The HBS Digital Initiative reshapes digital to create a world where technology advances and serves humanity. The DI manages this forum to highlight perspectives from the HBS student community.
Want to learn more about technology and organizations? digital.hbs.edu
A.P. Moller – Maersk and the Future of Shipping in the Digital Age
Walter H. Haydock
Last modified on November 26, 2017 at 6:04 pm
How will a global shipping company simultaneously capitalize on the efficiency gains afforded by digitization while navigating the relevant safety, cybersecurity, and regulatory hurdles?
Thanks for the post! A very interesting topic, indeed. Your analysis of the financial aspects of this development is quite revealing, and I think you are correct that Amazon sees more value in the data collection than it does in the savings from labor cost reduction. Although it would almost certainly require insider information, and interesting future analysis would be to examine how much Amazon (or similar company) values data collected from customers in monetary terms, and how it arrives at this value.
If it does in fact become economically untenable for Delphi to maintain its current supply chain practices due to increased global economic barriers, what is the best way forward? For a company facing such a challenge, it would make sense to establish a series of “decision points” to drive its long-term planning. Determining in advance exactly what conditions would lead it to decide to invest in automation, relocate manufacturing plants, or begin lobbying governments would help the company establish a useful plan of action.
Based on your analysis, what do you think will be the key “decision points” for companies such as Rassini as they seek to navigate the new political and economic environment? With the uncertainty that you mention, as well as the substantial lead time required for many of the courses of action you propose, when will a company have to decide on which plan to pursue in order to have enough time to implement it? It would be wise for any enterprise facing these challenges to develop an event-driven roadmap to guide its decision-making going forward.
I agree that digitization is presenting a challenge to Under Armour, as with many similar companies. The key will be for them to determine how to develop a competitive advantage over competitors like Nike. Integration with other products, especially software-based ones like “MapMyRun,” will be the key to their success in doing so. How can a company like Under Armour distinguish itself by spearheading the next wave of innovation in this field?
Great to hear that companies like BJC HealthCare are taking steps to digitize the medical supply chain. Seamlessly tracking inventory across hospitals using RFID tags and other technologies seems like a great way to reduce costs and increase the quality of care delivered to patients. It would be interesting to examine the potential usages of Augmented Reality (AR) – to which you alluded by mentioning Google Glass – in the healthcare field. What would be the next step towards making this a reality?
Your analysis of the issues facing the pork industry highlights some of the tough questions with which individuals, businesses, and governments will have to grapple as the affects of global climate change become more intense. With regard to the final question you pose, as to the role of the government in ensuring the efficient use of water, it would be interesting to delve into the economics of potential regulations. Since legislative and/or regulatory initiatives sometimes create perverse incentives (often unintentionally so), I think that substantial additional information gathering and research is necessary to ensure that any potential mandate is both fair and effective.
“Platooning” is a very interesting topic; I did not know that there were fuel efficiencies to be gained by having autonomous vehicles move in formation! The potential savings from implementing such a proposal are substantial, and although the up-front investment costs might be significant, it seems that “platooning” will make economic – and environmental – sense in the long-term. The regulatory risks appear to me to be the biggest hurdles to overcome; it would be interesting to learn what the current state of affairs is in the United States and abroad.