Web 2.0 for the Supply Chain

I recently hosted a round table on On-Demand Demand Software for the Electronics Supply Chain Association (esca) Spring Symposium.

You can find a copy of my presentation, including the a summary of our discussion here.  The discussion group comprised a good cross section of the electronics supply chain, from semiconductors to retail electronics. Software vendors were well represented, from small licensed and on-demand outfits, to giants such as Oracle, SAP and Microsoft.

The debate could be characterized as: Do we “mix” on-demand tools to support on-demand processes, or do we “match” our business processes using highly customized licensed software? The discussion was reminiscent of the old debate over "best of breed" software.  The resolution was that we can “mix and match”, creating composite processes and composite IT tools. On-demand tools might therefore become an add-on to internally customized licensed software. Alternatively, new generations of on-demand tools might allow more tailoring to individual customer needs.

There have been many excellent articles written on the subject of on-demand software. I can recommend the Economist article.  However, I think there is an additional dimension to the case for on-demand in the supply chain.

On the "consumer web" the model is moving from one-way broadcast communication to a new movement often labelled "Web 2.0".  Web 2.0 technologies include wiki, collaboration tools, mash-up, blogs, RSS syndication, podcasts and social networking tools.  There have been many attempts to define Web 2.0. For me it comes down to two concepts: simplicity and participation.

In the supply chain we have had EDI and web portals for many years. But in essence, electronic communications remain unidirectional and non-social.  Some research by the esca last year found that:

• Only 11% of respondents used automated communication systems
• Only 3% used Rosettanet standards
• Extremely limited use of collaborative systems. Respondents primarily rely on email, fax, phone, EDI and face-to-face meetings.

So what could a "Web 2.0" approach do for the electronics supply chain?  Imagine subscribing to a "feed" from your suppliers or customers (you can do it now). Imagine collaborating on a single "spreadsheet" with an agreed data source. Each partner has their own view of the spreadsheet with their own business rules built into the formulae. Imagine the ability to combine the structured and unstructured data to provide richer context to forecast communication. Imagine a mash-up of manufacturing and transportation data.  Imagine if it was actually simply to use (though perhaps complex to conceive).

Bottom Line: The revolution in the consumer web has a lot to tell us about managing the supply chain. On-demand software may provide a ramp to a new approach to collaboration.