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AI Shapes Analytics for Complex, Expanding Supply Chains

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The 2024 ISG Provider Lens™ global Specialty Analytics Services report highlights the growing importance of specialized analytics systems in managing complex supply chains. Companies are investing in technologies to harness enterprise and ecosystem data for better decision-making, with AI and generative AI playing central roles. These systems provide end-to-end visibility, help calculate risks, and plan for potential disruptions.

Key trends include the use of digital twins for simulating processes, improved distribution analytics for on-time order fulfillment, and support for ESG reporting compliance. Companies often seek providers with a track record of quick business value delivery and industry expertise. The report evaluates 17 providers in the Supply Chain quadrant, naming several as Leaders and Rising Stars.

Il report globale 2024 di ISG Provider Lens™ sui Servizi di Analisi Specializzati evidenzia l'importanza crescente dei sistemi di analisi specializzati nella gestione delle catene di approvvigionamento complesse. Le aziende stanno investendo in tecnologie per sfruttare i dati aziendali e dell'ecosistema per decisioni migliori, con AI e AI generativa che svolgono ruoli centrali. Questi sistemi forniscono visibilità end-to-end, aiutano a calcolare i rischi e a pianificare per potenziali interruzioni.

Tra le tendenze chiave ci sono l'uso di gemelli digitali per la simulazione dei processi, miglioramenti nell'analisi della distribuzione per il rispetto dei tempi di consegna, e supporto per la compliance al reporting ESG. Le aziende cercano spesso fornitori con una comprovata esperienza nella rapida creazione di valore commerciale e competenza settoriale. Il report valuta 17 fornitori nel quadrante della Supply Chain, nominando diversi come Leader e Stelle in Crescita.

El informe global 2024 de ISG Provider Lens™ sobre Servicios de Análisis Especializados destaca la creciente importancia de los sistemas de análisis especializados en la gestión de cadenas de suministro complejas. Las empresas están invirtiendo en tecnologías para aprovechar los datos empresariales y del ecosistema para una mejor toma de decisiones, con IA y IA generativa desempeñando roles centrales. Estos sistemas proporcionan visibilidad de extremo a extremo, ayudan a calcular riesgos y planifican posibles interrupciones.

Las tendencias clave incluyen el uso de gemelos digitales para simular procesos, una mejora en el análisis de distribución para cumplir con los plazos de pedidos y el soporte para la conformidad con la normativa ESG. Las empresas a menudo buscan proveedores con un historial de rápida entrega de valor comercial y experiencia en la industria. El informe evalúa a 17 proveedores en el cuadrante de la cadena de suministro, nombrando a varios como Líderes y Estrellas Emergentes.

2024 ISG Provider Lens™ 글로벌 전문 분석 서비스 보고서는 복잡한 공급망 관리에서 전문 분석 시스템의 중요성이 증가하고 있음을 강조합니다. 기업들은 기술에 투자하여 기업 및 생태계 데이터를 활용해 더 나은 의사 결정을 내리고 있으며, AI 및 생성적 AI가 중심적인 역할을 하고 있습니다. 이러한 시스템은 끝에서 끝까지 가시성을 제공하고, 위험을 계산하며, 잠재적인 중단을 계획하는 데 도움을 줍니다.

주된 트렌드로는 프로세스 시뮬레이션을 위한 디지털 트윈의 활용, 정시 주문 이행을 위한 유통 분석 개선, 그리고 ESG 보고 규정 준수 지원이 있습니다. 기업들은 종종 빠른 비즈니스 가치 제공 및 산업 전문성을 보유한 공급자를 찾습니다. 보고서는 공급망 사분면에서 17개 공급자를 평가하며, 일부를 리더와 신흥 스타로 지명하고 있습니다.

Le rapport mondial 2024 d'ISG Provider Lens™ sur les services d'analyse spécialisés met en lumière l'importance croissante des systèmes d'analyse spécialisés dans la gestion des chaînes d'approvisionnement complexes. Les entreprises investissent dans des technologies pour exploiter les données d'entreprise et d'écosystème afin de prendre de meilleures décisions, avec IA et IA générative jouant des rôles centraux. Ces systèmes offrent une visibilité de bout en bout, aident à calculer les risques et à planifier d'éventuelles perturbations.

Les tendances clés comprennent l'utilisation de jumeaux numériques pour simuler des processus, l'amélioration de l'analyse de distribution pour une exécution à temps des commandes et le soutien à la conformité aux rapports ESG. Les entreprises recherchent souvent des fournisseurs ayant un bon historique de livraison rapide de valeur commerciale et d'expertise sectorielle. Le rapport évalue 17 fournisseurs dans le quadrant de la chaîne d'approvisionnement, en nommant plusieurs comme Leaders et Étoiles Montantes.

Der globale Bericht 2024 des ISG Provider Lens™ zu spezialisierten Analyse-Diensten hebt die wachsende Bedeutung von spezialisierten Analysesystemen im Management komplexer Lieferketten hervor. Unternehmen investieren in Technologien, um Unternehmens- und Ecosystemdaten für bessere Entscheidungen zu nutzen, wobei KI und generative KI zentrale Rollen spielen. Diese Systeme bieten End-to-End-Transparenz, helfen dabei, Risiken zu berechnen, und planen für potenzielle Unterbrechungen.

Wichtige Trends beinhalten die Nutzung von digitalen Zwillingen zur Simulation von Prozessen, verbesserte Vertriebsanalysen zur termingerechten Auftragsabwicklung und Unterstützung bei der Compliance zu ESG-Berichtspflichten. Unternehmen suchen häufig Anbieter mit einer Erfolgsbilanz in der schnellen Wertschöpfung und Branchenerfahrung. Der Bericht bewertet 17 Anbieter im Lieferkettenquadranten und nennt mehrere davon als Leader und Rising Stars.

Positive
  • Companies are investing in specialized analytics systems to improve supply chain management
  • AI and generative AI are being applied to enhance demand forecasting, capacity planning, and order tracking
  • Digital twins are helping companies predict outcomes and make better decisions
  • Improved analytics systems are streamlining distribution and enabling on-time order fulfillment
  • Analytics platforms are supporting compliance with ESG reporting rules
Negative
  • Rising operational costs in supply chain management
  • Lack of visibility into supply chain operations and sustainability levels
  • Shortage of talent for building and managing advanced analytics systems within enterprises

Insights

The report highlights a significant shift in supply chain management, driven by the integration of advanced analytics and AI. This trend is likely to benefit tech companies specializing in AI and data analytics, potentially boosting their market value. The emphasis on custom solutions over off-the-shelf platforms could lead to increased demand for specialized service providers, possibly affecting their stock prices positively.

However, the report also indicates a competitive landscape with multiple "Leaders" identified, suggesting a mature market without a clear dominant player. This could lead to price pressures and lower profit margins for these companies. The focus on cost reduction and efficiency might also impact traditional supply chain companies, potentially leading to lower valuations for those unable to adapt.

Investors should closely monitor companies mentioned as "Leaders" and "Rising Stars" in the report, as they may see increased business opportunities. However, the long-term impact will depend on their ability to deliver tangible business value and adapt to rapidly evolving technologies like generative AI.

The integration of AI, particularly generative AI (GenAI), into supply chain analytics represents a significant technological advancement. This trend could drive growth for AI-focused tech companies and cloud service providers that can support these complex systems. The mention of digital twins and IoT suggests a convergence of multiple technologies, potentially creating new market opportunities.

The emphasis on custom solutions and intellectual property ownership by clients could challenge traditional software-as-a-service (SaaS) models. This might impact the recurring revenue streams of some tech companies. However, it also opens up opportunities for consulting and integration services.

The adoption of these technologies could lead to increased demand for specialized hardware, such as IoT devices and sensors, benefiting manufacturers in this space. Cybersecurity firms might also see increased demand as companies seek to protect their expanded digital supply chain infrastructure.

The report suggests a growing market for specialized analytics services in the supply chain sector, which could translate to increased revenues for companies in this space. However, the competitive landscape with multiple "Leaders" might lead to price pressures and potentially lower profit margins.

The focus on custom solutions and intellectual property ownership by clients could result in lumpy revenue recognition patterns for service providers, as opposed to more predictable subscription-based models. This might increase earnings volatility and could affect how investors value these companies.

The trend towards advanced analytics and AI integration might lead to increased capital expenditures for enterprises adopting these technologies. This could impact their short-term profitability but potentially lead to long-term efficiency gains. Investors should monitor the return on investment (ROI) metrics for companies implementing these solutions.

Overall, while the sector shows promise, the financial impact may vary significantly among different players in the ecosystem. Investors should carefully evaluate each company's positioning and ability to deliver tangible business value in this evolving market.

Enterprises, providers tap into new technologies, integrated data to better monitor and manage operations, ISG Provider Lens™ report says

STAMFORD, Conn.--(BUSINESS WIRE)-- Many companies with complex supply chains are co-developing specialized analytics systems with providers that allow them to adapt quickly to dynamic market conditions, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ global Specialty Analytics Services report for the supply chain industry finds that organizations are investing in technologies to harness enterprise and ecosystem data for better decision-making. The COVID-19 pandemic exposed the fragility of global supply chains, so enterprises are exploring how data and analytics can make systems more resilient and sustainable.

“Companies can no longer take supply chains for granted,” said Bob Krohn, partner, manufacturing, for ISG. “By implementing new technologies with providers, they are achieving the end-to-end visibility they need to stay ahead of changes.”

Enterprises can solve many supply-chain problems with advanced analytics based on a solid data foundation, the report says. Once companies have integrated internal and external data and removed errors, analytics platforms become powerful decision-support systems that can generate suggestions for optimizing operations. They can also help companies calculate risks and plan how to manage potential disruptions.

AI is often at the center of these solutions, and providers and enterprises are beginning to apply generative AI (GenAI) to many use cases, ISG says. In integrated supply chain command centers, GenAI may improve demand forecasting, capacity planning and order tracking. Combined with computer vision and IoT, GenAI may allow companies to introduce automation throughout the supply chain, making the best use of limited staff.

With more specialized analytics tools, enterprises have found new use cases, the report says. Integrated data allows them to evaluate specific suppliers to ensure supply chain continuity. Digital twins that simulate physical assets and processes are helping companies predict outcomes and make better decisions. Improved analytics systems streamline distribution, enabling on-time order fulfillment. They also support compliance with ESG reporting rules that require understanding the whole supply chain.

Companies seeking specialized analytics providers commonly look for a track record of quickly delivering business value, ISG says. They often choose providers that employ reusable components, called accelerators, that reflect expertise in the client’s industry. Enterprises get the most out of custom analytics platforms when they own the intellectual property developed in conjunction with the provider.

“Off-the-shelf analytics platforms can solve some common problems, but oversight and control of a complex supply chain requires a custom solution,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Leading providers collaborate with clients to build systems that can evolve and deliver results over time.”

The report also explores other supply-chain analytics trends, including rising operational costs and demand for talent-building within enterprises.

For more insights into supply-chain analytics challenges, including the lack of visibility into operations and into the level of sustainability, plus ISG’s advice for addressing these issues, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ global Specialty Analytics Services report for the supply chain industry evaluates the capabilities of 17 providers across one quadrant: Supply Chain.

The report names Fractal Analytics, HARMAN Digital Transformation Solutions, LatentView Analytics, MathCo, Sigmoid, Tiger Analytics and Tredence as Leaders in the quadrant.

In addition, Innover Digital is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in the quadrant.

Customized versions of the report are available from LatentView Analytics, Sigmoid, Tiger Analytics and Tredence.

The 2024 ISG Provider Lens™ global Specialty Analytics Services report for the supply chain industry is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

Press:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What are the key findings of the 2024 ISG Provider Lens™ global Specialty Analytics Services report for supply chains?

The report highlights that companies are investing in specialized analytics systems to manage complex supply chains, with AI and generative AI playing central roles in providing end-to-end visibility, risk calculation, and disruption planning.

How are companies using digital twins in supply chain management according to the ISG report?

According to the report, companies are using digital twins to simulate physical assets and processes, helping them predict outcomes and make better decisions in supply chain management.

What are the main challenges in supply chain analytics mentioned in the ISG report?

The main challenges mentioned include rising operational costs, lack of visibility into operations and sustainability levels, and the demand for talent-building within enterprises to manage advanced analytics systems.

Who are some of the leaders in supply chain analytics services according to the ISG report?

The report names Fractal Analytics, HARMAN Digital Transformation Solutions, LatentView Analytics, MathCo, Sigmoid, Tiger Analytics, and Tredence as Leaders in the Supply Chain quadrant.

How is generative AI being applied in supply chain management according to the ISG report?

The report states that generative AI is being applied to improve demand forecasting, capacity planning, and order tracking in integrated supply chain command centers, and may allow for increased automation throughout the supply chain.

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