Imagine a supply chain executive poring over yet another spreadsheet, relying on gut instinct to make a decision that could either make or break the company. What’s more, this is despite having a team of analysts, AI and sophisticated planning tools. Does it have to be this way? What if executives had their own software that directly supercharged their decision-making cycle? Indeed, recent advances in AI and data analytics make it possible for executives to skip the middlemen and interact directly with software to make quick, informed decisions. Think of it as an Agile Decision Platform – one that gives cross-functional insights, best options, and keeps everyone in the loop, all at lightning speed.

In this article, I’ll look at how digitalization is creating a growing necessity for business leaders to be increasingly agile in their decision-making. This is even more true in complex supply chains, where corporate executives are working in a dynamic, uncertain environment. Also, I’ll identify how current software systems and analytical tools neither meet the agility needs for executive-level decisions, nor are they cost effective. Lastly, I’ll identify the key software attributes that corporate executives need in an agile decision platform to fully empower their decision-making. Indeed, corporate leadership to include CEOs, COOs, and CFOs need better decision tools to maximize their supply chain performance.

1. Emerging Tech Empowers Corporate Executives to Make Better Decisions Quickly.

Today’s information technology allows decision-makers to receive data instantly, enabling quicker and more efficient decisions. What’s more, by executives directly accessing information instantly, they can act faster than their competitors as new opportunities arise. Indeed, emerging information technologies enable them to rapidly Observe, Orient, Decide, and Act without waiting for their organizations to gather and process data. This rapid decision-making ability is similar to a fighter pilot in a dogfight, where actions happen swiftly. In fact, corporate leaders working within this new digital landscape have the opportunity to eliminate information delays that are often the norm in traditional business decision-making cycles.

In today’s age of rapid information, executive management can learn from a military doctrine inspired by fighter pilots. This doctrine is known as the OODA Loop, which stands for Observe, Orient, Decide, and Act (see chart below). Originally devised by military strategist John Boyd, this four-step continuous loop helps decision-makers formulate quick and effective decisions in high-stakes environments. Indeed, the OODA Loop concept is particularly useful in information-rich, fast-paced situations as is the case with our increasingly digitalized supply chains. By compressing decision cycles, business executives can disrupt competitors by getting inside their decision cycles.

For more information on the OODA Loop concept and how it applies to business, see this article, The Forgotten OODA Loop: It’s An Amazing Military Decision Framework And Awesome Gift To Business.

2. Today’s Supply Chain Software Is Costly and Does Not Meet Executives’ Agility Needs.

Current supply chain software and analytics tools are costly. What’s more they have significant gaps in supporting corporate decision-making. Indeed, most, if not all, supply chain software applications are digital silos by design. This is because they support only one function such as warehousing or accounting. Additionally, this lack of a comprehensive view causes executives in particular to make isolated decisions. As a result, they may fix one problem but create others within the supply chain. Moreover, these digital systems do not provide executives with the agility to quickly implement their decisions. To detail, below are different types of enterprise software and the reasons why they do not meet the informational and agility needs of corporate decision-makers.

6 Reasons Why Enterprise Software Does Not Meet Executive’s Agility Needs

Agile Supply Chain Decision-Making: First You Need to Know The Truth About Enterprise Software

• Execution Systems: First, these systems are not designed for cross-functional, executive decision-making.
• Visibility and Tracking Solutions: These solutions identify problems, not solutions.
• Planning and Modeling Software: Here, these systems lack agility and do not work directly with decision-makers.
• Analytics and Knowledge Tools: These tools are short on practical utility for agile decision-making.
• Backend and Customer Support Business Systems: Basically, these are isolated data silos, not designed for agile supply chain decision-making.
• Business Automation – BPA, RPA, Personal Assistants, Autonomous AI: Lastly, this type of software is designed more for automation support, not decision support.

For a more detailed discussion on the disconnects between enterprise systems and agile decision-making, see my article, Agile Supply Chain Decision-Making: First You Need to Know The Truth About Enterprise Software.

So, today’s executives continue to drown in supply chain data but are starved for real insights. This is especially true for top executives, such as CEOs, COOs, and CFOs. Without a doubt, current enterprise systems struggle to answer the questions that matter most: What’s about to go wrong? What should we do about it? Indeed, without software tools to directly support rapid decision-making, leaders fall back on “gut” instinct, Excel, or try to use transactional enterprise software that is not designed for agility. These approaches do not works in today’s fast-moving, technology-advanced business environment. Without a doubt, it’s time to close the gap to empower supply chain leaders with agile decision-making capabilities.

3. Key Attributes of an Agile Decision Platform for Executive’s to Maximize Supply Chain Performance.

More and more business executives face immense pressure to make swift, data-driven decisions that impact their entire organization to include their supply chains. So, it’s time to rethink how we support executive decision-making when it comes to improving supply chain performance. This means embracing the concept of a dedicated supply chain decision platform for executives. What is possible and needed, is an Agile Decision Platform that empowers corporate leaders to rapidly execute decisions to optimize supply chain performance. Below, I’ll describe the ideal attributes for an Agile Decision Platform dedicated for executive-level decision-making. These software attributes include targeted data collection, agile decision intelligence, executive-level UI for the decision-making cycle, rapid decision-based communications, and decision traceability.

a. Targeted Data Collection: A Decision Platform Focused on Timeliness and Specific Decision Requirements.

First to make effective decisions, corporate executives need timely and relevant data to minimize information latency and maximize agility. Also, they must see end-to-end how their supply chain is performing and any anomalies or changes that are occurring. So, this is where an Agile Decision Platform can monitor key performance indicators (KPIs) at the executive level. For instance, a business could use a Business Intelligence (BI) dashboard that focuses on key corporate Balanced Scorecard metrics to track supply chain performance. Further the decision platform should provide timely alerts for issues needing executive attention. Indeed, constant data dumps or a “Digital Twin” will likely overwhelm busy executives instead of being useful.

Moreover, the Agile Decision Platform needs to facilitate an information gathering process that collects targeted, relevant information to support timely, informed decision-making. Below is a five-step process to quickly gather the information needed for a decision. By using a targeted information gathering process like this, a decision-maker is armed with the best information available to move forward with confident.

Five Steps to Gather Targeted, Relevant Information

Targeted, Relevant Information Is The Only Way To Make Timely, Informed Decisions – Here’s How!

1. Get a clear understanding on what success looks like – the desired outcome.
2. Map out your options, decision criteria, and constraints in order to guide your information gathering.
3. Think through what relevant information you need to know.
4. Determine what relevant information is missing – this is the raw data you need.
5. Gather, clarify, and assimilate the most relevant information you can in the time available.

For a detailed breakout of this 5-Step information gathering process, see my article, Targeted, Relevant Information Is The Only Way To Make Timely, Informed Decisions – Here’s How!

b. Agile Decision Intelligence: Analytics for a Fast-Paced, Changing Environment.

The next attribute for an executive-level decision platform is a decision intelligence (DI) capability that is agile. Indeed, the heart of an Agile Decision Platform is its powerful analytical capabilities. So first it is imperative that DI seamlessly leverages the full spectrum of analytics. Namely, descriptive, diagnostic, predictive, and prescription analytics. Indeed, these components don’t work in isolation – they form an interconnected web, a continuum, that turns raw data into actionable Decision Intelligence. Moreover, Decision Intelligence must be agile and adaptable. Hence, other key analytical components of DI are demand-driven analytics, AI-powered analytics, and dynamic feedback loops that learn and adapt. See below for a breakout of the analytical components of Decision Intelligence.

The Analytical Components for Decision Intelligence Agility

a. The Business Analytics Continuum Working in Concert.

What makes Decision Intelligence so powerful is how it seamlessly integrates different types of analytics into a single coherent system. Below are the baseline analytics capabilities of Decision Intelligence.

• Descriptive Data Analytics. Confirms the status quo, identifies trends, and discovers anomalies. Can trigger other types of analytics such as diagnostics. 
• Diagnostic Data Analytics. Identifies root causes, determining the “why” behind a trend, or validating a hypothesis. Can trigger further analytics such as predictive or prescriptive.
• Predictive Data Analytics. Makes forecasts about the future. Can trigger other analytics types. 
• Prescriptive Data Analytics. It uses advanced algorithms to recommend a specific course of action, explain why it is the best, and provide details on how to implement it. Works in concert with other types of analytics.

b. The Agile Components of Decision Intelligence.

Moreover, agility in Decision Intelligence is critical executive decision-making. Moreover, it is not just about speed – it’s about adaptability and continuous learning. Below are the components of Decision Intelligence that make it agile. Namely, on-demand analytics, AI-powered analytics and continuous feedback loops.

• Real-Time, On-Demand Analytics. Here, powerful computing capabilities enable rapid analytics that provides immediate results based on the decision-maker’s operational tempo and decision requirements.
• AI-Powered Analytics. AI can supercharge data analytics. It is able to work with massive data sets, unstructured data, and knowledge-based tools. Also, it has agent-based AI capability to act autonomously. Further, AI has a self-learning capability.
• Continuous Feedback loops. Also, it is critical that DI incorporates feedback based on real-world outcomes. As a result, it continues to learn and adapt to improve its decision support capabilities. Basically, it gets smarter over time. 

For a more in-depth discussion on Decision Intelligence’s analytics capabilities, see my article, Agile Decision Intelligence: High-Velocity Analytics To Best Empower Executives In A Quickly Changing World.

Agile Decision Intelligence: High-Velocity Analytics To Best Empower Executives In A Quickly Changing World

c. Executive User Interface (UI): Dedicated Work Space to Observe, Orient, Decide, and Execute Decisions.

Despite our technological advances, there’s a stark disconnect between modern analytical tools and corporate executive-level decision-making. Indeed, most executives still rely on gut instinct and Excel spreadsheets for their decisions. At the same time, software costs pile up with the development of fancy Business Intelligence (BI) dashboards, unwieldy “digital twins”, and countless reports that are barely used by corporate executives. Something is clearly broken when the most powerful decision-makers in business can’t use the analytical tools we’ve built for them.

What if executives had their own digital command center, like fighter pilots do? In fact, this is where we can model an executive-level user Interface (UI) after the OODA Loop decision framework discussed previously. Indeed, military strategists developed the OODA Loop decision framework for use in aerial combat, which is similar to the volatile, rapid decision environment that today’s executives face. So, if we leverage this action-oriented, hands-on decision-making framework, we can develop an UI that puts advanced analytics and AI directly into executive’s hands, much like a fighter jet’s cockpit.  Moreover, executives would interact with this multi-channel software interface on their terms using a smartphone, tablet, voice, PC, or even a full-fledged command center.

An UI for Agile Executive Decision-Making: Five Interactive Components

Indeed, this is what we need. An executive decision-making UI that provides a seamless, adaptable experience where decision-makers use software directly to Observe, Orient, Decide, Act, and Adapt. See below, for a breakout of these five interactive components.

An Executive Decision-Making UI: A Stunning Way To More Quickly Observe, Orient, Decide, And Shatter The Competition

1. Observe: Empower executives to observe the ever-changing digital landscape.
2. Orient: Enable executives to determine the why behind problems and opportunities.
3. Decide: Flexible, High-speed UI to enable executive decision-making for quick, informed decisions and prepare for implementation.
4. Action: UI to support decision execution, communications, and measures results.
5. Adapt: A feedback loop UI to incorporate lessons-learned to add knowledge and adjust strategies.

For a more detailed discussion, see my article, An Executive Decision-Making UI: A Stunning Way To More Quickly Observe, Orient, Decide, And Shatter The Competition. Here, I’ll provide a detailed description of the major UI attributes for each of these five interactive modules (Observe, Orient, Decide, Act, Adapt).

d. Rapid Decision-Making Communications.

An Agile Decision Platform for executives also needs to facilitate collaborative decision-making. Further it needs to support the effective transmission of decisions across the supply chain and within organizations. As done today, communications may be via e-mail, text, verbal communication, or some type of team messaging software like Slack. Indeed, an Agile Decision Platform should have an API that enables executives to use their preferred business communications tools to communicate their decisions.

Also, an Agile Decision Platform would need an interface to sync with knowledge platforms and other systems for the purpose of creating or updating policies based on decisions that affect organizations and systems. Further, the Decision Agility Platform needs to communicate key components of executives’ decisions to managers and other organizations. For example, these decisions could include guidance to commit additional resources, changes in organizations, and business process updates that may require software updates.

e. Decision Platform Traceability.

Also, an Agile Decision Platform needs to measure the effectiveness of decisions. Further, it needs to document when the decision team rejects system recommendations as well as identify missed opportunities that resulted from not choosing a particular course of action. Specifically, the objective of decision traceability is to record what the decision was, the expected results, and who made it. With this information, executives can receive constructive feedback as the system measures expected results against actual results. Thus, this ensures accountability and the capability for the decision team to learn from past decisions and optimize best practices.

Conclusion.

Without a doubt, we now have the technological know-how to design software that can empower corporate executives to work within an agile decision-making environment. As a result, executives can more effectively maximize their supply chain’s performance.

To help realize this possibility, I have laid out in this article the key software attributes needed for an executive-level Agile Decision Platform. Indeed, this platform would leverage recent advances in information technology such as AI, data analytics, decision intelligence, and knowledge graphs. At the same time, the user interface (UI) provides an agile decision workspace for executives. As a result, corporate executives can directly use an Agile Decision Platform to interact within a compressed decision cycle to Observe, Orient, Decide, and take Action to maximize their supply chain’s performance. 

Lastly, if you are in the supply chain industry and have a need to supercharge your decision-making cycles, please contact me to discuss next steps. I’m Randy McClure, and I’ve spent many years solving data analytics and decision support problems. As a supply chain tech advisor, I’ve implemented hundreds of successful projects across all transportation modes, working with the data of thousands of shippers, carriers, and 3rd party logistics (3PL) providers. I specialize in proof-of-concept and pilot projects for emerging technologies. To reach me, click here to access my contact form or you can find me on LinkedIn.

References and Resources.

Also, below are some references that provide examples of where we are with executive-level Decision Agility within the supply chain software industry:

• ThroughPut’s Supply Chain Intelligence Software. ThroughPut Inc’s software embodies the essence of incorporating agility into executive-level decision-making. They describe their software as “…integrates advanced supply chain analytics best practices to quickly identify supply chain bottlenecks, make swift near-term predictions, and offer intelligent recommendations—helping you make high-impact decisions swiftly.”
• The Aera Platform. Aera Technology provides a multi-faceted, decision intelligence platform catering to all levels of supply chain decision-makers, not just corporate executives. They describe their decision platform as,  “The digital brain of your organization, making and executing intelligent business decisions in real time. It delivers outcomes at the speed and scale of your business.”
• OODA Loop – Enterprise Architecture Fundamentals. Rémy Fannader’s book stresses that enterprises are now immersed in a digital environment where change is the norm and agility is a must. Thus, it is paramount that software architects incorporate agility into enterprise systems using such agile concepts as Col. Boyd’s OODA Loop.
• Lastly, here are more links about the information technology that enables an Agile Decision Platform Knowledge Graphs, Advanced Analytics, AI, and Decision Intelligence.

This Is What Decision Intelligence Technology Is And Know What Its Not

For more from SC Tech Insights, see the latest articles on decision science, supply chain, and data.