1. The world economy has been undergoing profound changes for the past few decades due to certain economy-driving forces like ‘high market capitalizations’ and high edge technologies. Obviously, the changing economy requires changes in the way we operate businesses. Although volumes have been written on business and operations management, much of them become irrelevant to the changing context. In other words, ‘new economy companies’ require candidates with potential managerial skills who are also well conversant with the current technological landscape and new economic scenario. In this context, it is important to analyze the applicability of the management principles traditionally taught in our institutions.
Admittedly, many of the lessons taught traditionally are irrelevant to the New Economy operations (Hayes, 2000). According to Hayes, much of the Operations Management lessons in academics even today are off course except a few very familiar concepts with regard to communication and information sharing (Abstract). In the same way, potential managerial talents are not provided with solid foundation for managing operations and supply chain management in organizations today. Hence, academic institutions have to keep pace with the changing world in terms of building sustainable talents. They should not rely heavily on traditional concepts, for the world is undergoing rapid changes making many of our old tactics insignificant. For instance, today business operators have to deal with a virtual world as well. And, operations management is more about information sharing, internet, computers and software. In total, operations management is an area that requires regular modification in its academic practices and talent building.
2. Operations Management is the most vital part of business operations today. Its influence is obvious in terms of product quality and brand building strategies in a modern organization. Operation management enables a firm to coordinate resources for competitive advantage and sustainability. However, knowing the current day business processes and complexities is essential for one to carry out OM effectively. Operations Management is not an easy concept to employ in a real world business situation. However, if designed, created, and applied successfully, this will help the firm to deliver value to its customers and stakeholders in the long run.
The challenges it involves ranges from technology related issues to the stage of its practical application in a modern business situation. To illustrate, it is important for a manager to know the significance of operations management concepts, their applicability, and the way they assimilate various tools and techniques. Since most of such activities are carried out with the help of electronic devices, it is vital to have knowledge in new technology. In the words of McFarlane (2014), the discipline becomes more complex when it comes to “the application of project management, time, motion, capacity planning and forecasting theories and models” (p. 20). In addition to these, the changing global scenario with respect to political and economic aspects poses numerous and potential challenges to all organizations regardless of their size or nature.
Operations managers are increasingly accountable for their decisions today. Resource allocation and appropriate combination of resources are some difficult requirements in OM today. In the context of globalization, small changes in the political situation of any region can make fluctuations across the globe. Issues like terrorism and racism also cause unexpected issues. Hence, it is difficult to rely on long term projections and principles.
3. Operations Managers are expected to work on product quality, brand building, and service delivery. This is possible only if they are conversant with the changing customer expectations. Operations Managers must develop effective system to collect feedback from end-users. They should be aware of the current market trends, competing products/services, and competitors’ strategies. Ongoing research is vital in product innovation. A company today cannot sustain on single product design or concept. It has to take up experiments to modify the product in a way that the customers find it more convenient. For instance, a company that deals with mobile accessories is forced to introduce a series of new products every year in order to vie with its competitors.
A competitive firm led by potential Operation Managers will never cease product innovation. According to Joos (2013, as cited in McFarlane, 2014, p. 24), operations managers are to deal with elements like “Tangibles, Reliability, Responsiveness, Assurance, and Empathy” in order to provide excellent service quality. In order to improve a product, the manager must first find out the areas where it lacks utility. In other words, a firm has to identify the strength and weakness of its product concept in comparison to competing products. There should be clear view of the future needs and opportunities as well.
4. Sustainability has become one of the most important concerns in the business world today. Operations and all supply chain activities have to comply with sustainable policies in order to gain customer loyalty. The new trend is attributed to the evolution of multiple factors including but not limited to customer perceptions, current legislation, growing concerns over global warming and climate change, and new opportunities. Modern organizations have taken sustainability as an integral part of their corporate responsibility.
In this context, it is vital for managers to inculcate a sustainability mindset in their firms. First, an operations manager has to define the firm’s sustainability policy and convince all employees about its significance. The firm should develop a culture that safeguards sustainability in its entire supply chain. In other words, all processes like production, consumption, customer service and disposition have to go in line with the firm’s sustainability policy. As McFarlane (2014) purports, “operations managers must make ethical decisions in the resources acquisition and conversion processes that create products and services that affect customer well-being and health” (p. 25).
5. Since the current business environment is characterized with intense competition and high complexity, strategy formulation in this regard also requires high potency. Operations management strategies should cover all areas of potential challenge. Managers must pay higher attention to make use of the technological advancements in supply chain operations. They should explore the best ways to carry out operations in a cost-effective way. Operations managers must not be hesitant to seek the assistance and advice from experts to confront emergency situations that require technical expertise or better skills. They must promote consistent research on product innovation. They should not compromise sustainability in any situation.
Operations managers are advised to combine all business processes from production to waste disposal under their area of work. They should give on time training to their workforce on new technology and techniques. Operations managers must be able to respond proactively to changes occurring in the business environment. They should be open to new ideas and should promote positive and easy communication throughout the organization. In the words of McFarlane (2014), OM is “a systems–oriented systematic and rational approach to value creation or production” (p. 26).
References
Hayes, R. H. (2000). Challenges posed to operations: Management by the ‘New Economy’. First World Conference on Production and Operations Management. Sevilla. Harvard Business School.
McFarlane, D. A. (2014). The Challenges of Operations Management for Business Managers. International Journal of Operations and Logistics Management, 3 (1), 16-29.
