 10 indispensable 不可或缺 11 incubators 孵化器 11 to screen for 要篩選 11 take inspiration 汲取靈感 /30 4
  5. Vocabularies 3/3 P. English Chinese 11 go out and spin out 走出去並組件 11 buy-in 認同 11 start small 小處入手 11 closer range ambitions 追求更近的目標 11 incremental change 漸進式變革 11 joint ventures 合資企業 12 venture capital firms 風險投資公司 12 credibility 可靠性 12 profoundly alter 深刻改變 12 boundary spanner 邊界協調者 12 concrete action 具體行動 P. English Chinese 12 reinventing 以新形式出現 (重現) 12 multiple fronts 多方面戰線 12 top-down mandate 由上而下授權 13 business-savvy 商業頭腦 13 fostering 促進 13 temptation 誘惑 14 rather uniformly 相當一致 /30 5
  6. 0 5 D iscussion and conclusion 0 4 Results and analy sis 0 3 M eth ods 0 1 Introduction 0 2 Literature rev iew Table of Contents /30 6
  7. Purpose Identifying the essential organizational elements and leading strategies that shape DT success in the maritime logistics industry (particular focus on the liner shipping segment) Findings Resistance to change and siloed functions are key challenges to digitalization of maritime industry People, culture, agility and change management are fundamental to digitalization of maritime industry Abstract /30 7
  8. Methodology Following a qualitative research design based on semi-structured interviews with senior executives from liner shipping companies Originality Explores the current digital maturity levels, benefits, hindering and identifies the essential leading strategies of digitalization in this segment 9 major barriers and 19 different pathways to digital transformation are identified Abstract /30 8
  9. Introduction /30 9 High fragmentation Low transparency and visibility Costly manual processes Outdated customer interfaces Volatile fuel prices Demand uncertainties Environmental regulations Stringent competition Poor predictability (Raza et al., 2020, Rodrigue et al., 2017) The “digital age” – has fundamentally transformed the competitive dynamics of various industries including logistics (Hofmann and Osterwalder, 2017) Half of transport costs are associated with management and order documents, arising mostly from data processing and customs requirements (Cariou, 2018)
  10. Introduction /30 10  Recently, the role of digitalization for maritime logistics operations has emerged as the applied discourse of maritime informatics (Lind et al., 2021b).  Despite the benefits promised by DT, the shipping industry is reluctant to adopt new digital technologies (Sanchez-Gonzalez et al., 2019)  Lack of a DT strategy, insufficient technical knowledge and skills, high cost, lack of standardization and interoperability (Pagano et al., 2022), Digital transformation (DT), which refers to the required transformations driving digitalization within and between organizations based on a digital strategy (Heilig et al., 2017)
  11. R Q 1 R Q 3 R Q 4 R Q 2 What does digital transformation mean to a liner shipping company? What are the main drivers and challenges of digital transformation in the liner shipping industry? What are the liner shipping industry’s key strategies for embracing digital transformation? What is the digital maturity status of the liner shipping industry? Introduction /30 11 Tijan et al. (2021) emphasise the need for more empirical research to gain deeper insights regarding digital awareness in the shipping industry
  12. Digitization Digitalization Digital transformation Literature review /30 12 creating a digital representation of physical objects or attributes (Gong and Ribiere, 2021) to the use of digital technologies and digitalized data to alter sociotechnical structures (Osmundsen et al., 2018) a strategy or a broader process of transforming an organization or a network of organizations on different levels (strategy, governance, leadership, culture, people and technology)
  13. Literature review /30 13 2020 Kossowski et al. The fundamental objective of DT is adding value to an organization • operational efficiencies • improved customer experiences • improved business models • development of new products and services • strategic differentiation • competitive advantage • improved stakeholder relationships and cost savings 2016 Haffke et al. New industry and non-industry entrants with disruptive digital business models, regulatory pressure and technological advancements are considered to be the triggers which motivate companies to engage in DT projects 2020 2021 Sullivan et al. Tijan et al. The key drivers of DT in maritime logistics are • changing customer requirements and expectations • cost reduction • digital shifts in customer industries • legislation and changes in the competitive landscape 2.1. Purpose and drivers of digital transformation
  14. Literature review /30 14 2020 Cichosz et al. DT is a continuous evolutionary process 2018 Kane et al. Digital maturity is defined as “the degree to which organizations have adapted themselves to a digital business environment” 2014 2017 Westerman et al. Kane et al. Greater digital maturity leads to enhanced corporate performance 2022 Kuo et al. DT leads to various benefits for the shipping industry actors such as enhanced efficiency, improved customer satisfaction and better environmental performance 2014 Westerman et al. Digital maturity is a combination of two separate • digital intensity : customer engagements, internal operations, and even business models • transformation management intensity : vision, governance and leadership capabilities 2.2. Digital maturity
  15. Literature review /30 15 2.2. Digital maturity Fig. 1. The digital maturity matrix. Adapted from Westerman et al. (2014). 1. Firms with weak digital capabilities and weak transformation management capabilities are digital beginners 2. Digital natives who truly understand how to drive value with DT and achieve competitive advantage
  16. Literature review /30 16 2020 Parola et al. to achieve the positive outcomes, organizations must identify and counteract the impeding barriers that hinder the execution of their transformation 2019 Vial refers to 35 sources, revealing that one of the most significant barriers to DT is inertia 2016 Srivastava et al. Inertia is relevant where existing resources and capabilities can act as barriers to disruption highlighting the relevance of path dependence as a constraining force for innovation through digital technologies 2019 Vial by quoting 40 sources the resistance that employees can demonstrate when disruptive technologies are introduced in the organization 2019 2018 Vial Kane et al point out “competency traps” with employees their past successes and may cause resistance that organizations may find it difficult to change peoples’ mindsets and beliefs 2020 Agrawal et al. people are the major hurdle to digital transformation 2022 2021 Kechagias et al. Tijan et al. more interconnection between systems onboard which have made shipping more vulnerable to cyberattacks 2.3. Digital transformation challenges
  17. Literature review /30 17 2021 Watson et al. the involvement of various autonomous actors in the maritime logistics industry • agents • terminal operators • shipping companies • shippers • financial institutions and customs authorities • self-organized maritime practice 2019 Raza et al. shippers are plenty and more conscious about the time-related service-quality attributes 2020 Lind et al. to create a new digital infrastructure based on data sharing among actors, facilitating visibility, predictability and eventually better decision-making for the actors involved 2021 Lind et al. a cultural shift where coordination and synchronization needs to move beyond the requirement of being physically present 2020 2020 Lind et al. Seyedghorba n et al. digital technologies and satellite communications have enabled transparency and connectivity in multimodal maritime logistics networks which is a determining success factor for many organizations 2.4. Shipping and digital transformation
  18. Literature review /30 18 2.4. Shipping and digital transformation Communicating data Woxenius et al. (2013) • increasing load-capacity utilization and suggest the use of multiagent-based simulations Cloud computing Wang and Sarkis, 2021 • become mainstream after more than a decade’s development • enables authorized users to simultaneously access online platforms from different devices and enjoy real-time services Tracking technologies Parola et al., 2020 , Aamnes, 2017; Becha et al., 2020; Parola et al., 2020) • enhance container shipping companies’ performance by increasing visibility and reducing transaction costs • accelerated decision-making at sea, at port and in the hinterland • better inventory control, better demand forecasting, shorter order fulfilment lead times, improved logistics flexibility and asset performance Fundamental to any digitalization initiative in transport and logistics is the need to have appropriate information and communication infrastructure for data capturing, storage, processing and sharing to build robust digital connectivity within and between organizations
  19. Literature review /30 19 2.4. Shipping and digital transformation Maersk Line uses IoT sensor data from its 600 vessels for fuel economy enhancement, voyage optimization, reefer container monitoring and empty container optimization (Teradata, 2018) Hapag-Lloyd when it started to equip its container fleet with IoT devices for real-time tracking (Bruno, 2022)
  20. Literature review /30 20
  21. Q u a l i t a t i v e r e s e a r c h d e s i g n A purposeful sampling strategy semi-structured interviews Recorded and later transcribed I m p l e m e n t a t i o n • Seven interviews on Zoom or in person were conducted in December 2021 and January 2022 • In-depth interviews and lasted 60 min • recorded and later transcribed • An interview guide S e l e c t i o n • Assured about the anonymity • Highly experienced executives with several years of experience S t e p We first import, then code, then interpret and then write up the recorded interview Using NVivo software Methods /30 21 focused on the liner shipping segment considering the higher value of cargo handled, sensitivity of the customers to service improvements and performance and the complexity of the transport networks (Raza et al., 2019)
  22. Methods /30 22 Then, the research questions acted as the a priori codes (Miles et al., 2020) for the iterative coding process The interview data was coded into themes and concepts such as definition of DT, drivers, challenges, opportunities, key digital technologies, and DT strategies
  23. Results and analysis /30 23 AB customer requirements regarding visibility, lower prices and lower carbon footprint of their freight transport as well as increasing operational and cost efficiency C furthermore, competition from non-industry entrants and fear of missing out (FOMO) have also motivated shipping companies to implement DT D DT paves the way for new business opportunities, such as data provision, new service offers, alternative business models and value channels Efurther highlight that Covid-19 proved to be another driver and has increased the pace of DT in shipping
  24. Results and analysis /30 24
  25. Results and analysis /30 25
  26. Results and analysis /30 26
  27. Discussion and conclusion /30 27 • Establish a tangible vision and a new business strategy with DT at heart • Establish new leadership roles such as CDO or CIO who have additional capabilities in change management • Support employee/team empowerment and continuous learning • Embrace cheap hypothesis-driven experimentation on multiple fronts and encourage a fail-forward culture • Break down silos and focus on upskilling, reskilling, and knowledge dissemination • Develop partnerships with customers, competitors and suppliers
  28. Limitations and implications /30 28 Received limited scholarly attention • further analysed with an explanatory approach to discover the relationships between drivers, barriers, strategies and DT success • studies can be extended to multiple industries and comparative analyses across cases would bring valuable insights about the varying maturity levels of different sectors Employee resistance has appeared as a key challenge to DT • encouraged to investigate in depth how DT triggers conflicts, discrepancies, uncertainty, and power struggles in an organization and the negative consequences of DT for management and employees • to look at the ways to craft and implement an appropriate change management strategy
  29. Appendix A: Interview Guide /30 29
  30. Appendix A: Interview Guide /30 30
  31. THANK YOU
  32. RESOURCES • Zeeshan Raza, Johan Woxenius, Ceren Altuntas Vural, Mikael Lind, Digital transformation of maritime logistics: Exploring trends in the liner shipping segment, Computers in Industry, Volume 145, 2023, 103811, ISSN 0166- 3615, https://doi.org/10.1016/j.compind.2022.103811. • Free Google Slides Shipping and Logistics PowerPoint Template (slidechef.net) https://slidechef.net/templates/free-google-slides-shipping-and-logistics-template/ • Microsoft Stock images (royalty-free images) /30 32
  33. Extended learning • 何謂「Liner Shipping」及「Shipping Conference」 https://www.i-qahand.com/Questions/2017060300001 • WIKI- 路徑依賴 https://zh.wikipedia.org/zh-tw/%E8%B7%AF%E5%BE%84%E4%BE%9D%E8%B5%96 • 工研院-自主航行船舶(無人船)發展趨勢 [趨勢新知] https://www.moea.gov.tw/mns/doit/bulletin/Bulletin.aspx?kind=4&html=1&menu_id=13553&bull_id=5500 • WIKI-多智能體系統 https://zh.wikipedia.org/zh- tw/%E5%A4%9A%E6%99%BA%E8%83%BD%E4%BD%93%E7%B3%BB%E7%BB%9F • Ropax(roll on/roll off passenger) 介绍 https://zhuanlan.zhihu.com/p/36745343 • roll-on/roll-off ship,ro/ro ship 滚上滚下船 https://baike.baidu.com/item/%E6%BB%9A%E4%B8%8A%E6%BB%9A%E4%B8%8B%E8%88%B9/22681074 • Paving the Cow Path : Why You Shouldn’t Pave the Cow Path in Your Business https://agileseeds.com/paving-cow-path/ • 【读书8】《能力陷阱》Competency Trap https://www.jianshu.com/p/f63ffe4bcc8e • ALMAC- 亞洲電子商貿高速增長創意及品牌 成功兩大關鍵 https://www.almac.hk/main/tc/s/Exclusive-Insights-Shipbob • 【CDO專欄】資訊長與數據長的功課 https://www.cio.com.tw/cdo-column-information-long-and-data-long/ /30 33

Editor's Notes

  1. 確定在海運物流行業(特別是班輪運輸領域)取得成功的關鍵組織要素和領先戰略
  2. 数字化转型(DT),指的是基于數位化战略推动组织内部和组织之间數位化所需的转型
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