- When we think about digital transformation,
it helps to think about how technologies
can be threats or business opportunities.
Let me share an example
of how three technologies are likely to pose a threat
to our current supply chains
and how they could create opportunities
for innovative companies.
First is analytics.
I think there's a huge opportunity
for companies who can build their business around data.
Companies that learn how to do this well
will be able to move quickly and efficiently,
which means they can provide their customers
with better service for a lower cost.
On the other hand, companies that aren't leaders
in the use of supply chain analytics
are going to fall behind.
So, for them, analytics is actually a threat
that's likely to make them obsolete.
Next is communications.
Companies that adopt technologies from RFID to 5G
will have better visibility into their supply chains.
That will allow them to respond more quickly
to changes and surprises.
Companies that do not leverage these technologies
will be more vulnerable to disruptions
ranging from excess inventories to stockouts and lost sales.
The third technology that I'll look at is blockchain.
While the future of blockchain is still not certain,
there's a very real possibility
that blockchains could become a standard tool
for managing global business transactions
and that cryptocurrencies could be used to pay
for goods and services.
Companies that are early adopters of blockchain technology
will be in the best position to shape the direction,
set the standards and define the market.
Those who ignore blockchain, or who wait to jump in later,
run the risk of falling behind,
missing the chance to participate in new markets
and losing market share in their existing markets.
Those are just a few examples
of how I think industry 4.0 technologies
are likely to affect our supply chains.
And I'll bet you can think of a lot more examples.
The key to success right now
is to use our business knowledge and our technology savvy
to constantly be watching for the new threats
and the opportunities in front of all of us.