Supply Chain Management & Sustainability PDF

Supply Chain Management & Sustainability Introduction  Learning Objectives – You recognize the practical relevance of the topic "Supply Chain Management" for prospective business economists and can name the central challenges. – You can define the terms “Supply Chai...

Supply Chain Management & Sustainability Introduction  Learning Objectives – You recognize the practical relevance of the topic "Supply Chain Management" for prospective business economists and can name the central challenges. – You can define the terms “Supply Chain” and “Supply Chain Management” and explain these definitions. – Using selected examples, you understand how new technologies and digital networking are changing the value-adding processes of the economy and the supply chain 2024 Institute for Information Systems www.fhnw.ch/business 4  Introduction 1. Introduction 2. Definitions of the “Supply Chain” 3. Drivers of Change in Supply Chain Strategies 4. Reference System of the Business 5. Characteristics of Supply Chain Strategies 6. Logistics Management, Supply Chain Management and Business Models 7. Definition “Digital Business” 8. Areas of Activity in the Model of Networked Value Creation 2024 Institute for Information Systems www.fhnw.ch/business 5  Practical Relevance - Why do I need to know this? – Networking and sustainability are the critical success factors of the 21st century. – Companies expect the new generation of business economists to bring along the understanding and basic tools required to generate customer-focused, networked and sustainable added value. – You must, therefore, recognize how these success factors affect global competition and can be successfully utilized by companies. – You must understand… – how digital networking changes markets (Digital Business), – how physical and digital value creation come together (Supply Chain Management) – where innovation potential arises in these developments - with regard to economy, ecology and society (Sustainability). 2024 Institute for Information Systems www.fhnw.ch/business 6  Practical Relevance – Salary Benchmark from Michael Page (2023) in CHF Consumer Goods / Food / Retail Medical equipment / pharma Manufacturing / watches Min. Max. Min. Max. Min. Max. Procurement Procurement Coordinator 70’000 95’000 80’000 100’000 65’000 85’000 Buyer 85’000 110’000 90’000 120’000 85’000 105’000 Strategic Buyer 100’000 125’000 110’000 130’000 95’000 115’000 Category Manager 140’000 180’000 115’000 185’000 130’000 175’000 Head of Procurement 130’000 160’000 140’000 180’000 115’000 150’000 Director Procurement 160’000 240’000+ 170’000 250’000+ 150’000 220’000 VP Procurement 220’000 290’000+ 250’000 320’000+ 200’000 280’000+ Supply Chain Master Data Specialist 75’000 95’000 80’000 110’000 70’000 95’000 Logistics Coordinator 75’000 95’000 80’000 100’000 75’000 95’000 Production planner 85’000 105’000 85’000 110’000 75’000 95’000 Supply/Demand Planner 85’000 120’000 90’000 130’000 85’000 115’000 Head of Supply Chain 135’000 170’000 140’000 180’000 115’000 150’000 Director Supply Chain 170’000 240’000+ 180’000 250’000+ 160’000 220’000+ VP Supply Chain 230’000 300’000+ 260’000 300’000+ 190’000 250’000+ Customer Service Inside Sales Staff 65’000 95’000 75’000 100’000 65’000 90’000 Supervisor Customer Service 95’000 125’000 110’000 130’000 90’000 110’000 Head of Customer Service 130’000 160’000+ 135’000 170’000+ 115’000 150’000+ VP Customer Service 160’000 180’000+ 170’000 220’000+ 150’000 170’000+ Logistics Technical Staff Logistics 60’000 70’000 55’000 85’000 60’000 70’000 Import / Export Specialist 70’000 90’000 80’000 100’000 70’000 90’000 Supervisor Logistics 90’000 110’000 95’000 120’000 80’000 100’000 Head of Logistics 120’000 160’000+ 120’000 170’000+ 110’000 140’000+ VP Logistics 180’000 250’000+ 180’000 250’000+ 160’000 220’000+ 2024 Institute for Information Systems www.fhnw.ch/business 7  Core definitions and terms #1 - «Supply Chain» Supply Chain: “In summary this suggests that the supply chain covers all processes throughout the product lifecycle, including the physical, informational, financial and knowledge-based processes for moving products and services (from suppliers through to end users)”. (Poluha, 2016, S. 14) A supply chain thus includes all components that flow through the supply chain. – Goods and services, mainly to customers – Payments, mainly to suppliers Goods & Services – Data and information in both directions Suppliers Payments Customers Data & Information 2024 Institute for Information Systems www.fhnw.ch/business 8  Core definitions and terms #2 - «Supply Chain Management» (SCM) In order to increase the efficiency of a supply chain, and thus added value, the entire flow of materials, services, information and financial resources must be monitored, measured and steered → Supply Chain Management «SCM […] represents an integrative functional area which is primarily responsible for the connection of the main business functions and processes within an organization, as well as those of other businesses that are involved in the supply chain, in order to form a concept in the shape of a consistent and high-performing business model». (Poluha, 2016, S. 35) Balancing supply and demand! Central question: – While considering customer requirements, cost and the supplier network, how can a company create a balance between the supply side (stock levels, manufacturing and transport capacities, etc.) and the demand side? Networked technologies change conditions and require increasingly faster action. 2024 Institute for Information Systems www.fhnw.ch/business 9  Digitalization: Yesterday, Today and Tomorrow (Dornberger, Inglese & Korkut 2018) 2024 Institute for Information Systems www.fhnw.ch/business 10  Digitalization within Supply Chain Management #1 Example «3-D Printing» e.g. medical, printed titanium implants e.g. mechanical engineering, printed castings https://medizin-und-technik.industrie.de/3d-druck/einzelstuecke-und- serienimplantate-kommen-aus-dem-drucker/ https://www.voxeljet.com/de/materialien/guss/ 2024 Institute for Information Systems www.fhnw.ch/business 11  Digitalization within Supply Chain Management #2 Example «Robotics Automation» e.g. in warehousing at Antalis e.g. in the care of elderly people https://www.swisslog.com/de-ch/logistics-automation/case-studies-and-resources/case- studies/2016/07/antalis https://www.srf.ch/kultur/wissen/roboter-wie-wir/wenn-uns-der-roboter-pflegt 2024 Institute for Information Systems www.fhnw.ch/business 12  Digitalization within Supply Chain Management #3 Example «Industry 4.0» e.g. fully-networked railway infrastructure e.g. completely flexible and networked belonging to SBB, BLS, RHB, etc. manufacturing at FESTO https://www.festo.com/cms/de-ch_ch/56644.htm https://smartrail40.ch/ 2024 Institute for Information Systems www.fhnw.ch/business 13  Digitalization within Supply Chain Management #4 Example «Working and Fighting Machines» e.g. transport drones employed by the Swiss Post e.g. agricultural drones for soil analysis https://www.post.ch/en/about-us/company/innovation/swiss-post-s-innovations-for-you/drones https://www.computerwoche.de/a/was-sie-ueber-landwirtschaft-4-0-wissen-muessen,3544215 2024 Institute for Information Systems www.fhnw.ch/business 14  Discussion Do you know further examples where networked digital technologies could sustainably change value creation and thus the supply chain of companies in the future? What happened during the pandemic? – Please write down your examples along with the corresponding rationale (time: 2 minutes). – Discuss your answer with your fellow students (time: 2 minutes). – Afterwards, you will be asked to provide your answers in plenary, and we will discuss them together (time: 5 minutes). 2024 Institute for Information Systems www.fhnw.ch/business 15 Supply Chain Management & Sustainability Definitions of the “Supply Chain”  Learning Objectives – You know the typical elements of the supply chain and can describe them. – You know further definitions of “Supply Chain” according to different perspectives and can classify them. 2024 Institute for Information Systems www.fhnw.ch/business 19  Typical Elements of the Supply Chain (Poluha, 2016) 2024 Institute for Information Systems www.fhnw.ch/business 20  Discussion You go shopping in a supermarket (coop.ch, Migros, Lidl, etc.). With which different providers, and thus their supply chains, do you come into contact with during your shopping? Do you, as a customer, play a role in these supply chains? – Please write down your answers and corresponding rationale (time: 2 minutes). – Discuss your answers with your fellow students (time: 2 minutes). – Afterwards, you’ll be asked to present your answers in plenary, and we’ll discuss them together (time: 5 minutes). 2024 Institute for Information Systems www.fhnw.ch/business 21  Definitions of the supply chain according to different approaches #1 Supplier-centric approach: Supply chain as a network of suppliers producing goods. Customer-centric approach: a supply chain consists of all the levels required (direct or indirect) to fulfill a customer request. Combining these approaches leads to more comprehensive approach: Systematic coordination between all required parties. – to balance supply and demand – to supply the market with products and services – Operational goal: lowest possible costs and highest possible speed – Ultimate goal: Satisfying customer needs 2024 Institute for Information Systems www.fhnw.ch/business 22  Definitions of the supply chain according to different approaches #2 Demand-side approach: Demand chain focused on the market demand towards suppliers, the supply chain is steered by demand pull from the customer. Translates a customer goal into instructions for the suppliers. Decision-making process in four steps: 1. Definition of the purpose of the demand chain 2. Planning, e.g. in the form of a category plan 3. Control of consumption and requirements (e.g. inventory management) 4. Purchasing transactions, for example a call-off from a frame agreement Company 1 Supplier Demand 2 Demand Customer 3 4 2024 Institute for Information Systems www.fhnw.ch/business 23  Definitions of the supply chain according to different approaches #3 Organization-related consideration of the supply chain: Supply chain as a series of organizational units both within a company as well as in other companies (intra- and interorganizational) that produce and deliver goods for and provide services to customers. (Poluha, 2016) 2024 Institute for Information Systems www.fhnw.ch/business 24  Definitions of the supply chain according to different approaches #4 Single-stage supply chain: Reflects only direct relationships between suppliers and customers. Multi-stage supply chain: In extreme cases, it maps all stages, from raw materials through to the disposal or recycling of end-of-life products: – complexity increases disproportionately with an increasing number of stages – companies have neither the means nor the resources to monitor all stages. – companies usually limit themselves to one or two levels suppliers supplies company customers customers level 2 level 1 level 1 level 2 2024 Institute for Information Systems www.fhnw.ch/business 25  Definitions of the supply chain according to different approaches #5 Market-driven supply chain: Market decisions determine the nature of the supply chain. Within a supply chain with many supply chain partners, a large number of decisions are made: – Decisions on investments, strategies for coordination and cooperation with partners, customer service, profit maximization strategies, etc. – Many market decisions increase complexity and dynamics. – Market dynamics increase uncertainty about the impact of decisions (numerous variables have to be taken into account). 2024 Institute for Information Systems www.fhnw.ch/business 26  Definitions of the supply chain according to different approaches #6 Functional Supply Chain: Analysis according to the main activity of the operational functional areas – Purchasing activities: raw materials, components, resources and services – Manufacturing activities: creation of products and services, repair and maintenance – Movement activities: transport of material and persons – Warehousing activities: raw materials, intermediates ("Work in Process", WIP), finished products – Sales activities: market-oriented activities such as marketing and distribution Function Product A Service B Product C Purchasing activities Manufacturing activities Movement activities Warehouse activities Sales activities 2024 Institute for Information Systems www.fhnw.ch/business 27 Supply Chain Management & Sustainability Drivers of Change in Supply Chain Strategies  Learning Objectives – You know the current drivers of change in supply chains and can list them. – You know the model value co-creation and can explain how this differs from traditional value creation. 2024 Institute for Information Systems www.fhnw.ch/business 31  Drivers of Change for Supply Chain Strategies in the digital age Material, payment and information flows along the supply chain used to be considered linear and coupled. The use of networked digital technologies such as the Internet has sustainably changed this: – acceleration of information flows, – decoupling of information flows from material and payment flows, – development of traditional supply chains into networked, dynamic supply chains, – dynamic integration (or exclusion) of partners according to e.g. customer preferences, technological advantages or product life cycle  Development of new supply chain strategies with focus on integration of customers, outsourcing of business functions, cooperation with customers and suppliers. 2024 Institute for Information Systems www.fhnw.ch/business 32  Interaction between supply chain strategy, supply chain processes and information technology Information technology enables integrated supply chain processes and new supply chain strategies. Top-down: 1. Required processes are derived from the strategy and implemented. 2. Information systems are designed according to the requirements of the processes. 1 4 Bottom-up: 3. Networked information systems enable 2 3 innovative integrated processes. 4. New integrated processes lead to innovative networked business models. (Poluha, 2016) 2024 Institute for Information Systems www.fhnw.ch/business 33  Focus on value creation in dynamic supply chains Dynamic supply chains are a network of organizations that: – are linked together in both forward and backward directions – create value within different processes and activities Dynamic supply chains or a network of organizations must place value creation in the center. – Value creation must be seen both in internal and cross-company terms. – Values are ultimately reflected in the products and services delivered to customers. 2024 Institute for Information Systems www.fhnw.ch/business 34  Strategic model of “value co-creation”: it takes two to tango! Dienst service buying company (vereinfacht von Ehrenthal et al., 2024, p 297.) offering company Ri Ra R1 RA Resource Resource integration Value co- integration creation Rb R2 RB (application Rii through (application of knowledge service exchange of knowledge and skills)...... and skills)...... internal external external internal resources resources resources resources service 2024 Institute for Information Systems www.fhnw.ch/business 35  Traditional Value Creation (Goods-Dominant) vs. Value Co-Creation (Service-Dominant) #1 Goods-Dominant Logic (GDL) Service-Dominant Logic (SDL) – Value is generated in manufacturing. – Providers generate value offers with products. – Value is provided to customers in transactions – Value is provided to customers in use (Value-in-Use). (Value-in-Exchange). – Value is continuously generated by customers – Value is consumed by customers (Consumption). (Service). – Goal: Standardize Products, Services and Processes in – Goal: Establish processes to integrate the resources order to reduce cost. from providers and customers to create value. 2024 Institute for Information Systems www.fhnw.ch/business 36  Information technology leads to a “Value Network” Information technology is transforming the operational supply chain into a “value network”. A value network describes a business design that uses digital supply chain concepts to ensure both high customer satisfaction and maximum profitability. – Is oriented towards the competitive factors of time and flexibility. – The main goal is to be able to react quickly and flexibly to customer requirements. Characteristics of a value network are: – Oriented to the customer, – Based upon cooperation and entirety (i.e. it’s holistic). – Nimble and scalable. – Possesses fast material, information and cash flows. – relies upon information technology (IT). 2024 Institute for Information Systems www.fhnw.ch/business 37  Information technology enables “Virtual Enterprises” #1 (Poluha, 2016) 2024 Institute for Information Systems www.fhnw.ch/business 38  Information technology enables “Virtual Enterprises” #2 Characteristics of “virtual enterprises” (also called “virtual networks”): – virtual value network: a series of market partners working together as a virtual unit – Real-time exchange of information, interaction and continuous optimization, complete transparency – temporary merger of core competencies of the participating companies – no legal or interlocking of the organizational structures The winners in these virtual value networks will be those who have faster access to information and resources and at the same time can derive the appropriate competitive strategies and supply chain strategies from them. 2024 Institute for Information Systems www.fhnw.ch/business 39  Discussion Do you know a “vertically integrated company”? A company that is a “supply chain integrator”? One that can be viewed as a “virtual enterprise”? – Please make a note of your answers and the rationale behind them (time: 2 minutes). – Discuss your answers with your fellow students (time: 2 minutes). – Afterwards, you’ll be asked to present your answers in plenary, and we’ll discuss them together (time: 5 minutes). 2024 Institute for Information Systems www.fhnw.ch/business 40 Supply Chain Management & Sustainability Reference System of the Business  Learning Objectives – You know the “consolidation framework for business process design” and can name the influencing variables that affect the business processes. 2024 Institute for Information Systems www.fhnw.ch/business 44  Consolidation framework for business process design (Poluha, 2016) 2024 Institute for Information Systems www.fhnw.ch/business 45  Discussion Which criteria, resp. key performance indicators, would you use to measure the results of the business processes, e.g. the market success of manufactured products and service offerings? How could measures to improve these indicators affect the enabling factors and the company's strategy? – Please make a note of your answers along with the corresponding rationale (time: 2 minutes). – Discuss your answers with your fellow students (time: 2 minutes). – Afterwards, you’ll be asked to present your answers in plenary, and we’ll discuss them together (time: 5 minutes). 2024 Institute for Information Systems www.fhnw.ch/business 46 Supply Chain Management & Sustainability Characteristics of Supply Chain Strategies  Learning Objectives – You know which questions a supply chain strategy has to answer and can explain them. – You know the different characteristics and categorizations of supply chains and can name them. – You can place any company into these categories. 2024 Institute for Information Systems www.fhnw.ch/business 50  Questions regarding the Supply Chain Strategy In order to finalize the supply chain strategy one must first define the level of desired value generation. The aim is to answer questions like: – With which products and service offerings is the business entering the competition? – Does it offer a standardized product with a single model for all customers, or an individually customized serial product? – What quantity is envisaged (few, many)? – Does it offer only a single product, or, for example, also the performance of additional services such as the replenishment of the customer’s stock? – To what extent is the level vertical integration sufficient? 2024 Institute for Information Systems www.fhnw.ch/business 51  Characteristics and Categorizations of Supply Chains #1 Derived from the described properties of the executed definitions, concepts and strategies: Three overriding categories can be described: – primarily by product or target group – primarily by business strategy or business requirement – primarily from a distribution, material flow, workflow and information flow perspective Product or Target Group Strategy resp. Supply Chain Categories Requirement Flow Perspective 2024 Institute for Information Systems www.fhnw.ch/business 52  Characteristics and Categorizations of Supply Chains #2 By product or target group: – Product-centric supply chain  Focus on individual products – Customer-centric supply chain  Focus on special target groups Product-centered supply chains tend to satisfy physiological needs (basic needs). Customer-centered supply chains tend to satisfy individual needs (esteem). https://en.wikipedia.org/wiki/Maslow%27s_hierarchy_of_needs 2024 Institute for Information Systems www.fhnw.ch/business 53  Characteristics and Categorizations of Supply Chains #3 Categorization according to business strategy or business requirement: – Direct, open competition  Focus on competitive offers and tenders, intensive trading – Trade of bulk goods Focus on independent trade, control fluctuation ranges of bulk goods – Lean supply chains and system integration  Focus on cost minimization and cooperation, avoidance of resource bottlenecks – Competing constellations of interlinked companies Focus of market leaders to connect with the best market partners 2024 Institute for Information Systems www.fhnw.ch/business 54  Characteristics and Categorizations of Supply Chains #4 Further categorization according to business strategy or business requirement: Interlinked network supply between competitors  Focus on merger to handle business, exploit synergies Capital goods control the offering, market leadership is the goal  Focus on gaining control over assets and to use these in a targeted manner Partnerships to the benefit of the customer  Focus on creating added value from suppliers to customers, strengthening customer satisfaction Virtual offering - no production, only customer  Focus on low fixed costs (through the outsourcing of manufacturing), distribution and marketing 2024 Institute for Information Systems www.fhnw.ch/business 55  Characteristics and Categorizations of Supply Chains #5 Categorization according to distribution, material flow, workflow and information flow perspectives – Distribution: physical progression of a product through a series of facilities and equipment linked with a transport network Focus on minimizing logistics costs – Material flow: supply chain of organizations that purchase, convert and sell materials  Focus on cost minimization in each functional area – Workflow: pre-defined sequence of activities within an organization  Focus on efficiently designed processes – Information flow: flow of information between integrated partners  Focus on efficient information processes 2024 Institute for Information Systems www.fhnw.ch/business 56  Summary of Categories and Characteristics Product-Centric, Focus on individual products (Volume) Supply Chain Categories Product or Target Group Customer-Centric, Focus on special target groups Direct, open competition, competitive offers and tenders Trade of bulk goods, Focus on independent trade Lean supply chains and system integration Competing constellations of interlinked companies Strategy resp. Requirement Interlinked network supply between competitors Capital goods control the offering, market leadership is the goal Partnerships to the benefit of the customer Virtual offering - no production, only customer (Man. outsourced) Distribution, physical progression of a product Material flow, organizations that purchase, convert and sell materials Flow Perspective Workflow, pre-defined sequence of activities within an organization (Eigene Darstellung) Information flow, flow of information between integrated partners 2024 Institute for Information Systems www.fhnw.ch/business 57  Discussion Where would you classify companies such as FHNW, SBB, UBS, Coop or Google in the main categories? Product or target group? Business strategy or business requirement? Distribution, material flow, workflow and information flow perspective? – Please prepare your assessment using the following slide (time: 3 minutes). – Discuss your answers with your fellow students (time: 3 minutes). – Afterwards, you’ll be asked to present your answers in plenary, and we’ll discuss them together (time: 5 minutes). 2024 Institute for Information Systems www.fhnw.ch/business 58  Characteristics of the Major Categories Company Product or Target Group Business Strategy resp. Flow Perspective Business Requirement FHNW SBB UBS Coop Google 2024 Institute for Information Systems www.fhnw.ch/business 59 Supply Chain Management & Sustainability Logistics Management, Supply Chain Management and Business Models  Learning Objectives – You know the definition of “logistics management” and can place it in the context of supply chain management. – You understand the difference and similarities between supply chain management and a business model. 2024 Institute for Information Systems www.fhnw.ch/business 64  “Logistics Management” and “Supply Chain Management” “Logistics are described as the process of planning, implementing and controlling the efficient flow of material, ranging from the storage of raw materials to the stock in the production process (Work In Process, WIP), finished products and services, and related information, from the point of origin through to the point of consumption. This includes goods receipts and goods issues, and internal and external material movements”. (Pouha, 2016, p. 33) Supply Chain Management “includes, in addition to the activities of logistics management, the production processes as well as the task of coordinating the supply chain processes with the functional areas of product design, inventory management, marketing, sales and finance”. (Pouha, 2016, p. 35) Supply Chain Management integrates and coordinates the primary functional areas of a company. 2024 Institute for Information Systems www.fhnw.ch/business 65  Primary functional areas integrated by Supply Chain Management Company Infrastructure Support Human Resources Activities Technology Development Procurement Inbound Marketing & Outbound Customer Operations Logistics Distribution Logistics Service Primary Activities (Porter, 1985, S. 37) 2024 Institute for Information Systems www.fhnw.ch/business 66  Discussion What is the difference between supply chain management and the business model? What do these topics have in common? Tip: Remember the exercise on the elements of the Business Model Canvas in the Information Management module. See the summary in the following slide. – Please make a note of your answers along with the corresponding rationale (time: 3 minutes). – Discuss your answers with your fellow students (time: 3 minutes). – Afterwards, you’ll be asked to present your answers in plenary, and we’ll discuss them together (time: 5 minutes). 2024 Institute for Information Systems www.fhnw.ch/business 67  Business Model Canvas Key Partners Key Activities Value Propositions Customer Relationships Customer Segments (Strategic Partners) Who are your key What key activities What core value do you How do you connect Who is your partners/suppliers does your deliver to the customer? value proposition most important and what are the company/value and customer customer? motivations for the proposition require to segment? partnerships? be successful? What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Key Resources Distribution Channels What are the key How would your resources your customers integrate company/value your product/service proposition in their routines? has/needs? Cost Structure Revenue Streams What are the fundamental costs derived from your For what value are your customers willing to pay? business? 2024 Institute for Information Systems www.fhnw.ch/business 68 Supply Chain Management & Sustainability Definition «Digital Business»  Learning Objectives – You understand the definition of “digital business” or “e-business” and can explain it. – You know the basic terms such as e-commerce and e-procurement and can classify and delimit them. – You understand the similarities and differences between supply chain management and digital business and can name them. 2024 Institute for Information Systems www.fhnw.ch/business 72  Definition «E-Business» resp. «Digital Business» The terms “Electronic Business” (or “E-Business”) and “Digital Business” are completely synonymous. – Term “E-business” was introduced by IBM in the late 1990s. – “Digital Business” is the term commonly used today. “E-Business refers to the use of the Internet and digital technologies to execute all of a company's business processes. E-Business comprises both e-commerce and processes for the internal administration of the company as well as for coordination with suppliers and business partners“. (Leimeister, 2015, p. 380) 2024 Institute for Information Systems www.fhnw.ch/business 73  Goals of digital networking in e-business The goals of digital networking in e-business are: – The avoidance of repeated capturing resp. entering of the same data, – the acceleration of communication between business partners regarding the procurement of goods, delivery and payment transactions, – competitive advantage through faster response to events both in operations and in the marketplace, – closer involvement of suppliers, especially suppliers, in operational processes, – the reduction of inventories through short-term orders, – intensifying customer service and thus strengthening customer loyalty to the company, and – the integration of value-creation partners. 2024 Institute for Information Systems www.fhnw.ch/business 74  Classification of terms in the context of “E-Business” or “Digital Business” E-Business / Digital Business E-Sourcing / E-Procurement E-Organization E-Commerce Supply-Demand Relationship Business Software B2B – Business-to-Business B2C – Business-to-Consumer B2E – Business-to-Employee ERP-System E2E – Employee-to-Employee Buy-Side/SRM/ Company Portal Finance, HR, E-Shop/CRM Purchasing, Sales, Customer Portal Applications Suppler Material Management Customer ERP – Enterprise Resource Planning (Business Partner) B2B (Business Partner) PPS – Production Planning & Control System Sell-Side B2C CMS – Content Management System (E-Shop) Groupware/ DMS – Document Management System CMS/DMS/ B2B Employee Portal Functions B2E/E2E CRM – Customer Relationship Management Supplier Relationship Management (SRM) Customer Relationship Management (CRM) SRM – Supplier Relationship Management PPS SCM – Supply Chain Management Supply Chain Management (SCM) Supply Chain Management (SCM) Research & Development, Production Caption E-Business Perspective Role / Function Management Application System (Schubert & Wölfle, 2005, p. 18) 2024 Institute for Information Systems www.fhnw.ch/business 75  Further Supply/Demand Relationships in E-Business and E-Government Demanders of the service The focus is on the exchange Consumer Business Administration of information regarding supply and demand between Service Consumer C2C C2B C2A Provider (e.g. Internet (e.g. job exchanges (e.g. tax process- the parties involved as well classified adds with ing for private as support for the necessary market) advertisements) individuals) exchange processes through for jobseekers Business B2C B2B B2A networked information (e.g. sale of (e.g. procurement of (e.g. tax systems. health insurance office supplies by processing for cover) companies) companies) Administration A2C A2B A2A (e.g. settlement of (e.g. delivery of a (e.g. transactions benefits) tax assessment between public notice) institutions) E-Business E-Government (Leimeister, 2015, p. 380) 2024 Institute for Information Systems www.fhnw.ch/business 76  “Digital Business” and “Supply Chain Management” Similarities – Both concepts and the methods contained therein focus on activities involved in the value creation of companies. – The goal is to increase the efficiency of workflows and information flows through integrating the functional areas with and the parties involved in value creation. Differences – Digital Business focuses primarily on supporting the relationships and processes between the parties involved through networked information systems. – Supply Chain Management focuses primarily on the integration of the primary functional areas and processes of the parties involved in the supply chain in order to create a powerful business model. 2024 Institute for Information Systems www.fhnw.ch/business 77  Discussion Where do you currently see challenges regarding the aspects of "digital business" for SMEs in Switzerland? – Please make a note of your answers together with the corresponding rationale (time: 3 minutes). – Discuss your answers with your fellow students (time: 3 minutes). – Afterwards, you’ll be asked to present your answers in plenary, and we’ll discuss them together (time: 5 minutes). 2024 Institute for Information Systems www.fhnw.ch/business 78 Supply Chain Management & Sustainability Areas of Activity in the Model of Networked Value Creation  Learning Objectives – You are familiar with the model “Networked Value Creation” and can explain this model. – You understand the individual areas of activity in the model of networked value creation and can name them. 2024 Institute for Information Systems www.fhnw.ch/business 82  Model of Networked Value Creation - “Big Picture” Own organization Strategic Positioning Why? Layer Co-Value- Integration of resources Co-Value- creation and competencies creation Customer Networks Business Partners Business Partners Supply Chain Supplier Networks E-Sourcing E-Commerce (Customers) E-Procurement Process (Suppliers) How? Layer Procurement Distribution Production Planning Supplier Relationship Customer Relationship Management Management Information Systems Technology Procurement Sales solutions solutions ERP-System What? (e.g. Online shop, EDI) Layer (e.g. Buy-Side, EDI) Logistic System Procurement Internal logistics Sales logistics logistics 2024 Institute for Information Systems www.fhnw.ch/business 83  Areas of Activity #1: all organizations use Supply Chain Management Procurement Side Internal Supply Chain Sales Side Own organization Business Models Strategic Positioning Why? Layer Co-Value- Integration of resources Co-Value- creation and competencies creation Customer Networks Business Partners Supply Chain Business Partners Supplier Networks E-Sourcing E-Commerce Processes (Customers) E-Procurement Process (Suppliers) How? Layer Procurement Distribution Production Planning Supplier Relationship Customer Relationship Management Management Information Systems Technology Procurement Sales solutions solutions ERP-System What? (e.g. Online shop, EDI) Layer (e.g. Buy-Side, EDI) Logistic System Procurement Internal logistics Sales logistics logistics 2024 Institute for Information Systems www.fhnw.ch/business 84  Areas of Activity #2: all organizations use Supply Chain Management The fields of action focus on different aspects: -Procurement side: value contribution of the suppliers to the products and services of the own company -In-house: The value contribution made by the company's own products and services. -Sales side: Refers to the value ​that arises through and in the interaction with the customers. -Business models: deals with the integration of the different strategic directions and business models from suppliers, the own company and customers. -Processes: focuses on the overarching collaboration between suppliers, your own company and customers. -Sustainability: focuses on the long-term success of the company, taking into account economics, ecology and social issues. 2024 Institute for Information Systems www.fhnw.ch/business 85  Blocks 2 & 3 Blocks 4 & 5 Blocks 6, 7 & 8 Model of Networked Value Creation - “Big Picture” Own organization Strategic Positioning Why? Layer Co-Value- Integration of resources Co-Value- creation and competencies creation Customer Networks Business Partners Business Partners Supply Chain Supplier Networks E-Sourcing E-Commerce (Customers) E-Procurement Process (Suppliers) How? Layer Procurement Distribution Production Planning Supplier Relationship Customer Relationship Management Management Information Systems Technology Procurement Sales solutions solutions ERP-System What? (e.g. Online shop, EDI) Layer (e.g. Buy-Side, EDI) Blocks 9, 10 & 11 Logistic System Procurement Internal logistics Sales logistics logistics Block 12 2024 Institute for Information Systems www.fhnw.ch/business 86  Relation to FHNW School of Business Mission Statement and Competencies Blocks 2 & 3 Blocks 4 & 5 Blocks 6, 7 & 8 Block 12 Blocks 9, 10 & 11 We educate innovative, responsible specialists and managers for an interconnected and ever-changing world. requires Results-oriented Problem-solving approach ability Systematic / Foundations Transfer Innovation-oriented methodologic 2024 Institute for Information Systems www.fhnw.ch/business 87  Areas of activity #3: SCM innovation potential in the post-digitized age (your job!) Everything communicates with everything Connectivity DATA and RELATIONS flow Computerized automation and autonomy in Singularity Sustainable, ALGORITHMS and cyber-physical SYSTEMS digitally enabled value creation in Value co-creation with customers and networks Ubiquity suppliers independent of SPACE and TIME Resource conservation as Circularity ENERGY and MATERIALS circulate 2024 Institute for Information Systems www.fhnw.ch/business 88 Supply Chain Management & Sustainability Self Study  Self-study in preparation for the next block #1 Repetition and in-depth study for block 1 – Slides for block 1 – Teaching material Poluha (2016). p. 1 to 46 (without grey boxes) – Teaching material Leimeister (2015). chapter 7.1 to p. 781, chapter 7.1.2 – Teaching material Chopra (2019). Chapter 2. p. 19 to 22, p. 31 to 33 and Case Study (p. 37 to 39) – Teaching material C. Martin (2016). Chapter 1. p. 2 to 3 and p. 10 to 14. Chapter 2. p. 39 to 43. Chapter 6. p. 123 - 134 – Training videos on Moodle for block 1 – Learning objective quiz on Moodle for block 1 Work assignment before block 2 – Training videos on Moodle for block 2 – Exercise for block 2 on Moodle “Procurement’s share in creating value” Preparing for the learning goals quiz in block 2 – Contents from repetition and in-depth study for block 1 – Contents from repetition and in-depth study for block 2 – Contents from the preparatory work assignment for block 2 2024 Institute for Information Systems www.fhnw.ch/business 92  Self-study in preparation for the next block #2 Key questions on repetition (content from slides, textbooks and videos for Block 1): – What is a supply chain and which current developments change the supply chain processes? – What would be examples? – Which influencing factors also affect the business processes and the results of a company? – How can the success of a company be measured? – What are the elements of a supply chain? – What are the approaches for looking at a supply chain? – According to which strategies can a company align itself with regard to the supply chain? – What are the typical categories of supply chains? – What connects and distinguishes supply chain management from a business model? – What does one understand as an e-business? What are the goals of e-business? – Which areas of activities does a company have to deal with? Create a written answer in full sentences to each of these questions for yourself. If necessary, discuss the questions with your fellow students and bring in any uncertainties into the lessons. 2024 Institute for Information Systems www.fhnw.ch/business 93  Self-study in preparation for the next block #3 Key questions on the work assignment (videos for block 2) – What is a procurement portfolio (Kraljic model); and what can you use it for? – Which four quadrants are differentiated in the procurement portfolio? – What is the SCOR model? Which process areas are central to the model? – How does supplier management work at Implenia? – Which levels are central to Implenia's supplier management? – What is Electronic Data Interchange (EDI) and Vendor Managed Inventory (VMI)? – What can barcodes and RFID (Radio Frequency Identification) be used for? – What does the abbreviation GTIN stand for? Create a written answer in full sentences to each of these questions for yourself. If necessary, discuss the questions with your fellow students and bring in any uncertainties into the lessons. 2024 Institute for Information Systems www.fhnw.ch/business 94  References Businessplan-Wettbewerb Berlin-Brandenburg. (o. J.). Business Model Canvas. Abgerufen von https://www.b-p- w.de/fileadmin/redakteur/dokumente/Canvas/Business_Model_Canvas-A0_mit_Leitfragen.pdf Dornberger, R., Inglese, T., & Korkut, S. (2018). Internet of Things–A New Epistemic Object. Abgerufen von http://www.iiisci.org/journal/CV$/sci/pdfs/IP031LL17.pdf Ehrenthal J.C.F., Gruen T.W., Hofstetter J.S. (2024) Recommendations for Conducting Service-Dominant Logic Research. In: Dornberger R. (eds) New Trends in Business Information Systems and Technology. Studies in Systems, Decision and Control, vol 294. Springer, Cham. Leimeister, J. M. (2015). Einführung in die Wirtschaftsinformatik. Berlin, Heidelberg: Springer Berlin Heidelberg. Poluha, R. G. (2010). Quintessenz des Supply Chain Managements - Was Sie wirklich über Ihre Prozesse in Beschaffung, Fertigung, Lagerung und Logistik wissen müssen. Berlin, Heidelberg: Springer. Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. New York: The Free Press. Schubert, P., & Wölfle, R. (2005). Die Methode eXperience. In P. Schubert & R. Wölfle (Hrsg.), Integrierte Geschäftsprozesse mit Business Software (S. 15–25). München, Wien: Hanser Verlag. 2024 Institute for Information Systems www.fhnw.ch/business 95