the decade of the digital supply chain transformation – it is upon us!!

If the vision of Industry 4.0 is to be realized, most enterprise processes must become more digitized. A critical element will be the evolution of traditional supply chains toward a connected, smart, and highly efficient supply chain ecosystem.” – https://www.strategyand.pwc.com/reports/industry4.0

This is one of a number of authors, strategists, and supply chain / procurement vanguard thinkers foretelling what is upon us – the digital supply chain transformation!  Having recently joined a new co, 6Fusion, as head of Supply Chain Transformation & Strategy, I can tell you from a practitioner’s perspective that this is real and imminent.  My most recent experiences led me to this conclusion as I oversaw supply chain transformation itself.  The key was the asset record!!

I am going to sound like a broken record, but underneath all the strategy and planning and technology sits the asset record.  It is what we buy, sell, and manage!!

“Once built — and the components are starting to be developed today — the digital supply “network” will offer a new degree of resiliency and responsiveness enabling companies that get there first to beat the competition in the effort to provide customers with the most efficient and transparent service delivery.”

As Stefan & Philipp opine in their article, once this is built and commerce & supply chains for business are done on a platform, the efficiency gains are going to reshape industries!!

I am going to be making an effort to write more about this from our first hand perspectives as we are driving this now in two major vertical markets – we are at present connecting to the various asset dbs and seeking to create the quintessential asset record to be stored and accessed on our platform – it is so exciting to be in the midst of it as the opportunities are quite literally orders of magnitude larger than the consumer economy itself!! Stay tuned….:-)

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Tesla is great to watch disrupt!!

https://w.soundcloud.com/player/?url=https://api.soundcloud.com/tracks/329047368

Automobile manufacturers shipped 88 million cars in 2016. Tesla shipped 76,000. Yet Wall Street values Tesla higher than any other U.S. car manufacturer. What explains this more than 1,000 to 1 discrepancy in valuation? The future. — Too many people compare Tesla to what already exists and that’s a mistake. Tesla is not another car […]

via Tesla Lost $700 Million Last Year, So Why Is Tesla’s Valuation $60 Billion? — Steve Blank

Gigaom

eBay is busy building some of the world’s most-efficient data centers, and its efforts aren’t just show. The company has figured out a way to tie its computing infrastructure to specific business concerns and plans to continuously tweak its operations to meet top-level mandates. On Tuesday, eBay released a whitepaper describing how it accomplished this and laying out a framework for companies that want to do the same.

Dean Nelson, eBay’s vice president of Global Foundation Services, says the effort, called the Digital Service Efficiency report, “is the miles per gallon measure for technical infrastructure for eBay.” Essentially, the company has boiled its business down to a single currency — transactions (specifically URL requests) associated with users’ buying and selling on the site — and created a slew of metrics that measure how efficiently it delivers those transactions in terms of revenue, performance, cost and carbon footprint.

The project has…

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IRP – Infrastructure Resource Planning: a series in the making…

While not earth shattering, I suspect that many people who are in the business of managing internet infrastructure have long sought to holistically manage this infrastructure and searched for a set of common best practices.  There is ITIL & ITSM which are really GREAT models to start from, yet seem a bit incomplete as per managing, specifically, interne infrastructure – built on the three pillars of Datacenters, Server (including storage), and Networks – as a “business”.  Then there is traditional ERP best practices, yet again, ERP is not exactly a perfect fit either as it is too broad – so why pound the square peg thru the round hole then?  Why not take the best of all of those three and call it Infrastructure Resource Planning (IRP)?

My own evolution has brought me to where I am in that very function – managing the business aspects of enterprise internet infrastructure – and as such, have begun to plan out the entire lifecycle of that infrastructure from procurement thru end of life/disposition and everything in between…including the very notion of shared services charge back models, which is why IRP is so analogous to ERP but not exactly the same thing.

ERP, as per wikipedia, is defined as the following:

Enterprise resource planning (ERP) systems integrate internal and external management information across an entire organization—embracing finance/accountingmanufacturing, sales and service,customer relationship management, etc. ERP systems automate this activity with an integrated software application. The purpose of ERP is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.” – overall, this sounds a lot like evolving infrastructure management best practices inside enterprises, yet the twist is that while ERP is generalized to suit all businesses, IRP would emphasize the underlying interent infrastructure that a business runs upon today and manage it accordingly.

ITIL is a GREAT framework to follow for infrastructure mgmt that is predicated upon 30yrs of evolution and primarily focused on IT services, which are traditionally centered around the “desktop”.  “ITIL advocates that IT services must be aligned to the needs of the business and underpin the core business processes. It provides guidance to organizations on how to use IT as a tool to facilitate business change, transformation and growth.

The ITIL best practices are currently detailed within five core publications which provide a systematic and professional approach to the management of IT services, enabling organizations to deliver appropriate services and continually ensure they are meeting business goals and delivering benefits.”

However, ITIL doesn’t quite cover the infrastructure optimization of core datacenters, servers, and switches/routers specifically enough, as my own experience has yielded that a key component of IRP that differentiates itself from ITIL is that engineering research and development are requirements to optimize, holistically, the three pillars of internet infrastructure: Datacenters, Servers (including storage), and Networks.

Then, finally, there is ITSM.  ITSM is itself a process based framework much like ITIL, however, ITSM is not attributed to any one person or organization (ITIL is trademarked by the UK Cabinet office).  “ITSM is generally concerned with the “back office” or operational concerns of information technology management (sometimes known as operations architecture), and not with technology development.”  This notion of a management framework, again, is a GREAT start, however, the fact that it is not interested in tech development is where it falls short and IRP picks it up.

The idea of infrastructure R&D is the KEY differentiator of IRP form ITIL, ITSM, and ERP.  IRP is very much a large enterprise concept that does not disassociate itself from advancing the underlying technology; it embraces it as a way in which to drive ever more contribution to businesses’ bottom lines.

IRP is relevant today as businesses have scaled and evolved such that we are near a point where applications can be separated from direct relationships with internet infrastructure.  From the moment virtualization commenced, we have been trying to allow apps to live anywhere, anytime on a cohesively managed infrastructure.  When that infrastructure can be managed as a system onto itself is when IRP becomes relevant.

IRP is not a radical movement nor is it an earth shattering concept. It is a concept however, that is begging to be recognized as we further advance the separation of apps being directly tied to the underlying infrastructure. Then we can plan, manage, and tune that infrastructure as a system which is why technology advancement is a key component of IRP and where ITIL & ITSM fall just a bit short.  Thus, IRP as a concept is timely and needed to truly get a hold of your internet infrastructure from supply chain to management and monitoring to refresh cycles to research and development all thru the lens of optimizing the underlying business value proposition.

PS – stay tuned as there is an emerging metric which will be able to tie IRP all together – it will be made public in the next month.