As markets evolve, organisations need to find increasingly dynamic and flexible ways of configuring their supply chain networks as well as driving even further efficiencies from existing network structures. In most cases, the easily identified opportunities have long since been addressed. Organisatons now need to look broader than their own sphere of influence and include their supply chain partners in addressing the challenges of driving continuous improvement within an environment which is becoming increasingly complex and difficult to measure.
To be effective, decision makers need to have access to information spanning the entire value chain, which in turn needs to be sourced from multiple systems operating within different organisations. There is no doubt that technology is making it a lot easier for organisations to transact. e-Procurement and e-Logistics systems largely automate key links with suppliers and distributors.
Similarly, technology is also making it a lot easier for organisations to share information for analytical purposes. ERP systems, together with the evolution of data exchange standards, are becoming far more "open" and easier to share information with. The pervasive nature of connectivity is making it possible to access networks anywhere, anytime. Cheaper and more powerful database systems and hardware (storage and processing capacity) make it even easier to create and manage large repositories of information.
Tagging and tracking technologies are making the exercise of collecting detailed activity information much easier and more affordable.
So with all these advancements in technology, why do so many companies find the objectives of effective business intelligence so illusive? Here are some thoughts on the other things which need to be addressed so as to clear the path for collaborative business intelligence to work:
* People related issues - Analytics, diagnostics and process performance measurement do not come naturally to many. It is critical that when introducing any form of business intelligence, especially across organisational boundaries, the people related issues are dealt with proactively.
* How good is your BI - many organisations haven't managed to successfully address their own BI requirements. At least the more dominant supply chain partner needs to have a clear appreciation for the value to be had from effective BI
* Clear process leads to clear measurement - To ensure everyone is on the same page when assessing and interpreting measurements, it is key to have clearly defined and commonly understood processes across the entire supply chain. This will support a common understanding of measures and how they create visibility of process performance.
* Master data issues - Any effort to share information will be met with a need to clean and marry master data such as SKU's, facilities, customers, fleet, routs, etc. Well managed master data makes the process much easier.
* Not ready for the leap of faith - Often partnerships experience issues relating to trust and a fear of what greater visibility could yield. If relationships are not mature enough to expose key cost and process information, resistance to collaborative BI will be significant
* Immature technology - Not all organisations are equally mature in their adoption and use of technologies. The more mature partner may need to support those which are less mature or risk being constrained.
Organisations need to actively work on getting their own house in order and then move to driving collaborative business intelligence up and down the supply chain. Supply chain partners need to commit to providing information for analysis, which may involve establishing electronic mechanisms for souring data. There is little doubt that collaborative business intelligence is essential to driving more far reaching and complex performance improvement programs and a sure sign that supply chain collaboration is reaching effective levels of maturity.
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