Digitalization and IT Backsourcing: Towards a Transformational Model for the German Automobile Industry

Many organisations are now confronted with the new phenomenon of digitalization and are faced with the challenge of formulating and implementing a company-wide digital transformation strategy. Digitalization is associated with significant and extremely rapid change, and, in some cases, even the replacement of established business models. In manufacturing companies, this transformation is part of what is often termed Industry 4.0 and, in large companies, where the provision of information technology (IT) has hitherto been outsourced (in whole or in part), the introduction of these new technologies may be the catalyst for IT backsourcing. This entails bringing previously outsourced activities back in-house to regain ownership and control, in order to be more flexible and respond more effectively to rapidly changing demands. This study reviews the extant literature to assess existing thinking on the motivation for backsourcing, and then examines the potential role of digitalization in driving IT backsourcing in the German automotive industry. A provisional conceptual framework for subsequent research is put forward, using a knowledge-based view of the firm. The study is in its initial stages, but the model is being developed through more in-depth interviews to provide operational guidance for practitioners and subsequent research studies

Integrated optimisation for production capacity, raw material ordering and production planning under time and quantity uncertainties based on two case studies

Abstract This paper develops a supply chain (SC) model by integrating raw material ordering and production planning, and production capacity decisions based upon two case studies in manufacturing firms. Multiple types of uncertainties are considered; including: time-related uncertainty (that exists in lead-time and delay) and quantity-related uncertainty (that exists in information and material flows). The SC model consists of several sub-models, which are first formulated mathematically. Simulation (simulation-based stochastic approximation) and genetic algorithm tools are then developed to evaluate several non-parameterised strategies and optimise two parameterised strategies. Experiments are conducted to contrast these strategies, quantify their relative performance, and illustrate the value of information and the impact of uncertainties. These case studies provide useful insights into understanding to what degree the integrated planning model including production capacity decisions could benefit economically in different scenarios, which types of data should be shared, and how these data could be utilised to achieve a better SC system. This study provides insights for small and middle-sized firm management to make better decisions regarding production capacity issues with respect to external uncertainty and/or disruptions; e.g. trade wars and pandemics.</jats:p

Economic evaluation in decision models: a critical review and methodological propositions

International audienceDecision models of industrial management articles are often based on an economic criterion to find the proposed solution. They use economic parameters that are generally imported from the firm cost accounting system. When cost information is not adapted to the decision, the obtained solution of the model may be invalid. In this article, we deal with a critical literature review to report the methodological problems encountered in industrial management articles vis-à-vis the used costs. Finally we suggest methodological propositions to be kept in mind by authors when they are using costs in decision models

APPLICATION OUTSOURCING IN THE BANKING INDUSTRY – ITO MODEL

Information Technology Outsourcing (ITO) in terms of the replacement of the in-house production of IT activities by the use of third party suppliers had already started in the 1960s and has increased considerably. For 2013, the Gartner Group expected that the global ITO market would reach a volume of 288 bn US dollars. Until 2017, the market should grow on average about 5.4% yearly. Despite the rich set of experiences companies have already had with ITO, the chances of success are seen as at best 50:50. Currently, the dramatic growth of ITO is accompanied by backsourcing of formerly outsourced IT functions or reports about dissatisfaction and problems with ITO. Scientists put ITO failures or problems down to a lack of modelling of all the possible factors affecting ITO success and demand a specific ITO theory as a basis for better explaining and predicting successes and failures in an IT sourcing context. This thesis takes up this research gap. The aim of this thesis is to develop a novel ITO Model which aids organisations in planning and implementing ITO solutions by guiding them through the ITO process steps of preparation, selection, contract, transition, execution, and post-deal comprising a comprehensive picture of the weighted aspects relevant to ITO success and their interdependencies. In order to achieve this aim, the following objectives were established for this thesis: raising the topical level of scientific knowledge of the last decades about successinfluencing factors in the ITO field based on an extensive literature survey of 48 scientific articles deriving ITO success factors from empirical research work; structuring of this success factor knowledge by the development of two ITO taxonomies (taxonomy of success factors and taxonomy of success factor interdependencies); testing its practical applicability on the basis of 8 real long-running application outsourcing cases in the banking industry; further development of the success factor knowledge by identification of weightings and the temporal relevance of relevant success factors / success factor interdependencies within the ITO process. Design of the novel ITO Model based on the empirical knowledge gained by development of rules for relevant success factors and success factor interdependencies, by arrangement of these rules in temporal order within the ITO process and by assignment of these rules to four levels of environment

Analysis of Incoterms and Relational Resources to Improve Competitive Advantage: A Study of Freight Forwarders Company in Indonesia

This study aims to analyze the impact of Incoterm and relational resources on the competitive advantage of Indonesian Freight forwarders. The measurement methodology uses structural equation model (SEM) analysis with SmartPLS software to analyze the impact of Incoterms and relational resources on competitive advantage. Through social media, online questionnaires were sent to gather research data. The Likert scale of 5 was used to create the questionnaire. Companies that provide freight forwarding services were the respondents in this study, chosen by simple random sampling. Online questionnaires were distributed to 75 companies to answer questions submitted. The data analysis step is validity tests, reliability tests, significance tests, and hypothesis tests. Based on the data processing results, it is found that Incoterm and relational resources positively affect competitive advantages. The novelty of this study is a model of the relationship between the effect of Incoterm and relational resources on the competitive advantage of freight forwarding companies. The research's theoretical implication is that Freight forwarder companies' management should select appropriate incoterms and implement relational resource policies to encourage increased competitive advantage. One of the limitations of this study is that the sample size used is only a small number of companies engaged in international Freight Forwarder services, only 75 companies