Operation Strategy(Dell, Amazon.Com & Ibm) Essay

Question Discuss operations strategies of three companies.Answer us equal-bodied scheme virago.comIntroduction amazon.com has become the w solelyopingst guest friendly on an nonation retailer and brooks unrivaled click purchase facility to its wide range of ingatherings including retains, euphony, toys, gifts, electronics etc. For 2011 viragos net sales documented the harbor of $48077 zillion to assemble net income of $631 million (Annual Report, 2011). Currently, amazon is serving more than 137 million of its guests with its 56200 employees either allwhere the world. More eachplace, International traffic in either case ranks amazon at sixteenth position. However, amazon achieved this milest unrivaled through positioning its three fold give a authorityline of unconditi unityd scrutinise, lymph gland convenience and depression price.The purpose of current study is likewise to explore that how virago achieved its objective by using its digital channel. 1 . clutch Customization Primary difference between a physical retailer and virago is its online operations that exclusivelyow Amazon to adopt mass customization. Amazon.com adds an opportunity to digest capacious collection of books, music or another(prenominal) harvests without handleing them physic totallyy on shelf. Millions of books be available at Amazon for purchase piece of music a full-grown brick and mortar store is required to constrain much(prenominal)(prenominal) huge inventory. In 1999 Amazon coherently added new harvest- quantify line or capabilities afterwards all six weeks to plus its sale revenue. Currently, its intersection header range post be divided into 34 broad categories. much(prenominal)(prenominal) output customization differentiates Amazon with its competitors. It is argued that product customization is a unfavorable source of warlike benefit even as comp ard to price competitiveness as it awards customers to pack products accord ing to their needs and wants at one concordingment.So, one can assign such mass customization to the success of Amazon.com. 1.1 Amazon Operating Models However, to provide such mass customization Amazon follows its three in operation(p) sits. First, it sells its own inventories and manages customer coition and bring reach on its own through Amazon.com. Second, Amazon also act as third person and allow other companies to place their products at Amazon.com for sale. However, Amazon only manages front end customer dealings while logistic issues be controlled by sellers. In 1999 Amazon offered Z shop facility that allows small companies to sell their product through Amazon.com. His dodge was to compete with e-bay who was also providing similar returnss of auction. At last Amazon has also introduced its e-commerce solutions and design web sites and offer hosting work to its customers. In other words these three operating models provide huge collection of products that is cons istent to its chat channel strategy limitless inventory.2. Integrated argumentation Operations supremacy of Amazon strategies lay boneheaded down its integrated line of task hit operations. Figure 1 illustrates that how Amazon fulfill its customers effectuate through integrating its operations. Amazon.com server uses the supply chain optimization softw be agreement to predict crave and also perfect its supply chain. In first step customers data for credit badger is touched to last(a)ize their rolls. Amazon storage w atomic number 18house is also information closely customer state in this respect for coordination. This is done to find out stock information at Amazon wargonhouse. However, in case of deficit at Amazon w argonhouse appropriate providers are selected. This information is transferred to publishers, music companies and electronic OEM for further appendage. After receiving order information publishers, music companies and electronic OEM dispatch re quired products physically to the nearest Amazon warehouse. At Amazon warehouse these items are packed and also send to customer place through UPS or US postal services. In this route Amazon develop integrated seam operations that share information over its cybers abuse for effectiveness.Figure 1 Amazon meshwork of FulfillmentAmazon integrated formation speeds up the attend and customers can receive their product at kindred or next day. This get out positively supply to customers loyalty. Moreover, Amazon also made required modifys to its fulfilment arrangement when needed peculiarly for huge order fulfillments. For spokesperson Amazon received record advance order of 275000 for single volume of waste gatekeeper. This challenged information staff at Amazon.During such eventAmazon contribute off to its customers for confirmation of deli truly information. Moreover, before shipment data regarding each data processor software was up go steadyd. For Shipment purpose A mazon contracted with FedEx for transportation 250000 orders at released date that scheduled 100 flights to fulfill orders. In this way, Amazon prosperously met such huge order fulfillment on released date. 2. Low Cost Strategies Porter (1980) argued that firms can gain sustainable competitive advantages through adopting differentiation, re limn leading or focus strategies. While on the other hand Loudon & Loudon, (2006) argued that firms can gain monetary value leadership through online operations as it dishonors edict and inventory exist. Mass customization at Amazon also augmented its lucrativeness through in high up spirits activity with low inconsistent damage. Fixed live per unit decreases with the increase in activity as compared to variable embody per unit (Drury, 2006). While in case of Amazon fixed hail of system dominates as compared to nominal variable cost. Cost of applied science, more separate of fulfillment cost and advertisement cost are fixed in n ature. On the other hand Amazon is bearing nominal variable cost.This indicates that high activity will lead to low fixed cost per unit cost that Amazon can use to settle for low prices. So, this mass customization will also lead to high productivity that in the end will optimize advances through decreased fixed cost per unit. Moreover, Amazon also numbers its be through cross docking shipments. For instance Amazon place its different items like books, toys, electronic etc simultaneously in single order to the closest warehouse located near to customers. To do so, Amazon uses its 12 technologies to optimize solutions and to predict demand. 3. node Fulfillment Network (CFN) strategy On the other hand Amazon has also take the customer fulfillment networking (CFN) strategy that emphasize to augment gross profit margins through purchasing books nowadays from publishers rather than involving distributors who add their kale. CFN strategy was au thereforetic to integrate custome r relationship care and order fulfills com commissioning applications. CFN system compares customers demand with their capabilities to recognize that whether Amazon can fulfill their orders with reasonable profits or not. It also allows predicting dynamic demand that ultimately reduces the carrying cost and deportee cost at Amazon warehouse. Moreover, it also allows improving their cash rate of flow as less cash is tired up in inventory and increase inventory turnover that ultimately augments firmsprofits.4. Customer Centric Strategies whiz can also explain Amazons success in respect of its ability to extract and use of customer information. Amazon keeps a clear record of all of its customers. Amazon principal(prenominal) a data base that knows that when and what a customer orders. If a customer has not been placing order for approximately season then Amazon sends him an netmail coupon containing information regarding entirely different or colligate product line to stimul ate customers for reordering. For instance it is possible that you will receive an electronic mail regarding computer equipments products if you last purchased a notebook. 4.1 personalized Options Similarly, Amazon.com also provides convenience in selecting products over its website through customization. Web pages are customized according to the liking of their customers. One can easily personalize his picking when he login as a customer at Amazon.com. All the Amazon products are divided into 34 broad categories.A person can select and search deep down these 34 broad categories easily. It is consistent with their strategy of providing convenience to customers. 4.2 Customer surveil It is argued that digital means of information can be used to dialogue product caliber and also fashions a bond between buyers and sellers e circumscribedly in spite of appearance online markets (Chevalier and Mayzlin, 2006). Amazon also stimulates its customers to write editorial and re consider of book they purchased. This option of book review communicates positive information to other capableness customers and increases the like-hood of purchase. It is also consistent with Chevalier and Mayzlin, (2006) who also argued that advance in make headway obtained by a book through book review contributes to purchase intentions and lead to high sales revenue. 4.3 Quick Shipment Providing hassle-free fulfillment of customers order is also viewed as one of the let out success surface areas of Amazon. For most of the product Amazon offers kindred or next day fulfillment. This is what makes different Amazon with other online retailers. However, Amazon does this through its integrated order fulfillment process as demonstrated in figure 1.Operation Strategy dellIntroduction dingle is a technological sales phoner which performs their business in the whole world as is possible to see in the following diagram.With net revenue of $61,133,000,000 is the second largest computer manuf acturer federation in the word and the number one in United States.dell focuses on Business to Business (B2B) and Business to Consumer (B2C) commerce to satisfy their business and individual customers. dell differentiates between classes of customers because the needs of their business customers, who buy large quantities of computers, are different than the individuals who want to configure a single unit.The present document is oriented to analyze dingle entirely since the point of view of operations guidance starting with a review of the smart set, after a look over intersection point design process, the internal process and the engine room associated, how dingle forecast the glide slope productions rates, how dingle manages their inventory, which is the quality model followed by the telephoner, which is the human resource strategy to finalize with conclusions and reflections.1. Operations Strategy rate the operations strategy of dell is go almost in all the main activi ties of the company where operations is relevant. Under this perspective, the list of strategies is related to some areas of operations inside of the company* Be the greenest engineering company on the planet and the first computer company to achieve carbon-neutral operations by the end of 2008. * Continue leadership with the climate strategy and international rung programs. * Partner with customers in energy- energy and climate-protection initiatives. * Broaden the Global Citizenship committedness.* Recommit efforts to improve sustainability governance.2. harvest-tide design processFor dell, Globalization has impacted directly in the management of the product life cycle involving more stakeholders during the process of product breeding thereby the mingledity of this process has become more complexas well. The most central factor introduced in the product life cycle is the environmental issue. For dell, the design products have to be energy economic, to avoid redundant mat erials and to be easy to use, which is supported by rigorous business controls and supplier audits that consider (dell, 2008) * Energy Efficiency dingle delivers optimized performance per watt, and help customers deploy systems efficiently. In this way, IT is an important avenue to decreasing cost of ownership and enhancing productivity while reducing a customers carbon footprint. * precautional Chemicals and Materials Use dingle design to eliminate the use of unregulated substances if we reckon they possess hazard characteristics similar to other, regulated substances. If alternatives are not heretofore viable, dingle works to develop reliable, environmentally sound and commercially climbable solutions. * Supply Chain Sustainability We expect suppliers to uphold the same commitment to environmental responsibility as we do, as a condition of doing business with them.dell design activities are compliant with this internationally recognized standard for environmental management system criteria (ISO 14001 certification program)Other main stream of commentary of what dingle is doing in terms of product design rely on the participation of their own customers. The website dell Idea Storm (http//www.ideastorm.com) where customers participate directly in the conceptualization of products giving their own ideas of develops, voting for another ideas al fix posted or simply criticizing products from the company. This website is a real comprehensive programme to cover an appropriate SWOT analysis of products design due to the huge variety of post and group discussion on it.3. Processes and Technology3.1 takings processThe well known operation model of dingle called dell Direct base its value added in and work on demand eliminating intermediaries in procurement, manufacturing and distribution processes. The technology used by the companyin the manufacturing process is the base of success and therefore play a in truth important role in its operations.dells tec hnology allow to the company to combine its resources, its relationship with suppliers and its consumer communication capabilities, developing one big advantage over its competitors.Dell is in Mass output signal process category due to mainly the stable demand of products, the company work as a main line of production and with a good train of efficiency. To consider Dell as a manufacturing or fabrication company is a constant discussion even for the employees of the company. due to the nature of the products (mainly computers) they build new products that do not exists in the market, in this sense they are manufactures. But in another sense they salutary assemble component which production is on suppliers, in this sense could be considerate that dell buy to sell. In this document the company will be considered as a manufacturer company.The generation of mod ideas for the production line is practiceed due to the necessity of new kind of products delimitate essentially due t o the interaction with suppliers and customers.All the Dell manufacturing centers use the same processes enable by the same systems and are measured in the same way. This insurance consistency award quality across the global network and also allows identifying and implementing best practices.The standardized process of manufacturing is divided as is illustrated in the following diagram. Final Test and labelingOrder accumulation area software system Installation and TestingCustomer Order PullKitingBoxing holdThese processes are described as follow* Customer order pull receive the electronics orders closer to the ship destination. In this point the order is transferred from Dell order management systems to the Manufacturing scheduling system. The servers of the facility keep the track of order process associating serialized parts with unique codes.* Kitting the build to order process of Dell generate request for materials which is delivered to the factory. Since there are no warehous es the inventory system is very important and every part is serialized and labeled since this is received from suppliers (which are essentially important for Dell quality system). The scanning of these tags associated to the order indicates to the force-out which components should be part of a specific order, and at the end of the kidding line, all the parts of a single unique order are ready for the next step.* Build the scan of the code associated to the single order gives to the force out specific instructions to builders demonstrate in the customer requirements. In this step, Dell associates every single component using bar codes to the order allowing a better quality control for the company.* Software Installation and Testing hypothesise by the main brain, the substitution gives specific instruction to chink all the components are presents and operating properly before to install any software in machines.* Boxing This process ensures all the components required by the exploiter are properly stored and ready for the ship. Once finished the boxing, the order goes uncoiled for shipping or the order accumulation area.* Order accumulation area When the lymph node creates and order, all the required products start at the same metre but not all of them finish at the same time due to process variability. Once all of them are finished the shipping process starts. *Depending form the order, there is an external synchronization with othersmanufactures as monitors or printers manufacturers for representative, which allow to Dell to reduce inventory with extern products to the production line. 3.2 E-businessE-business is central to Dells entire operations and Dell uses e-business extensively across its entire value chain to deliver high levels of service to its customers and suppliers. Dell basically does trades with two of the four main kind of e-business (B2B, B2C, C2B and C2C) and both of them based in the internet architecture* B2C the main stream is represented by direct communication between Dell and their customers. net profit allows this direct communication avoiding intermediaries. This reassures a good quality service for the customers, efficient processes, decision makers in real time, higher customer expectations and globalization.* B2B this stream of communication combines Dell with their suppliers allowing and efficient process of communication with the same benefits described in B2C. Also, the when big corporations and governments are clients, the translation of relation is established in a very extra way treating them as a special customers that need a special attention.3.3 TechnologyIn terms of technology, Dell in all its dumbfound in all the manufacturing centers has implemented a large number of solutions in order to accomplish a constant improvement in the value chain. Basically, the main source of constant improvement has been Internet, helping Dell to establish good relations with both their suppliers and their customers. The high level of integration that this technology has allowed is on simple evidence through the corporate website (www.dell.com) where for example suppliers are allowed to follow their material as it used throughout Dells operations. They can log-on, drop off invoices, check engineering alter orders review negotiated and forecasted cost reports, and track their overall performances and progress.The Dell i2 Supply Chain focus (i2SCM) is the name of the solution implemented to cover communications necessities with suppliers. This performance enabled to Dell to reduce cost providing component suppliers and Dell planners with global views of product demand and material requirements.In partnership with IBM, both have managed to maintain high employee productivity. The join in between companies to design the productions lines provide near immeasurable availability to their IT infra expression. Another outcome of this partnership is the use of electronic catalogue w ith appropriate search functionality.As an example time ago, Altiris Recovery termination was selected by Dell for integrated delivery of backup and hap recovery. Altiris along with Dell Open Manage Client Administrator (OMCA) will provide Direct integration of Altiris backup and recovery technology with Dell OMCA which helps ensure business continuity and helps provide additional cost nest egg for Dell customers through proactive IT management. These factors implemented into a concrete disaster recovery plan provide Dell and IBM with the confidence to scale and complex IT network.3.4 Production LayoutDell is by definition an assembly manufacturer company, where basically the process is only one and the assembly line as well. Dell does not build any part or piece of the computers, live basically in their own suppliers which have the unavoidable expertise and commitment with dells production line. If we consider Dell and their suppliers as a unique company it will be represente d as normal Process Layout, and Dell will be of course in this figure the assembly department.The main advantages of the Product layout (or assembly line production layout) are * The amount of time for a product to be ready is red-hot in general if it is compared with other kind of process layout.* The set up cost of the product layout is low due to the facilities doesnot vary in position and functionality.* Due to the tasks of every stage are very specific, the efficiency of this kind of distribution (production layout) is higher than others types of layouts. This very related with the high continuity of the assembly line.* The necessary preparation in order to be concern about matters like synchronization is very low if it is compared with other layouts, this because is just one continue line.* The required level of expertise is not so important as well considering that the main task is to assemble. There is no much hard production processes to take care about.* For Dell the le vel of inventory is very low, maybe too much low considering the honest industry in Products Layout companies. This is because the technological advantage of Dell using Internet.As negative point in Dell layout oriented to product, it is possible to say that the required infrastructure is more expensive than other layouts because the high course of cohesion that should exist in the assembly line which it demands a high technology and dedicated machinery.4. Supply ChainAs is possible to appreciate, Dell Company is in the middle of all the operations since suppliers till the final customer. The simplicity of this model put on evidence the absence of intermediaries in the supply chain, which is synonymous of low cost, fast answer to clients orders.The communication between Dell and suppliers is by Internet, and in real time which it means that the suppliers are constantly monitoring the status of components in order to prepare new orders and negotiate the prices on demand. Usually su ppliers have warehouse building nearby Dells Manufacturing Centers in order to reduce the endangerment of lack of components inthe main assembly line of Dell and assuming at the same time the inventory costs that Dell is avoiding.The suppliers usually feed the starting point of the Dells assembly line, but as the illustration show, it is possible to have some suppliers after the production line of Dell (even out of Dell facilities). Partnership with assort or printer manufacturers, allow to the final user to order for products that are absolutely out of Dells production lines, and it is just necessary to complete the order in their warehouses to finally ship the order to the client.Is important to recognize that the use of Internet is the blood of this system, without this technology would be unworkable to coordinate such value system.In order to make the service easier for customers within this supply chain, Dell has divided their home page into a number of major customer groups * Home & Home Office,* Small Business* Medium and Large Business and* Government, Education & Healthcare5 presageing, cooking and Scheduling5.1 ForecastingAs a forecasting method Dell, as many other big companies, base their analysis on the records stored on the internal Customer Relationship Manager system (CRM). This system stores every registry made by customers in order to analyze the inclination of the actual behavior and predict demand for certain products in the early. nowadays considering daily operations on Dell, there is a Short field Forecast process that operates constantly. Dell uses state of the art production planning programs that forecast the quantities of components needed to buildthe computers. After those forecasts are made, supply chain systems pass those forecasts to suppliers, who respond with cost estimates and plan their production as a result. As the CRM, the mentioned i2SCM (technology section) is another provider of forecast information as well, prov iding real time factory scheduling and inventory management.These methods used by Dell are considerate Quantitative Forecast Methods, leaving for decisions makers, the forecast that comes from Qualitative Forecast Methods.5.2 SchedulingDell bases its scheduling process in the system i2SCM system output. One of the basic tasks of i2SCM is to streamlines the supply chain in order to keep a constant flow of component in the starting point of the assembly line, and considering this, as a consequence is in charge of provide a manufacturing schedule the whole plant. This scheduling process is refreshed every 2 hours.6. Inventory counsellingDell has implemented Just-In-Time Inventory dust which operates on only 6 days of inventory. This simple number implies a huge benefit for Dell because this enable to the company to reduce the reposition costs, also is not necessary to hire people to put in charge and maintain the inventories and though technology become obsolete very pronto, for De ll this is not a line because they dont hold obsolete technology in its small inventory.The way how Dell controls, in terms of basic definition its inventory and the costs that this means is beingness a Demand Pull Company (used as well as a controversy system method), whereas one of its top competitors (Compaq HP for example) is rigorously a supply-push company and operates in a more traditional manner.7. tincture modelSince several years, Dell has been operating their manufacturer plants using the production standards ISO 9001, ISO 14001 and OHSAS 18001 (Dell).Dell operations in China have been distinguished by Ministry of reading intentness (MII) and China Quality Management Association for Electronics Industry (CQAE) receiving wards such as splendiferous Quality Management slew, Excellent Quality Management Teams and Excellent Quality Management Individual. It demonstrates Dells commitment to providing high-quality products and superior customer palpate (Dell).The main support behind this award is the constant focus in the customer-centric strategy, and the will for a constant improving in the quality management system.In Dell, the quality control process starts from engineering design and the prematureish straining stages during which design for reliability is the priority. Been conscious of quality standards in early analysis of failure mode, the product design is based on normal customer profile and operation requirement. It is important to consider that reliability test and improvement are also keys factors to ensuring the best quality.In addition, Dell has extended the quality chain putting great emphasis on suppliers quality management, as the company always regards the quality of the components as crucial factors for product quality. According to this, Dell has established a set of scientific and complete management process, which ensures final product quality through rigid selection and process control of industry-leading suppliers.Co nsidering the whole process, the Quality Management during manufacturing process is the strongest endorsement of Dell products quality. Engineering pilot and employee training are conducted before any new product launch. Through Statistic Process Control Quality Analysis, Dell is able to detect and improve incoming material and process issues, which guarantee the best manufacturing quality.8. Human Resources StrategyDells direct business model influenced an organizational structure that fosters direct communication and open-minded listening. As an strategy toaccomplish this objective is to listen employees, and this is done through control Dell program, a voluntary and confidential employee opinion survey. This program is true to encourage employees to speak frankly and privately about Dells principles, determine, strategies, policies, managerial effectiveness and employee difference. In this way the HRM department, after taken the measurement, is able to act in direct response to surveys. Some responses to these kind surveys were for example in the past * Implementation of an employee purchase program* Greater work-life tractableness* Streamlined decision-making processes* Increased focus on employee development* Improved customer solutionsLess formal but equally important strategy to get employees feedback is Employee Storm. A tool that enables every Dell employee to bring experiences and creative solutions to Dell and our customers.With the objective to reduce mistakes and its consequences, Dell has implemented a strategy related to ethic tools. This strategy defines for example policies of communication in order to allow employees approach the company when they feel is necessary according to the defined Dell Code of Conduct. These policies are * Open door policy* Global ethical motive and Compliance Team* Ethic helplineSince Dell is committed to inclusion and motley, their mission is to succeed in the marketplace by fostering a taking culture in wh ich Dell employees are highly talented, committed, reflective of our global customers, and recognized as our greatest strength. For Dell diversity is the core of their values and winning culture. For this Dell has implemented the following activities* Employees networking groups. A program that connect employees that sharethe same nationality, gender, ethnicity, etc.* Diversity Education and Training. Providing quality schoolmaster development opportunities to all employees.* Work/Life Effectiveness. Committed to balance the employees plowshare to the company with their personal lives.Other areas of strategy where Dell has been working on are * Global talent management* Employee health and wellness* Employee sustainability engagementConclusionsIt is very interesting to remark that Dell, a multinational company with a big size, is successfully capable to repeat basically the same construction of manufacturing process in every manufacturing center that the company has. Dell has be en able to repeat the best practices across the borders around the world which by definition represent a big challenge for any company. Never the conditions will go to be the same restricted markets, cultural shocks for employees, different cost structure are some of the factor that usually affect multinational companies with operations in many countries around the world.Dell strategy found its success in basically the correct and optimums use of technology Internet is practically the blood of Dell system, or the base of Dell success. Dells business model bases its success basically in Information technology. There is not a revolutionary careen in the way how to do business, is just a perfect example of how to take advantage of technology to become the most efficient competitor in the computer sales industry. nonetheless though Dell business model is very well know, has been a model very difficult to imitate basically because the huge enthronisation that companies should do togeth er with their suppliers. The supply chain structure in this case is the key of success. Is not a matter of investment coming just fromDell to have success, is a sacrifice coming from Dell, suppliers and partners that in some way are trusting in Dell way of doing business. Trust in the value chain, is definitely a very big competitive advantage for Dell.The product mix from Dell is not as broad as directs competitors are doing it, which in one way has allowed to Dell specialization, focus and expertise in the field. But is a risk at the same time because depending basically on a very limited amount of product and services it does not open many alternatives to explore new markets or develop innovative solutions amount the products and services.Even though Dell is considered a very successful business model, the company has been having problems. These problems are reflected in financial reports which indicate that Dell is not stint the rate of ontogenesis that they were expecting. Al though Internet is the base of its success, it has been a big problem for Dell as well, since the point of view that important bloggers has been complaining in the net about the pour quality of services and this has spread quickly between users a non god image of the company. Dell is working on this blog phenomenon taking care of every comment done in the net about their products and services.Another problem faced by Dell is that Dell is becoming victim of its size because they are trying to keep the rate of growing in a market where the value of their products spill significantly every year , this means that to keep the rate of growing is necessary to have a higher rate of sales. As a final weak point in the way how Dell is come businesses, Dell is relaying increasingly on new markets which it means that Dell is just applying best practices and knowl brim in the field rather than go deep with a study of the new entrance. This could be a risk considering the diversity and cultural matters in between their customers.Operation Strategy IBMIntroduction IBM or International Business Machines is a well known American computer manufacturer, founded by Thomas J. Watson (born 1874-02-17). IBM is also known as Big spunky after the color of its logo. The company has madeeverything from mainframes to personal computers and has been immensely successful selling business computers.Drawing on the strength of the full strategy and change practice Operations Strategy is one of the four competencies within IBMs larger Strategy and Change team. The three parallel competencies are Business Strategy, Organization Change Strategy and Technology Strategy.Operations Strategy helps clients resolve a variety of critical issues from strategy and planning to day-today running(a) improvements. IBM practitioners specialize in identifying the capabilities that are required to execute business strategies and in defining how operational models should be configured, implemented, and conti nuously ameliorate. With deep experience in operations strategy, IBM provide clients with the support needed to address the operational issues that are crucial to success.Helping clients with critical business issues Clients look to Operations Strategy for help with these critical business issues * Cost efficiency and performance improvement* Focus on companys core business* increase shareholder value* Continuous process improvement* Maintaining competitive edge* Improving customer service quality* Migration to new technology* Product intention management* Merger synergy realization.IBM experience in successfully formulating and implementing operations strategies lies in three main areas * Helping clients formulate operations strategies that align corporate and business strategy with organization, technology and process strategy.* Providing process expertise for business process change, reengineering and operational improvement, cost reduction, Six Sigma, innovationmanagement, and post-merger integration.* Assisting clients with outsourcing strategies and their execution, including make/buy/partner decision strategies, domestic and global outsourcing, and creating scalable operations.Utilizing a proven, consistent approach All Operations Strategy engagements co-ordinated the following key elements * Mobilization Utilizes preparation and planning to help increase the odds of successful and timely project completion.* Situation assessment Establishes a shared assessment of the current and future situation with senior client management.* Strategy development Defines strategic options and specifies strategic initiatives which are Designed to create significant value for the client.* Implementation planning Determines critical success factors and establishes change programs to implement the strategic initiatives.* Learning Measures and adapts the strategic management process in real time utilizing key Performance indicators.Providing a full cortege of offe rings Operations Strategy has a diverse range of capabilities, includingRapid process change* A solution for rapidly identifying and delivering a step change in process, organizational and systems performance. Rapid process change focuses on achieving manifest operating improvement results in an accelerated time frame.Six Sigma/Lean Sigma* Strives to create both operational excellence and a strategic change in the culture of a corporation, division or business unit. These engagementsare designed to increase customer satisfaction and drive out costs by helping to improve processes linked to company strategy and key performance indicators. Six Sigma also helps build an enduring capability within the organization that can create and sustain competitive advantage over the long term.Design for Six Sigma* Extends Six Sigma principles to the development of new products, services, processes, and plants that are designed to precisely meet client current and future needs. strategical profit improvement* A framework designed to deliver improved financial performance, including increasing revenues and margin, reducing costs and assets, strengthening infrastructure, and positioning for future growth.Service after the sale* Helps clients lower their customer service costs and find new sources of revenue and value-added differentiation.Product innovation management* Supports the business decision making component of product development. These engagements are designed to reduce time-to market and product development costs and they help increase the pace of innovation.Enterprise focus* Determines which components of a business are strategic and critical to success of the enterprise and which are not. Then identifies opportunities for improvement and transformation by comparing critical business requirements and operational capabilities.Shared services implementation* Our team builds a business case for the transition to a shared services operational model, designs a custom sh ared services solution, and then works with the client to successfully implement the change.Outsourcing governance* Helps organizations establish a program management office capable of supporting outsourcing Initiatives throughout their lifecycle, from making and assessment to development and Operation.Demonstrating success at numerous clients At one client, a leading consumer electronics manufacturer, benefits of the project included* Reduction of overhead costs due to redundant / inefficient overhead services and infrastructure in Corporate HQ and five worldwide product divisions.* Annual savings of over $400 million, including agreements in infrastructure sharing and Governance, shared services and elimination of cost drivers and redundant resources, and establishment of a project management office for active savings tracking and reinforcement.At a large manufacturer of aluminum products, we developed and implemented a new operating model. The scope and results included* Analyzed operations for 15 business units in 10 countries * Creation of global process models* Over $300 million in annual savings, including improved processes, continued focus on cost Controls, and adoption of best practices across business units.Finally, we developed an outsourcing strategy for a leading manufacturer of semiconductor equipment. The scope Included* Working with client executive team to develop a vision and operating model * Implemented the model, focusing new investment in core business processes and developing and implementing the roadmap to outsource all non-core processes to save client significant cost and increase competitive advantage.IBM Clients A small sample of IBM clients includes leaders of every industry and all levels of GovernmentABB Ford Motor Company MotorolaAetna Goodrich Corporation NovellAlcoa Halliburton PanasonicAmerica Online Honda Motor Co. RaytheonAshland IKON Office Solutions Royal Philips Electronics Atkins Nutritionals International motortruck and Engine Corporation Selectron Bloomberg Lam Research SiemensBP Lexmark International Sony stripe Texaco MCI Tyco InternationalCircuit City Stores McKesson United States Department of Agriculture Dupont Medtronic Verizon communications