Why do organizations fail? Almost all business students or executives, to answer this question but still every day we hear about organizations get failure. For me, there is no one simple reason, that is, when it lacks a strategy ,. The simplest definition of the strategy is a plan of action or decision-making in which the work will create a competitive advantage.
business in the modern age spend a lot of time in the analysis of competitors. Often they provide successfully the same proposal as the competitors. At this point you must answer one question, you are able to match a competitor offers the same cost? Unfortunately, most of the time, the answer is 'no'. When it is about creating a competitive advantage on the marketing front, most organizations do it, but in the process it may incur additional cost. This is where you must understand the importance of operations management.
operations management is one area that is often ignored, in other words it is seldom used as a means of creating a competitive advantage. Let me clarify the extent of the power of organization can become by focusing on the creation of efficient operations.
organizations with a strong culture to manage the process of luxury big show for executives when it comes to cost reduction. This culture promotes operational efficiency, which means a minimum of waste, and the elimination of non-value-added activities, and less rework, and reduce response time (TAT), and increase productivity, and all this leads to cost reduction. Effective process not only ensures cost-cutting instead they also reduce the operational risk organizations. Process straight forward and transparent can be understood easily followed by workers which will certainly help in reducing the risk management efforts and audit costs.
function process management is not very complicated, it is simply a combination of a few basic management concepts such as integration and harmonization process and automate manual processes and cumbersome implementation of measurement / strong improvement of systems. Do not forget that all of this is directly proportional to cut costs and this is the main objective
A common mistake usually happens; executives do not integrate and harmonize the process improvement projects; they are dealing improvements in the isolation that often cause failure.
organizations where the culture of strong process management, and lead to continuous improvement (CI) phenomenon. Today, the business environment is dynamic thus creating a competitive advantage is just the beginning. The next step and the most important is to maintain this feature. CI culture here is of extreme importance. Process management (design and implementation) is not active at once, instead of close integration with CI phenomenon.
and organizations who believe in operations management and continuous improvement certainly have a future.
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