Disruptive Innovations PDF

2015
Disruptive Innovations
in Supply Chain
AuthorsNaman Goel
Sakshi Goel
Institution- NarseeMonjee Institute of Management Studies, Mumbai
Position- Student MBA 1st Year, Batch of 2014-16
SOUTH -ASIAN JOURNAL OF MULTIDISCIPLINARY STUDIES (SAJMS) ISSN:2349-7858 VOLUME 1 ISSUE 4
Abstract
Innovations capture imagination, motivate people and improve quality of life. Most are
continual improvements which are practiced to stay ahead in market but disruptive innovation
redefines market.
Among the plethora of innovations,parameters on which a truly effective innovation should
be prioritized are mentioned below1.
2.
3.
4.
Impact of make or buy decision on the internal operations and future of the firm
Relation between technology and optimal utilization of supply chain
Importance of agility
Achieving a balance between need for coordination and information overload
Coupled with bottlenecks of Indian Economy three highly apt innovations that can reshape
supply chain are3D Printing
Referred to as additive manufacturing scores high on parameter 1 and 3. It fabricates products
by accumulating thin layers of materials using three-dimensional, computer-aided designs
and can reduce cycle time of new product development, streamline maintenance & support
extreme JIT.
Drone Delivery System
Self-delivery systems scored high on parameter 2.Taken to scale, it could alleviate problems
with transportation i.e. infrastructure, traffic, piracy, etc.
Big Data
High on parameters 2, 3&4.Big Data has significant capabilities of forecasting using real time
dashboards, demand planning, supply planning, fulfillment and delivery by using proactive
tracking methods.
Finally we studied the effect of these technologies on organizational structures, business
models and economy as several stakeholders are affected due to such transformations.
Published By : Universal Multidisciplinary Research Institute Pvt Ltd
I. Introduction
Supply chain Management (SCM) seems to be a growing area of interest amongst researchers
and practitioners from varied disciplines. Generally Supply Chain consists of different
functions: logistics, purchasing, inventory, procurement, planning, production, intra-and
inter-organizational relationships and performance measures. To improve the overall
performance of Supply Chain the members of Supply Chain must behave as part of a unified
system and coordinate with each other. Some Indian companies are moving towards making
their supply chain and logistics efficient, however if these companies choose to compete in
the global environment, they will have to search for ways to reduce expenditures. This
reduction in cost will need the revamping of supply chains, innovations and significant
investment in information technology, because information technology tools and techniques
play tremendous role in the performance of the Supply Chain.
Indias challenges include low productivity and inadequate access to basic resources.
According to R Chandrasekhar, president NASSCOM, There are clearly some gaps that
need to be filled first. Lack of infrastructure, hard and soft, is the most obvious one, and then
there is lack of digital literacy.
We identify 3 disruptive innovations which can help India improve its Supply Chain by
making it efficient and solve problems of infrastructure, low productivity, etc.
This paper is organized into 3 sections each catering to an innovation with its implications on
various sectors of economy like healthcare, education, agriculture, energy, manufacturing,
services and infrastructure.
1.1 Supply Chain Defined
The Council of Logistic Management (CLM) (2000) defines SCM as the systematic,
strategic coordination of the traditional business functions and tactics across these business
functions within a particular organization and across business within a supply chain for the
purpose of improving the long term performance of the individual organizations and the
supply chain as a whole.
II. Methodology
Secondary Research was conducted to identify pertinent problems faced in supply chain and
3 technologies were identified. Further extensive research was carried out about these
technologies pertaining to these topics
General Overview of these innovations
Definition/About the technology (Technical Details) in its current form
Impacts on Supply Chain(why when where how it is disruptive)
Other impacts including job structure, other domains
Economic Impact
Potential consumer uses
Barriers and Enablers
Implications on society, life, health, environment, pattern of consumption,

productivity, employment, legal environment, etc.
Disruptive Innovations in Supply Chain Management

III. 3-D Printing
The prospect of converting digital bits into physical atoms to create objects just like a deskjet
printer creates 2-D images of a digital image has made 3-D printing gain wider acceptance as
the next industrial revolution. These machines can download digital bottle and can convert
it to physical bottle. Users can now create their own jewellery, utensils, helmets, etc. at the
click of a button. However skeptics have discounted the technology stating its current
limitations and low levels of adoption.
Our research finds that 3-D printing is in its nascent stage much like the desktop computers
were in 1980s. Personal 3-D printers are available at less than $1000 and is gaining
acceptance amongarchitects, designers, custom parts manufacturers,etc. With mass
production and newer delivery channels we expect this technology to gain wider acceptance
and disrupt current manufacturing sector. According to McKinsey Global Institute it can have
potential impact on the world economy to the tune of $550 million by 2025.
3.1 About the Technology
3-D printing refers to additive manufacturing where objects are made by depositing layers
upon layers of material. It is opposite to conventional manufacturing(subtractive) like
machining where material is removed to get the desired shape of object.
Materials that 3-D printers can use today:
Plastic
Metal
Ceramics
Glass
Paper
Living
Cells
3-D printing techniques used today include: selective laser sintering, direct metal laser
sintering, fused deposition modeling, stereolithography, and inkjet bioprinting. In all cases,
objects are formed one layer at a time, each layer on top of the previous, until the final object
is complete. With some techniques this is accomplished by melting material and depositing it
in layers, while other techniques solidify material in each layer using lasers.
3.2 3-D Printing Process:
3-D CAD File
3-D Printing
A CAD file can

either be created
or downloaded
from internet
Final Product
Layers upon layers

are deposited while
allowing time for
each layer to
solidify
Final Product is
then removed from
mould
3.3 Use of 3-D Printing so far

3-D Printing so far has been used by Industries and Hobbyists. Industries have used 3-D
printing for rapid prototyping and rapid manufacturing.
Breakdown of Worldwide Rapid Prototyping Use

Government/Military
5%
Others
8%
Motor Vehicles
32%
Aerospace
8%
Academic
9%
Consumer Products
18%
Medical
9%
Business Machines
11%
It is used by hobbyists to manufacture anything ranging from a guitar, gun, toys, and models.
However they use it for primarily:
Hobbyists use 3-D Printing for

Functional Models
5%
Artistic Items
4%
14%
Spare Parts to Devices
5%
For Research/Educational Purposes
6%
14%
Direct Part Production
7%
Covers and such for devices
Presentation Models
8%
13%
11%
Furniture and Household Decoration

Used for pattern/in moulds
13%
Visual Aids
Others
3.4 Current Stage of 3-D Innovation Adoption and Future

As discussed 3-D printing currently is used by industries for rapid prototyping majorly.
However as it continues to grow and mature, it can address important needs. In highly
competitive consumer products markets, it can meet rising expectations for quality design
and personalization, better fit for items such as helmets and shoes. 3-D printing also has
potential to address issues related to environment and waste management.
Improvements in performance and speed along with falling costs is likely to spread use of 3D
printing in the coming decade. An average industrial printer today sells for about $75,000,
and some highly specialized machines cost upward of $1 million. However, these costs are
expected to decline in coming years as economies of scale is achieved. Speed and quality of
output is also bound to increase with the advancement in technology. Fraunhofer Institute for
Laser Technology points a 4x increase in printing speeds for metal objects.
It is difficult to predict with certainty when will 3-D printing be mass adopted and become
disruptive. However, we have used Rogers Diffusion of Innovations and adoption rate of
PCs in US to predict when this technology will become disruptive.
Rogers Diffusion of Innovations:

It is a theory that predicts at what rate is new technology adopted by users.
Rate of adoption of PC in US:
PC's per 100 people in US

120
y = 0.081x2 - 322.3x + 31814
R = 0.991
100
80
60
Innovators
Early Adopters
Early Majority
Late
40
20
0
1975
1980
1985
1990
1995
2000
2005
2010
2015
Data Source: Econstats, World Bank data & World Development indicators (See Appendix
for data)
1975
There were
0.02 PC's per
100 in US
2009
There were
100 PC per
100 in US
3-D printing is still in Innovators stage with. In a recent study conducted by Statistical
Studies of Peer production about the 3D printing hobbyists community only 350 respondents
could be found. This is an indicator of the burgeoning community of hobbyists and thus
places it in innovator stage of Rogers Diffusion of innovations.
3D Printing
is here
If we use adoption rate of PC as a base to predict rate of adoption of 3-D printing we get
following graph:
Thus every person will hold a 3-D printer by 2040. This can have a profound effect on world
economy and traditional manufacturing practices. Other contributors that will provide
impulse to widespread use of 3-D printing is:
Falling prices of printers: Prices of 3D printers using fused deposition modeling

technology have declined from $30,000 a few years ago to less than $1,000 for some
models.
Rapidly spreading services: Shapeways in US already has more than 8,000 online
shops and shipped 1 million parts in 2012.
Falling prices of printing material: The materials used in 3D printing still remain
costly (generally about 50 to 100 times greater than materials used for injection
molding), but prices are declining rapidly and can be expected to decline further as
volumes increase.
3.4 Effects that it will have on Economy and Industries it will Disrupt
According to a report published by McKinsey Global Institute 3D printing could generate
economic impact of $230 billion to $550 billion per year. The largest source of potential
impact among could come from consumer uses, followed by direct manufacturing and using
3D printing to make molds. However we found many more markets to be disrupted by this
technology.
10 disrupting effects 3-D printing will have on businesses, consumers and world economy
1. Revolutionizing Mass Manufacturing
3D printing due to falling costs and rising adoption will disrupt many mass manufacturing
industries like
Food
Military
Electronics
Toys
Anything that
exists in liquid or
powder form can
be 3D printed, so
naturally, printed
food is one of the
next big
conversations.
A 3D gun has
already been
printed, so it's
only a matter of
time before the
technology
catches on in this
industry.
The
size, shape, and
materials used to
make electronics
make this industry
a natural
candidate for 3D
printing.
Home 3D printers
and open source
design will change
the way children
create and play.
Automotive
This industry is
already utilizing
the technology
Ford reportedly
uses 3D printing
to test parts.
2. Medicine and Healthcare

Bioprinting can be used to produce liver cells. Organovo specializes in this technology and
plans to start commercial production of liver tissues in 2015. In the near future we can see
even organs being produced using this technology. Patients would not have to wait for a
donor anymore.
3. Education
MakerBot has started MakerBot academy in various institutes and schools and plans to
revamp how engineering and other technical courses are taught. Institutes will use 3D printers
to help students better understand manufacturing and thus enhance their interests in this field.
4. Arts
Architects and artists can use 3D printing to create niche models and sculptures. They can
even replicate famous paintings like those of Van Gogh and place in museums. This will
open up huge markets for artists and museums.
5. Environment
Fewer Wasted
Materials
3D manufacturing
is additive instead
of subtractive and
thus no waste is
generated
Longer life span
Less transport
Products that were

thrown away due
to unavailablity of
spare part could
now be used by
producing parts on
3D printer
Localisation of
manufacturing will
reduce global
supply chains
Fewer Unsold
products
It betters upholds
concept of JIT and
thus less of
inventory pile up is
there
6. Zero Gravity Manufacturing

NASA has used 3D printers on International Space Station to produce spare parts. This
reduces payload of rockets carrying to supplies to space station
7. Customized Home Products
Domestic Consumers can now produce customized jewellery, utensils, etc. with their own
designs. This will disrupt current set up of jewellery and retail chains.
8. Intellectual Property Threats

3D printers will make counterfeit products readily available as users can download CAD file
and manufacture themselves. Copyright and intellectual property rights lawyers will gain
demand.
9. Accessibility of untapped markets
Many developing nations were aloof from global supply chains due to geopolitical issues.
However this technology can help tap those markets with local manufacturing.
10. Restructuring of Global Economy
Localised manufacturing and reduced labor requirement will shift manufacturing out from
China and put it back to countries like Japan and USA. Many niche businesses will also come
up.
IV. Drone Delivery System

Coming out from military origins as a need for warfare, like many technologies drones are
now being used for commercial purposes. Mass adoption of this technology can solve many
supply chain issues ranging from increasing cost of transportation, poor infrastructureand
manpower issues specially during peak seasons to competition. However much needs to be
improved in terms of current technology and regulations concerning safety for drones to be
commercialize. We see this technology adopting the same path as 3-D printing.
4.1 About the technology
Drones are unmanned aerial vehicles (UAV) that are either controlled from the ground by
operators or are pre-programmed to fly.
Essentially drones have a GPS navigation system, a high resolution camera, flight necessities
like engine, fuel etc., and accessories like missiles, spray, etc. that depends on its use.
Control
Center
Satellite
Drone Operations
Drone
Target
A control center relays signals to a satellite which is then relayed back to the drone. The
drone then presumes flight and is controlled by again relaying signals back to control center
through the satellite. The control center guides the drone to the desired location and carries
out the desired task.
Development of modern day drones has been a systematic multi-disciplinary phenomenon.
Sensors, flight programs, materials, camera, etc. all have contributed to development of this
technology in current form.
4.2 Major factors responsible for development of modern day drone are:
1. GPS: In 1981, first commercial GPS weighed 50 pounds with cost over $100K. However
today GPS comes on a 0.3 gram chip costing less than $5.
2. IMU: An Inertial Measurement Unit (IMU) measures drones velocity, acceleration and
orientation. In 1960s an IMU (think Apollo program) weighed over 50 lbs. and cost millions.
In 2014 its a couple of chips for less than $1 on our phone.
3. Digital Cameras: In 1976, Kodaks first digital camera shot at 0.1 megapixels, weighed
3.75 pounds and cost over $10,000. Todays these cameras are a billion times better (1000x
resolution, 1000x smaller and 100x cheaper).
4. Computers & Wireless Communication (Wi-Fi, Bluetooth): Computing technology and
wireless price-performance have become a billion times better.
4.3 Current Use of Drones- Industries
1. Agriculture: Drones watch for disease, collect real-time data on crop yields and health and
spray pesticides uniformly. This is an estimated $3B annual market size.
2. Energy: Energy companies monitor oil rigs and miles of pipeline using autonomous
drones.
3. Real Estate and Construction: Drones photograph and monitor construction on sites,
prospect and advertise real estate banners from golf courses to skyscrapers.
4. Rapid Response and Emergency Services: Drones aid in search and rescue operations
ranging from searching for people to forest fire fighting using infrared sensors.
5. News: Its safer and faster to deploy drones to cover breaking news, disaster, war zones
than human news crews.
6. Package/Supply Delivery: Companies like Amazon are building networks of UAVs to
deliver packages. Facebook has acquired tech firms and wishes to use drones to provide
internet connectivity to millions in remote villages.
7. Photography/Film: Drones are used to capture beautiful images and camera angles.
8. Scientific Research/Conservation: Drones assist in everything from counting sea lions in
Alaska to conducting weather and environmental research to tracking herd movements on the
Savannah in Africa.
9. Law Enforcement: Drones are used during hostage situations, search and rescue
operations, bomb threats, when pursuing armed criminals and to monitor drug trafficking
across borders.
10. Toys: Drones are used as toys as well.
4.4 Drone Delivery System-Disruptive technology
Ongoing improvement in technology will reduce price of drones and coupled with the hurdles
in other sectors which the drone can cater to this technology looks promising. It is well on
route to follow the same evolution pattern of computers and 3-D printing as discussed above.
Confluence of three major technologies identified that will promote drones to be a disruptive
technology are:
1. The Internet of Everything: Drones will play a key rolein our trillion-sensor future,
carrying a variety of sensors (thermal imaging, pressure, audio, radiation, chemical,
biologics, and imaging) and will be connected with the Internet. They will communicate with
each other and with their operators which could even be domestic consumers.
2. Advanced Battery Technology: Increases in energy density (kilowatt-hours per kg) will
allow them to operate for extended periods of time. Moreover, improvements in solar battery
technology is allowing high-altitude drones to fly for weeks without landing.
3. Automation Software & Artificial Intelligence:Teams around the world are working on
automation systems that
a) Make drones easier for untrained users to fly

b) Allow drones to fly and operate autonomously
These advancements will put drones easier and much affordable to use by domestic
consumers.
4.5 4 phases of evolution that Drones are following
Phase 1: Operational Utility: Getting it done
In this phase firms adopt a technology to get work done more efficiently. This phase is
marked by early adopters. An example of this is use of drones for remote aerial photography
and videography, etc.
Phase 2: The Gimmick
In this phase firms showcase a newer technology to gain market attention. Firms may or may
not carry evolution of technology. Amazons Prime Air, Google, Dominos and Facebook all
are currently in this phase.
Phase 3: Service Differentiation
Now brands move from operational effectiveness and gimmickry to employing the new
technology to provide enhanced customer satisfaction. Amazon has moved from creating
rumors to trial runs of its drone delivery system Prime Air.
Phase 4: Consumer Commodity
In this phase drones will become readily available to carry out even mundane tasks like
bringing newspaper from door or following your child to school and keeping threats away
from him. Cleaning windows and removing snow will all be done with the comfort of your
mobile phone through an app.
4.6 Barriers to technology
Apart from the technical challenges already discussed on how drones will become disruptive
following are the social challenges identified that impede commercialization of drones
Privacy
Spying
Interference
with
helicopters
No rules and
guidelines
Illegal acivities
Safety and
crashing
Noise
Theft
Much needs to be done to solve these issues. In USA FAA Modernization and reform Act of
2012 prevents the use of drones for commercial purposes which has kept Amazons Prime
Air rounded. However this act expires in 2015 which could be seen as an inflection point in
drone systems.
4.7 Industries that Future Drones can Disrupt
1. Transportation and Logistics: Just as postal service revolutionized how we send articles
and mails to individuals drones will take it one step further to delivering even food and
medicines. Example is amazons prime air which is proposed to deliver package within 30
minutes if the home is within 50 miles of warehouse. In India where roads are in poor
condition and traffic jams slow down delivery these drones could come as major relief.
However sales of low commercial vehicles like Tata Ace may go down as drones replace
them. Even Google has launched project wing to explore the possibilities.
2. Internet Connectivity: In March 2014 Facebook bought Ascenta, a solar powered drone
company, and it plans to produce drones equipped with technology that can communicate
with satellites and send signals to earth for internet connectivity. A network of such drones
could stay up for 5 years and provide internet connectivity to rural areas. India has just 19%
internet connectivity and it could change e-commerce, banking and telecommunications
scenario in India tremendously.
In terms of supply chain, the drones will positively affect numerous industries, from
agriculture, to medicine, to retail. The resulting efficiency can justify some recalibration of
our privacy expectations - expectations that have already encountered paradigm shifts due to
the digital fingerprints we leave all over the public sphere through credit card transactions,
Wi-Fi usage, and storage in the cloud.
Acceptance of commercial drones will require us to adapt personally (in terms of tolerance)
and industrially (in terms of infrastructure and regulation); but the undeniable benefits of this
and previous disruptive technologies make the change inevitable.
V. Big Data
Big data means a collection of electronic information from numerous sources and applying
analytics to identify patterns, trends, and other intelligence. The analysis might point to things
that have occurred in the past but werent perceivable, or it might help a company to predict
what would happen in the future.
Today, more and more companies are demanding that their managers understand data and
analytics. Before supply chain managers can grasp how analytics and big data can be used in
their departments, they should first understand not only what those concepts actually mean
but also what difference they can make.
MIT Center for Digital Business, working in partnership with McKinseys business
technology officeconducted a survey to test the hypothesis that data-driven companies would
be better performers and came out with the below mentioned resultsCompanies in the top third of their industry using data-driven decision making
were, on average, 5% more productive and 6% more profitable than their
competitors.
5.1 Companies experience with big data till date-
The big part of big data refers to the volume of information available for analysis. In the
supply chain context, that might include data starting from point-of-sale systems, bar-code
scanners, radio frequency identifiers, global positioning system devices for vehicles and for
cell phones, and software systems used to manage transportation, warehousing and different
operations.
5.2 Features of Big Data which make future predictable-
VARIETY - Not just the volume but the variety of data matters a lot. Data comes from a
different sources and includes structured as well as non-structured data which has text,
images and other formats. Different sources may include social media websites, online
communication and call centers. It is important to bring all this different data to a
consensus.
VELOCITY - Another dimension of big data is speed. Historical data analysis was a talk
of the past, today if companies want to head off problems such as inventory shortfalls, or
late deliveries due to bad weather, it is important to analyze data on a real or near-real
time basis.
VOLUME According to a recent statistics, around 2.5 Exabytes of data is collected
each day. This gives data analysts opportunity to work with terabytes of data. For
example, it is estimated that Walmart collects more than 2.5 petabytes of data every hour
from its customer transactions.
5.3 How does Big Data help in supply chain??
Big Data - improve the way you sell, make, move, and buy
Supply chain managers don't need to know the technical details of big data but they do need
to realize that they can and should capture and analyze data for positive business outcomes.
For example, if you have sensors on your manufacturing, warehousing, or trucking
equipment, hadoop and data mining can help you to analyze the data those sensors collect.
You could use the information to predict when machines will fail or to improve the fuel
efficiency of trucks. Or you can use the recorded customers' voicemails and e-mails, to
analyze this data to help your company provide better service.
To transform data into business value, a big data architecture should be developed as a supply
chain that can manage and process the volume, variety, and velocity of data.
This process of transformation can be divided into three steps:
Identify business goals

Gain an overall vision
Prioritize business goals, generate
insights, and validate hypotheses and
analytic models
Make big data insights operational

Devops team should work in
conjunction with data analyst
Build a big data pipeline

Collect data from different mediums
Both should make sure that actionable

information is communicated to
stakeholders, customers, and partners.
Integrate, cleanse, and prepare data

Browse data and visualize and discover
patterns, trends, and insights
Transform and distribute actionable
information to end-users
Link and optimize your entire supply chain system -Go beyond fragments: capture benefits
ranging
from
operations
to
marketing
Consumer-centric companies such as retailers have a lot of data about their customers and in
todays interconnected world, as the volume, variety and velocity of data about a consumer is
growing businesses are finding this data critical to drive business decisions around market
segmentation, personalization, and merchandising through it. They are using it to avoid lost
revenues due to stock outs, lower visit to buy ratios, inefficiencies in merchandising,
lower average sales price, and lower number of items purchased per online visit.
In a nutshell, not being able to gain insights from stocks of data means retailers are allowing
their competition to identify critical business trends and act on those before they can, thus
losing business.
access data from different sources-social media, e commerce channels and
bind them together
360-degree
customer analytics Insigts and analytics help to predict customer behavior more accurately and
provide meaningful recommendations
Greater customer
loyalty with
personalization
and micro
segmentation
Real-time operational intelligence

Predictive analytics
Fraud detection
Better Inventory management

Inventory data along with weather predictions, history of sales and seasonality is considered
as an input to the model for forecasting and planning supply chain.
Prevents out
of stock and
over stock
conditions
Appropriate
stock
management
through
forecast
Reduce loss of
sales and
business due
to stock outs
Logistics optimization
Constant sourcing and continuous analysis of transportation through GPS and other logistics
data and using them for demand forecasting and optimization helps to improve distribution
management.
Optimization
of logistics
leads to fuel
optimization
Efficient
routing of
vehicles
Operational
excellence
and better
supply chain
visibility
Achieve business objectives:

Big data helps in achieving business objectives through demand forecasting and supply chain
planning. It involves three steps which facilitates enterprises in supply chain management.
Scenario Management
Uncertain business scenarios make future
planning difficult
Scenario Management helps create
scenarios, compare multiple scenarios
Helps to balance conflicting KPIs and
arrive at an optimal solution
Multi User Collaboration

Real business case scenarios comprise of
highly complex data requiring support
from analysts and domain experts
Sofwares based on big data today enable
multi user collaboration so that multiple
users can produce optimal plans through
its collaborative decision making process
5.4 Current state of Big Data
Results companies have achieved using big data

0
10
15
20
25
30
35
40
45
Improvement in customer service and demand
50
46
41
Increase in supply chain efficiency of 10% or greater
36
36
Optimization of inventory and asset productivity
33
32
Improved cost to serve
28
28
27
26

Shortened order-to-delivery cycle times
20
14
Series1
Series2
Companies that embed big data in its supply

chain operations
0
Shortened order-to-delivery cycle times
Increase in supply chain efficiency of 10% or greater
Improvement in demand driven operations
Improved cost to serve
Better customer and supplier replationships
More effective S&OP process and decision making
Faster and more effective reaction time to supply chain
Optimization of inventory and asset productivity
Greater integration across the supply chain
Embedded in day-to-day operations
10
20
30
40
50
60
63
12
16
15
18
19
13
18
19
19
17
Used on ad hoc basis
70
59
58
53
52
51
47
45
44
43
Companies more frequently realized stronger results when they applied an enterprise-wide
strategy as opposed to the process-focused strategy.
Whether organizations increased their supply chain efficiency by at least 10%, improved
their customer relationships, or improved their cost to serve, respondents more frequently
reported achieving results when they took an enterprise-wide approach to Big Data analytics
as opposed to a process-focused strategy.
However, the application of an enterprise-wide strategy should be underpinned by a clear
view of what will help the company create value, differentiate themselves in the market, and
gain an understanding of how their industry is evolving or being disrupted. Then they can use
those insights to chart the business roadmap that can help them achieve their goals with Big
Data analytics.
5.5 Potential extensions in future
Cloud computing offers promise to connect the extended supply chain. It also shows great
potential to enable real-time benchmarking. Big data alone provides traditional benchmarking
techniques which are difficult because they are static. Cloud will make technology
deployments easier; but more importantly it will allow real-time sensing on benchmarking
data.
Thus we see a new generation of technologies evolving. For supply chain leaders, it is not
easy as user satisfaction with supply chain systems is at an all-time low, and the lack of
scalability of the first generation of solutions is strangling business decision-making.
Adapting systems to take advantage of new technologies is about more than modernizing
supply chains or stuffing new forms of data into existing architectures. It requires a redesign.
It is about improving visibility into business activities, providing better service to customers
and improving profitability. But, then shouldnt this be what the supply chain is really all
about?
VI. Conclusion
The findings validate five principles that corporations can learn to better manage their supply
chains and prepare for future opportunities.
1. Supply chain disruptions have significant impact on company business and financial
performance.
2. Companies with mature supply chain and risk management capabilities are more resilient
to supply chain disruptions. They are impacted less and they recover faster than companies
with immature capabilities.
3. Companies that invest in supply chain flexibility are more resilient to disruptions than
companies that dont.
4. Companies investing in risk segmentation are more resilient to disruptions than mature
companies that do not invest in risk segmentation.
5. Companies with mature capabilities in supply chain and risk management do better along
all surveyed dimensions of operational and financial performance than immature companies.
The potential benefits of the technologies discussed in the report are tremendousbut so are
the challenges of preparing for their impact. If business and government leaders wait until
these technologies are exerting their full influence on the economy, it will be too late to
capture the benefits or react to the consequences. While the appropriate responses will vary
by stakeholder and technology, we find that certain guiding principles can help businesses
and governments as they plan for the effects of disruptive technologies.
Business leaders should keep their organizational strategies updated in the face of continually
evolving technologies, ensure that their organizations continue to look ahead, and use
technologies to improve internal performance.
Policy makers can use advanced technology to address their own operational challenges (for
example, by deploying the Internet of Things to improve infrastructure management). The
nature of work will continue to change, and that will require strong education and retraining
programs.
VII. References:
1.
Accenture
report
(2014-15).
Retrieved
December
23,
2014
from
http://www.accenture.com/us-en/Pages/operationsmegatrends.aspx?c=strat_opsmega_10000001&n=otc_0914
2. Inbound logistics leveraging big data. Retrieved December 23, 2014 from
http://www.inboundlogistics.com/cms/article/leveraging-big-data/
3. Three things you should know about big data and analytics. Retrieved December 24, 2014
from
http://www.supplychainquarterly.com/topics/Technology/20141107-three-things-you-
should-know-about-big-data-and-analytics/
4. Top 10 reasons drones are disruptive. Retrieved December 22, 2014 from
http://www.forbes.com/sites/peterdiamandis/2014/08/11/top-10-reasons-drones-aredisruptive/
5.Amazon-google-ebay-eye-next-disruptive-technology-same-day-delivery
Retrieved
December 22, 2014 from http://www.bostonglobe.com/business/2013/04/06/amazon-googleebay-eye-next-disruptive-technology-same-daydelivery/MUdurofiYnJ9WgUV1MHTyK/story.html

6. Google drones acceptance-disruptive technology. Retrieved December 24, 2014 from
http://www.marshall.usc.edu/faculty/centers/cgscm/blog/2014/google-drones-acceptancedisruptive-technology
7. Google tests drone deliveries in Project Wing trials. Retrieved December 24, 2014 from
http://www.bbc.com/news/technology-28964260
8. Disruptive technologies: Advances that will transform life, business, and the global
economy.
Retrieved
December
26,
2014
from
http://www.mckinsey.com/insights/business_technology/disruptive_technologies
9. If you think 3d printing is disruptive wait for 4d. Retrieved December 26, 2014 from
http://blogs.wsj.com/tech-europe/2013/07/30/if-you-think-3d-printing-is-disruptive-wait-for4d/
10. MGI Disruptive technologies Full report (May 2013). Retrieved December 26, 2014 from
file:///D:/Downloads/MGI_Disruptive_technologies_Full_report_May2013.pdf
Appendix
Econstats, World Bank Data for number of PCs in US:
USA Number of Computers per 100 people
1980
1981
1982
1983
1984
1985
0.923884
2.38708
5.20548
8.13315
10.621
12.972
1986
1987
1988
1989
1990
15.6177
18.4377
20.0147
21.7127
23.3219
1991
1992
1993
1994
1995
25.1448
27.0084
29.4536
32.4097
35.8583
1996
1997
1998
1999
2000
39.977
44.9513
50.5304
57.0574
62.4382
2001
2002
2003
2004
2005
76.3737
77.9535
80.6065

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2015

SOUTH -ASIAN JOURNAL OF MULTIDISCIPLINARY STUDIES (SAJMS) ISSN:2349-7858 VOLUME 1 ISSUE 4

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General Overview of these innovations

Definition/About the technology (Technical Details) in its current form

Impacts on Supply Chain(why when where how it is disruptive)

Other impacts including job structure, other domains

Potential consumer uses

Barriers and Enablers

Implications on society, life, health, environment, pattern of consumption,

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Disruptive Innovations in Supply Chain Management

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3.2 3-D Printing Process:

3-D CAD File

A CAD file can

Layers upon layers

3.3 Use of 3-D Printing so far

Breakdown of Worldwide Rapid Prototyping Use

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Hobbyists use 3-D Printing for

For Research/Educational Purposes

Direct Part Production

Furniture and Household Decoration

3.4 Current Stage of 3-D Innovation Adoption and Future

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Rogers Diffusion of Innovations:

Rate of adoption of PC in US:

PC's per 100 people in US

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Falling prices of printers: Prices of 3D printers using fused deposition modeling

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2. Medicine and Healthcare

Longer life span

Products that were

6. Zero Gravity Manufacturing

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8. Intellectual Property Threats

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IV. Drone Delivery System

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a) Make drones easier for untrained users to fly

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