In the June 2016 issue, I wrote about how automation could revolutionise the manufacturing industry and hence create capacity for competitiveness. At the SAIMC, we believe this to be true because in manufacturing economies of scale matter! (Get hold of the June issue for more details.) Given the growth prospects in Africa and the macroeconomic challenges facing the manufacturing industry, we will continue to have the conversation on manufacturing and automation.
However, for the purpose of this issue, I would like to highlight the increasing need for automation in other industries such as retail.
Automation and business strategies in the retail sector
Considering the rapidly changing business landscape and unfolding new customer patterns, retail owners can benefit from investing in advanced information technology (IT) systems that can enable management to place the right item in the right store at the right time. The main driver of the IT system should be to link and integrate the entire retail business value chain e.g. an integrated information system that enables suppliers to know exactly what is selling and hence plan their production accordingly. Furthermore, this helps to keep tight control on inventory, aligns the buyers with suppliers and results in improved merchandising and services to the customers. Integrating customer needs and behaviour into the entire value chain aligns external asymmetries – reasons why customers gravitate towards an organisation rather than to its competitors – with internal asymmetries – embedded organisation specific processes. Casadesus-Masanell and Ricart (2011) make the case that the latter does not only shape the market for exploitation but also generates self-reinforcing capability configurations that competitors cannot easily replicate.
This could be confusing to some of us, i.e. introducing the subject of automation and then writing about information technology systems. The question of whether IT falls within the scope of automation has been the subject of discussion in the industry. What are your views? Does IT fall within the scope of automation? E-mail me at [email protected] or Ina at [email protected].
Changing gears and driving forward
SAIMC COO – Johan Maartens: In seeking to address the needs of today whilst managing the changing tomorrow, we are delighted to announce the appointment of Johan Maartens to the position of Chief Operating Officer, effective 1 July. Johan has been in office for a month now and we wish him well in his new role. We believe that this full time appointment will aid us to accelerate the strategic initiatives as set out in the revised SAIMC business plan.
Movements in the education space: We would like to announce that in our SAIMC Council Meeting on the 24 June, council together with other delegates discussed and unanimously agreed to sponsor R600 000 towards the enhancement of the automation curriculum at the University of Johannesburg. We would like to thank our vice president, Rob Mackenzie, for spearheading this initiative. The SAIMC together with UJ will further approach other institutions, societies and government entities for additional funding through a model that is currently under review – in total R2,4 million is needed.
Until I write to you again keep safe!
Oratile Sematle, President.
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