02. 07 Making sense of the impact of the internet of things on Purchasing and Supply Management-A tension perspective

Study I Data Collection Study 2 Data Collection Study 3 Data Comparative analysis of the three studies Development of the data structure How IoT impacts on PSM First order concepts/ s

PURCHASING

8 Journal of Purchasing and Supply Management

Making sense of the impact of the internet of things on Purchasing and

Supply Management:A tension perspective

Hervé Legenvre®”*, Michael Henke”, Herbert Ruile‘

* Furopean Institute for Purchasing Management, France

> Fraunhofer Institute for Material Flow and Logistics, Germany

“ Universities of Applied Sciences Northwestern Switzerland, Switzerland

Keywords:

Purchasing and supply management (PSM)

Internet of things (IoT)

Tensions

The Internet of Things (IoT) is transforming how industries operate It impacts on firms’ supply networks, business processes and business models This article describes how the IoT influences the Purchasing and Supply Management (PSM) function Our findings based on interviews and workshop with more than 200 senior European purchasing managers from large corporations suggest that PSM has opportunities to support the de- velopment of IoT solutions within firms which are required to work with dynamic and complex markets At the same time, the IoT supports the development of a more capable and efficient PSM organisation As part of this early stage theory building effort, we outline scenarios for the future of the PSM function This leads us to reflect

on how PSM leaders manage IoT-related tensions by means of differentiation and integration tactics

1 Introduction

The Internet of Things has been presented as a technological para-

digm shift that changes how industries operate (Xu et al., 2014)

Whenever words such as digital, smart, intelligent, predictive or au-

tonomous are associated with a product, an infrastructure or an in-

dustry sector, the IoT provides the foundations that enable such in-

novations (Atzori et al., 2010; Whitmore et al., 2015; Li et al., 2015)

The IoT is best described as a large technical system, an architecture,

that integrates multiple technologies; this includes sensors, actuators,

networks, platforms, algorithms and applications External sources of

data and artefacts can be interfaced within such a system The IoT

transforms products into product-service systems (Ardolino et al.,

2016) Even in sectors such as agriculture and mining that are not

considered to be digital intensive (Chen et al., 2014), IoT-based in-

novations are emerging thanks to the diffusion of energy-efficient

communication technology (Tzounis et al., 2017) The IoT is expected

to offer significant productivity gains and opportunities for business

model innovations However, this will require firms to access distant

yet complementary capabilities across diverse industries (Yu et al.,

2016) Even though the IoT is impacting on firms and their supply

networks, very little literature has been published on this topic beyond

the literature on IoT and supply chains (Yan and Huang, 2009;

Bendavid and Cassivi, 2010) from around 10 years ago This gap in-

formed the development of our research questions: (1) How is the IoT

“Corresponding author

E-mail address: hlegenvre@eipm.org (H Legenvre)

https://doi.org/10.1016/j.pursup.2019.100596

impacting on Purchasing and Supply Management (PSM)? (2) How is PSM responding and adapting to the IoT? (see Fig 1)

Our research embarks on a theory crafting effort right from the early stages of development of a contemporary phenomenon We present conceptual steppingstones that close the gap between “what we know” and “what we don't know” on how the impact of IoT on the PSM function is managed On the one hand, we contribute to framing future investigations into how PSM is evolving as IoT is adopted by firms On the other hand, we provide a framework which is useful for practi- tioners who want to anticipate and prepare for the implications of these technologies for their PSM organisation and supply network

To do this, our research utilises literature on tensions and paradox

as a theoretical foundation Tensions in organisation theory are char- acterised by conflicting but intertwined demands (Smith and Lewis, 2011) This is particularly relevant for our research because major changes reveal tensions and bring contradictory forces to the forefront

of organisational life (Smith and Lewis, 2011) We build on Poole and Van de Ven (1989) who suggested different paths for developing the- ories using tensions and paradoxes We also follow in the footsteps of

Andriopoulos and Lewis (2008) and Smith and Tushman (2005) by

interpreting our data through the lenses of differentiation and in- tegration tactics According to them, blending differentiation and in- tegration allows us to embrace the tension and to maximise the benefits from opposite forces

In order to answer our research questions and to develop a

Received 26 October 2018; Received in revised form 18 December 2019; Accepted 18 December 2019

1478-4092/ © 2019 Elsevier Ltd All rights reserved

https://doi.org/10.1016/j.pursup.2019.100596

Please cite this article as: Hervé Legenvre, Michael Henke and Herbert Ruile, Journal of Purchasing and Supply Management,

Study I

Data Collection

Study 2 Data

Collection

Study 3

Data

Comparative analysis of the three studies

Development of the data structure

How IoT impacts on PSM

First order concepts/ second order themes / aggregated domains

Identification of tensions across second order themes of the data structure

Definition of three “What if scenarios”

based on the analysis of the tension

Scenario 1:

What if PSM only

focuses on using IoT

within its own processes?

Scenario 2:

What if PSM only

focuses on helping the firm leverage IoT?

Scenario 3:

What if PSM focuses on both

concurrently?

Description of

scenario 1

Based on concept

and themes

Description of

scenario 2

based on concept

and themes

Scenario 3

combines

scenario 1 & 2

Description of

tensions in

scenario Ì

Description of tensions in

scenario 2

Description of tensions in

scenario 3

Three strategies used to resolve tensions

Strategy 1

Spatial

separation

Strategy 2

Temporal

separation

Strategy 3 Accepting the tension

Integration tactics Differentiation tactics

Fig 1 Research design

theoretical foundation at this early stage of the development of a

phenomenon, we combine scenario development (Ramirez et al., 2015)

with an inductive, grounded research approach (Gioia et al., 2013) For

scenario development we adopted the intuitive logic school approach

(Bradfield et al., 2005; Notten et al., 2003) Following Borjeson et al

(2006), our research builds on a sensemaking process (Weick, 1995)

and offers three what-if scenarios that are best described as an answer

to “what can happen in the future” To ensure rigor, our research design

follows the guidance of systematic inductive research by Gioia et al

(2013); more specifically we followed the authors recommendations on

how to structure our data in three levels from first order concepts to

aggregated dimensions The second order themes of our data structure

form a framework for managing the impact of the IoT on PSM On the

one hand we combine multiple narratives to elicit patterns and on the

other hand we rigorously study how these patterns interact together to

develop a robust chain of evidence (Miles et al., 2014)

On a normative level, our research design provides us with a vision,

a line of horizon that helps us understand how the future could unfold

for PSM On an epistemological level, it reveals tensions characterised

by conflicting but intertwined demands that are exacerbated by current

technological change This leads us to describe and compare different

trajectories that PSM might follow in the future while discerning how such trajectories could reinforce each other or collide and conflict

2 IoT: the need for sensemaking This section provides a definition, some applications, an archi-

tecture, and an historical account of the IoT This will lead us to con-

clude that even if tangible applications of IoT exist, at this early stage of the development of such a broad technical system, most descriptions of the IoT serve as a mobilising vision They influence the cognitive fra- mework and help identify specific opportunities and challenges for a given context This provides valuable contextual information for our overall research effort and it serves as a foundation for some of the choices made in the research design

The IoT is defined by the International Telecommunication Union as

“the global infrastructure for the information society, enabling ad- vanced services by interconnecting (physical and virtual) things based

on existing and evolving interoperable information and communication technologies” (ITU, 2019) The technologies underpinning the IOT are continuously progressing; they are available at a diminishing price and consume less energy (Atzori et al., 2010) From a business perspective

the IoT is described as a means to change products into product-service

hybrids and to change firms’ business models In such open or semi-

open systems (Kortuem et al., 2010; Serbanati et al., 2011) data is a raw

material (Schupp and Wohner, 2018) and value is generated out of

interconnections

A more refined description of the IoT architecture and its integra-

tion within business activities can also be presented Understanding the

different layers of an IoT architecture is essential for understanding the

nature and the magnitude of the impact of IoT on firms This archi-

tecture allows us to describe how technology is converted into business

value The IoT architecture is an overarching and integrative frame-

work that connects technology, organisations and business models to-

gether The following framework combines a technical IoT architecture

(Gubbi et al., 2013) with a business model approach (Dijkman et al.,

2015) It consists of five complementary layers (Xu et al., 2014) that

transform technology into new business processes and business models:

- Layer 1 includes front-end technology such as sensors, actuators and

chips embedded in products, assets, mobile devices or intelligent

autonomous objects (e.g drones, robots, vehicles, smart stores) It

creates, processes and transfers data autonomously, anytime and

anywhere Layer 1 is a source of data that embeds physical things

within the digital world

- Layer 2 consists of internal and external communication infra-

structures that convey the data from its point of origin to its point of

use Communication networks enable the collection, processing and

dissemination of valuable data gathered from distributed sources

- Layer 3 represents cloud enabled services that provide SaaS

(Software-as-a-Service), PaaS (Platform-as-a-Service), IaaS

(Infrastructure as a Service), DaaS (Data-as-a-Service) and more

Layer 3 aggregates the “Big Data” and makes it available for busi-

ness applications It is in this layer 3 that data meets and blends with

advanced digital technologies and solutions such as data analytics or

artificial intelligence

- Layer 4 encompasses the business applications Such applications

use the data and services from level 3 to simplify, improve and in-

novate processes; for instance, analytics can help to generate and

capture value along the full value chain by ensuring better co-

ordination of all suppliers and partners It also enables new offerings

such as data led services that are central to many firms’ strategies

today

Layer 5 outlines impacts on the overall business model A business

model describes how a firm creates and delivers value to customers

and outlines the structure of revenues, costs, and profits (Teece,

2009) Technologies grounded in layer 1 to 3 contribute towards

developing business applications which can lead to business model

changes to deliver new competitive advantage

Behind the apparent clarity of the definition and architecture pre-

sented above, confusion and uncertainty remain This comes primarily

from the different terminologies that have been introduced in different

contexts over time

The IoT goes back to the late 1980's when Mark Weiser started to

describe a world where algorithms are closely embedded in our daily

life (Weiser, 1991) The IoT, as a term, was coined by Kevin Ashton in

1999: “The phrase ‘Internet of Things’ started life as the title of a pre-

sentation I made at Procter & Gamble (P&G) in 1999“ (Ashton, 2009)

He described the idea behind the IoT as follows, “We need to empower

computers with their own means of gathering information, so they can

see, hear and smell the world for themselves in all its random glory

RFID and sensor technology enable computers to observe, identify and

understand the world—without the limitations of human-entered data.”

(Ashton, 2009)

In 2014, the Industrial Internet Consortium brought together

American companies such as General Electric, AT&T, Cisco, Intel, and

IBM The Internet of Things and the Industrial internet of things became

the favoured terms used by the consortium members They aimed at establishing a cross-industry and global perspective (JIC, 2019) In

2015, a report named “the industrial internet of things” was presented

at the World Economic Forum (O'Halloran and Kvochko, 2015) It

stated that consumer applications within the Internet of Things will be complemented by industrial applications leading to a significant impact

on firms and industries Industry 4.0 was presented within the report as

a specific German initiative promoting the industrial Internet of Things Behind this diversity of terminology, there is also uncertainty and ambiguity on the application side Applications of the IoT have been described by associating words such as smart or intelligent with in-

dustry names This includes, for instance, intelligent mines, smart cities,

intelligent transportation systems, smart meters or smart agriculture

(Chen et al., 2014) Such terms help visualise the future of an industry

This is well suited to establishing German or Chinese industrial policy

or for helping some firms to foresee the long-term impact of this

transformation on their industry But for most managers, this does not

provide significant guidance on what can be achieved immediately by using the IoT at their level The 2015 World Economic Forum study

(O'Halloran and Kvochko, 2015) reported that: “Our survey results

underscore this point: the vast majority (88%) of respondents say that they still do not fully understand its underlying business models and long-term implications for their industries.” If the loT and Industry 4.0 can appear as technical concepts supported by a diversity of technol- ogies, they are primarily mobilising visions of the future that overlap and complement each other

3 Research design 3.1 Research method

In order to describe and explain how the IoT is impacting PSM, it is necessary to embark on a theory crafting effort right from the early stages of the development of this contemporary phenomenon The phenomenon, as presented above, is best described as an ambiguous vision As suggested by Gioia et al (2013) such vision statements have benefits, they favour challenging existing knowledge and trigger a sensemaking process that can lead practitioners to revise their beliefs and actions Consequently, from a research standpoint, there is value in investigating such phenomena from an early stage as they frame future knowledge and actions According to Weick (1989), doing this requires

a process of theory construction with heterogeneous trials that generate and test multiple explicit assumptions Weick describes the production

of useful research as being best governed by selection criterion such as

“That's interesting” that shows an inadequacy of past understanding for current theoretical problems or “That's connected” which shows that a

relationship amongst two or more concepts exists According to Weick

(1989), performing such research is challenging but it enables useful knowledge to be produced The overall research design is described in

Fig 1

In 2016 when the three authors decided to investigate whether they could combine their efforts due to the novel nature of the phenomenon studied, a comparative analysis of the methods and initial findings was performed, along three dimensions: The Impact of the IoT on the supply network, opportunities for the PSM function and the conditions for success (See Appendix A) The three studies offered similar findings This confirmed promising opportunities for developing richer and more reliable research findings together during this early stage of the de- velopment of the IoT Combining and integrating the three studies en- larged the amount of data used in the analysis and helped the re- searchers in developing their understanding of this novel phenomena

In order to answer the question “How will the IoT impact PSM” we adopted a systematic inductive approach to structure our data in three levels, from first order concepts to aggregated dimensions (Gioia et al., 2013) which enabled us to rigorously clarify “what is interesting” After collecting data, this was performed as a desk-based analysis that

Table 1

Informants involved in the three studies

Products

Study 1

Study 2

Study 3

facilitated the combination of a large amount of data collected from

different sources The semi structured interviews, informants’ notes,

informant feedback and archival data collected served as the main

source of information Our conceptual coding built on first-order coding

that comprised language used by informants This allowed us to de-

velop 9 s order themes further grouped into four aggregated domains

The multilevel coding was developed inductively except for the last

aggregated domain where literature on tensions was used to support the

coding

The data structure is described in Table 2 and in appendix B

Throughout the data collection process, it became evident that some

informants were solely focusing on how to leverage the IoT within PSM

activities to gain efficiency and control, whereas others were focusing

on how to leverage IoT opportunities to stimulate innovation, renewal

and growth for the firm Finally, a third group of informants addressed

both without prioritising one over the other This revealed the existence

of tensions defined as conflicting but intertwined demands and per-

spectives (Smith and Lewis, 2011) This offered alternative visions for

the PSM function that helped to answer the question “what is con-

nected?” throughout the data structure

As these lines of tensions were identified, scenario development

appeared as a valuable way to organise the data that had been col-

lected Ramirez et al (2015) positioned scenario development as an

appropriate method of theorizing It expresses and discusses assump-

tions through an iterative inquiry process According to these authors, it

also stimulates the development of conceptual frameworks that deliver

testable research results The quality of such frameworks depends on

the development of coherent, comprehensive and rigorous analysis

(Bradfield et al., 2005) Our approach belongs to the intuitive logic

school in scenario development (Bradfield et al., 2005; Notten et al.,

2003) In line with Borjeson et al (2006), it builds on a sensemaking

process and offers three what-if scenarios that are best described as an

answer to “what can happen in the future on a horizon of 5-10 years?”

In line with Notten et al (2003) techniques used to develop the sce-

narios helped to access qualitative knowledge through interviews and

workshops, creative techniques and storytelling methods to create,

cluster and organise the narratives The three what-if scenarios are

qualitative and equally plausible

The tension led us to identify three “What if?” questions The first

one is “What if PSM only focuses on using IoT within its own pro-

cesses?” This scenario is called PSM as an IoT Technology Adopter and

describes how the IoT is leveraged within PSM activities to gain effi-

ciency and control The second one is “What if PSM only focuses on

helping the firm leverage IoT?” This scenario is called PSM as an IoT Innovator and it describes how PSM contributes to the firm's ability to

use IoT opportunities in order to respond to competitive pressure and

stimulate innovation and growth The third one is “What if PSM focuses

on both concurrently?” This scenario is called PSM as an IoT Master & Strategist It describes how to jointly leverage IoT for efficiency and to use IoT opportunities to stimulate innovation The nature and magni- tude of the tensions inherent in this scenario make it distinct from the other two scenarios

Each scenario was described by using the associated first order concepts and second order themes For each of the three scenarios, specific tensions are identified and described by using the qualitative data provided by informants From this, we discuss how tension can be reconciled using three of the strategies suggested by Poole and Van de Ven (1989) This includes separating spatially the contradictory forces, separating them temporally as well as accepting the contradictory forces and using them appropriately In line with Andriopoulos and

Lewis (2008) along with Smith and Tushman (2005), for the last

strategy, our data provides differentiation and integration tactics that embrace the tension and to maximise the benefits from opposite forces

To conclude, adopting a tension perspective provided a means to create three distinct and coherent scenarios; the development of a three level data structure was our way to achieve technical rigour in the analysis and combining three studies provided larger set of data strengthened the robustness of our conclusions by focusing on the common findings across the three studies

3.2 Integrating data from three studies

We have performed systematically integrated three studies that had already been initiated by each of the three authors Each study had been

conceived as a multi-technique, iterative, research process with the aim

to understand the impact of the IoT on the PSM function The people who took part in each of the studies were involved in a sensemaking process Altogether the three studies have mobilised more than 200 direct informants and an additional 300 contributors through surveys

or interactive exchange on the topic These 200 informants are senior

purchasing managers from large corporations across Europe The re- searchers have maintained contact with many of the informants and have been kept up to date of some of their development since the early stages of the studies

In the present paper we will refer to people involved in our study as informants Combining three separate studies has intrinsic limitations

Table 2

Data structure on how the IoT impacts on PSM

Managing a portfolio of projects to adopt, integrate and operate new

technologies

Automating the low-skill routine jobs

Leveraging new technology in purchasing activities to increase efficiency

and performance (market intelligence, costing, ordering, negotiating .)

Supporting the adoption of IoT technologies across the supply chain

Leveraging transparency across the supply chain to reduce risks

Developing real time and forward-looking reporting across the supply

chain

Implementing innovative solutions that leverage IoT to progress

sustainability

Integrating IoT opportunities and threats in category strategies

Taking advantage of disintermediation opportunities offered by markets

Leveraging platforms, aggregators and configurators available from the

market

Buying IoT and digital solutions from the market

Handling rising interdependencies amongst industry actors

Operating in markets where suppliers are also competitors or

complementors

Addressing challenges associated with interoperability and standards

Handling suppliers who own and transform data or other critical resources

Integrating within the supply network new suppliers with disruptive ideas,

including start-ups

Leveraging market intelligence, scouting capabilities and integrating

innovative solutions coming from different industries

Supporting relationships across suppliers to develop, deliver and manage

complex systems

Selecting suppliers for IoT projects under uncertainty

Ensuring access to key external resources (data scientists, cybersecurity .)

Contributing to change management for the introduction of digital product

service systems

Dedicating resources to support explorative IoT projects

Supporting the development of new supply networks and organisations to

enable strategic IoT projects

Sourcing IoT technologies and resources for the creation of new business

models and revenue streams

Managing a diverse set of relationships and processes to support IoT related

projects

Attracting and developing buyers with generalist job profiles and a strong

business orientation

Describing the future role of machines and humans in purchasing

Creating an integrated architecture for PSM systems and tools

Coordinating the allocation of resources across segments, projects and

relationships

Fostering a shared culture in PSM

Adopting and integrating new technologies to develop PSM performance

Anticipating developments in markets characterised by rising interdependencies

Supporting the integration of external solutions within product-service systems

Differentiation tactics

Managing the transition to a more capable and efficient purchasing organisation

Implementing and leveraging new technologies along the supply chain

Taking advantage of new opportunities provided by markets

Working with more diverse, complex and dynamic markets

Integrating innovative suppliers within the firm's supply network and activities

Supporting the development of IoT solutions within the firm

Supporting the development of new business models and revenue streams

Managing IoT-related tensions through differentiation and integration Integration tactics

The three studies followed similar inquiry processes and shared the

same goal: understanding the impact of the IloT on PSM However, the

detailed inquiry processes offered some variations and there were also

some differences in the terminology used Indeed, German-speaking

informants were more prone to use Industry 4.0 as an overarching term

while others used IoT as an overarching term The terminology differed

but the sensemaking experience was similar Similarly, some in-

formants were inclined to reflect on all levels of the IoT architecture

while others tended to focus on the higher levels of the architecture

where it was easier for them to make sense of the opportunities and

impacts

The IoT and Industry 4.0 cannot be regarded as an objective tech-

nical reality; they are broad cognitive frameworks that help describe

specific opportunities and challenges for a given context Studying how

practitioners make sense of a contemporary phenomenon is bound to

face issues in terms of diversity in terms of technology and interpreta-

tion Producing useful knowledge needs to embrace the challenges as-

sociated with such challenges The variations and complementary as-

pects observed across studies have been extensively discussed, assessed

and on some occasions discussed directly with informants in the later

stages of the studies

Re-using qualitative data is increasingly accepted within social

sciences (Bishop and Kuula-Luumi, 2017) Access to context was

ensured here as the three studies were led by the three authors of this article Using the findings of three separately conducted studies offers some advantages comparable to that of adopting mixed methods

(Greene et al., 1989) First, this allows for triangulation, the study of

similar phenomenon across different geographies allows us to identify common findings and to corroborate results Second it allows us to assess variations across studies And third, it provides for com- plementarity Finally, in the present context, this can even offer ad- vantages Having three studies offering some variations has contributed towards generating and testing more varied assumptions This led to the construction of a robust common data structure across the three studies

We can now describe how the three studies were initiated

Study one was conducted as a pilot study to understand the impact

of industry 4.0 on PSM First, a heterogeneous group of purchasing managers and Chief Purchasing Officers (CPOs) working in firms headquartered in Germany, Austria and Switzerland were surveyed

Later, representatives from twenty-five firms and two universities were

involved in more extensive and detailed investigations through inter- views and focus groups (Pellengahr et al., 2016) Study two started as a research project on the impact of IoT on Purchasing This included semi-structured interviews conducted with 15 European CPOs, and a workshop with 120 purchasing managers to investigate the impact of the IoT on their industry and their purchasing organisation Following

Table 3

The three scenarios on the Impact of IoT on PSM

® Taking advantage of new opportunities provided by markets

® Integrating innovative suppliers within the firm's supply network and activities

© Supporting the integration of external solutions within product-service systems

© Supporting the development of new business models and revenue streams

® Adopting integration tactics

this, more specific focus groups were conducted, and six case studies

were documented through interviews (Legenvre and Glas, 2016) In the

third study, the first investigations were launched in 2016 to examine

the expectations and opportunities associated Industry 4.0 and digital

technologies in purchasing Up to 2019, a total of 25 workshops with a

thematic focus were held with selected senior purchasing executives

who intensively dealt with the questions: how IoT related technologies

impact the future of purchasing and how this can be implemented

within their organisation (Ruile and Vollrath, 2017)

3.3 The informants

The three studies were performed by involving senior purchasing

managers, from large corporations, responsible for the long-term de-

velopment of their purchasing organisation Table 1 builds on the OECD

taxonomy of digital intensive sectors (Calvino et al., 2018) It provides

the number of informants, these senior purchasing managers, for each

data collection stream for each study The number of informants is

provided for the four quartiles of the OECD taxonomy This shows that

a broad variety of industry sectors were represented across the three

studies with a dominance for sectors in the top two quartiles in terms of

digital intensity This provides both a broad understanding of the

phenomenon and access to informants that had started to take actions

to address IoT-related opportunities

In terms of data collection, the interviews conducted were under-

taken using similar protocols They started with questions covering

general topics about the impact of the IoT on the industry, the supply

network and the firm of the informant Then further specific questions

probed into the answers as to how the IoT impacts the purchasing

function This included questions related to: (1) the projects and in-

itiatives related to IoT undertaken by the PSM function, (2) the impact

on the expectations of and the relationships with internal stakeholders,

(3) the impact on supplier searches and how relationships with them

are managed, (4) the impact of IoT on the PSM organisation, processes,

systems & skills and (5) the impact on the value delivered by the PSM to

the firm in terms of performance and outcomes Verbatim notes from

recorded interviews where transcribed to ensure reliability

Each study has established its focus group that brought together

senior purchasing managers from a diverse set of firms and industry

sectors They all shared strong interest in IoT applications in PSM The

surveys conducted prior to the workshops outlined the importance of

IoT for PSM and showed that limited knowledge existed at that time

This was used as critical input when designing the workshops The

workshops started by focusing on the same set of questions used for

interviews Focus groups then moved to more specific questions and

investigations allowing for an iterative and inductive data collection

process well suited for such studies Workshops also made it possible to

observe the informants and create opportunities for additional ex-

changes and discussions that further informed our understanding of the

phenomenon being studied The workshop format is well suited to gaining an in-depth understanding and to bringing to the surface the questions, concerns and issues anticipated and experienced by in-

formants For each of the three studies, the outcomes of the workshops

were captured by collecting the notes written by informants during small groups sessions Minutes were also taken and shared with in- formants to gain their feedback and validate their accuracy

The case studies in study two were collected through interviews with informants and through access to internal archives and doc- umentation Some case studies entailed multiple interactions over time

(interviews, discussions, access to internal documentation) to under-

stand the evolution of projects, while others were more focused on describing projects that had already been completed These case studies were selected based on their representation of specific IoT applications: They included initiatives aimed at developing a smart meter, applica-

tions for connected vehicles (automotive and recreational), a smart grid

application, a smart building application, and an application for digital healthcare Informants included senior purchasing managers and, oc- casionally, representatives of other functions

4 Analysis of the findings 4.1 The three-level data structure on how the IoT impacts on PSM The data structure on how the IoT impacts PSM is described in Table 2 First-order coding relates to language used by informants Appendix B provides further qualitative data collected from partici- pants The 9 s order themes further grouped into four aggregated do- mains and are common across the three studies

The tensions expressed by informants were used to create three distinct scenarios Each of them responds to a specific What if question The link between the three scenarios and the second order themes is presented in Table 3

For each of the scenarios we first describe the scenario in relation to the IoT architecture before detailing the concepts and themes from our data structure that relate to the scenario We conclude the description

of the scenarios by presenting the underlying tensions identified for the

scenario

4.2 Scenario one: PSM as an IoT Technology Adopter

4.2.1 Description of scenario one

In this scenario, IoT simplifies, automates and enriches PSM activ-

ities It enhances PSM performance and delivers additional benefits to stakeholders Platforms and aggregators facilitate access to a diversity

of data and services in layer 3 of the IoT architecture A simple example provided by one of our informants illustrates this: the use of self-re- plenishing vending machines on the shop floor for protective equip- ment (gloves, earplugs, protective masks .) simplifies access to

equipment while monitoring the consumption of each user Looking at

layer 2 of the architecture, IoT is also available as-a-service It supports

the implementation of new commercial frameworks as buying firms pay

for the performance or the outcome delivered by the supplier

Performance monitoring activities are automated and re-integrated

within the suppliers’ offering which delivers incentives and the means

to operate efficiently Our informants suggested that IoT will make

performance-based contracting more widespread Moreover, the IoT is

expected to create transparency along the supply chain It will lead to

operational performance enhancements and greater opportunities to

operate in a sustainable way Informants also suggested that the IoT

could serve as a foundation for more radical operational changes along

a supply chain, such as enabling personalised design and delivery of

offerings for clients

4.2.2 Concepts and themes mobilised in this scenario

4.2.2.1 Adopting and integrating new technologies to develop PSM

performance According to our findings, traditional PSM activities

such as costing, contracting, ordering and auditing can be enhanced

thanks to the use of IoT technologies Data collected showed that

informants expect machines to place orders and provide real time

consumption data Some suggested that artefacts can be scanned, and

components can be costed thanks to direct access to databases Smart

contracts can be associated with containers so trade-offs between

delivery performance and logistics costs can be made by machines

Audit and compliance activities can be enhanced by virtual reality, IoT

devices (telematics or drones equipped with sensors) and access to

unstructured data sets Our findings show that if opportunities are to be

transformed into results, a multiplicity of projects will have to be

implemented and integrated

4.2.2.2 Implementing and leveraging new technologies along the supply

chain A recurring theme throughout all the interviews and workshops

was the possibility to leverage transparency across the supply chain to

reduce risks, improve performance and automate activities Multiple

informants expect that the aggregation of data along the supply chain

will help their firm move from a backward-to a forward-looking on

demand management Also, informants suggested that innovative IoT

solutions allow them to progress on their sustainability goals; our

findings tended to outline industry specific patterns here with, for

instance, the food industry in focus here enhancing traceability and

consumer information through the use of IoT technologies, while other

sectors focused, for instance, on safety or on implementing the

principles of the circular economy by tracking packaging

4.2.2.3 Taking advantage of new opportunities offered by markets The

data collected suggested that this pivotal role can be leveraged by

considering the impact of IoT on markets, supplier offerings and

supplier performance within the existing category strategies One

disintermediation opportunities For instance, service integrators

performing the maintenance of some equipment could disappear as

equipment manufacturers move towards offering digital product-

service systems (PSS) This suggests that becoming an IoT Technology

adopter is not limited to selecting and implementing internal projects, it

also requires ongoing attention to market opportunities

4.2.3 Underlying tensions within scenario one

Tensions within this scenario are twofold The first tension com-

bines a technological hype with the need to bring concrete projects to a

successful completion Technology is continuously presented as a great

way to deliver improvement and innovation while its implementation is

difficult and demanding One informant jokingly indicated “E-procure-

ment was something you could buy from a supplier; here we don’t know

where to start” One of the common illustrations of this tension was

suggested by an informant during an interview: “The IoT generates a

huge amount of data the challenge of big data is what you actually do with the data!” Beyond this paralysis, our findings also show that pro- jects wrestle to deliver the expected benefits due to the complexity of organisations and systems One of our informants suggested that if each project is expected to offer well-identified benefits “the efforts required to integrate IoT technologies within the enterprise architecture are immense” Our findings suggest that a plurality of opportunities appears in dif- ferent decision instances across the firm, but complexity and bounded rationality prevent benefits being achieved in line with the grand initial expectations While PSM leaders trust that they have the means to de- liver substantial productivity improvement, setting priorities is difficult and they experience a myriad of challenges and integration issues

A second tension in this scenario combines the promise of a more strategic and powerful PSM function with harsh prospects for people working within the PSM function One informant described this with irony in a workshop “we might have a bright future, but no jobs” Our data shows that informants repeatedly recognised that PSM departments will become smaller as routine tasks are delegated to machines A pur- chasing executive explained that “Due to the current technology shifts, within ten to fifteen years, 99% of orders will be handled through the company information systems and 75% of them will be automated” He later suggested “you need curiosity in procurement, people need to see the new world as a chance, not as a risk If people aren't curious, they are fearful

of losing their jobs” In the workshops we noticed some of our informants exhibiting defensive routines; they expressed recurring concerns about the resistance to change they were facing Such defensive routines are brought to the surface by current technological change, they are the symptoms of a profound tension experienced by buyers who are con- fronted by both the promising prospect for the PSM function and by the demanding and unpleasant changes required to achieve them To

combine these two tensions, we see the IoT as offering promising pro-

spects for the function both in terms of productivity and prominence, while it also generates indecisiveness in project selection, integration issues during implementation and challenging change prospects This can be labelled as promising technology-demanding changes tension

4.3 Scenario two: PSM as an IoT innovator

4.3.1 Description of scenario two

In scenario two, PSM searches for and creates access to external

partners with complementary IoT capabilities to support innovation, renewal and growth across the firm Our findings show that this re- quires operations at all levels of the IoT architecture presented above

In this scenario, PSM is integrated in the firm's IoT projects to ensure that IoT related suppliers provide the required complementary cap- abilities In some cases, their role will be to source basic components and technologies when the firm has decided to insource the design and possibly the assembly of their IoT system; this corresponds to the governance mechanism described above as vertical integration This is

in line with the classic role of PSM In other cases, PSM will develop

collaborations with external partners to access and integrate IoT cap- abilities To do this, PSM will reach out to a wide spectrum of potential

partners ranging from existing suppliers with IoT offerings, to start-ups

and technology leaders from outside the industry One of our in- formants described how a new team had been created within his firm

“Our mission is to support the business's digital agenda We need to access external capabilities both from technology firms and from start-ups to pro- gress in our digital agenda” Our informants suggested that PSM will need

to work closely with R&D and Marketing to anticipate how a wide array

of distant but complementary capabilities can be accessed and in- tegrated to support the most strategic projects of the business Another informant also described how the development of smart technology required orchestrating an innovation project and led to an enduring collaboration with two partners This project generated revenue for the firm as the technology was sold as a standard on the market to industry peers

4.3.2 Concepts and themes mobilised in this scenario

4.3.2.1 Anticipating developments in markets characterised by rising

interdependencies The data collected shows that our informants

expect the IoT to create rising interdependencies within industries

We identified three kinds of interdependencies First, they described

their main suppliers as both partners and competitors of their firm

They are partners as collaboration with them is needed to bring

innovation to the market and they are competitors as the IoT can

eventually allow them to reach out directly to clients An informant

working for an industrial services firm described the IoT as a means for

existing suppliers of equipment to bypass them in some markets

Second, interdependency is nested within the need to develop

interoperable systems This can be supported by industry associations,

by foundations that pool all actors interested in a_ specific

communication technology or by a firm with a proprietary system

through a managed partners ecosystem Interestingly, firms tend to join

multiple initiatives to avoid betting on only one option Finally, some

suppliers were also described as sales channels or complementors Two

firms can buy and sell from each other but they also sell together This

creates further interdependencies One informant working for a high-

tech firm at such relationships needs to be managed with great

attention

4.3.2.2 Integrating innovative suppliers within the firm's supply

network Our findings show that the IoT requires the integration of

innovative actors within a firm's supply network A purchasing manager

working for a firm specialised in smart infrastructures described this as

follows: “Some of our suppliers with a solid market position can influence

our end users; this leaves us with limited room for discussions on price But at

the same time, as demand is becoming increasingly personalised across our

client markets, the market is more open, there are less entry barriers,

expertise and technology are more widely available and small firms are

starting to play a more active role here” Some of our informants were

even concerned about the ability of their existing suppliers to adapt to

changes They don't see incumbent suppliers approaching them with

the IoT-related innovation they expect Our informants suggested that

companies exceling at critical IoT technologies will gain significant

market power and change industry dynamics One informant described

the challenge for PSM “Beyond the battle amongst giants, the value in our

ecosystems is being redefined by a myriad of start-ups and new actors Here

we need to unlearn After years of supply-based rationalization and strict

risk management, we need to rediscover how we can work with such

players” All this will require scouting capabilities and the integration of

innovative actors in the design and delivery of digital product-service

systems and in the creation of new revenue streams

4.3.2.3 Supporting the integration of external solutions within product-

service systems Our research findings show that, as firms design and

launch their own IoT solutions including digital product-service

complementary capabilities One informant explained that his firm

monitors thousands of ice cream cabinets for a client that required the

most effective technologies to support this revenue opportunity As a

new innovative actor can play a significant role in providing the right

complementary capabilities, such situations can require selecting

suppliers under conditions with a high degree of uncertainty As

described above, this can also result in managing triadic and even

more complex relationships to design, deliver and service digital

product-service systems This also requires managing a multiplicity of

relationships with internal stakeholders Developing IoT solutions also

requires access to resources such as data and skills Our informants

repeatedly expressed concerns about gaining access to data scientists

and cyber-security experts

4.3.2.4 Supporting the development of new business models and revenue

streams As an illustration of the findings on the development of new

business models, one informant described the impact of IoT on the

electric energy value chain “From energy generation to energy consumption, (system) architectures are becoming more open if you look upstream, strong entry barriers remain, but as we head towards analytics and services, we see new actors coming in Some of them can come from radically different industries We will be facing leaders from other industries and it is hard to predict what the architecture of the overall ecosystem will look like in the future Multiple business models will complement each other’ Therefore, PSM will on some occasions support IoT projects from a very early stage to introduce new business models One of our informants in the food and beverage industry described how, in his firm, a team comprising marketing and purchasing representatives has worked with a start-up to experiment

with new business models; another one involved with connected

vehicles described how he led a project that aimed at creating a new business model for his firm In order to create a proprietary solution, they established a collaboration with a university which resulted in the

creation of a new firm

4.3.3 Underlying tensions within scenario two The main tensions within scenario two consist of developing strong ties between suppliers and internal stakeholders while performing the

traditional activities of PSM As described above, PSM needs to

strengthen its ability to manage relationships with innovation partners

However, some of our informants were adamant that this should not be

done at the expense of the fundamentals of PSM If one of our in- formants would insist on “we need to look at risk and opportunities with a radically different mindset Searching for perfection is not a viable strategy anymore, purchasing needs to accompany a broader and faster experimentation process”, another one would remind us “yes, we might need to work more with start-ups but we need to keep the ownership of the sourcing decision and we need to consider all risks incurred The business might be keen to work with a start-up but one of our existing suppliers might

be able to deliver the same service with less risks We should pay attention to this” Building close relationships with internal stakeholders and sup- pliers can appear as a threat to delivering on some PSM responsibilities While innovation and risks are interlinked, attaining the right balance between an entrepreneurial mindset and a risk management mindset is challenging and cannot be achieved without tensions This can be la- belled as entrepreneurial mindset-risk management tension

4.4 Scenario three: PSM as an IoT master and strategist

4.4.1 Concepts and themes mobilised in this scenario

In scenario three, the PSM organisation is simultaneously leveraging the IoT to gain efficiency and control, and enabling the firm to leverage IoT opportunities to stimulate innovation, renewal and growth This requires to combine the concepts and themes presented in scenario one and two Considering the aggregated domain of our data structure, this means that while PSM needs to manage its transition to a more capable and efficient purchasing organisation, it allows the firm to operate in complex and fast changing IoT driven markets

4.4.2 Underlying tensions within scenario three Our findings show that tensions arising in scenario three have been repeatedly described by informants as a conflict between a purchasing- centric and a business-centric view of PSM This was described by one

of our informants: “In my company we have two schools of thought: the purchasing-centric one that focuses on digitalising our processes, and the business-centric one where we look at how we can help the business address its current challenges There is nothing wrong with digitalising our processes, but we should not lose sight of the business challenges” Purchasing-centric means focusing on the internal purchasing process to gain efficiency and control while being business-centric means focusing on opportu- nities that stimulate innovation, renewal and growth for the business Focusing simultaneously on both was advocated by some of the

informants, especially when their firm were from digital intensive

sectors However, focusing on both often appeared challenging and

sometime impossible This led some of the informants to discard or

ignore the importance of one of the two views However, such contra-

dictory perspectives are also intertwined: PSM needs to respond with

adequate solutions to business needs, and the business requires a well-

functioning PSM function to access suppliers Another informant from a

firm that was investing in loT suggested “Over the past years, we have not

invested in developing a genuine business mindset, we have concentrated our

attention on our own processes.”

This purchasing centric/business centric tension is a function spe-

cific version of the exploration-exploitation tension described in the

seminal work of March (1991) Whereas exploitation requires focus and

constancy in order to exploit existing opportunities and improve, ex-

ploration demands search, variation and experimentation to create

novelty out of distant knowledge (O'Reilly and Tushman, 2013; Gibson

and Birkinshaw, n.d.) If the development of IoT can strengthen ex-

ploitation it also requires exploration; it therefore exacerbate pre-ex-

isting tensions

4.5 Reconciling the tensions

We can now recall the tensions experienced by PSM with the

emergence of IoT A first tension is associated with IoT offering pro-

mising prospects for the function both in terms of productivity and

prominence, while IoT also generates indecisiveness in project selec-

tion, integration issues during implementation and challenging change

perspectives We labelled this tension promising technology-demanding

changes A tension has emerged as the IoT requires from PSM an en-

trepreneurial mindset combined with a focus on managing risks This

tension was labelled entrepreneurial mindset-risk management A tension

is associated with IoT exacerbating the exploration-exploitation ten-

sions It reveals the contradiction between a business-centric view of

PSM that entails developing some new ties with suppliers and internal

stakeholders and a purchasing-centric view of PSM where PSM pro-

cesses can be strengthened by the IOT We labelled this tension ex-

ploration-exploitation To understand how such tensions can be re-

conciled, three of the four strategies described by Poole and Van de Ven

(1989) were used They include: separating the contradictory forces

spatially and temporally, accepting the contradictory forces and using

them appropriately The fourth strategy suggested by Poole and Van de

Ven (1989) consists of finding new terms to resolve the paradox; we did

not find such new terms in our data structure

4.5.1 Strategy 1: spatial separation

The first strategy addresses tensions through spatial separation

Here, our data shows that some of our informants have partitioned PSM

tasks between exploitation and exploratory ones They have described

how they had allocated resources to IoT projects outside classic PSM

segments and structures One of them explained that he was fully

dedicated to a digital product service system initiative while the rest of

the PSM organisation was pursuing its classic activities Here a sub-

group supports exploratory projects while the rest of the PSM function

performs its mission and enhances its processes using IoT technology

Spatial separation, also called structural differentiation is a well-es-

tablished tactic used by ambidextrous organisations (Tushman and

O'Reilly, 1996) It can work if the IoT impacts a few activities within the

firm As its impact becomes more pervasive throughout the firm,

structural separation becomes less efficient and needs to be com-

plemented by contextual ambidexterity (Gibson and Birkinshaw, n.d.)

where exploration and exploitation take place concurrently; this means

applying the third strategy suggested by Poole and Van de Ven (1989)

that consist in accepting and using contradictory forces Furthermore,

our data shows that structural separation appeared to be a fragile tactic

within a PSM context Two examples were provided where structural

separation within PSM was not pursued as the dedicated team was not

contributing to the economic goals of the PSM organisation One in- formant working in the purchasing team of an automotive firm in Asia was handling relationships with local internet firms and start-ups that provided services to end users through the firm's automotive IoT plat- form This was generating revenue for the firm As this activity was not contributing to the existing economic goals of the PSM function, the informant ended up moving out of PSM and to join a newly formed innovation team where she set up the firm start-up accelerator pro- gramme

4.5.2 Strategy 2: temporal separation

The second strategy suggested by Poole and Van de Ven (1989) addresses tensions by establishing temporal separation, focusing on one side of the tension for some time before moving to the next side Our data does not provide explicit suggestions for temporal separation where scenario two would precede scenario one Our findings, how- ever, show that a significant proportion of our informants was ad-

vocating starting with scenario one By becoming more efficient

through the adoption of technology they expected to free up time to focus on delivering more added value to the business afterwards However, one informant contested this, stating: “Freeing up time for existing people is not going to allow you to support the business with in- novation You won't have the right people to do so” Another informant suggested: “When we think about innovations that can be brought to the business to deliver growth, 25% to 30% of procurement staff has to move to other functions and we need to bring in people from other functions such as R

&D, Marketing or Sales” Furthermore, solely focusing on scenario one could lead to a situation where other stakeholders take over some of the

PSM's activities In some cases, we identified situations where newly

introduced innovation managers or digital officers were managing re- lationships with innovative suppliers and start-ups while their PSM counterparts were expected to handle relationships with the other

suppliers Temporal separation can appear to be a good strategy as it

makes it possible to handle tensions sequentially, but in this context there is a risk of only realising some of the benefits promised by the IoT

while other functions handle the search for, the selection of and the

management of the relationships with innovative suppliers supporting IoT projects

4.5.3 Strategy 3: accepting and using the contradictory forces appropriately: managing tensions through differentiation and integration

To investigate how PSM can accept the contradictory forces and

benefit from them, we looked at our data through the lens of the dif-

ferentiation and integration tactics following the suggestion of Smith and Tushman (2005), and Andriopoulos and Lewis (2008) Differ- entiation makes it possible to maximise the ability to seize opportu- nities while integration makes it possible to create synergies and minimise conflicts associated with differentiation Embracing and using tensions was visible within some of our informant communication For instance, a CPO would vigorously claim that leveraging the IoT to en- hance the performance of PSM has to be the priority, and a few minutes later, he would suggest that it is obvious that PSM needs to fully deliver

on the more exploratory activities His communication appeared to

consider the two sides of the divide as being of equal importance This dual tactic was more common in digitally intensive sectors or in firms with strong IoT related ambitions This is probably due to the more pervasive impact of the IoT across the firm that calls for more dispersed and simultaneous efforts to seize opportunities

Specific integration and differentiation tactics have been listed in our data structure in the fourth aggregated domain of Table 2 How- ever, to provide a complete perspective on how to accept and use IoT

related contradictory forces, two differentiation tactics derived from the

exploration-exploitation tension need to be added The first one consists

of managing a diverse portfolio of projects to adopt IoT technologies to enhance PSM performance The second tactic consists in widely sup- porting the development of IoT solutions across the firm Both of them

Table 4

Managing IoT related tensions in PSM through differentiation and integration

Managing IoT related tensions within PSM through

- Managing a diverse portfolio of projects to adopt IoT technologies and enhance PSM

performance,

- Widely supporting the development of IoT solutions within the firm,

- Managing a diverse set of relationships and processes,

- Attracting buyers with generalist job profiles and a strong business orientation

- Developing a vision on what machines and humans excel at for PSM,

- Creating an integrated architecture for PSM systems and tools,

- Coordinating the allocation of resources across segments, projects and relationships,

- Developing a shared culture within PSM

have been described previously as part of other scenarios

The next differentiation tactic consists in managing a diverse set of

relationships and processes to support an exploratory orientation One

of our informants described this exploratory orientation as combining

“(1) Seizing opportunities as they emerge; (2) Taking an active role in

an accelerated innovation process; (3) Looking at risks and opportu-

nities through new lenses” These activities require an extensive man-

agement of the relationships with suppliers and internal stakeholders

The fourth differentiation tactic consists in attracting buyers with

generalist job profiles and a strong business orientation One informant

suggested: “We need people with solid business foundations and a genuine

marketing mindset This is essential to develop a 360-degree vision, to spot

new opportunities and create value ahead of others” This illustrates well

the last tactic that supports differentiation within our framework: at-

tracting buyers with generalist job profiles and a strong business or-

ientation The term generalist is used here to signify that buyers should

be able to adapt rapidly to different markets and stakeholders

From an integration perspective, our data suggested four tactics

The first one consists of describing the future role of machines and

humans in purchasing One firm's internal documentation has provided

us access to a vision within a firm which was developed to describe how

buyers of the future will use technology to be more efficient and con-

tribute to innovation concurrently The CPO of this firm stressed the

value of building a compelling vision in a context of rapid change:

“Today, many people get confused when it comes to digitalisation, the

Internet of Things or data analytics Leaders need to focus first on the why

and the ambition they have for purchasing” Such a vision combines both

sides of the divide and illustrates synergies between them Such sy-

nergies include resource optimisation and enhanced access to in-

formation

The second tactic consists of creating an integrated architecture for

PSM systems and tools Processes supported by IoT technologies are a

part of a broader architecture Aggregating processes and tools without

optimising the overall architecture can create issues and create sub-

optimisation traps A proper architecture also generates synergies as it

provides access to multiple sources of data that are well curated

The third tactics is coordinating the allocation of resources across

projects and activities As IoT bring multiple new opportunities fi-

nancial and temporal resources become stretched Therefore, allocating

with care all resources across key activities becomes critical This can

create synergies in terms of knowledge sharing across activities This

also makes it possible to define when a spatial differentiation is needed

Table 5

Summary of the findings

to support exploratory projects and when exploration can be conjointly

performed with exploitation ones For instance, one of our informants

suggested “What I have been preaching in my company is to dedicate 5% of our resources to open innovation If you have 800 people, this means that you can have 40 people who work on issues, concerns or challenges that do not belong to a specific category You dedicate them to initiatives where they can investigate opportunities well beyond traditional boundaries” At the same time, he would still expect innovation to come from within es- tablished PSM structures “There are a lot of advantages of performing such

innovation as it does not require you to extract yourself from the existing

organizational framework This requires the development of a culture where people are encouraged to find out what innovative practices could be adopted within categories”

The fourth tactic consists of developing a shared culture It has been greatly discussed within some of the workshops across the three studies The adoption of IoT and new technologies create anxiety; a shared culture helps people envision their future and adapt to changes One informant described developing a culture as “creating a safe environment and a solid backbone for our people” This is something he judged par- ticularly important for PSM organisations that are geographically spread out and facing rapid changes such as the introduction of new technologies This can be achieved by sharing values that support both exploration and exploitation, as suggested by Birkinshaw and Gibson

(2004)

Table 4 aggregates elements presented above and describes our findings on how to manage IoT related tensions within PSM through differentiation and integration tactics

5 Summary of the findings

In order to study the impact of emerging technologies on the PSM function we have constructed a framework using a systematic inductive research approach that follows the guidance of Gioia et al (2013) Our data structure developed through a desk-based analysis of interviews and workshops includes three levels of coding The analysis exposed two contrasting ambitions that are adopted by PSM functions The first one consists of leveraging the IoT as a means to gain efficiency and control within PSM In the second one, IoT opportunities are used to stimulate innovation, renewal and growth for the firm Our data ana- lysis revealed tensions associated with pursuing these ambitions con- currently This led us to develop three scenarios as part of our analysis; scenario one and two each focused on a single ambition while scenario

PSM as an IoT Technology

Adopter

PSM as an IoT Innovator

Promising technology vs

Demanding changes Entrepreneurial mindset vs Risk management

All of the above + Exploration vs Exploitation

PSM as an IoT Master &

Strategist

Spatial separation Temporal separation Spatial separation (if limited impact of IloT

on the Business) Accepting and using the tensions (if pervasive impact of IoT on the Business)

Achieving operational excellence at the expense of more strategic contributions

Supporting business development but risk of pressure on resources as investment in technology is delayed Achieving efficiencies and business-wide benefit but risk of reorientation of resources allocated to long term project Achieving both efficiencies and business-wide benefits but challenging managerial exercise