Digital Supply Chain

Transformation
Chapter 1 - Introduction

Assoc. Prof. Pham Quoc Trung

Department of Management Information System
School of Industrial Management, HCMUT (VNU-
HCM) georgew@mit.edu, @
LEARNING OBJECTIVES
❑
This course provides students with concepts, mindsets, strategies, and
techniques to sustain and adapt a business in a digital society.
❑
Adoption of advanced technologies consisting of
sensors, machine learning, artificial intelligence,
block-chain, and robotics have facilitated end-to-end visibility, control, and automated decision
making. In this new way of working, a traditional supply chain will be replaced by always-on, always-
connected, transparent, dynamic networks. We can call this a “digital supply network,” or DSN. The
objective of this course is to introduce to the participants the main components and elements for a
successful DSN.
❑
During the course, the participants will work on well-known case
studies that will cover various aspects of the digital supply chain transformation of big enterprises in
the world.
❑
Moreover, various digital transformation enabling, and
disruptive concepts, technologies, innovations, and business models will be covered such
as platforms, analytics, Internet of Things, big data, AI, sensors, robotics, and block-chain.
LEARNING OUTCOMES
❑
Analyze the main concepts of SCM and
DSN
Analyze, make decision and manage transformation projects
❑

❑
Demonstrate ability of work collaboratively in
making strategy & planning for supply chain transformation
❑
Show concerns to technology trends and
business in global environment
COURSE’S OUTLINE
❑
Digital Supply Network (DSN) plays a vital role
in providing safety, quality, value, and innovation to all
stakeholders. The intelligence possibilities for machines through artificial intelligence allow
business teams to run an automated enterprise through total visibility and fact-based decision
making.
❑
Some main features of a successful DSN will be
introduced, including Synchronized Planning, Digital Product Development,
Intelligent Supply, Smart Manufacturing, and Intelligent Asset Management, Dynamic Fulfillment,
Connected Customer.
❑
This course covers how to leverage major technology
advances to significantly transform a business in the marketplace in the industrial
revolution 4.0. There is a focus on major issues a business must deal with to transform its supply chain
successfully, including skills change, cultural & social impact, strategy, and a suitable roadmap for the
transformation.
COURSE’S MAIN CONTENT
Chapter Content

1 Digital Transformation and Its Impact on Supply Chain Management

2 Digital Supply Network

3 Synchronized Planning

4 Digital Product Development

5 Intelligent Supply

6 Smart Manufacturing and Intelligent Asset Management

7 Dynamic Fulfillment

8 Connected Customer

9 DSN Transformation Roadmap

 TEXTBOOKS AND REFERENCES

❑
Sinha, A., Bernardes, E., Calderon, R. and Wuest, T. (2020). Digital Supply
Network:
Transform your supply chain and gain a competitive advantage with
disruptive technology and reimagined processes, McGraw Hill.
❑
Wehberg, G. (2021). Digital Supply Chains: Key
Facilitator to Industry 4.0 and New Business Models, Leveraging S/4
HANA and Beyond (3rd edition), Routledge (Taylor & Francis).
❑
SAP. (2019). Lecturer’s handouts and workshop manuals. SIM,
HCMUT.
❑
Westerman, G., Bonnet, D., McAfee, A. (2014). Leading Digital:
Turning Technology into Business Transformation, Havard Business Review Press.
❑
Rogers, L.D. (2016). The Digital Transformation Playbook:
Rethink Your Business for the Digital Age, Columbia Business School Publishing
LECTURER’S INFORMATION

❑
Lecturer: Assoc. Prof. Phạm Quốc
Trung
❑
Office: 103 B10, School of Industrial Management,
HCMUT
❑
E-mail: pqtrung@hcmut.edu.vn or

pqtrung@gmail.com
❑
Telephone: (08) 38647256 * 5607
❑
Mobile phone: 0932282146
❑
Website: http://trungpham.dx.am/
LEARNING STRATEGIES &
ASSESSMENT
Learning strategies:
❑
Students are required to be at least 70% attendance of theoretical
lectures and 100% of individual assignments, discussion, presentation of the course.
❑
Besides class-based lectures, students are expected to be
active in their own-self control of study schedule via key course’s materials,
handouts in associated with research papers, reports and given case studies (with the support of e-learning
system).
❑
Students can meet and discuss with lecturer about the course
content at the department office according to the meeting time frame of the lecturer.
Assessment scheme:
❑
Overall result of the course will be assessed through 3 main components of
subject:
exercises/case study (20%), group project (30%) and final course’s exam (50%).
TOPICS FOR GROUP PROJECT
❑
Cloud Computing and Edge Computing
❑
Industry 4.0, Logistics 4.0, Manufacturing 4.0
❑
E-commerce, E-CRM, E-SCM…
❑
AI and Machine Learning (Health, Politics, …) vertical
applications ❑Augmented, Virtual Reality, Mixed
Reality, and Digital Twins ❑IoT, IIoT, robots, cobots,
drones…
❑
Blockchain and Cryptocurrency (financial & non-financial applications)
❑
Smart Cities, Smart Homes, Smart Plants, Smart Hospitals…
❑
Big Data and Analytics
❑
Platforms and Disruption technologies
❑
Ethics, Security, Privacy, FinTech, MedTech, …
❑
New Skills and New Job (Impact of DT on Society), the ugly side of DT
CONTENTS
1. What is digital transformation (DX)
2. Impact of DX on SCM
3. Digital Supply Network and DX of Supply Chain
4. Technology enablers of DX
IMAGINE AN ECONOMY WHERE…

The Success Rate Of New Product Introductions Is

70% Improved
From Today By 70%

75% Of All Same Day Autonomous 25% Of CPG Retail Shopping Is

Consumer Deliveries Are Fulfilled
By Demand-based, Socially-
linked Delivery Networks
nd
Vehicles Displace 2 Car Conducted In Omni-channel
Ownership, Decreasing Commerce Marketplaces
Congestion By 10% In Served
Cities
1. WHAT IS DIGITAL TRANSFORMATION (DX)?

Organizations Adapt To Changes In Their Ecosystem By Leveraging Digital Technologies To Create

Digitally Enhanced, Customer Centric Business Models

Improve Generate
Operational New Revenue
Create New Efficiencies Streams
Customer Rapidly
Respond
Experiences To Changing
Conditions
16
Digital Transformation
2. DIGITAL TRANSFORMATION AND ITS IMPACT ON SUPPLY CHAIN
MANAGEMENT
SCM PROCESSES AND FLOWS
3. DIGITAL SUPPLY NETWORKS

DSN—THE SMARTIFICATION
OF TRADITIONAL SUPPLY
CHAIN MANAGEMENT
SUPPLY CHAIN TRANSFORMATION USCMarshall
Center for Global Supply Chain Management

Digital Supply Networks

A Supply Chain Transformation
SUPPLY CHAIN TRANSFORMATION USCMarshall
Center for Global Supply Chain Management

The Digital Supply Network Digitize all elements of the supply chain
SUPPLY CHAIN TRANSFORMATION USCMarshall
Center for Global Supply Chain Management

The Digital Supply Network Integrate Real-Time Data Feeds

SUPPLY CHAIN TRANSFORMATION USCMarshall
Center for Global Supply Chain Management

The Digital Supply Network Evaluate Impacts Within Network

 USCMarshall
Center for Global Supply Chain Management

The Digital Supply Visualize Globally, Investigate Locally

Network
 USCMarshall
Center for Global Supply Chain Management

The Digital Supply Foundation for Blockchain

Network
 HOW IMPORTANT IS SUPPLY USCMarshall
CHAIN
DIGITAL TRANSFORMATION? Center for Global Supply Chain Management

In a recent study*, 337 executives from large manufacturing and retail

organizations in over 20 different countries around the world were surveyed on how important organizations
consider the need for a Digital Transformation of their Supply Chains

* A cross-industry study by a multi-national IT service provider

 PROGRESS SO FAR ON SUPPLY CHAIN USCMarshall
DIGITAL TRANSFORMATION Center for Global Supply Chain Management

In the same study, executives were asked to comment on their level of satisfaction with the
progress that their Digital Supply Chain Transformation efforts have shown so far
 WHY SUCH A HIGH LEVEL OF USCMarshall
DISSATISFACTION? Center for Global Supply Chain Management

The vast majority of Digital Transformation initiatives fall into one of two
categories:

Digital Transformation inside a single Digital Transformation between

organization: For example how digital
technologies transform internal ERP
systems, Human Capital Management,
Finance and Accounting, etc.
organizations and their customers: For
example how digital technologies
transform CRM, Marketing
Automation,
POS systems, E-commerce, etc.

But, a third category of Digital Transformation that plays an increasingly important role in today’s outsourced,
globalized world, has so far, not got a lot of attention. It may just be the most important category of all.

Digital Transformation between organizations

and all of their partners across the value chain
3
0
HOW TO ACHIEVE THIRD USCMarshall
CATEGORY OF
TRANSFORMATION? Center for Global Supply Chain Management

Key Four Supply Chain Strategies to drive Digital Transformation

Customer- Synchronized Intelligent End-to-end

centric
connected planning optimization transparency &
ecosystem total visibility
CLOUD USCMarshall
Center for Global Supply Chain Management

KEY TECHNOLOGY ENABLER

Technology evolution in CLOUD COMPUTING spurs the rise of connected

supply chain and makes the disruption possible

• Less capital investment - Significantly reduces

Declining costs in bandwidth, storage and computing
upfront capital investment for scalable
infrastructure over current on-premises model

• Easy Integration - Simplifies integration with

multiple ERP and enterprise systems through
built-in connectors

• Elasticity - Provides elasticity and

thus enables almost instant scaling

• Drives Innovation – Helps organizations to be

better equipped for embracing new trends in
supply chain technologies
 IN SUMMARY USCMarshall
Center for Global Supply Chain Management

• The most important category of Digital Transformation that plays an increasingly important
role in today’s outsourced, globalized world, has so far, not got a lot of attention.

Digital Transformation between organizations and all of

their partners across the value chain
• The four key strategies that can help achieve a satisfying and sustainable Supply
Chain Digital Transformation.

Customer-centric Synchronized Intelligent End-to-end

connected ecosystem planning optimization transparency & total
visibility

• The four key technology enablers that drive the transformation.

TRANSFORMED EXPERIENCES
TECHNOLOGIES ARE ALREADY FUELING THIS
TRANSFORMATION

By 2020…
A World Of Industry Clouds Handle ¾ Of All Economic Activity In A
Fully Automated Way — Eliminating Over $100B Of Coordination
Waste

Companies Double The 60% Of Device Interactions Are Mobile And Connected Devices

Productivity Of Their Knowledge Passive As Users Accept Redefine CX, Tying Loyalty,
Workers Through The Use Of Big Information Surfaced From Service, Sales And Content To
Data/Analytics Intelligent Systems And Machine Context In Real Time
Learning
INNOVATION IN UNEXPECTED PLACES
Thank You!

Q&A