Defining the Roadmap for FY2022

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Defining the Roadmap for FY2022

by Dr Christopher Holmes – Managing Director, IDC Insights Asia Pacific

“By the end of 2022, half of all manufacturing supply chains will see the benefits of supply chain resiliency, resulting in a 10% reduction in disruption impact.”

Goodbye 2021, hello 2022. We say goodbye to a year of turbulence, with the hope that things will be different in 2022. However, a nagging feeling lingers that we will see the challenges of 2021 continue. By this, we mean the continuing external disruptions that affect our businesses. The constant changes of a world affected by a global virus will continue, impacting supply, demand, and operations through health, lifestyle and regulation. So the question we need to answer is how do we plan for this uncertainty? Planning for uncertainty is hard – how can we prepare for things we don’t expect? The recommendation is that we plan to operate in uncertainty. The focus needs to be on building processes that can react quickly and are robust enough to cope with change. More and more organizations are taking this approach and are focused on building out roadmaps that detail the evolution of their internal business process, taking advantage of changes in technology and adding it to their existing environment in a way that allows investments to be scaled across multiple functions or uses.

IDC research has shown that the need for a roadmap is critical to ongoing business and technology alignment success. Without an overarching plan, achieving meaningful results at scale will be due to luck rather than management. In addition, creating a roadmap requires an architecture upon which the different facets of the roadmap can be linked, and a business case can be built that will demonstrate scalability of technology investments rather then isolated projects.

It is critical to ensure that the process evolution can be achieved when creating the roadmap. We have seen many roadmaps and associated transformation exercises fail. By failure, we mean that the processes are not implemented at scale, and therefore have limited impact on overall business processes or outputs. Key to this is that when deciding on which proof of concepts to initiate, they need to have the required infrastructure to be rolled out across the business. There is little to be gained from initiating a project that shows success when it requires a foundational change in technology that will take years and considerable funding to implement.

So what does the supply chain roadmap look like for 2022? We see organizations moving forward with a number of process / technology initiatives. In summary they can be summed up as “data gathering” in horizon 1, “acting on the data” horizon 2, and “integration” for Horizon 3, as indicated in Figure 1.

Creating the roadmap requires senior leadership support, it needs to be driven from the top, with clear roles and responsibilities delegated , and regular reviews to ensure progress is being made. The latest IDC survey had C-Suite leaders 43% of organizations enthusiastic about enterprise intelligence, requiring that the data gathering be in place [IDC FERS Survey December 2021]. However, another survey we conducted showed that 40% of Asia/Pacific manufacturers with more than 250 employees are still using spreadsheets as the prime way of managing supply chains activities [IDC 2021 Asia/Pacific Manufacturing Insights Survey]. The focus on changing the way we run our businesses requires that we enable the ability to know what is going on easily and simply. Access to data to support decision making needs to be at our fingertips, and not require a significant exercise taking days to report. This is fundamental, as only when we have the data in place can we move forward and start to realize the benefits of moving to a digital business. Table 1 shows the key use cases we see as foundational as we seek to build resiliency seeking to enable visibility into all areas of our supply chain which gives us the foundation to innovate.

As we look at Horizon2 (Table2) the move to “action,” this is where we bring the data into decision support systems, we equip employees across the organization with the means to access, interrogate and act on the data. This moves into this idea of resilience, in that whilst we cannot predict what will happen, we can respond immediately. Coupled to this is the move to automated warehousing, which has seen tremendous growth across the region in the last 24 months, as costs of implementation reduce and automating makes sense as we address challenges of workforce management, require worker safety, deal with shortages, and attend to the need for improved accuracy in picking.

Horizon 3 is where we can start talking about the “digital supply chain” – the idea of integrating all the different processes and players in the supply chain beyond the enterprise. This is where we will see the implementation of closed loop supply chains, digital supply chain twins, and also start to move to a fully digital process with trust across the supply chain enabled by digital technologies such as blockchain.

Every organization is different. Everybody’s roadmap is different. Hence, giving guidance is challenging. However, this approach to data, action, and integration is a good starting point to thinking about how you are going to plan for 2022 and beyond.[vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”]About the Author” heading_tag=”h5″ alignment=”left” margin_design_tab_text=””]

Dr Christopher Holmes

 Chris Holmes is Managing Director for IDC Insights Asia Pacific responsible for leading the Retail, Energy, Manufacturing, Health, Government, and Telecom- munications groups. He is responsible for setting the direction of the research and managing the delivery teams. His research focuses on industry transformation, the application of new technologies to enhance business processes, and cross-industry learning.[vc_text_separator title=”MORE FROM THIS EDITION” border=”no”][vc_single_image image=”17027″ img_size=”medium” qode_css_animation=””][ult_layout layout_style=”4″ list_style=”6″ s_image=”0″ s_excerpt=”0″ s_categories=”0″ s_metas_o=”0″ s_metas_t=”0″ quick_view=”0″ taxonomies=”post_tag” price_font_weight=”” atcb_font_weight=”” title_font_weight=”normal” title_font_style=”normal” title_text_transform=”capitalize” metas_font_weight=”” excerpt_font_weight=”” filter_font_weight=”” tab_font_weight=”” pagination_font_weight=”” title_font=”Lato” title_font_size=”12pt” i_taxonomies=”319″ d_i_filter=”319″]