Effects of disruption in decision making: Considering the use of evolving artificial intelligence in the context of ongoing supply chain disruption

Abstract

The evolution of integrated global value chains of interacting customers, vendors and other counterparties has been accelerated in modern times in ways that are at times well understood and at other times surprising, creating both unprecedented opportunity and ominous existential risk. Recent supply chain disruptions have been exacerbated by the phenomenon of ongoing unexpected or poorly anticipated events that disrupt prior efforts to restore stability, causing a sort of disrupted disruption that is pernicious and extremely difficult to address. This paper presents a framework for considering response to disruption, ideas for adoption of artificial intelligence (AI) and related technology, and approaches to leadership mindsets that are valuable in creating resilient organisational approaches to ongoing disruption. The interconnectedness of enterprise systems, especially in the context of the Internet of Things (IoT), autonomous devices and related technologies, has brought about a presumption that systems and processes are connected within and among industries. Blockchain, ubiquitously discoverable and low-cost or free Internet-based services, and the overall democratisation of data and technology have contributed to the interconnected nature of integrated value chains. Against this backdrop of interconnectedness, there have been ongoing sources of disruption that suggest significant challenges to organisational resilience. These disruptions affect cost of goods, time to deliver products and services, resource availability and present challenges to a shifting and complex regulatory environment. Global pandemic, nation-state activities, large-scale cyberattacks and poorly anticipated use and misuse of emerging AI capabilities have all contributed to disruption in industries that was in many instances poorly anticipated and enabling of extreme existential threat. The effects of responding to disruption, and having those responses interrupted by yet other disruption that occurs during the original response, has produced at times poorly executed efforts, loss of opportunity and increased exposure to various risks. The challenge for leaders in modern integrated value chains is to know enough to be appropriate early responders and thus maximise organisational benefit, while meeting the new challenges presented by the ongoing climate of disruption. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.