Operations Strategy in Action

Operations Strategy in Action

A Guide to the Theory and Practice of Implementation

Kim Hua Tan and Rupert L. Matthews

This fresh and enlightening book offers a rounded overview of operations strategy with a particular focus on implementation. The premise of the book is that developing an effective operations strategy without its subsequent implementation will render the strategising process a waste of time and resources. The authors explain the pros and cons of existing approaches to implementation, as well as offering a systematic framework for turning strategic intent into actions. The study will be of great interest to academics and will also give practitioners confidence in effectively formulating and efficiently implementing strategies that reflect the needs of the today’s business.

Chapter 1: Introduction to Operations Strategy

Kim Hua Tan and Rupert L. Matthews

Subjects: business and management, operations management, strategic management

Extract

WHAT IS OPERATIONS AND WHY IS IT IMPORTANT? The operations element of a business is effectively the part of the business that transforms the input into an organisation into the output that gives additional value to the end user than the sum of the inputs to the system. Drucker (1955) stated that it was not the ability to carry a more difficult activity or an activity more efficiently than a competitor that allowed operations to compete within the market place, but rather the ability to provide value for the customer. By appreciating this and continuing to develop the value an organisation has added to the inputs in line with the requirements of the market, the organisation should be able to remain competitive without the need to compete on price. What this means in regard to operations, is that it is the processes that take place within the operations function that allow an organisation to be present and compete within a market place. This is not to say that other functions within an organisation are any less important than operations; however, if an organisation is not carrying out or at least coordinating processes that meet these requirements, the organisation is effectively not contributing by adding value to society. By focusing on the development of operations within an organisation it becomes possible for the organisation to effectively develop and define the value it creates for the end user to meet their needs in a way that other organisations are unable to do....