Operations Strategy 6 - Organization
Structural decisions - the physical arrangement and configuration of resources ie hardware Infrastructural decisions - activities that take place in the operation ie software
Key Infrastructural decision - functional support, controls and procedures, tech systems etc.eg push v pull systems
Improvement and systems
Alder and Winograd - basic improvement strategy
- Modularity
- Accessibility
- Inclusiveness
Path based model for development
(as opposed to intallation based) Mcafee
- IT is integral
- Projects are many
- Prototype and evlove
- Ongoing delivery
- common standards
- Technical contl in internal not vendor
- experimentation
- concerns are about integration and flecxibility and progressive delivery - not control, all requirements at once
HR issues and change
- coomoditization coming with focus
- segmentation
- lower skills? / pay?
but also
- X selling
- solving customers probelms not transactions
- buffering front office from back office
- adding value
Organizational design
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Flexible rsponse is efficiency / cost . Resopns to mkt changes. ability to serve range of mkt req's
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It is a mistake to think of these organizational structures as distinct types. Rather, they represent four influences on organizational design. These influences are:
the extent of functional influence (the U-form organization);
the extent of market, regional or operational unit influence (the M-form organization);
the extent to which resources have multiple reporting relationships (matrix-form organizations);
the extent to which organizational groupings form their own reporting relationship alliances (the N-form organization).
==Comparing Forms .......................Ability to meet.Market....................................................Abilty to deploy Resources .......................Service..............flexibility...........Efficiency......Capacity/PT,,,,Devpt/Org......Supply
U-form...........low....................low....................med...............med ...............high.............low M- form...........high..................med..................med...............med.................med............med Matrix............high..................med....................med..............med ................med.............med N-form...........high..................high...................high...............high...................high............high
The role of operations in each form
......deg of.. tech specialisation.....centralization........delegated authority.....realtionship....ext relation U..........................H.......................L.............................L.........................Formal............ltd M.........................M......................M............................M........................f/I....................F/Ltd Matrix...................ML....................ML.........................MH.......................F/I..................F/ltd N.........................L........................L.............................H.........................I....................I/many
Interface with external environment
Increasing buffering operation from external environment is seen as having drawbacks and is now more visible
- hotels
- clothes retailing
This implies faster response/ different skills
It is becoming a deliberate pary or organizational design and is a question of what degree of exposure
Service factories - Showroom, dispatcher, consultant, lab
The role of operations
- to implement, drive and support strategy
The role of central operations - Macgee and Merali [img['|http://www.warwick.ac.uk/~bsscr/images/mod7_slide7.gif]]
Focus and targeted operations
Wickham Skinner Attention to 5 features
- Age and variety of tech
- Type and range placed in marketplace
- Volumes handled
- Key tasks
- Quality Standards
There are barriers and pressures towards and away from focus
Improving operations effectiveness by using and overcoming Trade offs
- Achieving focus
- Corporate objectives
- Where are we good at matching marketers requirements
- Examine each element of operation
- Reorganize elements so they are congruent
Strategy and Practice 5 - Innovation-Based Strategy
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Author | Alder +, Winograd + and Wickham Skinner + |