The Predominant Role of IT as a Competitive Global SCM Strategy: The Case of Roland DG Japan, a Manufacturing Company

Abstract

This paper, written in a business case format, introduces Roland DG as an example of how a Japanese company approaches the paradigm shift of Industry 4.0. The aim is to propose a conceptual model: The SCM 4.0, under the general assumption that global high performers must build efficient and agile value networks by taking advantage of emerging technologies such as IoT, AI, and big data. Roland DG owns a digital production cell system and is making strategic investments to build IT infrastructure to manage in real time all global SCM end-to-end flows.The first step has been the implementation of advanced global SI&OP and control tower systems, delivering quick results. In this early stage of Industry 4.0, it is necessary to make the differentiation of SCM 4.0 as a derivate of growth implicit to Industry 4.0 as the main assumption. Global companies that want to maintain their high performance and competitiveness in the future need to build efficient and agile business networks with real-time digital information flows to take maximum advantage of emerging technologies such as IoT and AI. Authors conclude that there is a set of six key success factors that are a sine qua noncondition, necessary but not sufficient.