From supply chain to integrated value chain : Re-envisioning counterparty relationships in the context of AI and the convergence of disruption

Abstract

This paper analyses the challenges of understanding supply chain dynamics in a modern context, including rapidly increasing amounts of data and technology and the massively interconnected nature of modern enterprises. The problems and challenges addressed include traditional areas of focus for supply chain practitioners, such as understanding changes in quality, introduction of new sources, and the impact of external events, but in the context of far more rapidly changing and continuously disrupted environments. Additionally, new challenges brought about by the availability of Artificial Intelligence, the Internet of Things, and other technologies are also considered. Using a basic scientific approach (observing the environment, asking important questions, selecting methodologies, performing empirical analysis including understanding of bias and other factors, and considering recommendations for future research), the approach presents four frames: technology, process, mindset, and people. The interconnectedness of entities, moving from the concept of supply chain to a more inclusive concept of integrated value chain (customers and vendors interacting in complex ways in an ecosystem) are considered. Recommendations are put forth regarding leadership mindset and how to think differently about the convergence of change discussed. Conclusions focus on new ways to think about integrated value chains, where complex relationships are driven as much by need and planning as by disruptive events and the introduction of new disruptive capabilities. The wider implications for leadership in such rapidly changing environments can inform not only how organizations prosper, but also a perspective on the imperative to embrace new methods and mindsets.