Framework for Quantitative Digitalization Measurement in Supply Chain Planning

Abstract

Measurement is a central element for any effective management. The megatrend of digitalization enables new possibilities, but also requires research on its appropriate monitoring considering digital transformation. In supply chain planning, todays methods are mostly qualitative. Thus, this study analyzes how the impact of digitalization can be quantified scoped to this field of application.

Based on the literature streams supply chain planning performance measurement, digitalization assessment and digital technologies the authors develop a holistic framework for quantitative digitalization measurement (QDMF). The framework comprises three dimensions: ‘Man’, ‘Technology’, and ‘Organization’. These itemize to 22 measurands specific to the context. The logic allows the comprehensive assessment of the effectiveness of digitalization projects and provides reliable, informative value for decision-making by the quantitative scaling. The framework is applied by conducting expert interviews for customization and data collection, whereon analytics calculates the measurands. In the end, experts interpret the results.

For verification and validation, the framework is deployed to the empirical use case of Infineon Technologies AG, Europe’s largest semiconductor manufacturer. The study concludes that quantitative digitalization monitoring is promising and can deliver new insights for effective managerial decision-making. Obstacles as limited data availability and constrained explanatory power are investigated and provide options for further studies.