descartes november 2012

My heroes have always been operational folksToday’s true innovators

Vinnie Mirchandaniwww.florence20.typepad.com

We are living in a New Renaissance

My innovation blog has cataloged 2,500 entries across 40 categories in last 5 years• Infotech• Biotech• Cleantech• Healthtech• Nanotech

It celebrates • New algorithms• New medicine• New energy

Innovation is becoming more science, less art

My books have: • 40 detailed case studies• Wide range of sources (1,200 end notes)

They showcase innovation everywhere:• Unfamiliar places (e.g. Estonia)• Unpopular processes (e.g. Maintenance)• Unglamorous industries (e.g. City government)

But, recognition of innovators is uneven

700 followers (2009)6,000 today

5.7 million (2009)22.8 million today

Operational executives and innovation underappreciated

“The CMO (Chief Marketing Officer) will spend more on IT than the CIO ”

“Golden age of design: Things 'just work‘”

“Workday IPO Shows Investor Confidence in Business Cloud”

“The consumerization of IT- The next-generation CIO”

“Big Data Was A Data Play, Now It's A Developer Play”

Mobile Computing – what gets attention

• Endless stream of devices• The apps ecosystems• Massive telco advertising

Mobile Computing – UPS DIAD

• 5th generation, first introduced in 1990• Has allowed UPS to scale massively and efficiently• UPS also largest buyer of mobile minutes• Could have launched its own “smartphone” way before Apple!

Mobile Computing – Tesco in S.Korea

• Homeplus virtual store in subway• Descartes Route Planner allows for “on the fly” flexibility in same day delivery• Also shows how far ahead some mobile networks are compared to US

Analytics – what gets attention

• NoSQL• Storage exploding• SAP/Oracle - new screaming frontier• “Big Data” – as in 2012 US elections

Analytics – Union Pacific • 20 million temperature readings a day using trackside infrared sensors• Algorithms allow within 5 minutes to slow/stop suspect trains• With ultrasound imaging, predictive wheel maintenance

Analytics – Mondelez (Kraft) • Thousands of merchandisers used VRU for “honor based” time and mileage reporting• Descartes and GPS technology – over 4 billion data points last year - now provides visibility• Triangulation of GPS and payroll data allows for finer ABC customer analysis, workload modeling, labor savings

Global Delivery – what gets attention

• Outsourcing beyond India• Manufacturing beyond China• Trickle-up innovation• Balance of Trade

Global Delivery – Boeing 787 • Highly innovative plane – composites, passenger comforts • Spurred by Airbus cross-country supplier success• Dreamlifter – modified 747 – large components from Japan/Italy• Cross supply-chain testing

Global Delivery – The New “Silk Road”

• Chongqing in W. China to Duisberg, Germany• “Southern” route via Kazakhstan, Russia, Belarus, and Poland.• Less than half time of ocean shipments, much cheaper than air• Next: high-speed rail

Global Delivery – Maersk EEE class ships

• 18,000 20 foot containers (v. 500 container ships half a century ago)• 50% less CO2, 35% less fuel per container compared to today’s Asia-Europe benchmarks

Social Enterprise – what gets attention

• Social media• Sentiment analysis/Marketing analytics• “Systems of engagement”• Self-promoting Social “Mavens”

Social Enterprise – Toyota Friend

• Moving social from people to product• Private social network of EVs, dealers, owners, with Salesforce Chatter

Social Enterprise – Descartes Global Logistics Network

• 63,000 parties in 160 countries• Connected to 50 other networks• Seed for Descartes Community (Cloud)• Art Mesher = “federated networks’

in 90s

Business Model Innovation – what gets attention

BMI – what about?

Prime

“Shipping and handling” costs a non-factor for consumers

Decade of Amazon supply chain innovation like “postal injections”

Evolving to digital products

Same-Day Delivery?

Home Delivery

Changed from back office overhead to revenue opportunity

Descartes’ Reservations and Route Planner

Charge more for “premium” delivery hours

Customers like more choice

Agility – what gets attention

Agility – what about?

Build to “Constant

Course Correction”

“Out-Delled” Dell’s Build to Cash received

“Out-P&Ged” P&G’s Build to Demand Forecast

Foxconn, Fedex, others = agile supply chain

Iceland Volcano

Japan Tsunami

Supply chain of 2 PCs a second, 2 printers a second, and more

Instant buy of charter capacity to S. Europe airports. Instant command center for tsunami

Sustainability – what gets attention

Sustainability – what about?

Every renewable

form of energy

Wind for many DCs, Solar for corporate campus, Geothermal, biomass, high-altitude wind

PUE, location analysis for DCs

Tantalum Capacitors

SEC focus on reporting of “conflict minerals”

Audit trail of mineral sourcing/refining path

Opportunities for others around “rare earths”

Sustainability – what about?

Every renewable

form of energy

Wind for many DCs, Solar for corporate campus, Geothermal, biomass, high-altitude wind

PUE, location analysis for DCs

Tantalum Capacitors

SEC focus on reporting of “conflict minerals”

Audit trail of mineral sourcing/refining path

Opportunities for others around “rare earths”

Ok to toot your own horn

• MSM more interested in consumer and social tech stories• Industry analysts mostly want to write about technology products, not complex projects• Your PR is more comfortable with product and financial news • You have to find your own friendly outlets• Don’t fret too much about “competitive advantage” • Sharing spurs even more innovation

Encourage execs to publicly talk logistics and technology

• Amazon CEO annual shareholder letter• Union Pacific to Fortune: “we are an infotech company”• HP supply chain presentation to Wall Street• Apple’s face to non-consumers even under Steve Jobs • UPS Global TV campaign

Your turn to shine

Next-gen logistics/supply chain innovation stories should be even more impressive:

• Global energy/manufacturing epicenter moving towards US • Post-Sandy reconstruction projects• Retail/groceries going through radical changes• China infrastructure inspiring many other countries• More veterans in our workforce