Dynamic alignment of digital supply chain business models

Abstract

A model for managing strategic alignment and dynamic capabilities (DC) of Supply Chain Management (SCM) information systems (IS) has been developed and applied to a traditional German steel company and a highly innovative Austrian steel company. Different concepts of leading researchers have been combined to get a holistic and detailed view of IS capabilities' impact on strategic fit. The model enables companies to identify ideal levels to strategic fit needed from SC integration and its antecedents for predefining architectural artefacts as sources for dynamic capabilities. The study contributes to new insights into the IT productivity paradox, where possibilities from IS investments remain unused. Essential concepts for optimising SC performance by reducing SC complexity and increasing SC agility have been identified and integrated. The study highlights value enabler and Artificial Intelligence (AI) methods of digital SC models and how the model's ontology can be used to increase alignment autonomy. Finally, the approach supports organisational learning and development of cognitive profiles through collective assimilation and sensemaking effects.