Remember when Tron came out in the movies? No, not the last one, the first one with Jeff Bridges in 1982. They spoke of terms like “memory” and “data.” These were really foreign terms to the “not yet prime time” personal computer generation. The whole concept just wasn’t comprehensible to the general public thus leading to disappointing box office receipts.
We are there again, but now in reality. The Internet of Things and the future of manufacuring published in McKinsey & Company discusses the next threshold in manufacturing. That is, the ability to link manufacturing into some cyber-physical system into some global supply-chain. In fact, some say the technology already exists. Andreas Tschiesner states in the article, “…manufacturers will need to coordinate with more and more suppliers–often globally, and with longer transport times, more manufacturing steps, and significantly more parties.” He also predicts that “container logistics in maritime shipping” could become Stone Age. I believe he takes this stand because we will no longer be shipping massive amounts of parts to store in different segments of the world, but supply smaller quantities of parts on demand.
But what does this mean to the smaller business? The obvious answer is that the smaller business person must positioned their company to be in this “process and device” supply chain before their competitors. In other words, using the emerging global integrated systems to serve customers more efficiently. Especially if the business is the last piece of a supply chain in the manufacturing of a product.
If a business supplies services, then the concept can be the same. Let’s say a business supplies personnel around the world. The integrated Internet system can position and supply teams at a much quicker pace.
The challenge for the small business is to develop a strategy that can accomodate such technological advances without starting all over again. This would be an evolution of their strategy, not a revolution.