Digital innovation in the port sector

Abstract

Digital innovation changes industry as a whole, and gradually also the port sector. The present article examines in detail 32 information and communications technology (ICT) innovation cases collected between autumn 2013 and spring 2015. Leading actors along the maritime supply chain were asked to indicate the importance and to assess the degree of the success achieved in each ICT innovation initiative, to identify the driving forces behind the adoption of innovation and to denote the associated costs and benefits. This input allows identifying the barriers of digital innovation from initiation through to implementation, as well as assessing the impact of facilitators of ICT innovation. To do this, the present research combines four quantitative instruments. The added value of this combined approach is a deeper understanding of the digital innovation process within the port sector. The research firstly indicates that alignment exists between company strategies and success degrees in the port sector, in contrast to non-ICT initiatives. The ICT innovation initiatives are also profit driven. Secondly, the port sector should be more open to disclose cost and benefit information and should conduct more such analyses. Next, there are conditions that improve the degree of success. Overall, terminal alignment with the right ICT infrastructure proves key. However, too many divergent interests among the stakeholders entail that digital innovation challenges the ability to cooperate. An important finding is regulation was not identified as a barrier nor as a facilitator.

Innovation in the maritime sector: aligning strategy with outcomes

“…The same authors also show evidence that the strength of vertical integration is not relevant for the degree of innovative activity of an SME in the German maritime industry, although internationalisation appears to be associated with innovativeness. Regarding digital innovation, Carlan et al (2017) also support these findings and add that regulation was not identified as a barrier nor as a facilitator, but it is uncertainty about regulation that impairs innovation uptake. Interviewees in that study argue also for the need for better cooperation and further integration along the maritime supply chain.…”

“…In order to understand how to better capture innovation processes in maritime supply chains, some authors have tried to develop innovation taxonomies (e.g. Bessant and Tidd 2007;Carlan et al 2017;Carlan, Sys, and Vanelslander 2019), but so far little understanding has emerged on how these taxonomies are linked to internal firm strategic processes. And yet, the main objective of these new technologies, products, systems, or processes is that of generating value for the organization!…”

Business process management in the port sector: a literature review

“…Coronado Mondragon et al (2017) use institutional-related theories to identify key elements that influence the adoption of ICT to show that both government legislation and dominant organizations running ports in various geographical locations exert major influence regarding ICT adoption. Lee et al (2016) state that e-transformation in container ports, including the adoption of EDI systems, can affect customer satisfaction and port competitiveness, while Carlan et al (2017) prove correlation between corporate strategies and success degrees of the ICT innovation initiatives, including EDI systems, and conclude that essential elements of success turn out to be infrastructure, soft institutional and hard institutional issues, while regulation was not identified as a barrier nor as a facilitator. Taking a slightly different perspective, Scholliers et al (2016) discuss the technological possibilities to improve containers' integrity in port supply chains via the addition of monitoring equipment and their optimal use via information sharing between different stakeholders.…”

Improving the Performance of Dry and Maritime Ports by Increasing Knowledge about the Most Relevant Functionalities of the Terminal Operating System (TOS)

“…Heilig and Voβ (2017) divide them into ten different types: national single window, port community systems, vessel traffic services, TOSs, gate appointment systems, automated gate systems, automated yard systems, port road and traffic control information systems, intelligent transportation systems, and port hinterland intermodal information systems, and analyzed their potential for improving the efficiency of the whole supply chain [19]. Carlan et al (2017) indicated that the main reasons behind the decision to invest in new innovation in the port sector are cost reduction, improvement of service level, greater transport and monitoring control, and the improvement of safety and security issues [20]. They also stated that the most important goal of seaport platforms is to optimize the infrastructure capacity usage in order to reduce port congestion, which is one of the objectives of a TOS.…”

“…The terminal area of landside operations, which includes the gate, parking, office buildings, customs facilities, container freight station with an area for stuffing and stripping, empty container storage, a container maintenance and repair area, and so on. Carlan et al (2017) indicated that the main reasons behind the decision to invest in new innovation in the port sector are cost reduction, improvement of service level, greater transport and monitoring control, and the improvement of safety and security issues [20]. They also stated that the most important goal of seaport platforms is to optimize the infrastructure capacity usage in order to reduce port congestion, which is one of the objectives of a TOS.…”