Insights from decision trees and other basic analytic techniques show that you don’t always need complex analytics to solve business problems and add value. This was the message from Dr. James (Jim) Foster, Director of Research and Process Development, Archer Daniels Midland (ADM), at last month’s inaugural IE Group ‘Manufacturing Analytics Summit’ in Chicago, which I had the great privilege to chair for both days.
One thing I do know is that like everything else, management has gotten more complex. First there’s the product technology, and then there’s the infrastructure technology. What we make has gotten more complex (computer controlled, fuel-injected engines, anyone, or microwave ovens?) and the information technology we use to keep track of our operations has gotten more complex as well. And now with more remote and telecommuting employees, basic supervision hasn’t gotten any easier either.
Why is it so hard to achieve lasting, significant change in your corporate culture? Because your organization is like a living organism, an organism that wants to maintain homeostasis against a changing environment.
Analytics gives us not just the ability but the imperative to separate our planning activities into two distinct segments – detailed planning that leads to budgets in support of execution, and high-level, analytic-enabled business/scenario planning.
But one thing that is certain is that no matter which scenario comes to dominate the retail space, change is on the way, and you are going to have to get closer to your customer. You are going to have to know more about them, their changing buying and channel habits, and the type of shopping experience they prefer. Customer analytics will come to drive your business strategy in recognition of the fact that it has always been the consumer that ultimately decides whether that business strategy is a success or a failure.
It is of course a cliché to talk about change and the increasing pace of change and how this or that role or function is changing, but the combination of globalization and the internet has in fact dramatically affected the pace of change in the consumer market over the past decade. It’s no cliché to point out that replenishment-only-based supply chain strategies are a thing of the past.
For the B2C business of the future, catering broadly to the middle class consumer, there will be nowhere to hide. Such a business will have to compete on all three Value Disciplines simultaneously: Customer intimacy, Low-cost producer, and Innovation. Or, perhaps not so much the single “business”, but the entire supply chain / value chain…
Product as a service platform. Design for service, not just for serviceability, not just for manufacturing and maintenance. It’s the new trend in manufacturing that neatly ties together the product lifecycle with innovation. What is your response to the commodification of your product, to its inevitable journey over the top of the product lifecycle and…
Constructing or selecting a team is not the same as team building. The latter focuses on team cohesion and cooperation, whereas the former, by definition, precedes this exercise in camaraderie.
An effective team requires a balance of skills and team member styles. The problem with most departmental teams, and even executive teams, is that certain team member styles tend to be over-represented in particular functions. You end up with nearly everyone in the team exhibiting one particular style and therefore competing with each other for that one team member role, while other styles and roles go begging.
A model I was introduced to many years ago delineates eight distinct team member styles:
The promise of digital manufacturing is drawing closer to fulfillment as many of its separate components simultaneously evolve and mature. It’s not just about CAD/CAM or PLM any longer but now includes innovations in 3D printing, robotics, M2M sensor data and 3D simulation.