Operation Strategy

CHAPTER 1

OPERATIONS STRATEGY – THE TWO PERSPECTIVES

Introduction

This introductory chapter could have been called, “What Is Operations Strategy?”, and it attempts to answer that question in two ways. First, it discusses operations strategy relative to some of the more common categorizations within management and business, especially operations management. It does this by trying to define what is meant by “operations” and “strategy”. Second, it sets out what is the main framework for the whole book – the idea that operations strategy means reconciling two different, but equally valid, perspectives. These are the market requirements perspective and the operations resource capability perspective. So, as you read through this chapter, try to keep in mind these two main points,

• Operations is not the same as operational, it does have an important strategic role to play in any business.

• All operations managers have to reconcile these two fundamental objectives, to satisfy their markets and to build distinctive operations resource capabilities.

Key points

“Operations” is not the same as “operational”

• This is probably the most important point made in the chapter. Many people associate the operations part of the business with creating services and creating products at a detailed and day-to-day level. Operations managers are the people who implement strategies, get things done, solve problems, cope with all the difficulties and (literally) deliver the goods. This is true of course. Operations managers do all these things and are ultimately responsible for that on-going act of value creation which is the on-going task of any type of enterprise. Yet there is much more that operations can contribute to any business. Operations also has an important strategic role to play. In the long term an enterprise has a greater chance of surviving and achieving a sustainable level of market success if it can serve its markets better than anyone else....