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Digital Collaboration: Get ahead, fast.

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Digital Collaboration: Get ahead, fast.

Recently at a conference for freight forwarders everyone jointly agreed: if you’re the fastest to quote, you win the customer. What astonished me was what I heard in a conversation afterwards! “We are working in shifts now, 16 hours per day, to make sure we can quote fast and win new deals,” said one of the present forwarders. I was surprised that putting in more hours to send emails back and forth is a better solution for shipping companies than digitizing collaboration and automating tasks. The banking system solved this issue years ago with the introduction of the SWIFT system: a standardized banking system that enables companies which had never worked with each other before to transfer money on a global scale at no risk. 

In shipping, we’re still way behind the curve. The newly formed Digital Container Shipping Association has taken the first timid steps to promote data standards in shipping because they believe in close collaboration between the different stakeholders. The underlying rationale for this collaboration is typically 2-fold: (a) Margins are still depressed due to overcapacity and (b) customers demand more and more streamlined services. Although costs for technology are consistently decreasing, our industry is generally considered to have been slow to adopt digital approaches. Of course, companies collaborate across company borders, mostly through emails and networks; but isn’t it extremely inefficient and unscalable, especially in times where this could be automated to be done within seconds instead of days? 

What holds SMEs back from digital collaboration? 

We have noticed that especially small and medium-sized companies are either stuck in their traditional mindset or simply don’t know how to start with digital collaboration. Why is that so and how do companies overcome this conundrum? 

Companies are afraid to share their data 

People have to overcome their traditional industry mindset first, as a highly competitive attitude makes collaboration with competitors exceedingly difficult. Most companies don’t want to share their data because they think it’s their secret and crucial for their business – but most “data” is non-sensitive. Consider container movements, position updates forecasts and contact information of local agents. Of course, crucial information about e.g., my commercial terms with my vendors should not be openly shared! However, sharing operational data means exchanging information that you can leverage to increase service offerings, internal processes and ultimately create quotations in less time. 

Even if companies are willing to collaborate, they don’t know how to get started 

Lack of existing data standards, limited capacity or scary data security questions – the list of potential challenges of data sharing is long (as for every new project!) and only a limited number of people in logistics have “been there, done that”. 

However, in the end, it comes down to what you want to achieve/solve in the first place: How do you get your customers love working with you? How do you create quotations in less time to win more business? We suggest defining your most important targets and metrics first, and reverse engineer a good solution from there. 

Now: How can you get started? 

To get started with data sharing, finding out what you want in the first place is only the beginning of a long journey. To make it a little bit easier for you, try to answer the questions below for your own business (take a screenshot or copy into a word doc): 

-What are my main pain points?

-What is particularly crucial for my customers?  

-What data describes the problem the best? 

-How well is my data organized? 

-What data is non-sensitive? 

-What additional data do I need? 

-Who has it? How can I get that data? 

-Who (of my partners) would need my data to become better? 

-Does it make sense to work with them? 

-What integrations and/or technology would that require? 

There is no one-size-fits all solution as you can see! It’s about you and your specific business model. Only after you’re able to answer these questions you can think about the next steps: design use-cases/MVPs (Minimum Viable Products), and test setups and data integrations. 

With missing IT capabilities or resources, building integrations can oftentimes be hard because you need to manage numerous data standards and interfaces. In most cases, a 3rd party technology provider can help you as a connector in the industry. Such technology companies can not only translate different data formats into one language, but they also anonymize data to increase trust and reduce perceived risks for you: You still own your data and it is 100% up to you what part of your data you want to share to reach a certain goal. Moreover, working with 3rd party technology providers has another advantage for you: they help you develop a proof of concept at low costs! 

Of course, it requires a certain level of commitment, but working with a connector lets you test with a well-defined problem and a limited group of stakeholders to develop a workable solution. For freight forwarders, it could be the integration with a selected list of carriers to enable instant online quotes/ bookings for their customers. For equipment managers it could be integrating their equipment management system with a tracking provider to automatically receive container status updates such as pickups, drop-offs, delay warnings and ETAs. 

Once the proof of concept has been demonstrated, the collaboration could then be expanded by bringing in additional stakeholders or addressing related problems with similar approaches. Being able to create quotations faster is only one challenge – several other topics including internal organization, equipment management or communication with external stakeholders can also be targeted with an open mindset and the courage to test new things. We encourage you to start right now! 

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Christian Roeloffs is the founder and CEO of Container xChange – an online platform that creates transparency on supply and demand in container logistics. More than 300 container users and owners such as Seaco and Kuehne+Nagel use the neutral online platform to find SOC containers in 2500 locations and identify partners to avoid empty container repositioning. 

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3 Guiding Principles for Digital Transformation Success

Many companies have adopted digital technology to transform their business. But the transition can be a challenging process, and studies show that digital transformation projects often fail to reach company expectations.
This happens for a variety of reasons, says J. Eduardo Campos, co-founder with his wife, Erica, of Embedded-Knowledge Inc. (www.embedded-knowledge.com) and co-author with her of From Problem Solving to Solution Design: Turning Ideas into Actions.
“It’s often due to ineffective communication between the IT department and business teams,” Campos says. “But overall it really comes down to an inability to problem-solve and a tendency to lose sight of teamwork and the big-picture business plan.
“To have a successful digital transformation depends greatly on employees working together, but too many organizations are siloed, thus hampering the communication and creating obstacles in the process.”
Campos offers three ways company leaders can deal with problems in digital transformation:
Define the essential problem. Campos says digital transformational programs fail when company leaders don’t grasp the root of the problem they hope digital transformation will solve. “Beware of solving the symptoms instead of the problem,” Campos says. “To define the essential problem, you first need to step back, reflect, and clearly define what you are trying to address. Detaching yourself from a problem and trying to see it from a different perspective, you then will have a better view of how things interact with each other. There are often multiple layers to why a problem exists, so ask a series of whys that drill down to the answer.”
Design solutions. Once the problem is identified, setting goals and assessing options come next. ”It’s not unusual to find yourself in a situation where the problems you identified are part of a dynamic environment, affected by constant changes that require you to revisit your goals and options regularly,” Campos says. “This is where technology and software can be very helpful in making sure everything is being tracked appropriately without any information getting lost. in addition to technology, using risk management concepts can be a very effective way to help keep consistency throughout the solution design process.”
Engage stakeholders. Digital transformation often represents a massive change for personnel. Campos says it’s vital for the decision-makers to craft a stakeholder engagement plan that addresses all aspects of a recommended solution. “Clearly identify whom will be impacted by the solution, either positively or negatively, and how to handle stakeholder reactions,” Campos says. “You want them to be willing to commit to your recommendation because they indeed want it, not because you are selling it to them. And when you are influencing the decision-making process, be sure to show your stakeholders your appreciation of varying opinions.”
“Achieving success in digital transformation brings together people, process, and technology,” Campos says. “Many businesses never get far past the launch point of their digital transformation because that triad of people, process and technology isn’t in sync, and problems that could have been solved were not.”
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J. Eduardo Campos is co-author with his wife, Erica, of From Problem Solving to Solution Design: Turning Ideas into Actions. Campos spent 13 years at Microsoft, first as a cybersecurity advisor, then leading innovative projects at the highest levels of government in the U.S. and abroad.  His consulting firm, Embedded Knowledge Inc. (www.embedded-knowledge.com), works with organizations and entrepreneurs developing customized business strategies and forming partnerships focused on designing creative solutions to complex problems.