Monthly Archives: November 2007

What Does the doctor Do? For Executives

Note: You might also want to review What Does the doctor Do … For You for specific, packaged, offerings. 

the doctor does Innovation for the Real World, whatever that happens to be. I know simply by the fact that you’re reading this blog – since readers of this blog are intelligent, driven, and keen on innovation – that you understood exactly what the doctor does after reading the initial post, What Does the doctor Do?. However, since there was no noticeable change in the number of e-mails I received after the post went up, I know that, unfortunately, some of your decision-making and / or check-signing executives, who still look to Dilbert’s Boss for guidance, did not. This post is for them.

To make it even easier to understand what the doctor does, I’ve broken out what it is that the the doctor can help an organization with by organization type. (The organization types have been segmented into Sourcing & Procurement Technology And/Or Services Provider, Consumer of Sourcing & Procurement Technology And/Or Services, and Conference Organizer / Professional Organization.)

Sourcing & Procurement Technology And/Or Services Provider

Technology

  • Analytics, Optimization, & Modeling
    the doctor has a Ph.D. in Computer Science and has particular expertise in optimization, analytics, and modeling. Thus, the doctor can definitely help you understand how you can improve upon your current offerings and what you need to do to get there.
  • Architecture
    the doctor used to work as a software architect and has a solid understanding of today’s technology. He can help you select the right architecture for your proposed solutions.
  • RoadMap & Planning
    the doctor can not only help you select the right problems to tackle (as discussed below) and the technologies, architectures, models, and algorithms that you can use to get where you want to go, but he can also help you optimize your roadmap, taking various constraints into account.
  • Research
    Ph.D. implies Research. Lots of it. the doctor has also held senior research roles in technology companies. Research is not a problem for the doctor. It’s the solution.

Business Development

  • Strategy & Positioning
    the doctor has an astute understanding of the sourcing and procurement market – the major players, the major offerings, and the major problems that need to be tackled. He is one of the few individuals uniquely qualified to help you select a strategy and development plan that will help you stand out from the competition and meet the current and emerging needs of sourcing and procurement organizations around the globe!
  • Messaging & Marketing Materials
    As you may have noticed, the doctor is pretty damn good at this writing-thing. White papers, position papers, etc. are no sweat for the doctor.
  • Growth Opportunity Identification
    the doctor can also help you identify potential growth opportunities through untapped markets, under-served customer segments, and partnership opportunities. Think Different is not just a slogan to the doctor – it’s a way of life! (the doctor can not think homogenously. It gives him a migraine to even try!)

Operations

  • Process Modeling & Improvement
    the doctor is good at modeling and optimization – period. (Maybe it’s because he despises any task that’s unproductive.) He can help you model, analyze, and optimize your business processes if there are improvements to be had (which there are the vast majority of the time). (Or is that the vast, vast majority of the time?)
  • State-of-the-Company Review
    If you really want to know how much the doctor can do for you, invest in a one-to-two week review (depending on company size and solution breadth) and have the doctor review the current state of your operations, marketing & positioning, technology, and solution offering from the viewpoint of someone who understands what best-in-class is (especially from a start-up and small-to-midsize company perspective). This is especially valuable if you are thinking about engaging the doctor for the mid-to-long term to help you with your technology and business development, as his productivity skyrockets once he has a solid understanding of where you are and where you want to be.
  • Management
    Running a start-up or small company on a day-to-day basis is challenging – especially if it’s your first time. If you think the management style employed by you and / or your management team may not be the most effective management style for your operation, the doctor may be able to help. the doctor has been involved with a large number of start-ups and small companies over the past decade and has seen way too many fail not for lack of a good solution (most had solutions which kicked major ass), but for lack of either good sales, good marketing and positioning, or good management – with the last issue being the most common. Let’s face it – management’s tough enough without a Board of Directors breathing down your back, media dissecting you under the microscope, and governments demanding more paperwork than you can keep up with. So, if you think your ship isn’t running on full steam, think it might be because of management, and are truly serious about finding out why and what you can do to fix it, contact the doctor. I’m happy to discuss with you how I might be able to help.

Consumer of Sourcing & Procurement Technology And/Or Services

Technology

  • Assessment
    the doctor can help you understand where you are on the technology curve and what you have to do to reach the leading edge (or, if you’re truly ambitious, the bleeding edge).
  • RoadMap
    the doctor can help you put together a roadmap and project plan to get where you need to go (after he’s done an assessment to help him understand where you are).
  • Selection
    the doctor can help you with specific technology evaluations along with the questions you should be asking the vendors and the answers you should be looking for.

Operations

  • Process Modeling & Improvement
    the doctor can help you model, review, analyze, and improve your sourcing & procurement processes and methodologies to make optimal use of best practices and today’s technology.
  • Initiative Management
    the doctor can help you manage your new sourcing and technology initiatives, acting as an innovation project manager.
  • Train-the-Trainer
    the doctor used to teach in academia and used to do industry training. the doctor can help you train your power users and star performers on new processes and technologies and bring them to the level they need to be at to disseminate that knowledge to the rest of the organization.

Conference Organizer / Professional Organization

Professional Services

  • Speaking
    the doctor used to be a University Professor and an academic – where you’re measured not by the quality of your work, but how many courses you teach, how many papers you publish and how many talks you give. It should go without saying that he’s had some experience here.
  • Positioning & Content Planning
    Membership stagnant? Event attendance down? Let the doctor help you understand what the emerging issues might be and what topics you could consider addressing to pique interest.

And more! As long as you’re truly focussed on innovation, the doctor is interested in how he can help you. So feel free to e-mail the doctor (<at> sourcinginnovation <dot> com) today to find out if the doctor can help you take it to the limit! (And yes, the doctor does understand what a limit is.)

The Coupa Store

Ever since Coupa shook the e-Procurement world to its foundations by announcing the first transparent pricing model for its hosted enterprise open-source e-Procurement solution, Coupa has been getting a lot of press (which, of course, started right here on Sourcing Innovation). To date, their latest release has been covered by Software CEO, Supply & Demand Chain Executive, La Lettre Des Achats, ZD Net, Spend Matters, Purchasing, and Network World, among others. In honor of the rapid pace for which they have achieved recognition in the industry, and the even quicker pace in which they managed to develop a brand new enterprise e-Procurement application from scratch that is available on-demand using Amazon’s scalable and robust EC2 hosting solution, I bring you The Coupa Store.

The Coupa Store   To the tune of Hardware Store by Weird Al Yankovic

Nothin’ ever (ever) happens around here
Feelin’ low down (down), not a thing to buy I can choose
I thought that I would go right out of my mind
Until a friend told me the news

He said, “Hey you know that RFP
for a new procurement tool? A decision was made
and tomorrow they’re gonna buy Coupa
that we can use to buy in spades!”

Since then I’ve been walking on air (air)
I can barely brush my teeth or comb my hair
‘Cause I’m so excited and I really don’t care
I’ve been waiting since last June

For this day to finally arrive
I’m so happy (happy) now just to be alive
‘Cause any minute now I’m gonna be on-line
Well, I hope it’s ready soon

I can’t wait, (no) I can’t wait
When are they gonna put the system live?
I’m gonna, gonna, I’m a-gonna buy at
Gonna buy at, oh yes I’m gonna, really gonna buy at
Gonna, I’m gonna buy at, oh yes, I’m gonna buy at
The Coupa Store!

In my sleeping bag I camped out overnight
Right in front of the screen, then as soon as it was light
I pressed my nose right up against the glass
You know, I had to be first on-line

Gonna get me a flashlight and a broom
Want a brand new stapler for every single room of the office
See those i-Phones? Very, very soon
One of them will be all mine

Screens with cloud tags really make me smile
Virtual product listings are always displayed in style
Brand new HP laptops in a plethora of styles
All indexed alphabetically

And they’re doing a promotional stunt
There’s a great big purple sign in front
That says every 27th customer
Will get an inkjet printer free

I can’t wait, (no) I can’t wait
When are they gonna put the system live?
I’m gonna, gonna, I’m a-gonna buy at
Gonna buy at, oh yes I’m gonna, really gonna buy at
Gonna, I’m gonna buy at, oh yes, I’m gonna buy at
The Coupa Store!

I’m gonna, gonna, I’m a-gonna buy at
Gonna buy at, oh yes I’m gonna, really gonna buy at
Gonna, I’m gonna buy at, oh yes, I’m gonna buy at
The Coupa Store!

Would you look at all that stuff …
They’ve got allen wrenches, gerbil feeders, leather chairs, electric heaters
Trash compactors, fuel reactors, printer ink, and postal meters
Walkie-talkies, network cables, safety goggles, mailing labels
Gerbil pellets, rubber mallets, fans and boardroom billiard tables
Picture hangers, paper cutters, coffee makers, mini-putters
Paint removers, window louvres, masking tape, and tile cutters
Kitchen faucets, folding tables, weather stripping, printer cables
Pens and paper, water vapor, power washers, Aesop’s fables
Pesticides for fumigation, high-performance lubrication
Data servers, life preservers, multi-purpose navigation
Air compressors, gold connectors, pleather sofas, smoke detectors
Moving stages, gerbil cages, thermostats, high-res projectors
External drive demagnetizers, automatic purifiers
Denim jackets, angle brackets, Duracells and Energizers
Cube-farm panels, circuit breakers, vacuum cleaners, pepper shakers
Calculators, generators, chocolate from the swedish makers

I can’t wait, (no) I can’t wait
When are they gonna put the system live?
I’m gonna, gonna, I’m a-gonna buy at
Gonna buy at, oh yes I’m gonna, really gonna buy at
Gonna, I’m gonna buy at, oh yes, I’m gonna buy at
The Coupa Store!

I’m gonna, gonna, I’m a-gonna buy at
Gonna buy at, oh yes I’m gonna, really gonna buy at
Gonna, I’m gonna buy at, oh yes, I’m gonna buy at
The Coupa Store!

I’m gonna, gonna, I’m a-gonna buy at
Gonna buy at, oh yes I’m gonna, really gonna buy at
Gonna, I’m gonna buy at, oh yes, I’m gonna buy at
The Coupa Store!


For more Coupa inspired lyrical amusement, you may want to check out these classics:

A Coupa Inspired Hoe-Down (A Good Old-Fashioned Hoe-Down)
The Coupa Drinking Song (A Good Old-Fashioned Irish Drinking Shanty)
It’s Coupa Time (The Coupa Rap)
Davie & The Coupa Factory (An Oompa-Loompa Chant)

For more information on Coupa in general, you might also want to check out these classic posts:

Procurement Independence at the Coupa Cabana Cafe
Coupa Cabana Cafe Open For Business
Coupa Charges Ahead
Riding the Rails with Coupa
More Than Coupacetic
It’s … It’s … It’s Coupasonic!
The Coupa Sunflower Starts To Blossom
Coupa + Amazon EC2 = Energized Procurement!

the doctor Shall Also Remain Spaceless

While browsing the Supply Chain Management Review site recently, I stumbled upon the article What Supply Management Can Learn From MySpace, and I was scared. Although not as bad as Facebook, I still think of it as a time-sucking black hole filled with meaningless banter between teens, twenty-somethings, and the unemployed – with poorly designed pages that would burn a good designer’s eyes right out of their sockets to boot! (I did investigate it back when it was new – I signed up, looked around, quickly came to the conclusion that it was too much effort for too little return, and abandoned it.) The only thing it’s useful for, from a business perspective, is to discover new artists – which is only good for those looking for bands to book or labels looking for bands to sign. Not really supply management.

I read the article anyway, just to be sure they weren’t advocating its use and that my view of the SCMR as one of the better publications wasn’t misplaced, and it had a few good points. It noted that to succeed in this quickly changing tech-savvy world, companies must think, even “work”, differently. Which is true, but this doesn’t mean embracing every fad that comes along – it means finding new technologies and processes that actually improve productivity. The goal of business is to be productive and make money, not socialize with friends. (This may be the goal of most big business executives, but it’s not the goal of business. )

It also pointed out that communication, globalization, and on-demand collaboration is a good thing. I agree, but remembering that communication implies (a two-way) information exchange, I don’t often see much of that on MySpace. It’s not as global as you might think. And it doesn’t really enable collaboration the way that new sourcing and supply chain offerings from the leading on-demand vendors (like ArenaIasta, Salesforce, etc.) do.

The article also pointed out a few technological trends that are important:

  • broader-based adoption of PLM technologies
  • emergence of CAD and PDM lite technologies
  • standardization of collaboration features
  • unilateral migration to service-oriented architectures

I agree that these are important, but I would question whether they are business equivalents of MySpace, for these achieve effective goals in the business world due to their differentiation from MySpace, not their similarities.

In short, while I will admit that the notion of examining new developments in social technologies as a means of drawing inspiration has merit, the notion of trying to create innovative business applications by creating something that is equivalent to a social networking sites does not. First of all, there’s no guarantee that it will bring any business value in terms of productivity or cost savings. Secondly, there’s no guarantee that it’s not a fad, and that people will want to use it by the time you have a business equivalent. Thirdly, you’re blurring the world between business and pleasure, which is a slippery slope to be sliding on.

So while I agree you should always be on the lookout for new and better technologies, I’d be cautious about jumping on the bandwagon of the next social network fad that comes along. Chances are that, in the long run, it will be nothing more than a drain on your time and resources. There’s a reason that a large number of organizations in the public and private sector have blocked access to sites like MySpace and Facebook. If I were you, I’d take the clue.

“Demand Shaping” or “Demand Sensing”?

The EE Times ran a great article by Romit Dey and Manoj K. Singh last month on Demand Shaping and how it aligns customer trends with supply. But I have to ask, is it really “demand shaping” or is it more “demand sensing”. Is not “demand shaping” what marketing and advertising does? It’s true that supply chain has a supporting role, in terms of letting marketing know how much a product can be produced for, how many units can be produced, and how fast the units can be in consumers hands. However, what supply chain really does, in a company that runs like a well-oiled machine, is sense the demand that has been created, and the demand that is in flux, and adapts to the situation.

So what is “demand sensing”? According to the article, which calls it “demand shaping”, it is a demand-driven, supply-constraining customer-centric approach to planning and execution that aligns process with customer demand at strategic and tactical levels and with an organization’s capabilities which helps optimize use of resources, reducing excess inventory and improving inventory turns. More specifically, at the strategic level, the emphasis is on aligning customers’ long-term demand patterns to long-term resource and capacity constraints and at he tactical level, the focus is on understanding demand patterns and then influencing customers’ demand toward available supply, using the levers of price, promotion and products/services bundling.

How do you sense demand? As the article points out, you need three key capabilities:

  • demand pattern recognition
    who is buying what, when, and in what quantity
  • supply supportability analysis
    how much can be made, when, and how fast can it be delivered
  • optimal demand steering
    if demand patterns suddenly change, and you do not have enough of product A, can product B be used as a substitute and can customers be steered to that product instead

The first skill is obvious – you need to manage inventory appropriately so you aren’t holding too much, and generating excessive inventory carrying charges, or holding too little, and selling out before supply can be replenished. The second skill is less obvious, but easily understood – you need to know how much you can make, and how fast it can be made, to appropriately plan your inventory level.

The third skill is what takes “demand sensing” to a whole new level, to the point that it is almost “demand shaping”, but not quite, and hence the source of confusion. It is, as it’s called, “demand steering”. The Dell example the authors use is the best. By maintaining real-time visibility into its supply chains, Dell knows its inventory levels now and in the immediate future on an hourly basis. If a customer configures an order for a 60GB drive on their web-site, and Dell knows they don’t have enough stock to configure the system immediately, then Dell informs the user of a delayed ship date and presents the customer with an opportunity to replace it with an 80GB drive at a discount – steering the customer towards another product that can meet their needs, even if it is more expensive, but Dell takes a discount on margin to make the sale and keep the customer.

The key to success, as the article points out, is to make sure that all three processes are part of a single, integrated loop. A supply supportability analysis is run on a regular, automated, basis; inventory is updated on a near real-time basis; and short-term forecasts are updated at least daily. Each of these numbers is compared on an automated basis, and as soon as forecasts exceed inventory and obtainable supply, an alert is sent to a planner who determines whether there are alternative products that can be used to meet the need or if marketing and sales needs to be informed that they need to take actions to steer demand on their end. Then, customers are steered towards the alternative products through the appropriate channels – in real-time.

The article also does a good job at overviewing what is required for a demand sensing framework. The elements it outlines are:

  • inter and intra organizational connectivity
  • the ability to capture, structure, and comprehend data from customers and channels
  • advanced business intelligence to identify demand patterns
  • optimization
  • common processes
  • a common data model
  • common performance metrics
  • available-to-process capabilities
  • exception management
  • electronic negotiation and collaboration

The best thing about the framework is that these are basic capabilities and processes a good organization should already have in place. It’s just a matter of tying them together and using them wisely!

the doctor Says There’s Nothing Wrong With Fat Client

I recently read an article over at Knowledge @ Wharton on Software’s Future where they said that there is a drive toward hybrid desktop/webtop software, that there are limits to both approaches, and that the future for software may be a blend of the best features of both, that really got my attention.

The focus of the article was on the fact that Adobe Systems, Microsoft, and Google recently made new product announcements around advancements that they believe will be the future of software. Adobe with its buyout of Virtual Ubiquity that created a web-based word processor on Adobe’s new software development platform, the AIR, that can run on-line or off-line; Microsoft with its Office Live Workspace that extends Office and allows users to store and edit documents on the web and share them with others; and Google with its “Gears” that allows developers to create web applications that can also work offline. Based on these offerings, the experts at Wharton are predicting that the hybrid software model is going to emerge and take hold and be long-lived.

Furthermore, they are predicting that this new hybrid software model will develop in two phases. In the first phase, web-based applications that offer the same features as current desktop applications will become common. In the second phase, web applications and desktop software will co-mingle and the functionality advantage of desktop software will erode.

Well, this would be a great prediction – if it wasn’t for the fact that phase 2 exists today and has existed for a long, long time. It’s called Fat Client, or Thick Client, and some on-demand software as-a service providers, like Iasta, have been delivering software in this model for years! Now, you might say that it’s not the same because browsers are ubiquitous and fat clients tie you to a single platform, but that’s just not true.

First of all, there’s nothing stopping you from writing your fat client application in Java, which is as multi-platform as you can get. Secondly, should you decide you’re going to use Flash or Flex, you’re not even going to be compatible with every major web browser, yet alone every platform. The most popular browser is still IE and, guess what, that’s Windows only. Microsoft abandoned IE support on Mac years ago. Opera, still not that popular, even though it had most of the innovative features that you find in today’s browsers first, is only PC, Mac, and mobile. Only FireFox comes close to covering today’s common platforms, namely PC, Mac, and Linux, but don’t expect every plug-in or extension you commonly find on the PC to be available cross-platform. Basically, the web-browser is not universal, as not all browsers even support CSS fully and identically, and has no advantage over a well-designed Fat Client in Java.

Thirdly, and most importantly, whereas web-browsers and plug-ins are encapsulated from the underlying operating system and don’t give you a lot of control over local processing and no capability to save or cache data locally, Fat Clients give you the best of both worlds. You can work locally, or over the web. And since there are a number of open source browser projects out there, including the Mozilla technology base that FireFox is built on, there’s no reason a Fat Client can’t include a browser if that’s what you feel you need for that web experience.

Let’s face it, the web isn’t what you see through your browser, the web is a set of services that can be defined and encapsulated in protocols such as HTTP, FTP, SMTP, etc. that constitute the application layer of the internet and that run on TCP/IP. The browser is one way you can view data that is available over the web, but it’s not the only way.

So next time someone suggests “Fat Client”, don’t dismiss it as current generation technology or something that isn’t “web” enough. Done right, “Fat Client” is the hybrid future of software technology. It’ll let you work locally on a document or your own spend data set and then let you collaborate over the web and share your document or data in real time when you’re ready. It’ll let you use your local laptop resources when you’re on the plane and without internet connectivity and a remote server when you’re online. And you don’t have to worry about downtime due to internet failure. Let’s face it – even if you’re SaaS provider does have 99.999% up-time, that’s useless if your local city construction crew accidentally slices through your T3 internet connection and takes your internet connectivity down for a couple of days. So forget about the Thin phase – it’s time to get Fat!