Intelligent enterprise: concept, modification and development

Intelligent Enterprise (Intelligent enterprise)

For the first time this term was used in the book of James Brian Quinn (James Brian Quinn) Intelligent Enterprise, Free Press, 1992. The concept formulated by D. B. Quinn, argues that the main resource in the production and provision of services is intelligence. The book describes the appropriate management approach and computational infrastructure required for the effective use of intelligence. This approach to business jargon is called “knowledge management” (knowledge management).

One of the definitions given in the Intelligent Enterprise magazine, is:

“Intelligent enterprise is the continuous monitoring of the market for its main products, the capital market (primarily in terms of the ratio of own and borrowed funds), labour market (what kind of managers and professionals to attract, what to replace, how to put them and how to motivate them). In addition, intelligent enterprise is innovation in products and services, and most importantly — actions that will ensure execution of the plan”.1

In our opinion, in this definition the word “intellectual” can be replaced by “successful” or “competitive,” and the meaning of it on an iota does not change.

The English Wikipedia reports that the term intelligent enterprise refers to the management approach for the solution of problems of increase of efficiency of business uses “new technologies and paradigms”.

“New paradigm” emphasizes that the key to development of industry in the modern world are highly intelligent system, but their use requires organizational structure. These knowledge-based services and technologies, revolutionizing economy.

Outsourcing the less important functions specializing in the fulfillment providers will allow companies to focus on their core business.

However, the degree to which intelligent enterprise can be successful, depends on the “competencies of the people and their operating opportunities,” such as structure, policies and systems. To achieve exceptional success is required to use intellectual capabilities and competitive information about the environment.

As examples of successful mining enterprises in Wikipedia provides company Honda, which reached a high of economies of scale and concentration exclusively on developing and implementing their operations, and Apple, who on outsourcing more than 70% of the components. The company itself is Apple focused on design, logistics, software and product Assembly. Due to the concentration of only a few services to add knowledge of Apple and managed to climb to the top of the highly competitive PC market and achieve high sales.2

However, it is unlikely that the book Quinn was reading for the CEOs of Honda and Apple. One of the major intellectual enterprise in the 1990-ies was considered a very high percentage of outsourcing, but in 2016 about this, as well as on the management of knowledge and other beautiful ideas, almost forgotten.

New concept intellectual enterprise in two days was discussed at the Symposium “Innovation of the year 2016: intelligent enterprise” conducted by the Center for technology and entrepreneurship (Harvard University) with the support of Zebra Technologies.3 Among the participants and speakers were representatives of companies GE, Target, Whirlpool, Zebra Technologies, Google, IBM, Accenture, NFL, mit and Harvard University, as well as the leaders of many other well-known companies. To quote the first paragraph of the “Conclusions of the Symposium”:
“Combining the leading technologies of today, such as the Internet of things (IoT), mobile means and systems, cloud computing technology, led to the formation of a new approach, called “intelligent enterprise”. As physical resources are transferred to the digital world, intelligent enterprise improves the efficiency of production processes, and executives can make more informed decisions, using operational information. Getting more complete information about all workflows and resource requirements, companies have the information with which they can conduct a quick analysis of the data and the information obtained is used as a solid platform for increasing productivity, achieving business objectives and providing the necessary services.”

Given the “star” structure of the Symposium participants, we can assume that this is one of the modern concepts of intellectual enterprise.

Zebra Technologies Corporation October 31, 2018, announced the results of the second annual survey “Index of the intellectual enterprise”.4 In this global study on “determines how a particular company has approached the status of “intellectual enterprise”; how they connect physical resources and the digital world for innovation with the help of control systems in real time, create an environment, a data-driven, and unified communications”. For example, one of the conclusions of the study: “52% of the respondents from different countries reported that their staff with the help of IoT solutions receives information in real-time or close to it. This is 37% higher than last year, which underlines growing demand for unified communication technologies”.
To assess how much the company is close to the status of “Intelligent enterprise” was used 11 metrics, including:

  • the vision of IoT
  • business engagement
  • partner technical solution
  • the implementation plan
  • plan for change management,
  • application place of use,
  • safety and standards,
  • the plan of operation,
  • architecture and infrastructure
  • data plan,
  • analysis elements of artificial intelligence.

These criteria were developed by leading executives, industry experts and policymakers in various industries at the above mentioned Symposium.

During the time elapsed since the publication of the seminal book by D. Quinn Intelligent Enterprise, published numerous articles and books on the subject and conducted dozens of forums and symposiums.

At the same time (1992) ERP system (enterprise resource planning) has expanded its capabilities through add-on modules SCM (sypply chain management, supply chain management), APS (advanced planning and scheduling, advanced planning) and others, since 2001, these systems have changed so much that they began to refer to as ERP II,5 and from 2014 ERP Postmodern (postmodern ERP).6 And it wasn’t books and articles, and really work, complex and expensive system of complex automation of enterprises.

In the present ERP-system IT-Enterprise product includes the “Industrial Internet of things (IIoT)” that ensures the control of industrial processes online.7

The decision Clobbi of IT-Enterprise is a cloud — based service management of modern enterprise.8 In Clobbi “mobility brought to a shop floor, where mobile devices working register actual production, consumption of materials in production, etc. rapidly to make the actual data combined with innovative analysis tools allow management of the enterprise in near real-time information on the status of orders in production, breakdowns of production equipment, the level of residues of raw materials and finished products”.9

The product “Workflow ECM” that is part of the ERP-system IT-Enterprise, provides mobile work with content: native apps iOS, Android, Windows makes it easy to work with any mobile device.10

These are just some examples of how the ERP system implement in practice the “dominant technology of our time, such as

  • the Internet of things (IoT),
  • mobile means and systems,
  • cloud computing technology”,

which are the main hallmarks of the intellectual enterprise.

But other experts believe that these (or only these) features will distinguish the future of the intellectual enterprise of today.

So, in June 2018, the us venture capital company Accel Symposium The Rise of AI/ML & RPA in the Intelligent Enterprise “the Growth in the application of AI (artificial intelligence), ML (machine learning) and RPA (robotic process automation) at intelligent enterprise”.11 Comparing what is happening now transformation of large enterprises took place ten years earlier (in the transition from desktop to mobile and from data centers to cloud computing), the participants of the Symposium agreed that now is only the first year of the decade enterprise automation. Judging by the title of the Symposium, namely

  • artificial intelligence,
  • machine learning and
  • robotic process automation

considered essential to the intellectual enterprise.

Experts of the company Avanade, founded in 2000 by Microsoft and Accenture LLP (30 000 people in 24 countries, a leading provider of innovative digital and cloud services)12 suppose that in order to become intelligent, it must achieve three business outcomes:

  • A digital implementation. Intelligent enterprise is not only smart technology. Requires more staff that is trained and motivated to apply them. The personnel shall be provided with digital tools, including tools to accelerate transformation.
  • The mobility of business processes. Aging business processes is a stumbling block for working with clients and involving employees in the change process. The company can overcome this obstacle, creating the operation, and solutions that will allow clients and staff to overcome potential difficulties. A key element in achieving flexibility of business processes, their simplification and the development of industry-specific requirements. For example, CRM and ERP projects today are based on copying previously developed systems and Refine them to a unique industry or under specific requirements of the client. Smart companies would instead use a standard application from the cloud and apply the best industry-specific business processes. Simplification is itself a goal, and the cloud delivery of business applications contributes to its achievement.
  • Insight and innovation (insight and innovation). Intelligent systems and continuous improvement in technology — key to enterprises to innovate and scale quickly and “blow up” their markets (to disrupt their markets), as in his time did Apple, Amazon, Google etc. to do this they must use the latest achievements in the areas of artificial intelligence, automation, Internet of things, virtual/augmented reality, etc. This means that companies need to access the Advisory services of the world level, understanding of new technologies and cross-industry experience on a global level. The approach of “people first” should promote deeper intelligence (deeper intelligence) at all levels of the enterprise, from strategy to operations.13

As you can see, here is presented another approach, another opinion as to what are the main features of future intelligent enterprises.

According to estimates ARC Advisory Group, the global market for ERP systems in 2006 reached 18 billion U.S. dollars.14

And is forecast by Allied Market Research (AMR) 2020 world market of ERP-systems will reach $41,69 billion, with a CAGR during 2014-2020 will amount to about 7.2%.15

That means thousands of implemented ERP-systems is working to boost efficiency and competitiveness. How much of this time was created by intellectual ventures in accordance with the original concept? How many companies received the status of “intellectual enterprise” in accordance with the new concepts? Although one of the answers to the second question are (10% of respondents),4 still creates the impression that the intellectual enterprise is a beautiful idea, something like a rating, which is why you need to take one of the first places. Or — theory, dry and complex, like all good theory, but really the intellectual potential of the enterprise is determined not mentioned above 11 metrics, and implemented on modern means of automation and digital transformation.

Perhaps that is why the company MicroStrategy, a global leader in software for enterprise Analytics and mobility, in 2018, have developed a “map” of intellectual предприятия16 — “the ideal organization, data-driven,” and put her 4-step strategy start promoting businesses in the direction indicated:

1. Rate the external factors that influence today on your organization.
2. Catalog all of the assets of your company. Determine which data sources, systems and capabilities will be useful for different users and departments.
3. Provide individuals and teams access to powerful analytical tools.
4. Start your movement. Deploy, build, run and develop their intelligent application as you move along the chosen path.

Карта17 very detailed, all of its components are well described. Moreover, MicroStrategy has developed a methodology based on this map, and offer free interaction with your support team to help in the deployment of intellectual capacity of the organization.

Such initiatives offer hope that instead of the numerous statements about the benefits of intelligent enterprises that can “blow up” their markets, will come the real action for their implementation, which will be well-designed and described in details the “road map”.
Links:
1. https://www.iemag.ru/opinions/detail.php?ID=17699
2. https://en.wikipedia.org/wiki/Intelligent_enterprise
3. https://theinnovatorsforum.org/sites/default/files/ie_whitepaper_2016_ru_mar30_0.pdf
4. https://www.crn.ru/news/detail.php?ID=131174
5. https://www.it.ua/ru/articles/erp-kak-trend-upravlenija-
6. https://www.it.ua/ru/articles/sovremennaja-erp-erp-posle-2010-goda
7. https://www.it.ua/ru/products/proizvodstvo/promyshlennyj-internet-veschej-iiot
8. https://clobbi.com
9. https://clobbi.com/ru/blog/cloud-mobile-erp-production/
10. https://www.it.ua/ru/products/dokumentooborot-i-bpm/dokumentooborot-ecm-
11. https://www.accel.com/interests/IntelligentEnterprise
12. https://www.avanade.com/en
13. https://www.avanade.com/~/media/asset/thinking/intelligent-enterprise-pov.pdf
14. http://www.erp-online.ru/phparticles/show_news_one.php?n_id=514
15. http://www.tadviser.ru/ Article ERP Sistemi(mirovoye)
16. https://www.microstrategy.com/us/intelligent-enterprise/explore-the-map
17. https://www.gartner.com/imagesrv/media-products/clients/microstrategy/1-54S6BA5/map-of-IE.png

Go to our cases Get a free quote