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Perations and Strategic Perations and Strate Impact
Perations and Strategic Perations and Strate Impact
Strate
Strategic
Impact
Febri - 2046000185
Ory -
206020200111014
Contents
1. Strategy in Busniess Operations
2. Operations strategy reflects business strategy (top-
down)
3. Operations strategy aligns with market
requirements (outside-in)
4. Operations strategy learns from operational
experience (bottom-up)
5. Operations strategy develops the capability of its
resources and processes (inside-out)
6. Four perspectives of operations strategy
~ ~.'~;:-
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. •
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Operations
.
Strategy
Strategy in Business Operations
Strategy comes from the Greek word
‘strategos’, meaning ‘leading an army’.
Outside-In
Any operations strategy should Growth
reflect the intended market position Maintain
market is
in
of the business. technical
skills,
'integrated
0.. metrology
Increase ~
Companies compete in different software
systems'
If'
Operations strategy learns
from
operational experience (bottom-
Some companies sometimes learn
up) experience of
from their ongoing
providing products to their customers.
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FACULTY of
ECONOMICS and Operations strategy develops the capability of
BUSINESS its
resources and processes (inside-out)
OPERATIONS The idea that building operations capabilities is a
PRINCIPLE particularly important objective of operations strategy
The long-term objective
of operation strategy is
is closely linked with the ‘resource based view’ (RBV)
to build 'operations- of the firm.
based capabilities'.
The most common (and useful) way Four questions of the VRIO framework:
of applying the RBV has become 1. Is the resource valuable?
known as the VRIO framework.
2. Is the resource rare?
3. Is the resource costly to imitate?
4. Is the firm organised to capture the
value of the resource?
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FACULTY of
ECONOMICS and Operations strategy develops the capability of
BUSINESS its resources and processes (inside-out)
From Slack N The Operations Kogan Page, reproduced by
(2017) Advantage, permission.
Organisation + Organisation + value +
Inside- value = at least rarity = short/medium
Out parity with term competitive
competitors advantage
Not all
modules Are your Are your
capabilities capabilities
can be valuable? rare?
integrate ~ Develop
d supply Operations
capability contributes to
to sustainable
include competitive
Need to buy- ~ suppliers' advantage
in equipme Is operations ~::::::::.......::::::
technical .,.... nt Are your
organised to ~
capabilities
capabilities to client exploit your
inimitable?
... ....;::_\(:apabilities?
for interface needs
Organisation = Organisation + value +
modules
potential to rarity + inimitability =
long-term competitive
contribute to
competitiveness The VRIO framework. advantage
•If"
FACULTY of
ECONOMICS and
Four perspectives of operations strategy
BUSINEeC ~==========~-------
r-
-------~
Top-down
Reflect what the whole
perspective
group or business
wants to do
Inside-out perspective
Bottom-up perspective
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FACULTY
of and Four perspectives of strategy
ECONOMI operations
1-----------------------------
Top Down
CS
Group building corporate capability in high
BUSINESS
•
technology products and services
Outside-
Inside- In
Out
Growth
Not all Micraytech businessgrows through
market is
modules systems-based innovations Maintain in
can be technical 'integrated
integrate Develop skills,
Operations develops modular-based hi ..... metrology
d ~ supply increase tIIIII systems'
capability tech systems that provide highly
software If""'
to customised flexibility and innovation at
development,"
include relatively low cost through close
data
Need to buy- ~ suppliers' relationships with both clients and exchange...... Maintain
in technical .,.... equipme and client ,. position
capabilities nt liaison, in
for to client skills. 'individual
interface needs metrology
modules Experiment with 'modular' design of key
devices'
products and components
I I 't 't
I I " "
Customers seem to be confused by continual
system innovation, also costs increasing
Bottom Up
“Strategic Operations Management: Investigating
the Impacting Communication Effectiveness and Job
Factors
Satisfaction”
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