Digital Transformation

Digital Transformation, Ecosystems and Supply Chain

By | digital transformation, Traceability | No Comments

A little over a month ago, our CEO Tim Horlick, was invited by SAP to participate in the #SAPSpotlight tour held in Palo Alto. The topic was Digital Transformation, a term that originates from the ecosystem of “StartUps”. SAP chose Palo Alto, California, the heart of Silicon Valley, which consists of approximately 20,000 startups and 2.2 million employees. This is a place from which the impulse to transform reaches all corners of the planet.This may be the reason why the latest buzzword(s) of the moment are “Digital Transformation”.

Digital Transformation

If any of you have travelled the AVE (High Speed Train Network in Spain) lately, you would have most certainly seen an advertising campaign on this topic. It has enrolled the well-known professor and economist, Mr D Jose Maria Gay of Liébana. To quote one of his sentences in the advertising campaign as a call to action: “Do not to wait until bankruptcy to address “Digital Transformation”.

What exactly is Digital Transformation? There are many answers and most point towards the need to educate people about combining ideas and IT tools to achieve their respective goals.

Digital Transformation

However, what is transformed? Firstly, the organization. Mrs Dina Medland diagnosed with clarity, in her article for Forbes magazine, that Digital Transformation needs a more agile, horizontal and collaborative model. The ideas of Dina Medland, SAP and Professor Gay of Liébana, align with that of Professor D Rolf Strom-Olsen, who clearly states that the current markets and economic models are being re-invented and are breaking the limitations imposed by traditional operating models and organizations.Mr Strom-Olsen’s speech in TEDx, illustrates the need to transform how they operate and govern the organizations. The aim is to reverse the cycle that started at the end of the twentieth century which was to ensure that companies “live longer”, grow more and provide greater prosperity to society in general.

I will choose one of the spaces of activity more relevant to the world trade; the ecosystem of the supply chain, to show the benefits that Digital Transformation provides.

The Supply Chain suffers from a chronic lack of cooperation among their participants. This situation generates immense redundancy (excess of assets), creates countless silos of service (additional costs and delays), causes insecurity and the increase of policies and facilitates the existence of vulnerabilities (thefts in the agricultural sector, for example).

In the European Union alone, the theft of goods cause losses of approximately 8 billion euros per year.

The lack of cooperation has multiple reasons:

  • Lack of neutrality in the exchange
  • Low operational agility
  • Organizational locks or administrative barriers etc.

To combat this scenario, it is necessary that participants:

  • Adopt strategies aimed at Digital Transformation
  • Understand the mechanisms for creating agile organizations and
  • Promote behaviors that pursue cooperation against the “occult”.

At Sensify, we have dedicated ourselves to listen and perhaps, by being pioneers in our field, to combine ideas and tools to provide a platform on which our users and customers can work together.

We have focused on the supply chain and the impact it has on the life and economy of the people. The key is transparency and sustainability. The supply chain is a source of immense information.The use of sensors and devices by Internet of Things, combined with BigData analysis and global communication (GSM, M2M, satellite) provides the much needed transparency required to eliminate mistrust, the real barrier to cooperation.

 

Juan Jose Vázquez

a founder member of the Club of Digital Economy