The value chain of the futureFriday December 22nd, 2017 Louis Hendriks, Managing Director
The value chain of the future.
(Oh, don’t expect nothing new. Wash, rinse & repeat.)(Or contemplate what this really means for you...)
The journey towards a truly enabled extended global value network...
(Excuse my rant. It happens sometime.)
As industries are more and more finding that their business model is a truly global one, the need for effective and efficient global value networks is increasing dramatically.
Though many ‘vertical’ professionals in the field may not realize it, it’s actually the underlaying value chain that is key to their success.
Not the best product, not the ideal customer, not that one location at that particular point in time. No, it’s all of the above combined.
It's a complex system, ecosystem, in which you change something on one side, that has unintended consequences on another side.
Driving success in any value chain or value network is driven by the ability of the organization to collaborate equally well internally as externally.
Hardly any organization makes a product on their own these days. Collaboration, from research or engineering through development and into day to day operations, is key.
It takes small steps to successfully travel a long journey. The journey itself may be the destination. As new Inventions, technologies and capabilities constantly change the course of the journey. As these evolutionary changes start contributing in enabling the value network, the impossible becomes possible.
We will work differently in the near future.
We will organize differently in the near future.
That should not stop you from improving today.
It’s a fact. Let's go with it.
While there are dramatic changes through technology innovation, it’s still evolution, not revolution.
We are simply building a better value network every day. It’s like your factory is constantly being remodeled while products are being produced. Without any issue at all.
Because the adjustments happen in bits & bytes. Not always in structural changes.
(Tesla, with model 3 may be a good example. That car has a lot of hardware technologies build in. It just a matter of time before the software is smart enough to use it in the best possible way. It will come to you by regular software upgrades. Same way your global value network or platform will continuously be updated. However your global value network is far more complex than a Model 3. Bits and pieces of it are continuously being updated, but magically still work together as a coherent ecosystem. That, my friends, is why we work on standards. Through industry standards bodies. Logical data format standards, and logical data exchange standards. Apart from the technical ones. (I can write a whole chapter on that if I wanted to. I just don’t want to. To the IT professionals that work in this domain, go back to IT school if you don’t get that one.))
Many people work together to bring that best product or service to a customer. The figuratively customer constantly feeds back its wishes, learnings, desires as requirements into the value chain. This constantly evolves too. That’s how we as a society make better products. (By the way, it does not matter whether the product is tangible or not tangible.)
Ultimately we are building or contributing to the global information highway for an industry. (And yes, it will overlap with other industries global information highway.
(And yes, it is the base for what is referred to as digital thread and digital twin.)
More then 20 yrs ago we made the business specific information alleyway for global package express company. This alleyway of that day visualized, in bits and bytes, the package or shipment that went through their global network. The digital twin, and thread of those days.
Nothing changes, except scale, reach and technology. Those three together drive a revolution for enabling global collaboration. And hence for industry external value chains/networks.
The people, data, processes and technologies however change evolutionary.
No need to wait for a Big Bang. Go to work today. Start with the data in related to your products, and how these reach your customers. That’s all.
Don’t wait for the next IT hype comes to your door. Ever since Steve Jobs put the iPhone on the market, with the apps and the Appstore, the World has changed. This is already a decade ago.
Everything else is just noise. Evolutionary noise, often mistaken for revolution. Data is leading, systems are trailing.
Enable your people. Those are you valuable knowledge workers.
Keep working on making your data better. Keep working on your trusted data flows.
Keep working on getting better intel from your data. Define algorithms. Use the technologies when IT hands them over to you. Don’t expect miracles. Cause the miracle comes from how you have treated your data in your business, in Your global extended value chain.
With GVW, I design, architect, build, implement, and more importantly operate elements of extended global value chains.
Data is the oil of any global extended value chain. Vision of such future value chains, is essential to steer your company towards success, instead towards colossal existential risk.
Reach out to me when you want to start your journey, or want the redirect the journey in which you are trying to find your way.
Through GVW, (Global Value Web :-), I help you every step of the way.