Session Information:

A practical guide to Digital Transformation

Digitization is supposed to transform your supply chain organization into a competitive advantage. In this talk, we will go beyond the theoretical promises of this process providing the practical steps needed to deliver on the value of a Digital Transformation for the modern supply chain.

• What is digital transformation?
• Why does the modern supply chain world need it.
• Standard challenges in delivering it promises.
• Practical solutions to digital problems and vice versa where do we start?

Session Transcript:

Excited of our next speaker, he's coming from the Pacific Time Zone. He woke up early this morning, here in the United States to be here with us, and it's a, it's a great gift for all of us to have a digital transformation executive and leader with tremendous experience with, as I'm talking about Javier Silva. Javier is a digital transformation executive with 25 years of project management experience implementing solutions for IT manufacturing and supply chain for companies like Sony, where I was a Leader for Global Access Innovation, assigning the beginning of my career at Cardinal Health.

Back to Dixon and currently as digital transformation leader for the supply chain team at outside outs outset, medical outset medical. So here he is a great cross industry leader of excellence, innovation and transformation, exactly the inspiration and knowledge that we so much strive for. Javier, thank you so much for being here with us today and sharing your wisdom and expertise with our global audience.

Thank you for having me.

So, today, we're going to talk a little bit about practical guide to the heat of transformation.

As, you know, digital transformation is one of those terms that right now, it's, It's very, very in bulk, and there is a lot of energy behind digital transformation, and digital technology, and digital everything.

So, what we're going to try to do today is to talk to you about practical way to go about it.

So, one of the things, sorry, I stopped my camera.

So, one of the things that we wanted to do, is to make sure that you leave this talk with, uh, practical steps that will allow your supply chain, to gain that competitive edge that can transform your business.

And, one of the important things that we have to say about the transformation is that it's not only nice to ****, but today, it's a must have.

And today, we'll be talking about how to move forward with anew or exceed our existing data transformation process.

one of the things that you have to review, when talking about digital transformation, different people have different concepts.

And today, we will discuss the What is the digital transformation, We will be talking about how to evaluate the maturity level of your organization.

They all say challenges that you're facing when dating or the transformation process. And what is the role of digital transformation?

Looks like We will be present in some very, very interesting study cases about how that practical data transformation hits the road.

And, finally, we'll leave you with some tips on where to start, in your journey to digital transformation.

At the end of the session, you will have the chance to ask any question that you like, and, for that, their effect QNA interface.

one of the first things that we have to do, when we're talking about the formation, is to make sure that we have the same definition. And my basic definition for the HEA is the incorporation of the technology into all areas of the business.

Changing how the business operates and how the business delivers value to customers.

one of the important things that you are going to see when you are talking about the transformation is that, even if your process is completely unique to your industry, the D T or digital transformation journey is going to go and impact different the audience of your organization. And you are going to be able to leverage different technologies that have been guilty or by other companies, even if it's not exactly the same way. So, when we talk about digital transformation, we are talking about the technology, and integrating it into our day to day operation.

In order to get to the digital transformation, we have to go through the three basic layers, or three basic parts of the ETL transformation, and, in order to get there, the first step is digitization. That digitization is the basic process by which we convert the analog physical information into the format.

And this takes many shapes.

It can be as simple as you having The ability to see all of your invoices in a PDF form or your purchase orders or your bill of lading.

Once you have all that information on the dice that the digitization process, it's complete, and then you are going to to be able to go into the digitalization part of your data transformation experience, when you are talking about digitalization. You are going to be talking about the actual use of these technologies and processes to manage the information that was the days in the step before. That means that instead of capturing or printing out the information from your ERP for every single bill of lading on the format, now you are going to have the system to it for you.

It changes the way that you interact and receive your customer orders, but it basically digitalization the automation of the standard process.

Once you have these two key components in establishing your company or your process, you are going to be able then to talk about the transformation. Digital transformation in this context is going to be the result of these previous efforts that we've done this previous steps.

And it's going to change the operating model of your business.

How you move from your current day to day operation to the digital environment. Where you apply the tools and more intelligence and in order to reduce, reduce, and eliminate repetitive tasks.

And, also, it allows you to improve the way that you do business, by focusing that very clearly in the areas of your organization, that, that need improvement, that will allow you, in turn, to make sure that you have a more efficient organization. Because every single process is going to be optimized via the use of digital transformation.

one of the key things that you are going to see in your digital transformation journey is the maturity level. When we talk about them accurately, table is how much of my processes have been improved by the digital transformation journey? How much of those processes are being turned into a digital advantage? And when we get to the digitally competitive part of the maturity level, we're going to be talking about process, organization, or department that really, really is engage with digital transformation.

And that is taking advantage of these tools in order to perform feats that otherwise would be better to execute either with different resource level of the company or with the amount of capabilities that we have encountered right now.

OK, When we start, we are going to be talking about a digitally active company, it's going to take advantage of the transactional, the towel, or e-commerce solutions to increase revenues. So, this is where we start our journey.

And this is where we start to see processes, and the changes in the organization that will allow us to is that, improving the way that we do business, by moving repetitive transactions into the digital environment.

By moving, basically, that actually goes into the, into the data realm, and this is what has been going on for several years.

When they, many companies start the ERP journey, they implemented those big systems, and they started to transform the way that they, the business. So, what we're going to be seeing right now is that the the the big companies are dipping their toes into the into the Cloud.

And starting to see these solutions is starting to see the results of these processes being transferred digitally.

Digitally engaged organization use more advanced analytics and process automation.

And what this means is that, when you move from your previous stage to the W engagement, what you are going to see is that, but also says, and activities that you now perform in the digital realm, are going to be been feeding from the use of all that information that you're putting out there, in the cloud.

And that is where advanced analytics and process automation come into place, where you go from a transactional model of operating into a more analytic mode, Whereas you were receiving the information processing orders before.

Now, with all that information, at your disposal, you are going to be capable of doing, um, a more advanced analysis of that information. And that in turn, is going to provide the benefits to your business. one of the key advantages in one of the key points, or that you are going to see, is, as you advance with the digital journey, the label and.

Quality of the people that are going to be released from repetitive task increases.

So, when we first is that we are digitally active, probably we are going to be releasing the work before that, but eclair when we become digitally engaged we have higher level people that are getting release or planners to spend less time.

Going towards set of data, in order to, to provide us with a, with an idea of where the business is going to be.

And, finally, we get to the digitally competitive stage of the equation.

At this stage, companies push the envelope on how the processes are used to drive revenue, forecast future needs, and respond two gaps.

And what this talks about is basically the transformation of the business intelligence side of the equation into a standardized process that leverages all of those tools in order to to drive improvement.

To be clear and specific, we can be talking about decision making using big data. We can be talking about artificial intelligence.

And we can be talking about all of those activities that drive a company to be the Italy competitive.

one of the, I'm sorry, one of the main drivers that the industry has seen in recent years is the Amazon operating model, where every single step of the interaction between the customer and the company is to act in manage, and that drives internal process improvements into the rest of the organization.

We can use artificial intelligence and a number of tools in the realm. To compete with companies that are either must meager or faster than ours or have more resources.

Because, we are going to have the formation necessary in order to allocate, or the resources that our company has into those areas, which are of special needs.

The next two people that you see on your screen, people who are kind of driving their thoughts and some of the ideas that, that drive the implementation of the transformation into the, into the supply chain environment. And one of the things that I have to bring to the front is that digital transformation is not a technology process, is a people process, And people have to be involved in every step of the way.

And if that, the data transformation doesn't it, the transformation program doesn't take into account every single level of the organization, then is going to be more difficult to implement those solutions.

In the current day and age, we can say things like goby forced us to do a lot of digital transformation that we didn't expect that we needed to do because we were forced to do it.

And if there's that many things that we have thought about, but not tried, when, the good example of that is the, uh, remote working part of them, that we were talking about for many years before. And we weren't doing experiments, and we were sending a specific big board, or dealing with contractors in programming, or since, all of a sudden, we had to send everybody home.

And then, a scale from one day to the next, every single technology that allowed, that to happen, that, in turn, derived the knowledge that some of our supply chains were tied together with beings to the wall. So that the processes were not well understood and then were very difficult to maintain.

You'll see remote work in, but we did it anyway, and that is one of the things that drives, that drives the transformation in the VMAs.

And this is according to Mark Anderson.

Sandy, from the MIT, Sandy Pentland for the MIT Media Lab, said something very interesting.

So, automated system in supply chain break down when faced with rapid changes in demand and supply.

And the last two years have been nothing but rapid changes in supply and demand.

All across the supply chain, from the sources of format DVM, to the transportation networks that have been challenged and challenged very strongly to the actual demand from our customers.

Because you've seen more and more, that our customers are demanding and requiring more products faster, or in different locations.

With different limits of therapies than ever before, am trying to cope with all of those changes in the supply chain with people.

Big means that you're going to need to have a nominee.

And the digital transformation, instead of physical, to allow you to manage higher levels of requirements, of challenges that your organization have never had to face before.

Wait the same, or slightly, much less resources than will be needed to perform those activities manually. Otherwise, and that's what we are talking about.

At the beginning, I'm going to town to tell you a little story about my previous company.

And we were of the beginning of the Corbett crisis.

We have an EOC equal and we have one of the leading products in the market for ventilator equipment and we received an order for 22,000.

Thank the leaders.

From the US Government Blogs, we received thousands of orders across the globe for this equipment and that will give you an idea of the radical chief thing than men.

We needed to go from making 5200 per year to making 22,000 in less than six months.

So that was a very, very strong challenge, and we needed to stand up a manufacturing operation in 90 days to introduce increased ventilator production, 10 times, uh, or previous operation with almost workshop environment where we then did the day. And then those were processed manually, and this is very less your base.

So, where they set up for mass production vehicles, you know, medical devices, by their very nature, every single test in the manufacturing process has to be correct in order to be able to leverage or to keep the patients safe.

In order to be able to do that, we have to move all of the operation for manufacturing of these devices into a new location.

We had to go halfway across the country from California at the bouncers set up a 700,000 square feet location where we set up these operations. So we had to do a digital transformation of the environment and utilize the operation because he kept two different legacy systems that were very, very difficult to update. So, there was no way that, in 90 days, we weren't going to perform change in the ERP solution that we were using.

So, the decision was made two, take everything and create that digital twin.

And in order to manage all of these, change is required in order to migrate the operation to a new location. We set up seven, independent, but who are being made at work streams.

And what that allows us to do was to work on different parts of the process, making sure that everybody was talking to each other, but giving each theme that was needed in order to the lever, their own solution.

As part of the IT team, we did a lot of the digital transformation in a very weak, innovative, roughly the amount of time, because we didn't have time to the band of new, more efficient solutions. We didn't have the chance to improve every single process in order to make it scalable. So we moved by prioritizing, standardizing, and being very, very practical about what we needed.

The first thing that we decided and management view that need to go that is that we will then be managing two separate operations for the same route. So we moved everything from California to the new facility.

But instead of having to manufacturing lines, we went from two to N P, so the team that had to set up all of those manufacturing guys that didn't have to make sure that we had all of that this thick wavelength.

And all of that programming in their setup, the facility, get that people trained, people certified all of those seven different things. We're working on different aspects.

The data transformation team was working on very specific problems in order to transform, not only the matter of fact putting operation, but also the supply chain operation from one location to the other. And I'm going to talk to you about, little bit of the challenges that we face.

one of the main challenges, as I mentioned, is that we're working with to separate the legacy or iOS piece.

We had no time in order to develop new solution of the system, because those two, all the pieces work very, very closely together with this equipment on the floor.

And, since we are talking about medical, device manufacturing, all of those tests were critical, in order to then deliver them material to the market.

So, we need a complete lift and shift of the existing operation.

That means that we moved everything fromm, in premise to the cloud, immediately.

We have two, worked very strongly with AWS in order to be able to replicate some of the equipment that we have.

Because the B 12 vitamin had to include very, very old pieces of software that were never designed to work in the Cloud. So that was 1, 1 interesting challenge.

The other thing is that we created that Digital Twin of the live system.

So, basically, we have the production system running, and on top of the Digital Twin that replicate that, all of the information on the Production environment.

And, but, what that allowed us to do was to run production on the production environment, and anything and everything that was not esthetically mission critical for getting product out of the line was run out of the Digital Twin. That means that we have to keep that database in sync.

Where it is reported being labeled briefing, everything that didn't necessarily have to hit the return environment, never, never got there. It was, it went straight to the top.

That, of course, being bold, creating a high availability and low latency, doing because some of those stairs that lead mints were very, very sensitive to any delay in communication with the environment.

And we did the dark green.

So we have a team of engineers going through every single piece of software, hmm, in order to find the cost to their production database.

And they were, uh, making sure that we're not going to have equipment failures, short timeouts, because of any defect on the call or any call to our to our system. The West now, in a different location.

So that was a baby intensive process, but at the end of the day, we were able to change, They are P from 100 to one thousand per week.

Without the need to move away from what exists in production environment.

Wish will have not been possible on the time allow allotted to us, some of the processes that we were working required us to use a different tool set.

When we were talking about work or PH, about label printing, the way that these modules working, the old ERP, were not very efficient, because a person needed to be in front of the screen. entering information at every step of the legal creation process. At every step of the work part of the creation process.

Which limits that, or ability to automate that.

So, we went with two major vendors.

On the robotic process automation markets, Microsoft, then do a bath.

and they allowed us to perform a lot of, this, is automatically, so that we didn't have to have anatomy of people entering information into the system.

Working with those old systems was very challenging for these tools, but we managed to make it work.

Setting up a number of workstations that were continuously we're working on creating.

Those weren't part of their sampling and making sure that those labels got painted in order for us to support them for increasing volume. That was my baptism by fire. And that's the way I learned the hard way.

And finally, how to manage work streams in five locations in two continents.

We have people working in California. We have people working in Chicago.

We have people working in Europe, in different parts of the seven different work streams, and the way that we were able to do that was via the workflow platform.

All of the formation was organized and made the way that will be in SharePoint solar.

If you are working with any kind of version of the system, you are going to always be working with the latest version because everything was on a central location.

We try to avoid having people keep the information individually for my-s.q.l., suddenly show that we adopted a workflow platform called monday dot com.

Hmm, and the reason that we use that is because it allows us to communicate very quickly and effectively with the rest of the organization, and with every member of our teams, in order to, do they leverage that information.

And, finally, we also went through jira, because that is the preferred to afford, on the development team, and that allow those teacher to be very, very efficient in the reading, the information for it.

So, how do you start your path and the transformation?

Maybe you're not going to be setting up a new manufacturing facility and 90 days, but the lessons that we learned in that process, and the lessons that we brought to the table.

Allow us to make sure that the data transformation is not just very interesting thing to say, but it's also a practical solution to the right processes.

So if you look at what we did, we broke down the quarter process.

We look for compatibility. What was our beta one that we could do digitally, what we needed to do?

And probably, there are some going to be some obvious in your current operation, where you look up.

Probably, my biggest impact will be in the operations that they have going to be a little bit more reluctant. The planning team is going to support more of this operation. So you are going to be sometimes considering which time is more susceptible to accepting change in their day-to-day business.

So, if you try to change your shipping operation, you're talking about, probably hundreds of thousands of transactions per week.

But if you change, your S NLP process is a much bigger impact in your organization. But the number of people that perform that activity is lower, and probably they can support your data, your newberg better.

The second thing that you have to do is to being, and the way, and so you are not going to be looking in the process, You're not going to say, we are going to automate the forecasting process.

You are going to be looking at your whole supply chain, and you're going to start to have that big.

Would you say, If I want to transform these, and I want to move forward in the organization, what do I need to do in order to benefit my organization as a whole?

So, I'm going to share with you what will be the North Korean organization.

And we broke down or internal supply chain, and broadly you have more or less of your own internal supply chain.

And the, but the idea Is that you are going to be able to take a look at this and then apply the analysis with it.

So, we went from Blanding, does sourcing to manufacturing and the DVD, or format theory in an internal supply chain, and you are not going to see a lot of their manufacturing solutions because they recycle in dedicated to manufacturing, the data transformation in our organization. But, we are talking today about what the supply chain.

So, you'll see that we brought down every individual component, and we say for the demand plan, and for the inventory, I think that we should be looking at integrated business planning.

The functionalities that we were, we are looking for is to be able to relate the demand by region to be able to Break down the forecast to a scenario analysis and forecasting Because those are the things that provide value to the organization. So, when we get out of the question, What is going to happen?

If we change the market, or if we change according to the demand in the market this way, Those are the things that takes more time.

So, this is where the big effect of this tool is going to be, that, we, in turn, will allow us to have, better said, This demo with lower, finished with the inventory, and avoid having beyond me of people, but I tell you about before, in order to perform these operations.

When we are talking about searching that our solution like that, but the urban control tower, that is going to take all of the information from your systems, send that to your vendors. And, then, get all of these responses. All of those activities that get performed by the buyers, can be, their work can be enhanced, because they are not going to be doing that repetitive task of confirming every single order. So, the function of the buyer is the pumps, exception management.

And they have the ability to have all of the information that they need in order to concentrate of the, leave it in that critical benefit to the organization. like, favorite. I won't be busy.

When we talk about the plating and management of the B, also, we implement this replay, shake control tower, recap, the supplier portal, and we are going to be able to lower, or raw, material inventory level, just because, we are going to be super efficient.

About, where do we get the video now?

That, in turn, also, is benefited from implemented that need a new digital tool, which is the supply chain risk management tool.

In the last two years, the number of things that impact or sial Beijing as increased exponentially in having tools that allow us to identify those risks is going to be critical in order to help us to deliver information to blindly theme to our purchasing team about where we see the next term coming that is going to impact their supply chain.

Finally, they leave any part of the equation.

How do you manage your transportation? How do you manage your communication with your thesis and freight banner?

There are solutions that are going to be in there.

And when you look at these, and finally, the seventies, in our case, we have a very important service equipment component.

And that in turn, Wells is going to provide your planning environment.

At the end of the day, what I want you to take from this picture is not that how the individual components, technology tools are going to benefit your operation, but the idea that you break down your operation. You start looking for tools to improve your operation, and then you decide, where do you want, or what benefits are more critical for your particular case, for your operation?

And bring those tools to bear, and make sure that when you're looking at the world supply chain in your organization, each of these individual terms either has the capacity to talk to each other, and our capacity to share information.

So, everything starts with people, As you can see here, you are going to do your operation analysis, then you're going to need a foundation because you, you understand, your value proposition.

I am.

You are going to see that the three things that I have on the right people. Rather than Matrix, basically, people are going to be at the beginning of every single detail journey that you're going to want to take.

Because at the end, you are going to transform the business, which is a collection of people that are trying to do the right thing that are trying to, They neither value to their customers and to the organization.

So, you move from your day to day is to that of the ribbon decision making, that is going to provide the greatest value to the organization.

Finally, in order for your digital transformation, you need to take off, you will create them, facilitate digital culture, people are aware of these technologies. You'll talk to them. They absolutely you can talk to them often and you talk to them continuously about what the digital transformation process. It's going.

You will allow the use of molar solution That means that you will be focused more on how to improve your process as we move towards rather than trying to Rework your old system seeing or that the working environment.

You push the transformation of the core business, making sure that that, but also makes your company different from any other company out there, is, is working properly, and you are located Resources and in the ..., the digital transformation process.

Because many, many times, these processes are going to depend a lot on the people that you are saying and that you have to give them to be ready to experiment fail, and that's what I had for share with you today.

Thank you very much, we will talk about some questions.

Thank you very much, Javier. Great presentation. Great insights, as you mention on the practical guide to digital transformation. So, I'm going to ask you that you please stop showing your presentation screen and I'll bring my camera back on.

With you. Perfect.

And that. And for those of you who submitted questions, we're reviewing all of them, either whether you submitted here or through LinkedIn and that we are God relay as many as possible to Javier we have about five minutes here so we'll be efficient in doing that.

I'm talking about Efficiency Javier, on the previous speakers talked about supply chain planning and and talk about the shift that hasn't happened from just in time to what they call just in case. Which means that with the pandemic there is that there has been a shift from supply chain. efficiency trying to get, you know, faster, cheaper, better, you know, applying link processes and systems to your supply chain.

And I think that sometimes that's a mischaracterization, Holly and actual is applied, but let's go with that. We went from being efficient, should be coming to realize that we have to be more effective than we may actually need.

Um, greater level of risk management are supply chains, and I'm curious about your perspective, especially in the medical industry now, where, where, how do you balance that efficiency versus effectiveness in your supply chain and specifically, the risk management component that you can have very efficient supply chains that could be disrupted?

I'm curious about redundancy, risk management, and the and, and if digital plays any role in that.

Yep, in the modern view, as you saw that, during my breakdown of our internal supply, say, one of the key components of what the strategy is, supply chain risk management.

Then, number of things that can go wrong in a modern supply chain as increase exponentially in the validity of all those people to keep up to date with that.

It is not increasing the same, in the same way. So having a tool that will go, scoring the go-go, looking for all of the pieces of information available on the Internet, and then bringing that information.

Putting it all together and filtering what you need to make proper decision is one of the critical steps in order to have a healthcare supply chain. Because probably there's a big i-phone coming in but if none of your vendor effect and you don't need to worry about that, but there is a small break down in operations and chipping in a certain type of China.

Well, you've got 20 or 30 different vendors that are shaping what they need to know That is going to have a much bigger impact and not Ebony a body is going to be able to keep track of all those things by themselves. So having that interface in artificial intelligence, looking for that, those pieces of information, bring them to your table, is critical for the health of your supply chain.

Very good. Very good.

You did talk very well about end to end planning for your, for your supply chain, and even for your digital transformation effort, which is very important. Now, there are a number of comments and questions related to digital transformation itself.

And one of the comments is that there is no digital transformation without a meaningful business transformation, and there is no business transformation without meaningful cultural transformation.

So, in the world of digital, how is that affecting culture?

And, the question is, How do you set up your culture for success in a digital transformation?

Know, these are transformational environment.

one of us, as you mention, that, that is a great point. People are critical in order to make these copies.

And how do you bring people, the more you have to in. If you are responsible or walking on the road for Matron Jordan for your organization.

Your ability to communicate with the rest of the organization is going to be critical because you are going to be talking about changes, not only on operating procedures but you're going to be burying fiber line changes to the core of the organization.

So if you are trying to implement this kind of system, Halim, build, the ability to communicate through the rest of the organization, better correlate those ideas, and start interacting with different parts of the organization, bringing to you those tools to allow them to do their jobs better.

It's going to allow you to cover Betty Sue: Better chance of troops as into your digital transformation. For example, one of the tools that I mentioned before, we used a workflow management tool in order to co-ordinate seven different themes, but broadly that aren't going to be some processing your purchasing. The theme or your contract management operations that are going to benefit from those technologies.

So if you communicate or early and often in you is thought to share showing them some small pieces of technology that help them in their day-to-day business, your chances of success are going to lunch.

Javier, our time is up. but thank you so much for sharing your wisdom and expertise of our global audience today. What as a wonderful, insightful presentation, as you promise on the practical guide to true digital transformation. So thank you for that.

Thank you very much.

Ladies and gentlemen, that is Javier Silva, digital transformation leader at the outset, medical, sharing his wisdom and expertise of all of us. So we are wrapping up this session now and we'll come back at the top of the hour with our final session of the day.

So Javier, you may go ahead now and toggle your camera off.

Thank you.

So we'll be coming back at the top of the hour with a presentation on Unilever's international commerce, and specifically we're gonna learn how Unilever on their automation journey remove complexity to increase efficiency productivity.

And there are control frameworks all at once through the use of supply chain planning and automation. So, the session called Unilever, International Delivers Customer Excellence in Cross Border Commerce, will start at the top of the hour, so you don't want to miss that. It's the last session for Supply Chain Planning Live today. So take a break now. I'll see you back at the top of the hour.