Chapter 5 - The cloud, platforms, and digital twins—Enablers of the digital supply chain

Abstract

The continued advancement of computing and digital technologies is transforming markets, economics, businesses, and society. We discuss the characteristics and applications of three important developments that are generating transformative change in the management of supply chains and business operations—Cloud-based systems, Digital Platforms, and Digital Twins. The cloud provides computer resources and computing services via the Internet. It has changed the economics of IT, enabling easy access to vast computing resources and the elastic scalability of IT solutions to match demand. Migration to the cloud is strongly affecting corporate IT strategies. Rapid developments in Software-as-a-Service (SaaS) include Enterprise Resource Planning applications offered through various modes of cloud delivery. Digital platforms have changed the nature of markets in many sectors, most notably across the retail economy. As well as facilitating commercial transactions, digital platforms can also nurture business ecosystems that support product and service innovation. Cloud Manufacturing offers the potential to deliver Manufacturing-as-a-Service (MaaS) through a platform. Digital Twins encompass a range of emerging technologies that capture the characteristics of a system, with dynamic exchange of information between the system and its digital representation. We define Digital Supply Chain Twins and discuss their potential to improve supply chain resilience.