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Artificial intelligence in E-commerce fulfillment: A case study of resource orchestration at Alibaba’s Smart Warehouse

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  • Zhang, Dan
  • Pee, L.G.
  • Cui, Lili

Abstract

Despite heightened interest, integrating artificial intelligence (AI) into businesses remains challenging. Recent surveys show that up to 85 % of AI initiatives ultimately fail to deliver on their promises. Studies on successful AI applications that could provide invaluable lessons for organizations embarking on their AI journey are still lacking. Therefore, this study aims to understand how AI technology, people, and processes should be managed to successfully create value. Building on the resource orchestration perspective, this study analyzes the successful applications of AI at Alibaba's e-commerce fulfillment center. The findings indicate that the key AI resources include data, AI algorithms, and robots. These resources must be orchestrated (e.g., coordinated, leveraged, deployed) to work with other related resources, such as warehouse facilities and existing information systems, to generate strong AI capabilities. The key AI capabilities generated include forecasting, planning, and learning. More importantly, AI capabilities are not independent – they interact and coevolve with human capabilities to create business value in terms of efficiency (e.g., space optimization, labor productivity) and effectiveness (e.g., error reduction). The implications of understanding these social informatics of AI for research and practice are discussed.

Suggested Citation

  • Zhang, Dan & Pee, L.G. & Cui, Lili, 2021. "Artificial intelligence in E-commerce fulfillment: A case study of resource orchestration at Alibaba’s Smart Warehouse," International Journal of Information Management, Elsevier, vol. 57(C).
    • Handle: RePEc:eee:ininma:v:57:y:2021:i:c:s0268401220315036
    DOI: 10.1016/j.ijinfomgt.2020.102304
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    Cited by:

    1. Chen, Xiaoying & Cui, Miao, 2022. "Understanding platform transformation from internal to external: A resource orchestration perspective," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    2. Nazir, Sajjad & Khadim, Sahar & Ali Asadullah, Muhammad & Syed, Nausheen, 2023. "Exploring the influence of artificial intelligence technology on consumer repurchase intention: The mediation and moderation approach," Technology in Society, Elsevier, vol. 72(C).
    3. Aki Harima & Jan Harima & Jörg Freiling, 2024. "Ecosystem Orchestration: Unpacking the Leadership Capabilities of Anchor Organizations in Nascent Entrepreneurial Ecosystems," Entrepreneurship Theory and Practice, , vol. 48(6), pages 1404-1450, November.
    4. Talaei-Khoei, Amir & Yang, Alan T. & Masialeti, Masialeti, 2024. "How does incorporating ChatGPT within a firm reinforce agility-mediated performance? The moderating role of innovation infusion and firms’ ethical identity," Technovation, Elsevier, vol. 132(C).
    5. Olha Fedirko & Tetiana Zatonatska & Tomasz Wolowiec & Stanislaw Skowron, 2021. "Data Science and Marketing in E-Commerce Amid COVID-19 Pandemic," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 3-16.
    6. Battistoni, Elisa & Gitto, Simone & Murgia, Gianluca & Campisi, Domenico, 2023. "Adoption paths of digital transformation in manufacturing SME," International Journal of Production Economics, Elsevier, vol. 255(C).
    7. Shrawan Kumar Trivedi & Pradipta Patra & Praveen Ranjan Srivastava & Justin Zuopeng Zhang & Leven J. Zheng, 2024. "What prompts consumers to purchase online? A machine learning approach," Electronic Commerce Research, Springer, vol. 24(4), pages 2953-2989, December.
    8. Queiroz, Maciel M. & Fosso Wamba, Samuel & Chiappetta Jabbour, Charbel Jose & Machado, Marcio C., 2022. "Supply chain resilience in the UK during the coronavirus pandemic: A resource orchestration perspective," International Journal of Production Economics, Elsevier, vol. 245(C).
    9. Pramanik, Paritosh & Jana, Rabin K. & Ghosh, Indranil, 2024. "AI readiness enablers in developed and developing economies: Findings from the XGBoost regression and explainable AI framework," Technological Forecasting and Social Change, Elsevier, vol. 205(C).
    10. Mohammed Charaf Eddine BOUREZIG & Soumya Chahinez TALEB BOUGUERRI, 2024. "The Intersection of AI and Digital Entrepreneurship: Studying the Varied Ways that AI is Changing Digital Enterprises," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 9(1), pages 78-90, February.
    11. Emmanouil Papagiannidis & Ida Merete Enholm & Chirstian Dremel & Patrick Mikalef & John Krogstie, 2023. "Toward AI Governance: Identifying Best Practices and Potential Barriers and Outcomes," Information Systems Frontiers, Springer, vol. 25(1), pages 123-141, February.
    12. Simón, Cristina & Revilla, Elena & Jesús Sáenz, Maria, 2024. "Integrating AI in organizations for value creation through Human-AI teaming: A dynamic-capabilities approach," Journal of Business Research, Elsevier, vol. 182(C).
    13. Mashalah, Heider Al & Hassini, Elkafi & Gunasekaran, Angappa & Bhatt (Mishra), Deepa, 2022. "The impact of digital transformation on supply chains through e-commerce: Literature review and a conceptual framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
    14. Etienne Thenoz & Solène Juteau & Frantz Rowe, 2024. "E-commerce transformation: A literature review from an institutional and organizational perspective," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-20, December.
    15. Ali, Omar & Murray, Peter A. & Momin, Mujtaba & Al-Anzi, Fawaz S., 2023. "The knowledge and innovation challenges of ChatGPT: A scoping review," Technology in Society, Elsevier, vol. 75(C).

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