Operations- The Hidden Competitive Edge of Innovative Companies

It is now established beyond doubt that more than 50% of credit for Apple’s success is its never seen before level of the practice of Operational Excellence. Its CEO and erstwhile COO, Cook was always just around to come to the forefront and make the world realize that despite all copying of  Apple’s products and features, its competitors have missed the real lever by a huge margin.

During complex and chaotic business environment organizations need to bet on  business innovation. However, without leveraging operations in such an environment you can not be there for long, since the business environment is changing so fast and unpredictably (the New Normal).

The reality is that you can have a grand strategy and excellent products, when they go wrong you would definitely lose heart. But in these days, if your operational performance is lower than  breakthrough levels, you lose your business and position day in day out. And your strategy and products can not take you any where.

Very few leaders and managers have this insight of the severe limitations  poor operational practices place on the growth of the organization. Indeed, some of  the organizations have recognized the edge operational excellence provides to business innovation in real time, and are now committing to leverage Operations for sustainable and scalable growth. ‘

‘The Time it takes to Change’ is increasingly becoming critical to organizations these days. Latest in the realization of Operational Excellence is HP, the IT behemoth that is keeping all its other initiatives on back burner till it improves its operational practices. Its CEO Meg Whitman said recently, “Operational excellence should have become a way of life.”





2 Responses to “Operations- The Hidden Competitive Edge of Innovative Companies”

  1. CVMARK » Are there commonalities between Indian Pharma and IT Industries? Says:

    […] On the performance side, both Industries have deep paradoxes. The demand outstrips supply. And yet the operations have low utilization levels. IT companies are struggling to improve utilization above 60%. Actually, if you look deeper, in several categories of skill sets, the utilization levels are poorer than 50%. Walk into a Pharma plant and you would find utilization as below 33% in Formulation with that in API plant a bit better but no better in absolute terms. Economists and industry experts will tell you that when the margins are high nobody gives attention to utilization. However, with the pressure that both industries are facing abroad and in India, organizations have a started looking at operational improvement. […]

  2. Are there commonalities between Indian Pharma and IT Industries? | Time2Change Says:

    […] On the performance side, both Industries have deep paradoxes. The demand outstrips supply. And yet the operations have low utilization levels. IT companies are struggling to improve utilization above 60%. Actually, if you look deeper, in several categories of skill sets, the utilization levels are poorer than 50%. Walk into a Pharma plant and you would find utilization as below 33% in Formulation with that in API plant a bit better but no better in absolute terms. Economists and industry experts will tell you that when the margins are high nobody gives attention to utilization. However, with the pressure that both industries are facing abroad and in India, organizations have a started looking at operational improvement. […]

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