On Creating a Digital Ecosystem of Solutions: Part II

In last week’s part 1 of this series, we wrote about the evolving state of customer expectations when it comes to digital tools for the logistics and supply chain management industry. In this week’s article (part 2), we will explore the reason why digital ecosystems are taking over the industry.??

As logistics companies increasingly embrace digitalization, the demand for streamlined cargo delivery, optimized last-mile logistics, and enhanced supply chain execution becomes louder and more urgent. Digital transformation is picking up around the globe and many of them are integrating increased automation.???

By 2026, Gartner predicts that 25% of logistic companies will have replaced their aging platforms?by switching to microservices-based application architecture that will support new technologies.?The report also estimates that by 2025, 25% of supply chain decisions will be made across edge ecosystems.??

A Software Ecosystem, often abbreviated as SECO, is a network of interconnected businesses, software developers, and users interacting within a shared environment of software products and services.???

This ecosystem encompasses various components such as applications, platforms, tools, and technologies that collaborate to fulfill specific user needs or address particular market demands. It involves the interplay of actors, resources, and relationships to create value through the creation, distribution, and consumption of software solutions.?

Why an ecosystem, though??

Abandoning the fragmentation of the multiple provider approach for an ecosystem of software solutions is ultimately about prioritizing risk management and insight-driven action.???

Businesses that work with ecosystems can select from the applications that give them the best solution for any scenario. This presents a more universal approach to enterprise planning that reflects the nuances of the entire supply chain network.??

The significance of an ecosystem of software solutions becomes crystal clear because:??

1. There is no such thing as: ‘One True Standard’: Crafting a singular standard becomes a challenging feat in an industry that thrives on speed and customization. Attempting to mandate a single standard across all technology solutions would be challenging and could hinder interoperability, especially when working with multiple data formats and communications protocols.??
2. Data Integration is Complex: Data integration becomes increasingly intricate as datasets broaden and lengthen. Coupled with the refinement of quality measures, data integration can become extremely arduous. For example, consider a global logistics company that operates across multiple regions, each region with its own set of regulations and standards. Integrating data from various sources such as shipping manifests, customs declarations, and inventory management systems becomes increasingly challenging due to the diverse formats, languages, and protocols used in each of those regions.??
3. Validation and Standardization Go Hand-in-Hand: When it comes to managing data effectively, validation and standardization are like two sides of the same coin. Data validation reviews data to facilitate correct and speedy information processing and ensures that the data is clean, accurate, and usable. While data standardization converts that data into a standard format and helps you deliver product data that ultimately increases your sales and revenue. They work together to ensure accuracy and consistency across all types of information. However, in today's complex data landscape, it's not feasible to have one set of rules that fits all scenarios.??
4. Data Updating is a dynamic process: Data integration is not a static process. Solutions effective at one point in time demand continuous modification and updating. In essence, data standards quickly become obsolete, rendering them ineffective for businesses in need of reliability. For example, an e-commerce platform updates its product catalog regularly to reflect changes in inventory, pricing, and product descriptions. The data integration process must be dynamic to incorporate these updates seamlessly and ensure accurate information for customers browsing the website.??

To summarize, the significance of an ecosystem becomes more pronounced as businesses learn (often the hard way) that expecting that universal one true standard across all domains is nearly impossible, that data integration is not as straight forward as everyone would like it to be, that without data validation and standardization things will go awry, and that yet, even with all this covered – the data in all its richness and glory will continue to need to be updated.???

Stay tuned for part 3, where we draw out some of our own client stories and how we set up their ecosystem of digital solutions for them.?