February 2016 9logisticstechoutlook.comDaniel Cavallinchain is to have the information in real time. If we have sensors in freight forwards, warehouses, and even in retail stores, we are going to know in real time what is happening, but this kind of velocity can't be handled by humans. The Internet of Things needs a partner, The Algorithm of Things. Big data has no meaning if we can't analyze it and make decisions right away, this is the time for mathematicians and scientists to enter in business, and the algorithms can't be statics, they have to adapt following the behaviors of the consumers. Machine learning is getting closer and closer, a big challenge for the IT industry.Added Value to ClientsCIOs today have a big responsibility. It's not only about having all the systems up and running; it's about innovation, and transformation. More of the IT efforts go to improve processes, efficiency. Here it's easy, there are lots of ERPs and business applications that can help you; the tricky part is outside the company. The services and products you are creating, leveraged by the power of information bringing added value to our partners, is the key. Demand planning complements sales and operations while retail sales complements inventory management of the warehouses. Finding the information that complements your clients' needs is the key to create a unique product, always a competitive advantage.IT's New Role is the Transformation of the Business ModelIn a highly demanding and competitive world, companies have to offer something more, something different. We immediately think of innovation as investing in some new technology that will change the world, but that does not have to be the case. Innovation can be simple and can have a huge impact. The CIO has to work with other C-levels, not necessarily on transforming the internal process through automation, but instead on focusing on the business model. Changing or adapting the business model can make a difference. When HP decides to sell Ink Injection printers for a very low price, even below-cost,knowing that they will sell the cartridges with a big margin that way, they are innovating in business model; Uber did not create a new technology, they created a new business model; Netflix changed the way people rent movies, the old business models simply died. If you are going to innovate in your company, focus on the business model and bring people the feeling that your product or service is better for them in this new way.Converting Data into InformationIf you are a CIO starting in any industry, you have to focus on three things; Business Continuity, Business Applications, and Products and Services. From the beginning, architect a data warehouse, keep your data clean and organized and find ways to convert it into information, adding value to your services. Don't automate a process that doesn't exist, don't sponsor a project that is not of IT, involvement of the users is the key. Develop it with an agile framework and never stop to be creative, to innovate. The key to make the right decision in supply chain is to have the information in real time
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