WAC 2016 1570251823
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Business Intelligence: new products development and supply chain systems in a SoSE perspective
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Irene Martin-Rubio
Ana M Tarquis
Dpto. Ing.de Organizaci6n, Adm6n. de Emp. y Est.,
Dept. Matematica Aplicada, C. Est. Inv.
GASC Research Group ETSI Diseno Industrial.
Ges.Rie.Agr.Medio "CEIGRAM", ETSI Agr6nomos
Technical University of Madrid (UPM)
Technical University of Madrid (UPM)
Madrid, Spain
Madrid, Spain
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�e-mail:
[email protected]
Diego Andina Dpto. Senales, Sistemas y Radiocomunicaciones. GASC Research Group. ETSI Telecomunicaci6n Technical University of Madrid (UPM) Madrid, Spain
of
Our objective is to examine the potential of System of
Business Intelligence for planning new products and supply chain
Systems Engineering (SoSE) in Supply Chain Management
Abstract- This
paper
deals
with
the
consideration
system, from a SoSE perspective. The problem of understanding,
(SCM) when designing new products. The main contribution
designing, engineering and governing the technologies behind
of our study is to analyze the strategic approach of SoSE when
these new products requires new concepts. The emergence of
leveraging product innovation opportunities. SoSE improves
these modern technologies causes a myriad of interconnected
organization's supply chain competence. Our findings unfolds
systems, which are working together to satisfy the necessities of modern
life.
System
of
System
Engineering
(SoSE)
as follows: After, briefly review the state-of-art of supply chain
can
management and product development, we consider the SoSE
contribute to the science community to fulfill this requirement.
Keywords- Product Development;
Supply
Chain;
as a methodological approach to consider innovations in complex
SoSE,
I. Today,
II.
INTRODUCTION
manufacturing
is
being
re-shaped
the production operations
[1,2,3].
chains
architectures.
Subsequently,
we
SUPPL Y CHAIN MANAGEMENT AND PRODUCT DEVELOPMENT
by
Relying on the definition of Wang et al. [8], product
synchronization and alignment of products and processes life cycles with
supply
describe how to construct Connected Industry.
Business Intelligence, tensions, ambidexterity.
innovation in customer-supplier relationships refers to the rate
Connected
of generating novel and improving products from collaborative
Industry, also called Industry 4.0, offers companies numerous
inter-organizational relationships. Suppliers are becoming an
opportunities for new business and improved competitiveness
integral part of the factory design team [9].
[4]. The literature has signaled a change in buyer-supplier relations in the context of new product/service development
NPD is a knowledge creation and sharing process. When
[5].
integrating suppliers into the NPD process, a continuous flow of information is required to ensure the best possible outcomes.
One important problem of managing Industry 4.0 and its
In terms of innovation-performance relationships, the literature
Supply Chain is handling the huge amount of information
offers conflicting results.
regarding its members and therefore coordinating their current
While
some
studies
show
that
innovation generation is beneficial for fum performance,
business. In this perspective, the Business Intelligence (BI)
others find no relationship or even a negative impact on
paradigm has been introduced. BI is defined as the process of
fmancial performance
procuring digital information regarding the entire organization
[10]. Supplier involvement in new
product development has been documented as an important
so that it may be used for providing competitive advantage. BI
factor
systems provide broad measurement and analysis [6, 7].
behind
successful
innovation
through
inter-fum
cooperation [9]. This is particularly salient in the automotive
This Work was fmanced by Technical University of Madrid (UPM) under project # GIl509550258
1
industry, in which assemblers involve their first tier suppliers
assembles
on
Concurrent
in
the
co-design
and
co-development
of
product
development processes. Literature has identified potential benefits of supplier involvement in a new product, for both manufacturers and their
paradigm;
Engineering
second,
(CE));
product/process
third,
design
theory
(robust design), fourth Systems Engineering
(Engineering
as
Bottom-line:
of the competence of the firm [11]. Firms may use certain
or and
methodology
Collaborative Negotiation
(CEN));
finally, Systems of Systems design paradigm
suppliers. Knowledge and intellectual property are at the core
multi-disciplinary,
aims
to
and
(Quadruple
optimize:
profit,
people, planet an progress).
knowledge protection processes, such as patents, trademarks and trade secrets, to protect their IP.
design
Prior findings have
Concurrent Engineering (CE) [16] is an important method
suggested that knowledge protection may be detrimental to
to holistically consider all aspects related to increased variety
product innovation, because it hinders knowledge sharing.
from design to end of product life. Engineering Collaborative
However, later work [5, 12] confirm that knowledge protection
Negotiation (CNE) is the application of collaboration sciences
can help innovation generation in emerging markets, by providing and effective platform for knowledge sharing within
to the engineering domain to accomplish complex technical
the process of inter-fum innovation. Thus, fums that employ
tasks, which is a challenge currently faced by the engineering
appropriate knowledge protection may gain a competitive
community in dealing with
advantage in inter-fum innovation [13]. Leading furns are
stakeholders managements.
variety product, process and
more vulnerable to unintended knowledge spillovers during collaboration as compared to followers, and consequently, the
Recently, there has been a growing interest in a class of
increase in patenting due to openness is higher for leaders than
complex systems whose constituents are themselves systems.
for followers [14].
Systems of Systems Engineering (SoSE) [18] is not a new discipline; however this is an opportunity for the systems
To summarize, in the context of new product development, the buyer-supplier relationship is changing. One of the biggest
engineering community to define the complex systems of the
issue
twenty-fust
to
successful
supplier
integration
is
effective
communication to promote knowledge sharing. [9]. When collaborating with suppliers, this challenge is even greater Traditional
approach
manufactured
considered
manufacturing
issues.
in
limited
Therefore,
product
design
information new
the
approaches
and
its model
the
main
challenge of
any
(if available)
is nonlinear, interconnected, and
information on the system is uncertain such that classical techniques cannot easily handle the problem. Performance
platforms appears to provide the solution for this problem.
optimization, robustness and reliability among a group of
Currently, enterprise information systems, such as Supply Chains and Product Life-Cycle Management
of
may be called complex if its dimension (order) is too high and
and
on
One
complex systems under unforeseen uncertainties. A system
because the teams spans organizational as well as functional boundaries.
century.
paradigms in systems engineering is being able to handle
heterogeneous systems with emerging properties in order to
platforms, are
often large applications encompassing multiple functionalities
realize a common goal has become the focus of various
that are expensive, difficult to use and hard to maintain and are
applications including military, security, aerospace, space,
not prone to manage effectively daily activities due to their
manufacturing,
lack of flexibility regarding dynamic
environments
[3].
service
industry,
environmental
disaster management, to name a few [18].
Concurrent Engineering (CE) is regarded as systematic design
increasing
approach which integrates concurrent design of product with
interest
in
achieving
synergy
systems,
There
is
between
an
these
independent systems to achieve the desired overall system
the related processes which is able to accomplish product that
performance. This paper considers product development and
can be produced at lower cost, shorter time and with higher
SCM in light of SoSE.
quality [15].CE involves multiple agents such as engineers designers, suppliers, processing engineers, material engineers, sales personnel and managers.
Ge et al. [18], proposed a novel executable modelling approach for System of System architecture. This methodology provides more flexibility and adaptability for the automated construction
III.
of
executable
models
directly
from
the
architectural data rather than from static models. Based on
CONCURRENT PRODUCT DEVELOPMENT AND S YSTEM
initial
OF S YSTEMS ENGINEERING
values,
performance
the
from
optimal
design
different
increases
parameters.
The
product optimal
investment plan considers different budgets, components and resources through simulations at each SoSE level. A dynamic
The evolution of product design for product variety and
resource
complexity management in the context of engineering design and changing design paradigms has just been discussed in the literature [16]. Several engineering design paradigms have been presented in the last thirty years as Elmaraghy
[16]
illustrated:
fust,
&
problem
is
proposed
for
developing
Engineering sustainability in a SoS requires maintammg
Elmaraghy &
components
allocation
improved designs.
the right balance between the effective and efficient operations
sub-
2
of its constituent systems sustainable
SoS
authors
[19]. In order to engineer a have
identify
five
subsystems:
productive, coordination, operations (including monitoring) identity
and,
development
(including
learning
Industry 4.0: Connected Industry
and
Business Intelllgen�e In tho Supply Value Chain
transformation) [20].
r:::::n
�(
In figure 1, a supply network chain is made up of various entities and nodes in the chain which are working together to achieve one single task, which is providing the final consumer the required product or service. Challenges exist in terms of
DI"��wn
0
"
l""
identifying appropriate performance measures for the analysis of the supply chain. Availability of timely and accurate
SOSf o.slgn Paradigm
information will be critical to a firm's ability to leverage it
oper.ltlon.ll & Managerl.ll Autonom.,.: Emergent BehavIour
using business intelligence in extracting meaningful insights
Coll.lboratlve-cooperatl ... e- COordln.ltlot\
Learning & Adaptation Risk. Management
in information and data patterns obtained from diverse touch points
for
competition
improving and
operating
sustainability
margins, [21,22,23].
profitability, Varsei
and
Fig. 1: Business Intelligence: New Products Developments & SCM in a SoSE perspective
Polyakovsky [23] found that to design a more sustainable network, companies are required to reconfigure their current supply chain and devise a new business model accordingly. As Kirchmer [24] stated, to design and implement inter
IV. DISCUSSION
enterprise e-business processes efficiently and effectively,
As
more and more organizations use available industry standards (Design Chain
information
science
and
technology
continues
to
evolve, the paradigm of SoSE has emerged as a popular
as SCOR (Supply Chain Operations Reference) and DCOR
choice for being an strategic approach for enhancing existing
Operations Reference (DCOR). Using the
system capabilities and developing new capabilities to address
integrated framework companies can address process threads
challenging systems engineering and management problems in
that span product's Iifecycle -not just the supply chain portion.
the military, academia, industry, and elsewhere.
The overall framework can be used to develop a more balance scorecard with a more complete set of measurements that can
Connected
be benchmarked [25].
industry,
companies numerous
also
called
opportunities
Industry
for
new
4.0,
offers
business
and
improved productivity. SoSE enable the high flexibility that
SoSE aims towards the coordination and integration of
Industry 4.0 promotes in production that makes customized
mUltiple complex systems within the standards of SCOR and
products possible in cost-effective mass-production. Smart
DCOR while ensuring the sustainability of the newly created
products know the details of how they were manufactured and
System of Systems. Business Intelligence (BI) systems provide
how they are intended to be used. Martin-Rubio et al.[27],
broad measurement and business analysis capability [24] of the
shows that business process could be even more distributed
SCM & Product Development. The interest is in competitive
since smart meters, in energy industry, may trigger an external
advantage, which refers to superior business results (financial,
internet service which will go advance the process itself, under
ecological and social) [22,23,24,26].
the new paradigm of Business Intelligence. Optimal
design
products
consider
components
and
resources through simulations from the level of products to the inter-organizational service capability level. SoSE consider the limits of available technology and manage the risks in the interaction Governance
among of
different
these
components
complex
models
and
suppliers.
provides
control,
communication, integration and coordination functions and includes the establishment and execution of policies and procedures that help ensure viability of the system [28]. The very nature of organizational decision processes in SCM
imposes
conflicting
task
requirements
regarding
adaptability and rigor (see Fig. 2). Kowalcyk and Buxmann [29]
proposes
ambidexterity
perspective
on
Business
Intelligence and analytics in decision process. They identify tensions that arise from conflicting task requirements. These
3
tensions are related to the skill specialization of analytic
approaches that identify and quantify the potential degree of
experts, the simultaneous need for flexibility and stability in
tension imbalance.
their analytic methods and data sources, design choices regarding the elaboration and scope of the analytic approach,
V. CONCLUSIONS
and the openness of the problem specification and the solution space. These tensions can impede BI support by threatening
This paper studies the dynamic behaviour of the complex
the effectiveness and utilization of the analytic insights. By
system of the product development process while applying
focusing
SoSE approach. SoSE approach is used as
on
these
challenges
arising
from
collaboration
it is based on its
capability to incorporate several subsystems and parameters.
between different specialized roles in the decision process, they propose a theory of ambidexterity. Ambidexterity is the
An
ability to combine capacities from two conflicting dimensions,
emerging
and the ideal state has been characterized as a balance between
product development process through SCM is very complex
the two, which requires excellence in both respects [30].
and require the management of a high quantity of tasks with
Ambidexterity can be achieved or improved through the
their problem and constraints. The integration of suppliers in
utilization
new product development allow a huge chain reaction and
of
different
type
of
tactics:
organizational,
understanding of parading
of
systems complex
tensions can system
support the
governance.
The
procedural, methodological, and communicative [29]. This
impact on speeding up the product development and time to
will contribute to mitigating the risks of biased decision
market. The challenges in BI delivery includes business and SoSE collaboration in the competitive use of the business data
making among different agents (see Fig 2).
for monitoring new product development.
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