Digital Control Tower: Fundamental step to organization digital journey

Pradita HerdiansyahHead of BusinessJune 02 2020

Digital. A magic word to lure organization to get into. However, jumping into the hype without realizing what value to achieve from which area to play, is something that none of the organization want to be a part of. To begin with, leaders needs to have visibility on their current end-to-end process to identify area that requires improvement leveraging digital intervention.

Having real time visibility of operation across value chain helps leaders to monitor the business, define area for improvement, and conduct accurate decision making. Digital Control Tower provides value as fundamental step on the digital journey of any organization due to its capabilities:

  1. Visibility. It provides leaders visibility to identify what is actually going on in the organization based on actual data/report coming from personnel or other system integration. This capability enables leaders to test action items and continuous improvement with immediate result feedback making it more agile to run the business.
  2. Analytics. It becomes supporting tools to conduct root cause analysis of any business issue/deviation. Even further, it helps leaders to do simulation or what if scenario for particular defined use case. However, more complex data analytics process requires different approach and digital solution that could be integrated to Digital Control Tower

Our client, an Indonesian major coal mining company, implements Coal Supply Chain and Marketing Digital Control Tower to provide its leaders with:

  1. Single source of truth information. Process information across departments and showing it in the dashboard, removing efforts to collect each of them with potential error in consolidation.
  2. Real time performance information. What happened in operation is immediately shown to leaders and subject to be immediately discussed/strategized. Missing information can be identified as late report submission from respective personnel/department.
  3. Accurate information to conduct immediate action. Leaders to focus on analyzing potential improvements based on data. Accurate and immediate decision making on any outliers/operation deviation.
  4. Coal supply chain simulation. Ability to simulate end-to-end supply chain based on actual ongoing performance of coal production and distribution.

Enabling the organization to achieve immediate value of:

  • Optimized coal type stockpile and distribution to match market demand
  • Reduced customer’s shipment delayed time which contribute to reduce the demurrage penalty cost

Integrating information of Coal Supply Chain to Marketing in single Digital Control Tower means having visibility from both supply and demand altogether. With each department responsible to provide the information, system proceed and visualize it to leaders to have full end-to-end business visibility.

  1. Coal Supply Chain Control Tower. Provide actual and history information of production performance (mining pit), distribution performance (coal hauling), inventory level (stockpile), and port performance (barge loading) supporting operation leaders to manage operation deviation and to make decision.

4-1.png Figure 1 Coal Supply Chain Control Tower. 2. Marketing Control Tower. Provide actual and history of sales information, shipping schedule, and shipping delivery helping sales and marketing leaders to shape focus on targeted customers in order to achieve its performance target. 4-2.png Figure 2 Marketing Control Tower. 3. Coal Supply Chain Simulation. Enabling leaders to conduct coal operation forecasting and simulation based on actual demand and actual performance with adjusted planning as output for the team to execute. 4-3.png Figure 3 Coal Supply Chain Simulation.

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