Reflections on Digital Supply Chains & Platforms
AI is the darling of the moment and the corporate meme-stream. So much so, it’s forcing some CFOs into tough discussions with executive teams that are overly anxious to gamble with current assets in hopes of gaining future competitive advantages. How can companies avoid overspending in AI? AI certainly holds serious potential, even as research continues to… Continue reading How to Avoid Overspending on AI
Artificial intelligence (AI) is a fast-moving technology with a long road ahead of it. For all its surrounding hype, AI is still in its infancy. Intelligent systems have moved from simple, rule-based tasks such as spell-check into narrow machine-learning activities such as predictive maintenance and work automation, but they remain far from their ultimate destiny… Continue reading Will You Embrace AI Fast Enough?
I gave a panel presentation at the Bernstein "Motor of eCommerce" Conference last week in London. We discussed two trends that will significantly impact on the eCommerce supply chain dynamics in the near term horizon Direct-to-Consumer: Brands across many categories are accelerating their pace of selling directly to consumer (DTC). In the past several years, Brands… Continue reading Bernstein Motor of eCommerce Conference
I held a podcast this week with Supply Chain Management Review on the topic of AI in Planning. We discussed the structural complexities facing demand and supply planning functions today and the imminent role of AI and machine learning. https://www.youtube.com/watch?v=QMt6P7PTjic&t=7s Key Takeaways Businesses across all sectors are pressuring supply chains to become a competitive weapon. As… Continue reading AI in Supply Chain Planning – Podcast
One question we often get from clients is “Will Amazon disrupt my sector next”? – be it in Fresh, CPG, Beauty, Apparel, or even Industrials. Amazon recently made several strategic moves, that taken in unison, strongly suggest that Fast Fashion is square and center in its disruption cross-hairs. Can Amazon be a Zara slayer? First… Continue reading Amazon the Zara Slayer
AI progress has been uneven in the past 5 decades, with spurts of breakthrough followed by “winter-like” stagnation. Barriers like technology cost, organization capability and ineffective policies held back AI from going mainstream. Yet, this trend shifted starting in 2005 with performance breakthroughs across numerous cognitive applications. Convergent advances across three enablers: computing power, training data,… Continue reading Artificial Intelligence Coming of Age
Last week, I facilitated a cross-functional workshop with The World Economic Forum, and several tech startups (Noodle A.I., Rage Framework, Enterra) to investigate the impact of Artificial Intelligence (AI) on global production and value chain. WEF NY Workshop 1) The very definition of A.I. itself is vague - we had many different definitions of AI,… Continue reading AI + Future of Production with WEF
Advances in smart automation is increasingly disrupting both B2B and B2C supply chains. The patterns of digital supply chain disruption will likely manifest in two waves. Wave 1: Localized Disruption In the next 3-7 years, supply chain functions such as planning or warehousing or delivery will be transformed by innovative applications of smart automation. For… Continue reading Patterns of Digital Supply Chain Disruption
Advances in digital technologies such as the Internet of Everything, Deep Learning, 3D Printing and Big Data are disrupting business models and their respective supply chains. As supply chains become more digital, they increasingly benefit from platforms. A set of common digital technology powered processes, tools and approach allowing users to create value by adding… Continue reading The Rise of Digital Supply Chain Platforms
Last week's AT Kearney Digital Forum Roundtable was a great session. I had an opportunity to discuss and hear all things Digital with the leading thinkers and practitioners in the space. Much food for thought. Here are some personal highlights from the venue: - Interesting keynote from Andrew McAfee in framing Digital's impact on the Organization as the rise of… Continue reading A.T. Kearney Digital Roundtable @ R/GA
The traditional value chain boundaries separating manufacturers and retailers are starting to blur under a digital, omnichannel setting. Brands are becoming retailers and increasingly playing an active role in the consumer Research - Shop - Buy cycle that has traditionally been the domain of retailers. We see this "direct to consumer" as a pervasive and on-going trend across numerous industry sectors. Although… Continue reading Brands are Becoming Retailers
With escalating pressures to continually provide innovative offerings and demonstrating sustainable, profitable growth, it’s no surprise that product outsourcing success is becoming a strategic topic in Consumer and Retail. For example, Coca-Cola is transforming their traditional fountain machines for consumer engagement. Peapod is taking the store front to where consumers are through mobile commerce technologies. And… Continue reading Product Outsourcing Success in CPG & Retail
Many have characterized the high technology industry, in particular software, as one of rapid change where one must be ever vigilant and paranoid, constantly scanning the horizon for emerging threats from competitors and partners alike. However, this mental model of the high tech industry is too broad in its analysis. If we focused our attention… Continue reading The illusion of fast pace in the high tech industry
Michael Hu 