Empirical Research: Supply Chain and BYOD – Hand in Hand for the Future

Great Lakes Institute of Management, Chennai

Supply Chain Management & BYOD… Hand In Hand For Future Growth.

Rahul Bansal FT 13460 Saket Sharma FT 13468 Great Lakes Institute of Management, Chennai


Supply Chain Management & BYOD…

Hand in Hand for future growth.

Abstract

Supply Chain today is one of the major areas for differentiation between vendors for

theirrespective customers. The most effective supply chains try to reduce costs and

increase efficiency, although investment from the vendor also increases.

Most of the people today buy smartphones to enjoy the various benefits of the Internet

as well as the various applications that have been developed to make their experience

pleasurable. BYOD or Bring Your Own Device helps industries in reducing their

investments and help employees to use their own devices to improve their efficiency at

work and in turn improving the efficiency of the Supply Chain.

Since all the data will be transferred from the company Wi-Fi network / Data Network,

the inventory levels can also be controlled irrespective of the location of the responsible

personnel.

The benefits of BYOD are as follows: - Helps reduction in Capital Costs and hence reductionof Over-Heads.

No training required on new devices as the employee is well versed with their

own device.

Image 1


The benefits of BYOD in SCM are as follows: -

Easier Traceability.

Improves efficiency.

Cost Cutter, Revenue Growth.

Faster, better and on-time

communication.

Image 2

Academic Guide: Mr S. Ramanathan - +91 9176643039 - (Email Id: [email protected])

Focus Company: WABCO INDIA LIMITED - Mr M. S. Ravi Kumar

Phone Number: +91 9840270205 - (Email ID: [email protected])

Deloitte Touché Tohmatsu India Private Limited

Accenture India

Key words:Supply Chain Management, Bring Your Own Device (BYOD), IT Innovation,

Firm Performance, Inventory, Empirical Research, Manufacturing Industry.

mailto:[email protected]

mailto:[email protected]


Introduction

Supply Chain and Supply Chain Management

Christopher (1998) during his research defines Supply Chain management as the

management of Upstream and Downstream relationships in order to deliver superior

customer value at a lesser cost to the Supply Chain. In their work, Croxton et al (2001)

then suggested that the following activities need to be defined prior to the order

fulfillment process: Generating, Communicating, Entering, Processing, Picking and

delivering customer orders.

For any Supply Management to function effectively, the following entities have to work

in cordial relations: -

Diagram 1

The flow of information and money goes from through the opposite route i.e., from the

customers to the retailers and through the distributors reaching the manufacturer who

then repay their suppliers.

Supplier•For Raw Material, Labor & Other Services

Manufacturer

•For conversion of Raw material into final products using labor and other services.

Distributor

•Helping the manufacturer distribute his produce to the reach of the end customer.

Retailer•The medium through which the distributors reach the customers.


Since there is a feedback circuit that is in place and relates the customer directly to the

manufacturer, this area has become one of the most studied area by the academicians.

Be it with the perspective of designing the model for Supply Chain or even trying to

improve the customer delight with the help of Supply chains. This has also led to

different academicians defining Supply chains in their own words. Few of the definitions

that we have used to leverage our study on the development of Supply Chains (SC) and

Supply Chain Management (SCM) is as under:

As defined by Benita M Beamon (1998), a Supply Chain is an integrated manufacturing

process where the raw materials are converted into final products before they are

delivered to the customers.

Wikipedia defines SCM as; it is management of a network of

interconnected businesses involved in the provision of product and service packages

required by the end customers in a supply chain. Supply chain management records

movement and storage of raw materials, WIP inventory, and finished goods from

manufacturer to end customer.

Council for Supply Chain Management Professionals or CSCMP’s defines Supply Chain

Management as the process that comprehensively includes all activities relating to

procurement, conversion and logistics.

Importantly, it requires channel partners to collaborate and coordinate. The channel

partners as mentioned above could be the intermediaries, suppliers, third party service

providers, or even customers. In essence, it integrates the supply and demand within

and across companies.

In their work, Gunasekaran et al. (2001) identified outsourcing as an important trend

present in industry. Indeed, outsourcing is becoming one of the main strategies adopted

by organizations that find it increasingly difficult and less economical to produce their

needs on their own. The authors emphasized that the ever-increasing trends in

globalization and customer responsiveness demand logistics-sensitive organizations.

Reduction of time to market, switching from mass production to mass customization

and compression of product life cycles are trends forcing permanent changes to the way

companies do business. Business drivers affecting supply chain management policies in

sectors such as retailing and manufacturing include:

Cost management including cost reduction and efficiency (Mehta, 2004;

Olhager and Selldin, 2004);


Fluctuations in customer needs (Coronado et al., 2002);

Unpredictable yet new business opportunities (Gunasekaran et al., 2001);

Environmental sustainability (Turkay et al., 2004);

Adoption of IT resources (Ho and Lin, 2004);

Adoption of manufacturing technology (Khouja and Kumar, 2002);

Performance and Stabilization (Bullinger et al., 2002; Chan, 2003);

Reduction or complete elimination of waste in business operations (Mason-

Jones et al., 2000); and

Slim profit margins (Munson et al., 2003).

For SCM implementation, developing a long-term relationship within the chain links is

the prerequisite for success. In order to alleviate conflict or any understanding between

the links, it is essential to set confirmed goals for all members of the supply chain at the

very beginning.

The notion of Supply Chain management as used in many research findings is usually

linked with the globalization of manufacturing and the tendency for manufacturers to

source their inputs, which requires management of profitable ways of regulating

worldwide flows of inputs or outputs. The principal focus of market competition in such

situations is not only between goods, but also between the Supply Chains delivering the

goods, suggests Assey Mbang Janvier-James (2011).

The aim of supply chain management is to establish a link between the entire

production and distribution channels of a product or service in order to satisfy customer

needs and requirements. Such requirements include product quality, price, product line,

order fill rate, order cycle time, order/shipment information, and frequency of delivery

(Tracey, 1997). Thus, members of the supply chain network must maintain and sustain

customer-driven culture and offer the right product at the right place at the right time

and at the right prices (Fisher et al., 2000).


Information Technology and Supply Chain

Image 3

The focus of this integration in the context of internet-enabled activities is generally

referred to as e-SCM. Merging these two fields (SCM and the internet) is a key area of

concern for contemporary managers and researchers. Managers have realized that the

internet can enhance SCM decision making by providing real-time information and

enabling collaboration between trading partners.

As mentioned by Ila Manuj, John T. Mentzer (2008), in the supply chain industry, there

are many different types of risk. Risks are all those things that keep you away from the

perfect path and perfect outcomes and (you) got to be able to translate (risks) into

dollars somehow.

David L. Olson, Desheng Dash Wu suggest that strategy such as information sharing and

pooling demand, increased flexibility and capability can be employed to improve end-to-

end transparency leading to more efficient risk management.

Christina W.Y. Wong, Kee-hung Lai, and T.c.e. Cheng suggest that the conceptualization

of information integration revolves around the fundamental notion of developing

information sharing infrastructure in the Supply Chain with electronic linkages to


facilitate timely, accurate, and standardized data exchange across internal and external

organizational functions.

Effective information sharing is considered as one of the most basic capabilities of the

supply chain process, information shared in interactive systems and supply chain is

including information between direct partners and also in the entire supply chain

network. Effective information sharing is considered as one of the most basic

capabilities of the supply chain process (Rahman Seresht and Afsar, 2008).

Bring Your Own Device (BYOD)

Two very different, but interrelated phenomena have been occurring over the last

decade. The first is commonly referred to as the “Consumerization of Information

Technology.” The second is the diminishing difference between work life and personal

life experienced by many employees of the organization. The result of this is the growth

of BYOD of Bring Your Own Device.

As mentioned by Zielinski, Dave (HRMagazine, 2012), BYOD or Bring Your Own Device,

began with a simple question posed by frustrated employees: "Why is the laptop or

smart phone I use at home so much better than what I have in the workplace?" Today,

fueled by the growing popularity of Apple's iPad and iPhone, more organizations are

allowing workers-beyond just the executive and information technology staffs-to use

personal mobile devices at work.

“New technologies and new implementations of existing technologies, such as mobile

devices, exploded, Bring your own device [BYOD] has exploded. People want to be

connected everywhere.” says Seth Shestack, associate director of information security

at Temple University, in Philadelphia (CIO Digest, July 2011 Page 34).

Supply Chain Management and Information Technology, Bring Your Own Device

The flow diagram for the Supply Chain

has been mentioned below for

reference and easy explanation of the

management of the chain. As we all

know, each and every link in the chain is

as important as the previous and the

next one. If any link in the chain falls

short of perfect, the chain can be a

disaster and cannot be managed

efficiently.

Diagram 2

Supplier

Manufacturer

Distributor

Retailer


Though the above chain we realize that the Retailer is as important as the Supplier or

the manufacturer or the distributor. Most executives today, view globalization as a

source of competitive advantage (Trent and Monczka, 2003).

The implementation of BYOD in the above chain can help us leverage the performance

of the chain making each link as strong as the other. For Example, if our suppliers are

aware of the stocks availability at our end, it would be very easy for them to replenish

their stocks and our inventories for a smooth working and non-stop production.

Similarly, If the manufacturer is aware of the current / live status of the availability of

the product at the distributor’s end or even the retailer’s end, it would be easy for us to

start with the production & processing of the raw material in order to feed the end

customer in time. The above example stated is one of the easiest ways in which an

efficient supply chain can be described.

The most important aspect of an efficient supply chain which is evident from the above

example is the tracking of inventories / stocks at one link before and after your own link.

This is generally done today with the help of high end computers systems with heavily

loaded servers with software for ERP, CRM, security systems and various other IT

infrastructure developed by various industries. In spite of the above heavy investments

done in the industry, the employee feels left out of the whole process when he is

suddenly bombarded with the news of deficient supplies from any supplier.

Even though the companies have invested heavily in the above infrastructure

development, the end result leaves employees in not being able to perform to their best

due to the live data unavailability. To increase the productivity and satisfaction of

employees the companies/ industries again invested in devices like Blackberry® which

helps them to keep in touch with each other through mails. But yet again this strategy

implemented by the companies led to higher level of investment and dissatisfaction

amongst its employees, as most of them needed time to get accustomed to the devices.

This also led to the thought "Why is the laptop or smart phone I use at home so much

better than what I have in the workplace?” Zielinski, Dave (HRMagazine, 2012).


Image 4

To overcome the same, most of the companies have now implemented the BYOD

strategy or the Bring Your Own Device policy. This policy defines the requirement of the

device by an employee that shall be then re-configured to the Companies personal

network giving access to the employees with real-time data across various links of the

Supply Chain. Since the employee as opposed to the earlier situation of company giving

the device now selects the device, the employee is more confident and efficient while

working.

To understand the causative factors that may reinforce employee attitudes and

behaviors, Herzberg et al. (1959), in his classical work, suggests, “Workers can be asked

to indicate spontaneously what they like or dislike about their jobs. An analysis of these

comments would reveal the existence of some of the factors listed. Their relative

importance can be deduced either by the frequency with which they are given by the

workers or by some method of weighting the vigour of like or dislike” (pp. 6-7).


Image 5

The companies have now been able to reduce their IT Capital costs as the devices for

working are now bought by the employees rather than picking it up from the IT

department.

Image 6

Though this has considerably increased

the risk of data theft, many companies

such as Littler, an Employer and Labor

Law Solutions provider, have also come

up with the LITTLER strategy or the

Lead, Inspect, Teach, Train, Launch,

Examine and Report Strategy.


Method

Marketing research is the systematic and objective identification, collection, analysis, dissemination, and use of information for the purpose of assisting management in decision making related to identification and solution of problems and opportunities. It consists of six steps that define the tasks to be accomplished in conducting a marketing research study.

We tested the benefits of implementing BYOD in Supply Chain. In defining this problem, we had considered the purpose of the study, the relevant background information, the information needed and how it had been used in decision-making. We discussed with the decision makers, took interviews with industry experts, and perhaps, some qualitative research.

After the problem had been identified, research design formulation is done. It is a blueprint or a framework for conducting the marketing research project. Research design is of two types. Since, we do not need to determine any cause and effect relationships, we will not go for causal research. We would conduct exploratory research, precisely defined the variable and also designed appropriate scales to measure them.

Market Research data is of two types – Primary Data and Secondary Data. Primary data may be qualitative or quantitative. The objective of qualitative research is to gain a qualitative understanding of the underlying reasons and motivations. But the objective of this research is to quantify the data and generalize the results from the sample to the population of interest. Hence, we would be doing Quantitative analysis of the data.

To consider a set of respondents for the data, we choose employees of WABCO India Limited from different departments such as Sourcing & Procurement, Production, Quality, Sales, Stores and Logistics. To obtain information from these respondents, we had formalized a set of questions in the form of a questionnaire. A questionnaire helps to minimize the response error and it also uplifts, motivates and encourages the respondents to become involved in the interview.

A questionnaire containing constructs with multiple items is devised to measure the identified variables in agreeable scales. The scale used in our research is only nominal scale.

The survey responses wereanalyzed through SPSS.

Reliability Factor

In statistics, Cronbach's α (alpha) is a coefficient of reliability, named after by Lee Cronbach. It is commonly used as a measure of the internal consistency or reliability of a psychometric test score for a sample of examinees.

The reliability score of each scale will be taken and the score would be above the desired value of 0.60. The scales, which fail to deliver the optimum Cronbach’s Alpha, will be omitted from the final test statistics.

After finalizing the scales for the SPSS, then we would do a correlation check on the data set obtained from the survey. After collating the data, we would do the One-

http://en.wikipedia.org/wiki/Statistics

http://en.wikipedia.org/wiki/Reliability_(statistics)

http://en.wikipedia.org/wiki/Lee_Cronbach



http://en.wikipedia.org/wiki/Internal_consistency

http://en.wikipedia.org/wiki/Reliability_(statistics)

http://en.wikipedia.org/wiki/Psychometric_testing


way ANOVA to find the significance of the variables that we have considered. By finding the values of significance <0.05, we would accordingly accept or reject the hypothesis.

When examining the differences in the mean values of the dependent variable related to the effect of the controlled independent variables, this analysis will conclude our postulates and would clearly give us a picture of whether the independent variables are significant on the dependent variables or not.

Hypothesis Postulated: Hypothesis 1 (H0): BYOD does not increase the risk of Security Breaches. Hypothesis 2 (H1): BYOD reduces capital costs in industries. Hypothesis 3 (H2):BYOD increases employee satisfaction.

Variables: Independent Variables: Cost, Employee Satisfaction, Security Risk Dependent Variables: Revenue, Working Efficiency, Risk Management

Correlation We have created one null Hypothesis and two Hypotheses to test the constructs.

To test the significance of the constructs, we will be analyzing the Variance (ANOVA). It is used to measure how much the dependent variable varies within a group related to differences.

Results The data collected from WABCO Limited consists of 133 samples. Using the

Questionnaire, we created constructs by combining various questions. The constructs are as follows: -

BYOD 1. Are you satisfied with the device provided by the company 2. Using my Personal Device at work, I will

EFFICIENCY 1. I were given a choice by the company to use my own device at work, I

think that my Productivity 2. I were given a choice by the company to use my own device at work, I

think that my effectiveness in decision making 3. Would you support the BYOD Program at your place of work 4. I am okay with the company downloading software in my personal device 5. What percentage of hours/ week you use your own device during work

hours 6. What percentage of hours/ week you use your own device after work

hours COST

1. How much am I willing to spend on my personal Mobile?


2. How much am I willing to spend on my personal Laptop?

SECURITY 1. I am not looking for refund If I am allowed to use my own device at work 2. I trust the IT department of my company to secure all the devices

HAPPINESS

1. I am worried that using my device at work could release my personal data in the company network.

2. If I bring my own device, I believe the cost to the company. 3. I believe employees will use the company data against the company.

For Regression, the Independent Construct is BYOD and the Dependent

Constructs considered are EFFICIENCY, COST, SECURITY, and HAPPINESS. After doing the analytic treatment, weanalyzed that the entire hypothesis was significant.

All the hypotheses that were assumed were absolutely in line with the regression results that were received.

DEPENDENT INDEPENDENT R – SQUARE ANOVA

EFFICIENCY BYOD .600 Significance

COST BYOD .697 Significance

SECURITY BYOD .772 Significance

HAPPINESS BYOD .401 Significance

Discussion The implication of the research on future growth of Supply Chain and BYOD has been established quantitatively. The results indicate the importance of the concept of BYOD used in order to enhance the capability of regular Supply Chains. Supply Chain Management is the differentiating factor for any industry today. As budgets continue to tighten, initiatives like BYOD become more and more appealing to the companies. This in-turn will help the industries to cater to global needs effectively. The use of own devices will help them engage more productively in their daily work. The concern of security breaches that were raised during the inception of the BYOD concept have been well managed by the respective IT departments. This has enabled the users to move forward with integration of their devices to the company infrastructure. The research initially was based on variables like Cost, Security and Efficiency. However, while working closely with the industry we found that Happiness was also one of the


reasons for implementing BYOD. This shows us that the companies today not only focus on the requirements of their clients but also make sure that the employees are happy in the new culture while new technologies are being implemented. The limitations of this research are as follows:

1. The respondents could be novice in terms of the emerging concepts used in the survey.

2. Survey is also limited in terms of the restriction to a single business unit of a big group of WABCO Ltd.

3. The business unit was working on the concept of BYOD and has not completely implemented this in their daily working. This hides the response of BYOD to Guest Access and Security Zoning.

4. BYOD is only one part of the solution as the systems become more complex so do the work-place.

Future research in this regard could explore the possibilities of establishing the relationship between centrally coordinated IT Infrastructure of Global Business Unit and concept of BYOD applicable to the devices of the employees. This will be of help in situation where we need to study a market or client behavior. In addition to the current research, further research can be extended in the areas of BYO mentality. As of now progress has already been made in the areas of Bring Your Own Service (BYOS) and Bring Your Own Applications (BYOA).


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Annexure 1

Questionnaire

1

Do you use company devices for personal use

1 YES

2 NO

2

Are you satisfied with the device provided by the company

1 HIGHLY DISSATISFIED

2 DISSATISFIED

3 NEUTRAL

4 SATISFIED

5 HIGHLY SATISFIED

3

Using my Personal Device at work, I will be


2 DISSATISFIED

3 NEUTRAL

4 SATISFIED

5 HIGHLY SATISFIED

4

I were given a choice by the company to use my own device at work , I think that my Productivity will


2 DISSATISFIED

3 NEUTRAL

4 SATISFIED

5 HIGHLY SATISFIED

5

I were given a choice by the company to use my own device at work , I think that my effectiveness in decision making would


2 DISSATISFIED

3 NEUTRAL

4 SATISFIED

5 HIGHLY SATISFIED

6

Would you support the BYOD Program at your place of work

1 HIGHLY DISAGREE

2 SOMEWHAT DISAGREE

3 NEUTRAL

4 SOMEWHAT AGREE

5 HIGHLY AGREE

7 I am okay with the company downloading software in my personal device

1 HIGHLY DISAGREE


2 SOMEWHAT DISAGREE

3 NEUTRAL

4 SOMEWHAT AGREE

5 HIGHLY AGREE

8

What percentage of hours/ week you use your own device during work hours

1 0% - 10%

2 10% - 30%

3 30% - 50%

4 50% - 70%

5 70% - 100%

9

What percentage of hours/ week you use your own device after work hours

1 0% - 10%

2 10% - 30%

3 30% - 50%

4 50% - 70%

5 70% - 100%

10

If I bring my own device, I believe the cost to the company

1 HIGHLY DECREASE

2 SOMEWHAT DECREASE

3 NEUTRAL

4 SOMEWHAT INCREASE

5 HIGHLY INCREASE

11

I am not looking for refund If I am allowed to use my own device at work

1 HIGHLY DISAGREE

2 SOMEWHAT DISAGREE

3 NEUTRAL

4 SOMEWHAT AGREE

5 HIGHLY AGREE

12

How much am I willing to spend on my personal Mobile

1 Rs 0.00 - Rs 5000.00

2 Rs 5000.00 - Rs. 7500.00

3 Rs.7500.00 - 10000.00

4 Rs. 10000.00 - Rs. 12500.00

5 More than Rs. 12500.00

13

How much am I willing to spend on my personal Laptop

1 Rs. 0.00 - Rs. 20000.00

2 Rs. 20000.00 - Rs. 25000.00

3 Rs. 25000.00 - Rs. 30000.00

4 Rs. 30000.00 - Rs. 35000.00


5 More than Rs. 35000.00

14

I believe employees will use the company data against the company

1 HIGHLY DISAGREE

2 SOMEWHAT DISAGREE

3 NEUTRAL

4 SOMEWHAT AGREE

5 HIGHLY AGREE

15

I trust the IT department of my company to secure all the devices

1 HIGHLY DISAGREE

2 SOMEWHAT DISAGREE

3 NEUTRAL

4 SOMEWHAT AGREE

5 HIGHLY AGREE

16

I am worried that using my device at work could release my personal data in the company network

1 HIGHLY DISAGREE

2 SOMEWHAT DISAGREE

3 NEUTRAL

4 SOMEWHAT AGREE

5 HIGHLY AGREE