The Evolution Of The Wheel: 1998 RAM to o9 Solutions in 2025

Posted on May 23, 2025

0


EDITOR’S NOTE: The following is my response to a post by o9 Solutions titled: Modernizing MRO Planning: How Leading Companies Are Transforming Maintenance Supply Chains.

MRO procurement is right in my sweet spot. I am sure you will find the following article an interesting read – https://procureinsights.com/2025/04/19/do-the-mro-trends-of-the-2004-acres-of-diamonds-paper-endure-in-2025/

Here is a video that provides a high-level outline of my work with the DND in the late 1990s and the results: https://youtu.be/49BS-MkGoak.

I am not sure modernization is the right word – I am thinking evolution. Here is an excerpt from today’s Procurement Insights post:

“o9 Solutions represents the evolution of procurement technology—AI-driven, scalable, and holistic—while RAM (1998) laid the groundwork for agent-based adaptability and human-AI collaboration. For modern enterprises, o9 offers cutting-edge tools for complex, data-heavy supply chains, but RAM’s principles remind us that transparency, incremental change, and stakeholder alignment are timeless keys to success. Together, they illustrate how procurement has shifted from siloed efficiency to ecosystem-wide intelligence.”

And, here is today’s Procurement Insights post:

Comparison: o9 Solutions Platform vs. Jon W. Hansen’s 1998 RAM

1. Core Approach & Design Philosophy

o9 SolutionsRAM (1998)
Centralized Digital Twin: Integrates demand, supply, financial, and sustainability planning into a single AI-driven platform via an Enterprise Knowledge Graph (EKG).Decentralized Agent-Based Model: Simulated interactions between autonomous agents (e.g., suppliers, procurement teams) to optimize MRO procurement.
Real-Time, Data-Driven: Emphasizes predictive analytics, scenario planning, and prescriptive recommendations.Human-AI Collaboration: Prioritized human oversight for ethical/strategic decisions, balancing automation with governance.
Cloud-Native Scalability: Built for modern enterprises with IoT integration and big data processing.Legacy System Integration: Designed to harmonize outdated systems (e.g., ERPs) without costly replacements.

2. Technological Foundations

o9 SolutionsRAM (1998)
AI/ML & Generative AI: Uses machine learning for demand forecasting, optimization, and GenAI for natural language queries and workflow automation.Early AI & Agent-Based Logic: Leveraged basic AI for simulations and decision-making, pioneering adaptive workflows.
Enterprise Knowledge Graph (EKG): Creates a digital twin by linking structured/unstructured data (e.g., IoT, CRM, ERP).Relational Data Modeling: Connected disparate data strands (e.g., supplier performance, inventory) for dynamic problem-solving.
Modern Tech Stack: Cloud-native (Azure, Hadoop), APIs, and no-code tools for rapid customization.Pre-Cloud Architecture: Relied on on-premise systems and early client-server models (e.g., IBM RS/6000).

3. Outcomes & Impact

o9 SolutionsRAM (1998)
Cost Savings: Clients average 18.8% savings per $1M spend (e.g., automotive manufacturers).Cost Efficiency: Achieved 23% savings over seven years for Canada’s Department of National Defence (DND).
Cycle Time: Reduces negotiation/planning cycles by 60% via AI-generated insights.Operational Agility: Boosted on-time delivery from 51% to 97% for DND.
Scope: Manages end-to-end supply chains, including ESG, risk, and financial planning.Focus: Specialized in MRO procurement, optimizing parts ordering and supplier collaboration.

4. Adaptability & Relevance

o9 SolutionsRAM (1998)
Modern Challenges: Excels in addressing tariffs, ESG compliance, and global supply chain volatility.Legacy Resilience: Proven in rigid, regulated environments (e.g., government procurement).
Scalability: Cloud-based architecture supports enterprise-wide deployment and rapid updates.Incremental Integration: Enabled upgrades without disrupting legacy systems, reducing adoption resistance.
AI-Driven Automation: Prioritizes speed and data-driven decision-making, minimizing manual intervention.Human-Centric Design: Emphasized transparency and stakeholder trust, avoiding “black box” AI.

5. Key Differentiators

o9 SolutionsRAM (1998)
Strengths: Real-time analytics, cross-functional integration, GenAI innovation.Strengths: Agent-based adaptability, ethical oversight, proven ROI in complex ecosystems.
Limitations: Complexity in creating accurate digital twins; reliant on high-quality data.Limitations: Outdated tech stack; lacks modern AI/cloud capabilities.

Synergy & Lessons for 2025

  • o9’s AI + RAM’s Agent-Based Principles: Combining o9’s predictive analytics with RAM’s decentralized agent logic could enhance agility in volatile markets (e.g., autonomous tariff mitigation).
  • Human-AI Balance: RAM’s emphasis on human oversight aligns with growing demand for ethical AI, offering a blueprint for o9 to build stakeholder trust.
  • Legacy Integration: RAM’s API-first philosophy remains relevant for o9 clients navigating hybrid (cloud/on-premise) environments.

Conclusion

o9 Solutions represents the evolution of procurement technology—AI-driven, scalable, and holistic—while RAM (1998) laid the groundwork for agent-based adaptability and human-AI collaboration. For modern enterprises, o9 offers cutting-edge tools for complex, data-heavy supply chains, but RAM’s principles remind us that transparency, incremental change, and stakeholder alignment are timeless keys to success. Together, they illustrate how procurement has shifted from siloed efficiency to ecosystem-wide intelligence.

30

Posted in: Commentary