Driving a Digital Transformation within a Value Network
Download as PPTX, PDF4 likes4,604 views
John Caltabiano, Jabil's VP of Supply Chain, emphasizes the importance of digital transformation in supply chains to enhance innovation and competitiveness. He highlights the disparity in board engagement with digital initiatives and presents data showing that digital leaders significantly outperform their peers in revenue and profitability. Jabil's approach includes advanced analytics, improved visibility, and a focus on developing a compelling digital vision to navigate the complexities of modern supply chains.
Driving a Digital Transformation within a Value Network
- 1. John Caltabiano Jabil Vice President of Supply Chain Driving a Digital Transformation within a Value Network
- 2. COMPANIES CHANGING THE COMPETITIVE LANDSCAPE INNOVATION CREATING DISRUPTIVE ENVIRONMENTS
- 3. Directly engagedLimited engagement - delegate Digital Business decisions to the executive management team Limited engagement- delegate Digital Business decisions to the Digital Advisory Board or similar No engagement OVER HALF OF BODs SAY THAT THEIR BOARD IS DIRECTLY ENGAGED AND SPONSORS DIGITAL BUSINESS INITIATIVES Q. How would you describe the level of engagement your organization’s Board of Directors/non-executive board or supervisory board currently has with its Digital Business initiatives? n=50 BoD 4% 8% 34% 54%
- 4. Market - Digital Masters Outperform Their Peers DIGITALCAPABILITY LEADERSHIP CAPABILITY REVENUE GENERATION +6% Basket of indicators: Revenue/Employee, Fixed Asset Turnover +9% -10%- 4% DIGITALCAPABILITY LEADERSHIP CAPABILITY PROFITABILITY +26% +9%-24% -11% Basket of indicators: EBIT Margin, Net Profit Margin Note: Chart shows average performance difference for firms in each quadrant vs. average of all large public firms in the same industry for the 184 publicly-traded companies in our sample. Source: George Westerman, 2016
- 5. Digital Supply Chains Deliver Incremental Value 17% to 64% Fewer cash conversion days 40% to 110% Higher operating margins 30% Better realization of working capital reductions 10% Increase in product availability 25+% Faster Response times to changes in market demand Source: Boston Consulting Group, 2016
- 6. SILO VISIBILITY LEADS TO INEFFICIENT AND UNPRODUCTIVE WORKFORCE 6 More than 80% of network activity resides outside the four walls of an organization
- 7. JABIL’S INTELLIGENT DIGITAL SUPPLY CHAIN SOLUTIONS 7 Advanced Analytics, Visibility, and Orchestration tool set
- 8. OUR VALUE MAP and Work Flows NPI& Design Supply Chain Architecture Demand Management Materials Management Production Fulfillment & Logistics Supply Chain Management Improved Visibility Cross-Functional Collaboration Better Alignment to the Supply Chain Improved Forecast Accuracy Optimized Inventory and Reduced Costs Assurance of Supply Faster Time to Market Service Level Attainment On Time Delivery Reduced Risk Improved Supplier Partnerships and Leverage Reduced Shortages Faster Response to Supply Chain Disruptions Reduced Obsolescence Risk Mitigation Improved Efficiency and Reduction of Manual Processing Improved Supply Chain Flexibility and Agility
- 9. JABIL’S APPROACH TO DIGITAL SUPPLY CHAIN JABIL’S CONTROL TOWER CENTERS. WHERE CUSTOMERS SEE VALUE™ VISIBILITY CLOUD AND MOBILITY CROSS-FUNCTIONAL INTELLIGENCE EMBRACING COMPLEXITY Because it continues to be the foundational supply chain challenge Because supply chains are evolving into complex ecosystems Because supply chains operate in silos Because supply chains are dynamic
- 10. Procurement Intelligence / Expertise 360-degree intelligence across markets, applications, technologies and geographies driving daily market insights and strategic technology and supplier expertise for cost model and leadership benchmarking Risk Management Alerts & notifications, actionable insights, proactive prevention, supply continuity Tools Workflow design and management, network design, performance benchmarking, scenario planning, end-to-end visibility Global Intelligence Global knowledge base – markets & technology, procurement intelligence platform, product lifecycle management Operational Expertise Physical supply chain management, domain expertise, logistics optimization, professional procurement, supplier relationship management Speed, Flexibility and Scalability Enhanced responsiveness, postponement, maximum efficiency on a global footprint, NPI to legacy Visibility & Analytics (inControlTM) Providing visibility & analytics to design, control and manage your supply chain for maximum flexibility and efficiency Integrated supply chain solutions to provide – End-to-End Visibility, Intelligence & Execution SUPPLY CHAIN FOR THE DIGITAL ECONOMY JABIL'S INTELLIGENT DIGITAL SUPPLY CHAIN
- 11. Develop a Digital Vision Checklist – Familiarize yourself with new digital practices that can be an opportunity or threat Identify bottlenecks (in your company and in your customers), that have resulted from the limits of old technologies and consider how to resolve digitally Consider which of your strategic assets will remain valuable in the digital era Craft a compelling and transformative “digital vision” Make your digital vision specific enough to give employees clear direction, while giving them the flexibility to build on it Constantly look to extend your vision using capabilities you have created CALL TO ACTION! Source: Leading Digital – Turning Technology into Business Transformation 2014
- 12. SUMMARY The Digital Era is upon us – don’t be left behind Jabil’s Intelligent Digital Supply Chain Solution Digital Landscape and next steps