Adapt or Die
Transforming Your Supply Chain into an Adaptive Business Network
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ISBN-10: 0-471-26543-8
ISBN-13: 9780471265436
Publisher: Wiley
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Year: January 21, 2003
Size: 16.76 x 22.61 x 2.29cm
Number of pages: 256
Weight: 454gr
Binding: hardback
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Business & Investing
Industries & ProfessionsPurchasing & BuyingManagement & LeadershipManagementMarketing & SalesPublic RelationsSmall Business & EntrepreneurshipEntrepreneurshipProfessional & TechnicalEngineeringIndustrial, Manufacturing & Operational SystemsProduction, Operation & Managementdescription
Cut costs and control inventory an adaptive business network
This book introduces the adaptive business network, a new method of business interaction that offers the ability to respond swiftly to changing market conditions, increase revenue growth, and lower overall cost. In Adapt or Die, the experts from SAP provide a thought-provoking road map to a new business world in which companies are linked together by uniform business processes and standardized software (uniform business processes and standardized software leaves me the impression of being rigid and inflexible, which is contrary to what were trying to say in the book). An adaptive business network allows companies to more precisely control inventory, quickly add or drop trading partners, and produce products and services that mirror actual customer demand.
Adapt or Die explores all the vital aspects of the adaptive business network, including:
- The benefits for your business
- Ways to prepare your company
- Implementing the adaptive business network in four steps
- Its application to specific industries
- The changes the adaptive business network will bring to the future of business
reviews
There are a lot of business books out there espousing the latest management fads and panceas. Having spent 15 years consulting with many US and multi-national manufacturers, this book does a great job of clearly depicting today's problems.
I think this book spoke plainly about those problems and solutions in way that many executives don't want to hear. There was no sugar coating in this book; either companies must come to grips with their antequated operating and management structures or they'll cease to exist. Pretty simple. And when you consider it for a moment, the are lot of companies that seem to be taking the latter path not the former (think United Airlines; Kmart; Ford; GM).
I think the adaptive business network is a great concept that deserves further consideration. It is interesting that the writer comes from a software/technology company, especially since this isn't a techie book. Maybe SAP is on to something big if they have the technology to help an adaptive business network run.
Conceptually the book is at its best in analyzing the dynamics of futuristic Supply Chains. It introduces the concept of Adaptive Business Networks that consist of several firms collaborating with each other as a virtual entity, facilitated by a coordinating partner. Each firm adjusts itself in real time to the market information, thereby winning together as a team of collaborating partners as opposed to achieving sub-optimal individual goals. The information flows from the Customer in a pre-determined manner, triggering business decisions based on uniform business processes and common technological platforms. The lead firm also retains the ability to add and drop partners depending on market forces and performance of the partners. There is no limit to the size of the network either. The partners also enjoy synergies by sharing common services – financial, consulting, legal for example. This is undoubtedly a dream of all supply chain managers. But then reality and dreams need to be bridged. This is where is book is lacking.
The issues that are not very convincingly answered are:
- How do participating firms, so diverse on their current technology platforms and business processes achieve the near standardization that is essential for such networks? Even in large multinational corporations running standard ERP software across several continents this is not yet achieved.
- Firms may have to participate in several networks simultaneously, and at times where the coordinating partners are fierce competitors in the same market. There would be conflicting interests where information sharing is not easy.
- Legal restrictions and protectionist walls across countries continue to prevail despite the rhetoric of globalization. An ideal network should first ensure a level playing ground for all players across this planet.
- CEO's today are afflicted by »Quarteritis«. Missing numbers this quarter in the »larger interest« of their network may not appeal to most of them in the absence of substantial benefits accruing in the immediate future.
- Framework for collaboration between major software vendors to provide building blocks necessary for such a network.
Recommended reading to understand some interesting concepts that may be of help in designing supply chain solutions.
As a person in the supply chain field, I was excited to read this book and see what types of innovations Heinrich and Betts would offer. Their historical look into the current state of many supply chains felt close to home. While I understand their approach and believe my company is taking steps toward creating their version of an adaptive business network, after reading this book I think my company still has a way to go. One of Heinrich and Betts' main points was compared to Moore's Law – business is continuously and quickly ever-changing. For a company to continue to compete, it must keep up and be flexible with the continuous changes that come its way. This point ties into the amount of technology Heinrich and Betts suggest to be implemented if an adaptive business network is to succeed. Over the course of the four steps, a number of new or updated technologies are necessary. While Nicholas Carr's article »IT Doesn't Matter« argues that cutting edge technology is not necessary to maintain a competitive advantage, I think the adaptive business network would argue otherwise. Between supplier-customer portals, real-time tracking, reporting, and inventory systems, and multiple linkages between various parties, none of this would exist without a solid technology base. Wal-Mart is a good example of a company who uses advanced tracking, inventory, and reporting through their RFID system. Their efficient supply chain and the changes they have implemented have helped to regulate their inventory while maximizing profits. The one main contention I had with Heinrich and Betts were the timelines they estimated for each step of the process. Step One is three weeks to six months, Step Two is a few weeks to four months, Step Three is a year, and Step Four is ongoing. While I can only speak from my experience and working for a large corporation, I felt that any significant changes, especially technology changes, take more time that their suggested estimates. I wondered how feasible these changes would be, especially since the authors suggest only doing one product at a time. For a company like mine, which encompasses hundreds of thousands of products, I did not know how I would convince my management that multiple technological changes are necessary to change the supply chain habits of one product at a time. Perhaps this step-by-step method would be more realistic for a smaller company with fewer products, but the cost of technology may be an issue for a smaller company. Although their ideas might have seemed a bit idealistic, I believe their core belief of integrating all participants in the supply chain is true. In today's business world, customers want things faster and with increased accuracy. Implementing an adaptive business network would bring together all the members of the supply chain and through a collaborative effort all the involved parties will benefit from this change.
This book fills the great gap between too much theory/no real-life examples and detailed case studies on a specific company.
It really gets to grips with what it means to adapt, to make your whole business operation flexible enough to meet all challenges of todays environment. More than anything, it highlights why companies MUST adapt, why the old rules of business don't apply anymore.
Also real interesting that this is written by an exec of a software firm without plugging that company's products – it is objective and focused, detailed without being techie.
An all round excellent book.
As a consultant and supply chain manager I have read a lot of theoretical stuff around supply chain management and how you can boost performance. This book is one the few that go down to the essential levers that drive supply chain improvements. At the same time the authors paint the picture of an adaptive business network and describe a step by step process how technology can help to transform a supply chain into an adaptive network. Supported with valuable company examples this book is very good to read and an inspiration for every decision maker who is not captured in his paradigms.
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