Design Science Research:Approaching SCM as Technology

Identifying and developing novel technology based practices

jan.holmstrom@aalto.fi

My research group in brief• Situated in the Department of Industrial Engineering and

Management, Aalto University, School of Science• Practice oriented research funded by industrial partners,

Finnish governmental bodies, and EU • Basic interest: Technology enabled innovation in OM and SCM• Research approach: Design science research

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Why a design approach?• Technology the purposeful use of knowledge

=> SCM is technology

• Technology ‘evolves’ through combinations. For example:- E-grocery = Internet + Last mile logistics- Embedded control of material flows = Product identification + Internet + Product model

• New combinations are designed, but designs are constrained by - bounded rationality of designers and users- unintended consequences

=> Necessary to work on solution design in real problem contexts

Explanation and designExplanatory research Design science

research

The phenomenon ”out there” to be created(by combination)

Data collected and analyzed created and analyzed

Reasoning/research design

hypothetico-deductive, inductive

abductive, design principles

End product explanatory theory, prediction

artifact (e.g., technology, process)

Disciplinary basis natural and social science engineering

Knowledge interest cognitive pragmatic

Holmström, J., Ketokivi, M., and Hameri A.-P., 2009, “Bridging practice and theory: a design science perspective”, Decision Sciences, Vol. 40, No. 1, pp. 65-97

Design science research process

Possibility Recognizing a possibility of new combination

Idea how Recognizing an opportunity for solutions

Details specified Selecting specific solutions

Working solution Proving it works

Enabling adoption Convincing potential users

First order effects

Getting some (but not all) intended benefits

Third order effects

Context of use is transformed for good and bad

Second order effects

Technologies are combined and configured in unanticipated ways

“Phenomenon

does not exist”

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“Phenomenon

exists”

Emerging possibility: Direct digital manufacturing

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

1404.5

802.6

468.2

225

Year

Day

s to

pri

nt

Time to print mid-size car body in steel

Potential impact on supply chain management domain

Tool-based manufacturing

Direct digital manufacturing

Emerging research questions

Economies of scale and scope

Specialized suppliers in global supply chains

Pools of local (generalized) service providers

What determines the trade-off to switch to supply via direct digital manufacturing? What capabilities are needed to harness the value-added from direct digital manufacturing?

Product improvement

Replacement: develop new models

Upgrade/ refurbish: ability to improve products-in-use

Can direct digital manufacturing function as a service platform?

Intellectual property rights (IPR)

Controlled designs and tools

Global distribution of design models required for localized direct digital manufacturing

How can firms protect their IPR? How should firms deal with non-approved suppliers that prints spares and add-ons parts for its products?

Discussion piece to be published

Welcome to discuss on the Operations & Supply Management (OSM) Forum

http://wpcarey.asu.edu/research/jom/osm-forum