Information technology, innovation and supply chain structure

The link between IT, innovation and supply chain structure is central here. This article is divided into three parts. First, a theoretical analysis of the role of IT in innovation processes. Actually, it involves the total in novation of the supply chain, not merely logistic innovation. The introduct ion of IT first of all leads to process innovation (internal and external), followed by product innovation in the sense of more diverse, cheaper and c ustomer specific products. Process innovation can best be described in term s of standardization, differentiation, specialization and (vertical and hor izontal) integration. Furthermore, a presentation of the empirical results from the following sec tors in the Netherlands: hairdressing, dentistry, building, banking, textil e industry and car production. The supply chain classification underlying t he analysis has been deduced from the composition and the functions of the actors in the supply chain. Supply chain integration and reversal are the c entral concepts. Finally, we will discuss the success conditions for innovation and the poss ible incentives, focussing especially on the Small and Medium-sized Enterpr ises (SME). The conditions for success in IT, innovation and supply chain structure con cern the extent of vertical and horizontal integration, the comparative imp ortance of information, the extent of (international) pressure and innovati ve regulations, and, of great importance, the extent of strategic and organ izational insight on the part of management and personnel.