Artificial intelligence in E-commerce fulfillment: A case study of resource orchestration at Alibaba’s Smart Warehouse |
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| Institution: | 1. Department of Information Resources Management, Business School, Nankai University, Tianjin, China;2. Wee Kim Wee School of Communication and Information, Nanyang Technological University, Singapore;3. School of Information Management & Engineering, Shanghai University of Finance & Economics, Shanghai, China;1. School of Information, Renmin University of China, Beijing, 100872, China;2. School of Tourism Science, Beijing International Studies University, Beijing, 100024, China;3. Research Center of Beijing Tourism Development, Beijing, 100024, China;4. Muma College of Business, University of South Florida, Tampa, 33620, USA;1. Department of Marketing, Georgia State University, Atlanta, GA 30303 USA;2. Department of Management Studies, Malaviya National Institute of Technology Jaipur, Jaipur, Rajasthan, 302017, India;3. Indian Institute of Management Trichy, India;1. Faculty of Management and Economics, Dalian University of Technology, Rm 1411, Block B, Innovation Park, 2# Linggong Road, Ganjingzi District, Dalian City, Liaoning Province 116023, China;2. Business School, The University of New South Wales, Level 2, West Wing, Quadrangle Building, Sydney, NSW 2105, Australia;3. Department of Business and Management, University of Sussex, Jubilee Building Jub-255, Falmer, Brighton BN1 9SL, United Kingdom;4. School of Information Management & Engineering, Shanghai University of Finance and Economics, Rm 213, 100# Wudong Road, Yangpu District, Shanghai 200433, China;1. Wageningen University & Research, Information Technology Group, Wageningen, the Netherlands;2. Bahcesehir University, Department of Computer Engineering, Istanbul, Turkey |
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| 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. |
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| Keywords: | Artificial intelligence E-commerce Fulfillment center Smart warehouse Resource orchestration |
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