Risk…it’s a four-letter word. And while it is not as offensive as others, it can have a far worse and much longer-lasting impact on an organization. What is most challenging though is that it can come in many forms, making risk mitigation difficult at best and financially devastating at worst. Geopolitical risk, third party vendors, hackers, terrorists, natural disasters, poorly or inadequately trained staff and other circumstances make the global supply chain vulnerable to disruption, costing businesses millions of dollars annually. This is never so apparent as it is after tragedy strikes an area. Consider Hurricane Florence or the Northern California “Camp Fire”— the damage from these devastating events will be long lasting to the communities they impacted and the businesses that supported them.
According to Resilinc’s Eventwatch report, nearly 2,000 supply chain events took place in 2017, representing a 30 percent increase over 2016. Put in context, this translates to roughly five events per day with approximately 25 percent of them requiring an impact notification. Four of the five most significant 2017 supply chain events (in terms of number of supplier sites impacted, number of parts impacted and average time to recovery) were from extreme weather conditions and include late winter storms in the northeast as well as Hurricanes Harvey, Irma and Maria. More than a year later, Caribbean islands like Puerto Rico and the U.S. Virgin Islands are still trying to recover and will likely see years pass before their economies rebound.
“Fake it ‘til you make it.” This unattributed idiom (with a nod to Aristotle) is oft-used advice to people early in their careers. But how wise is it to follow? How many people have résumés that truly portray their strengths vs. a laundry list of what they want you to believe about their abilities? How confident would any shareholder be if they believed the CEO got to the top by faking their skills rather than building them? But more importantly, is it a person’s skills that give you confidence in their leadership abilities?
If you think about the last person who truly inspired you, was it their title…or the last three companies where they worked that piqued your interest? Was it their ability to run a shareholders’ meeting, analyze volumes of data and manage their exceedingly crowded schedule that excited you? Doubt it. When you think of someone who is truly motivational, you are usually moved by the things that don’t make it on to the résumé: their heart, integrity, authenticity and ability to enroll others in their beliefs and passions. It’s not because of their title.
It’s About Mindset
Too often, CEOs have the mindset that what has gotten them here will get them there. If they have successfully led profitable companies, why would they have any reason to believe they need to evolve? When things aren’t working, it doesn’t take much convincing that something has to change. But when they are…CEOs often don’t understand the need. They have the pedigree and the track record – and past accomplishments are a good indicator of future success – so why fix what isn’t broken?
When was the last time a presentation inspired you? Seriously…think about it. Now envision the last speaker who truly motivated you and ask yourself, was it their slides? (Dramatic pause.) I’m willing to bet that what got your attention had virtually nothing to do with the content presented…and everything to do with how it was delivered.
When presenting to an executive audience, this is even more critical. You have only a few minutes to convince your audience that the most valuable way they can spend their time right now is by tuning in to what you are saying. So, as you prepare for that next opportunity to speak in front of executives, keep these things in mind.
Set their expectations – They call it an executive “briefing” for a reason and the execs in attendance will be chomping at the bit to ask questions. Let them know at the outset that you will provide plenty of time for discussion.
In an increasingly crowded global marketplace, it can be hard to stand out. Back in the day, competition came from companies that looked just like yours. That is no longer the case. With an always-online hyper-connected economy, your competition could come from an industry so far removed from the one that you are in that it hardly makes sense…and yet if you aren’t watching, your business can find itself on the precipice of being made redundant by a company you never saw coming. (Think Uber to cabs or AirBnB to hotels…or even more recently Amazon to grocers.) It is not at all far-fetched…and with artificial intelligence and other forms of digitization, who knows what the future holds?
Frankly, it shouldn’t be surprising that some of the best ideas may come from outside your industry…that’s one of the concepts that SIG holds dear. During a plenary Summit session, we had everyone work with the people at their table to discuss a challenge that one person at the table was facing. Because the tables were random and the people at those tables represented different positions and industries, the results provided some breakthrough moments with complete out-of-the-box thinking.
Nearly five years ago I wrote a blog about Big Data and how it could be relevant for sourcing and supply chain professionals. Needless to say, a LOT has happened since then. In a Gartner survey performed in October 2016, 48% of companies indicated that they have a Big Data initiative currently underway, with another 25% who stated they had plans on the horizon. So it is no longer a question of whether or not companies are using Big Data…that is a given. Now the question is how companies are using it and how they are incorporating Robotic Process Automation (RPA) and Artificial Intelligence (AI) into the equation.
The information being collected from Big Data initiatives is powerful and can provide predictive analytics and insightful information. For example, a shipping company being able to change delivery routes based on current traffic patterns increases productivity (not to mention customer frustration). A large company using it to detect anomalies in behavior by third party vendors and mitigate the risk associated with that information could protect them from millions in cyber security damages.
I recently finished two-and-a-half days at Singularity University’s Global Summit (not to be confused with our own SIG Global Summit!). It was an incredible, mind-blowing, education-packed few days. Singularity packs their event with high-energy speakers who speak passionately on their area of expertise. I heard presentations on virtual reality, augmented reality, healthcare, leadership, socially responsible business, entrepreneurship, the future of work and so much more. The presentations covered a wide variety of topics, but they all had one thing in common…they all made you think about the possibilities…they all challenged the status quo…and they all embraced the concept that disruptive technologies are changing our world exponentially.
No session covered this better than keynote David Roberts whose core message was that slight variations in key assumptions could have a HUGE impact on our future. In his impassioned, funny and moving presentation Roberts connected the dots on some of the most exponential technologies our world has seen by asking everyone to consider some “what ifs” in life. His enthusiastic presentation and challenging questions inspired me to dig further.
What if…your phone was smarter than you? In 2013, Gartner predicted that by 2017 smart phones would, in fact be smarter than humans. Are they? Artificial intelligence (AI) has certainly progressed to such a point that you might argue that they are. In an article and related research, Gartner presented four phases of cognizant computing:
At Singularity University’s Global Summit, keynote speaker David Roberts posed the question, “What if machines made more money than people?” Sounds crazy…but is it? With Blockchain, could that be the way of the future?
I confess that when he asked the question, I still didn’t feel comfortable enough with the concept of blockchain to have an informed opinion on the viability of it. So I did what 77% of people do when seeking information on the Web…I Googled it…and I kept Googling it until I found articles that dissected the concept well enough that it made sense. If you are equally confused by the term, hopefully this analysis will benefit you as well…because rest assured, you WILL need to understand it—especially if you work in sourcing, outsourcing or supply chain as the potential is unlimited.
Fundamentally, blockchain allows consumers to transact directly with one another without the need for an intermediary, like a bank. If you use Paypal and select “eCheck” as your payment method to reimburse a friend for say a concert ticket, it appears to go directly from you to them. In actuality it first has to clear your bank, which can take 3-5 business days, or up to 8 days if another country is involved. Blockchain removes the middleman by using digital currency (aka cryptocurrency) which can be spent with companies or people who are set up to accept it as a form of payment. The digital currency can be converted to cold, hard cash, but with thousands of companies now taking digital payments it is not really the norm.
I used to have many phone numbers memorized. It was second nature to pick up the phone and dial someone’s number. Now the term “dial” even seems a little obsolete when it comes to phones. How many millennials have even seen a rotary phone with an actual dial? But it has made me start to wonder…is the ubiquitous use of smart devices making us actually think less?
I suppose that in some ways it was inevitable. Calculators made it possible for people to quickly arrive at answers to problems that previously took a lot of time and many steps to complete. And in much the same way, every technology that connects to another technology to give us immediate access to information we weren’t easily able to get otherwise, eliminates our need to use our brain to find it. Now I'm not saying this is a bad thing…but I do think it makes us a little lazier.
Case in point…one of my daughters has Type 1 diabetes. When she was diagnosed, we agonized over every meal; figuring out what she was planning to eat, counting the carbs in the meal, factoring out the fiber and then calculating the amount of insulin she’d need based on her current carb-to-insulin ratio to keep her blood sugar levels in check. In the beginning, I incessantly worried that we would give her too much insulin and send her in to diabetic shock or worse. Over time, we learned how to do it and got pretty good at calculating math in our heads…especially helpful for my then-11-year-old daughter. But as soon as she went on an insulin pump, we stopped having to actually do the math, and now if she takes a “pump break” I find myself having to really think…and it makes me nervous.
Disruption. Until recently that word meant something negative. It was a nuisance…a disturbance…an interruption…it meant trouble. In fact, if you look at synonyms for disruption, every one of them paints it negatively. But lately when you hear the word “disruption,” it generally means change—and even positive change. Disruptive technologies are in essence solutions that are changing the future of work. They are challenging the status quo.
I was recently reading an article about Amazon potentially purchasing Slack. (Ironically one of my colleagues sent it over in a “Slack” which we use for internal communications at SIG.) As my colleagues and I reminisced about our first use of Amazon, it made me realize what a pioneer they were in disruptive technologies. The term may not have been widely known, but they certainly paved the way for it to be put into ubiquitous use.
I can’t really remember when or how Amazon disrupted my life…but it did. Somewhere along the way I went from being skeptical about purchasing things online to almost exclusively shopping with Amazon—and Prime no less because I want the immediacy of it. Don’t get me wrong—there are certain items I will never purchase on the Internet, but if I am going to shop online, I ALWAYS check Amazon first.
For the past 60+ years, the standard joke about Artificial Intelligence (AI) has been that it is “the future.” In 1950, Alan Turing questioned whether machines could think like humans…and less than ten years later, Marvin Minsky founded the AI lab at MIT. For decades, people tinkered, pondered and philosophized about robotics. Factories installed automation to remove workers from redundant tasks…but advancements in office settings didn’t progress at the same level. People hypothesized about flying cars, but few could imagine cognitive computing. I think it’s finally safe to say that the future is now. AI and Robotic Process Automation (RPA) are no longer conceptual ideas…they are business strategies that will continue to impact our lives in radical ways.
A recent Forrester study predicts that by 2021, 6% of U.S. jobs will be replaced by robots. While it may not sound like a lot in the grand scheme of things, consider that it represents growth from 250 million in 2016 to 2.9 billion in 2021. Sure…we’ve all dealt with AI and technological advancements already: call centers that put us through a series of (irritating) steps before you can finally talk to a human; travel aggregators that find the best deal across all airlines…ads that stalk you online after one quick search for a new printer…but until recently, it was hard to see how it would really affect the world of sourcing and procurement.