A digital Organization

A digital Organization
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Lean Principles in Digital Business - DMAIC evolving

Working on a digital advertising product support process, am brought to remember Deming’s research on DMAIC (Define, Measure, Analyze, Inspect and Control) and its imperative in today’s digital business ecosystem. Firstly, I must admit, Deming’s work will always stay fresh irrespective of the tectonic shift in the businesses. The days when Deming wrote his research, the processes were very much physical and people made the process. The quality circles,  PDCA, lean principles and Six Sigma all evolved out of the physical processes. The notion of physical being the involvement of human and the extent to which the process was built bottom up. Consider for example, a car assembly line which moves from station to station where at each station an operator works on a WIP product according to a SoP and the belt keeps moving. Lean principles meant that the inventory at each stations disposal had to be enough to carry on for two hours and the supply chain was managed for cost optimization. However, considerable time was lost for the inventory to be replenished from the warehouse to the stations at the end of each hour, so the solution came in the form of  automated robots doing the rounds to carry the inventory. Smart isn’t it!!
The process above is still physical but strongly enabled by IT. But consider a case when interplay of all organization functions with the up to date customer voice will enable more smarter way of businesses, where all realms of digital business is at play making any process agile.
Consider the situation with new mobile phone launch, there are always reports of regions being short stocked leading to lost sales and vice-versa. I always, wonder,  is the supply and demand numbers a wild card guesstimate. Is the number a guesstimate or result of an algorithm ?  Trying to break it down, demand is driven by the marketing efforts, sales penetration and the buzz in the market for the launch. This could reflect in the CRM systems to the stickiness in the social media.  Supply is regulated by various factors not limited to manufacturing capacity, inventory, shipping, regulatory etc.  So, if the enterprise was digital, can the lost sales being avoided ?  If business planning could drive close to reality demand numbers country by country driven by sentiment analysis of marketing campaigns backed by CRM data,  can the lost sales be avoided?
Working on a digital advertising product support process, am brought to remember Deming’s research on DMAIC (Define, Measure, Analyze, Inspect and Control) and its imperative in today’s digital business ecosystem. Firstly, I must admit, Deming’s work will always stay fresh irrespective of the tectonic shift in the businesses. The days when Deming wrote his research, the processes were very much physical and people made the process. The quality circles,  PDCA,  lean principles and Six Sigma all evolved out of the physical processes. The notion of physical being the involvement of human and the extent to which the process was built bottom up. Consider for example, a car assembly line which moves from station to station where at each station an operator works on a WIP product according to a SoP and the belt keeps moving. Lean principles meant that the inventory at each stations disposal had to be enough to carry on for two hours and the supply chain was managed for cost optimization. However, considerable time was lost for the inventory to be replenished from the warehouse to the stations at the end of each hour, so the solution came in the form of  automated robots doing the rounds to carry the inventory. Smart isn’t it!!
The process above is still physical but strongly enabled by IT. But consider a case when interplay of all organization functions with the up to date customer voice will enable more smarter way of businesses, where all realms of digital business is at play making any process agile.
Consider the situation with new mobile phone launch, there are always reports of regions being short stocked leading to lost sales and vice-versa. I always, wonder,  is the supply and demand numbers a wild card guesstimate. Is the number a guesstimate or result of an algorithm ?  Trying to break it down, demand is driven by the marketing efforts, sales penetration and the buzz in the market for the launch. This could reflect in the CRM systems to the stickiness in the social media.  Supply is regulated by various factors not limited to manufacturing capacity, inventory, shipping, regulatory etc.  So, if the enterprise was digital, can the lost sales being avoided ?  If business planning could drive close to reality demand numbers country by country driven by sentiment analysis of marketing campaigns backed by CRM data,  can the lost sales be avoided?
Nitin Keshav

Nitin Keshav

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