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Do Traditional Silo-based Organizations Squelch Innovation?

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Do Traditional Silo-based Organizations Squelch Innovation?

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Richard Wilding is a professor of supply chain risk management at Cranfield School of Management, Europe’s largest faculty group specializing in the area logistics and supply chain. Among the many topics that fall under the general heading of supply chain risk management is what Professor Wilding refers to as “demand chain management.” Demand chain management integrates marketing activity and supply chain activity, because according to Professor Wilding, you cannot innovate supply chains without understanding what drives value in the final marketplace. Professor Wilding defines innovation as creating value — economic value, social value and environmental value through the application of ideas that are new to your organization. Traditional silo-based organizations, he says, are very good at supporting innovation within the individual silo, because in theory, you have a group of experts, in very specific disciplines, sharing and developing ideas together. The problem, from a supply chai

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