2022 T3 Mmm710 W01 Week 2 Innovation And Ai.pptx

Presentation name or heading here 1 Deakin University CRICOS Provider Code 00113B MMM710 Business Process and Operations Management Week TOPIC Deakin University CRICOS Provider Code 00113B 2 Drag pict[.]

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Deakin University CRICOS Provider Code: 00113B

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LAST WEEK – KEY IDEAS

• GVC

•Steps in a long process

•Available for all countries to participate

• The Value Chain

•Generally a Lead mover

• Some are structured by the Industry

•Arguably the next step in the evolution of Organisations

•From

• The Pin Factory – to the Industrial Revolution

• To The Ford Factory (mass production) and Automation

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Inherent Challenges

• Increasing reliance on others

•Remote partners from different cultures and ways of thinking

• Governance

•How do you manage, control or govern each stage

• For Quality of the product or component

• For Acceptable ways of Production

– Labour management – Sustainability and Environmental Dimensions

•Changing Focus over the Last 20 years

• Annual Reports, Identity, Promotion

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The Problem of the Subject

• Understand the nature of Global Value Chains

• Identify the forces that are shaping and changing GVC’s

• Imagine the ways that your industries,

•and their GVC’s

• Will evolve over the life of your career

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Click Icon to Add Image

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Week 4 = Strategic Perspective on Operations Management

Week 5 = Mid-term Review

Week 6 = Operations Planning

Week 7 = Forecasting

Week 8 = Resource Management

Week 9 = Quality Management / Assessment Task 1 Due

Week 10 = Operations Resilience

Week 11 = Unit Review

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Some More Problems

• Global Supply Chains are Interconnected

•Need to develop trust and confidence (assurance) in the chain

•This takes time to develop

• We live in a world that is constantly changing

•Think 2000, 2010 and see the major innovations

• How does the GSC remain stable

•While generating and adapting to Innovations?

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We need to understand Creative Destruction

• The term first used by Marxists

• Reimagined by Joseph Schumpeter

•CD: The fundamental impulse that sets and keeps the capitalist engine in motion comes from the new

• Consumer goods, methods of production or transportation, markets, industrial organisation … that capitalist enterprises create (1942)

consists in and what every capitalist concern has got to live with

Value extraction with asset control/ monopolization and market power (rents )

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•Creator and Destroyer

• So capitalism is simply a form

of Life

•Constantly Changing

•The New Destroys the Old

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SO to understand GVC we need to understand CD

• The challenges of the organisation (constancy

and rebirth)

• Are equally applicable to the process of creating

and maintaingin GVC’s

•However the lead times are longer

•And any major change (innovation) is going to impact the rest

of the GVC

• Need to know the types of Innovation

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Innovation Perspective on Operations Management

• Two Types of Innovations

• Process Innovation

• Product Innovation

• Process innovations help make manufacturing more efficient

• Product innovations help firms protect margins

• (by offering new and differentiated features)

• Many firms earn over one-third of sales on products developed within the last 5 years

• IT advances have enabled faster innovation

• For example, computer-aided design & computer-aided manufacturing systems enable rapid design and shorter production runs

Reference = Schilling, M A (2022) Strategic Management of Technological Innovation McGraw Hill.

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• The importance of innovation + advances in IT =

 Shorter product lifecycles / more rapid product obsolescence

 More rapid new product introductions in the market

 Greater market segmentation locally and internationally

So, all good?

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•At Society-level,

 Innovation enables the internationalization of goods and services

 More efficient food production

 Improved medical technologies

 Better transportation

 Increases GDP by making labor and capital more effective and efficient

• However, may result in negative externalities

 Pollution

 Erosion

 Antibiotic-resistant bacteria

 International security issues

Reference = Schilling, M A (2022) Strategic Management of Technological Innovation McGraw Hill Reference = Kim, J & Raswant, A (Forthcoming) International Business and Security Palgrave Macmillan.

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•Considering Industry + Formulating Strategy,

 Successful innovation requires carefully formulated strategies

 Successful innovation requires carefully formulated implementation business processes

 Most innovative ideas do not become successful new products,

e.g., New Product Development in Pharmaceutical Industry

• Be mindful of,

 Sustainability concerns

 International security issues

Reference = Kim, J & Raswant, A (Forthcoming) International Business and Security Palgrave Macmillan.

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• In rural India up to 90% of families cannot afford appliances, have no

electricity and have no refrigeration.

• Appliance manufacturer Godrej and Boyce decided to make a

smaller, cheaper refrigerator to tap this market.

• Many of their assumptions turned out to be wrong;

• they ended up making a lightweight portable battery-operated

refrigerator

• with customizable skins to make them cool and aspirational and sold to

multiple market segments,

• including the urban affluent

• Godrej and Boyce also pioneered a novel distribution system: the

Chotukool would be sold at the post office.

Reference = Schilling, M A (2022) Strategic Management of Technological Innovation McGraw Hill Reference = Asakawa, K., Cuervo-Cazurra, A., & Un, C A (2019) Frugality-based advantage Long Range

Planning, 52(4), 101879.

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• Chotukool

•45-liter plastic container that

• can cool food to around 8 to 10 degrees

• on a 12-volt battery

•It uses a thermoelectric or solid state cooling system.

• Abandoning the compressor technology used in domestic fridges,

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• Innovation Types

• / Product versus Process Innovation

• Product innovations are embodied in the outputs of an organization – its goods or services.

• Process innovations are innovations in the way an organization conducts its business, such as

in techniques of producing or marketing goods or services.

• Product innovations can enable process innovations and vice versa.

• What is product innovation for one organization might be a process innovation for another.

 For example, U P S creates a new distribution service (product innovation) that enables its customers to

distribute their goods more widely or more easily (process innovation).

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•Innovation Types

•/ Radical versus Incremental Innovation

• The radicalness of innovation is the degree to which it is new and different

• from previously existing products and processes.

• Incremental innovations may involve only a minor change

• from (or adjustment to) existing practices.

• The radicalness of innovation is relative;

• it may change over time or with respect to different observers

 For example, digital photography is a more radical innovation for Kodak than for Sony.

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•Innovation Types

•/ Competence-Enhancing versus Competence-Destroying Innovation

• Competence-enhancing innovations build on the firm’s existing knowledge base.

 For example, Intel’s Pentium 4 is built on the technology for Pentium III.

• Competence-destroying innovations render a firm’s existing competencies obsolete.

 For example, electronic calculators rendered

Keuffel and Esser’s slide rule expertise obsolete.

• Whether an innovation is a competence enhancing

or competence destroying depends

on the perspective of a particular firm.

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•Innovation Types

•/ Architectural versus Component Innovation

• Component innovation (or modular innovation) entails changes to one or more

components of a product system without significantly affecting the overall design.

 For example, adding gel-filled material to a bicycle seat.

• Architectural innovation entails changing the overall design of the system

• or the way components interact.

• Most architectural innovations require changes in the underlying components also.

 For example, the transition from a high-wheel bicycle to a safety bicycle.

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Disruptive Innovation

• Disruptive Innovation Changes an Industry

•The problem is that is creates new products that are cheaper than the previous ones

• And so provide companies with lower margins

•This is the Innovator’s Dilemma

• Should manufacturer’s go for these new products (with lower margins)

Or should they persist with their current product with higher margins

•Your examples of Disruptive Innovation

• https://www.youtube.com/watch?

v=qDrMAzCHFUU&list=RDLVqDrMAzCHFUU&star t_radio=1&rv=qDrMAzCHFUU&t=0

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Disruptive Innovation

• Disrupting An Entire Industry | Jay

Rogers | Exponential Manufacturin g

@25.00

•Clayton Christensen

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Connecting Dots…

• SO – Is Artificial Intelligence going to be the driver

of new Value in the Global Value Chain ?

• However

• “Artificial intelligence (AI) is increasingly being adopted by

organizations, yet implementation is often carried out without careful consideration of the employees who will be working along with it”.

Reference = Makarius, E E., Mukherjee, D., Fox, J D., & Fox, A K (2020) Rising with the machines: A sociotechnical framework for bringing

artificial intelligence into the organization Journal of Business Research, 120, 262-273.

Do you agree?

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Strategic Intelligence – Playing with Ideas

• World Economic Forum: Strategic Intelligence

•Need to sign up

•Provides mind maps of key strategic issues and topics

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• Live view

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What are you most curious about ?

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Reference = Makarius, E E., Mukherjee, D., Fox, J D., & Fox, A K (2020) Rising with the machines: A sociotechnical framework for

bringing artificial intelligence into the organization Journal of Business Research, 120, 262-273.

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• “Results also revealed that Functional Risk Barrier has the highest

level of importance toward blockchain resistance, followed by

Usage Barrier UB, Security and Privacy Barriers SPB, and Information Barrier IB

•Compatibility and Interoperability Barrier (CIB), and System Quality Barrier

(SQB) were found to have the least importance to BCOM”.

• + Blockchain for Operations Management (BCOM)

• + Psychological Barriers: Information barrier (IB), Usage barrier (UB),

and Functional Risk Barrier (FRB)

• + System-related Barriers: Security and Privacy Barrier (SPB),

Reference = Wong, L W., Tan, G W H., Lee, V H., Ooi, K B., & Sohal, A (2021) Psychological and system-related barriers to adopting blockchain

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• + Resistance of BCOM is largely dependent upon the user’s understanding or perception of

challenges and risks associated with the use of the Blockchain Technology (BT)

Reference = Wong, L W., Tan, G W H., Lee, V H., Ooi, K B., & Sohal, A (2021) Psychological and system-related barriers to adopting blockchain

for operations management: an artificial neural network approach IEEE Transactions on Engineering Management.

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Reference = Wang, Y., Skeete, J P., & Owusu, G (2021) Understanding the implications of artificial intelligence on field service operations: a

case study of BT Production Planning & Control, 1-17.

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Reference = Wang, Y., Skeete, J P., & Owusu, G (2021) Understanding the implications of artificial intelligence on field service operations:

a case study of BT Production Planning & Control, 1-17.

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Reference = Wang, Y., Skeete, J P., & Owusu, G (2021) Understanding the implications of artificial intelligence on

field service operations: a case study of BT Production Planning & Control, 1-17.

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•Introduction to the exercise and its elements

•Focus and Presentation

•Establishing Groups

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Assessment Task 1 (AT1)

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DISCUSSION POINTS FOR ANALYSIS

• Discussion Points

1 Co-evolution in GVC governance

2.The GVC lead firm as orchestrator

3.The GVC embedded lead firm as network-dependent 4.Integrated theories of network control

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The Road Ahead

•Sustainability & Strategic Perspectives of the GVC

• Week 5: Review and Key Questions

• Weeks 6-7: Operations Planning and Forecasting

• Weeks 8-9: Resource and Quality Management

•Assignment Due Week 9

• Week 10: Operations Resilience

• Week 11: Review

•Online Exam during Exam Period

Tiêu đề	Innovation and Ai
Trường học	Deakin University
Chuyên ngành	Business Process and Operations Management
Thể loại	Bài giảng
Năm xuất bản	2022
Thành phố	Geelong

Định dạng
Số trang	53
Dung lượng	23,27 MB