Operations Management Assignment: Forces Of Change & Digitalisation or Operational Improvement
Prepare a detailed report on operations management assignment on the topic “Forces of Change and Digitalisation for Operational Improvement”.
The current report on operations management assignment envisages the adoption of automation and newer technologies to promote business operations of various sectors across the globe. The fourth revolution entails the use of the internet and Iot to promote connectivity and provide an enhanced opportunity to various businesses by connecting them through newer and existing market areas. The report also entails a detailed analysis of various forces that drive these changes and how organizations have been adapting to these changes. Also, it provides insights and recommendations to improve digital business operations.
In recent days, it is impossible to be in the automation and manufacturing industry and did not hear about smart manufacturing. Adopting advanced technology becomes an annual goal for some companies. Industry 4.0 is a term that defines the widespread integration of the information and communication technology industry that is produced for industry development. The entire industry along with the Australian government is interested in the idea. However, for this strategic implementation, the industry has faced various challenges as well as given opportunities for industry growth. The purpose of this research is to clarify the concept of operating digitalization improvements. To do this, the study can help the fourth industrial revolution by having proper aspects.
Forces of change
Impact of digitalization and forces of change on a specific industry and organization
According to Kayikci, (2018), Digital transformation is one of the key challenges faced by business organizations. Commercialization and miniaturization of mobile computing are essential for building blocks. One of the most salient aspects of digital transformation is access to technology. Digital products and services are embraced regularly by businesses and society. The impact of digitalization is tremendous and forces companies across the world to act on business-changing rules. Firstly, digitalization created business rules for the physical as well as the digital world as one of the largest taxi companies is “Uber” which provides services of vehicles. On the other hand, “Facebook” is one of the popular social media platforms which helps people to connect to the wider market. These are examples of the disruptive power of digitalization which has created various business rules and environments.
According to Woishi, (2019), The rapid growth and commoditization are increasing force by the speed and impact of digitalization. Nowadays, users are adopting advanced technology more easily than before where it took 38 years to reach 50 million customers. In the year 2020, the number of accesses to digital technology has increased by 25 billion which brings enormous economic growth for the industry.
According to Rusert, (2017), Organizational changes are adjusting and transforming to the organizational functions. The industry is focusing on improving productivity, hiring skilled employees, and responding to advanced regulations.
Demographic forces: in an organization, demographic changes are required for cultural changes of the organization. For this instance, “the BMM testlabs” are improving their business around the world by hiring more female employees rather than men. The company has shifted gears in a new way for increasing customers rates.
Social forces: changing social trends might be a pressure for the company and customers are becoming conscious about the environment. Therefore, the company is manufacturing a sustainable product which can be difficult for the organization.
Political forces: often, the government restricts organizations to change forces which can be minimum wages such as employees, rules, and restrictions for fair competing with others.
Technology forces: adopting advanced technology is one of the best things for the fourth industry. Changes in technology can improve business growth as well as reduce it. However, it is beneficial for the company to adopt advanced technology for improving business growth.
Economic: due to the pandemic, company economy rates have reduced and most of the consumer has lost their jobs. This economic decreasing rate has a major impact on the industry.
Responses of the organization to the challenges of the above forces of change
Demographic: according to Brydges Hracs & Lavanga (2018),the company has decided to hire more female employees rather than men. therefore, the company has to evaluate some rules such as 9to5 timing, gender equality, and many more which can take time for the organization.
Social: currently, customers are more conscious about suitability therefore, it is required for the company to manufacture sustainable products. These sustainable changes can be costly for the company which can reduce the company profits.
Political: after the pandemic, the government has changed rules frequently which is difficult to maintain business profits.
Technology: the technology is upgrading it becomes difficult to attract more customers as well as maintain growth. The increasing rates of advanced technology are gaining competition; therefore, it is required to adopt developed business strategy for business growth.
Economic: after the pandemic, the economic growth of the company has reduced therefore, it is required to implement its business strategy.
3. Current areas of operations
Description of an area of operations for the chosen organization
As per the view of Kharlamov and Parry, (2021), The CEO of “BMM testlabs” has failed in three categories those are the following:
Regression has represented business “transformation-washing” though they are embarking the initiatives which have already been implemented such as e-commerce.
Underperformance: this happened while the organization has failed to achieve business goals on their transformation efforts and did not focus on creative projects for their business.
Digital initiatives: this final flavour is where the company is failed to initiatives digital technology. Though, the company is trying to launch its digital product and services.
Choice of one operational performance dimension for improvement
Hill framework has referred to a structure that connects all the objectives based on the organizations. However, this framework can help the organization to the direction as well as implement their marketing strategy. This framework has followed five stages such as understanding the marketing strategy, organization’s objectives, identifying product requirements among the customers as well as delivering products that need operation strategies.
The company was one of the best manufacturing companies though it is not the leading company. The company has faced various difficulties which are required to implement their business strategies. Thus, the five steps of Hill’s framework help the companies to implement internal and external factors. This research is known to assess the second third for determining marketing strategies that can help for better implementation.
Reasons for the operational gaps and problems
Strategy for human understanding
According to Xu, David& Kim, (2018, p. 90), There are various factors which can be an issue for the automation industry employees such as fewer work experiences mainly for the younger people who have experience and are unskilled. Another crucial factor is lack of guidance and training where highly skilled and trained employees are less threatened by the organization. The automation industry is in contrast to low-skilled staff for those who can easily automate. The low degree of adaptation to automation is one of the major risk factors in this industry. Therefore, it is required for the country to acquire mechanisms to help the people easily. Adopting advanced technological achievements can be a significant public policy issue (Penprase, 2018).
Entire business working in a way
“Agile” is a term that can help with the automation industry though it can be less known in various departments. It is required for the digital organization to iterate quickly and pivot their products along with customers satisfaction. Digital organization requires to implement quickly across the functional teams which are not divided into business units. Instead of that hold agile way across the company.
Impact of the above problems on the other organizational areas or external stakeholders
According to Lee et al., (2018), Stakeholder has set responsibilities based on the exchange value acts and how stakeholder has implemented the strategy as well as the value of a delivery which can define internal structure. Adopting various advanced technology have a huge impact on people’s personal as well as professional lives. There are three ways to interact digitalization changes with stakeholders such as fulfilling the responsibilities, gathering new responsibilities, and new roles. The main focus is to develop existing activities which are referred to as “activity-links-centre digitalization”.
4. Digitalization Rationale and Benefits for Operational Improvement 500
Rationale and benefits of how digitalization through a digital project initiative improves operations
As per the view of Morrar, Arman & Mousa, (2017), Using advanced digitalization has various ways help the organization to improve their operations. Digitalization helps the organization to increase productivity and efficiency as well as speed up the process and evaluate the operations. therefore, it is required for the organization to generate better resource management. Most businesses are focused on collecting customers data though the main fact of optimizing data is for improving business growth. Along with that digital transformation is not functional units or departments. It focuses on each business area as well as efficiency and innovation across the units.
How digitalization can overcome the operational performance gap
As per the view of Li, Hou, & Wu, (2017), Nowadays, robotic and machine vision are solutions that can take a variety of tasks to left human workers regarding those have involved in dexterity to automate solutions than robots were capable for. This solution can perform according to basic picking and sorting for visual inspection.
As per the view of Hirschi, (2018), It has been analysed that adopting advanced technology as a controlling system can increase efficiency though it does not refer to investing in it. Control systems have provided cost-efficiency as well as delivered work efficiency.
5. Risks, Barriers, Enablers, and Digitalisation
Risks, barriers, and enablers of digitalization and what organizations need to consider when adopting and implementing digital projects in operations
As per the view of Lyons et al., (2018), digital transformation has to integrate all the technology across an organization. Cross-functional teams require to work together and ideate innovative ways of business models for successful business markets.
Lack of clear vision
According to Favarettoet al., (2020), Digital transformation is one of the major changes that a business is required to undergo along with the business transformation. It is required for business digital transformation to achieve business goals. The transformational strategy has failed due to customers, employees, and shareholders. Secondly, a clear vision is guiding to change business strategy as well as find a core model for business. Therefore, it is critical to use effective vision statements which may not be restricted for example, if a company with a vision has attempted to use a business model using advanced technology. The proper vision has provided clear direction for breaking away from conventional business ideals as well as influencing internal teams.
Resistance to change
It is risky to Endeavor digital transformation, therefore it involves various variables, skills requirements, and other efforts. This resistance has risks-averse and some of the employees also describe digital transformation as a threat.
Many companies suffer from a lack of talent due to the digital transformation towards business success. It is required for the company to get rid of unskilled employees. As well as certain jobs require outsourcing and expanding business networks.
6. Key Recommendations
Recommend priority areas for design and implementation of operational improvements
As per the view of Bakar et al., (2020), It is required for the company to develop as well as implement a digital transformational strategy that can help the organization to achieve business growth. As well as it is required for the company to invest in the right factors which can be beneficial for the company along with maintaining a positive work environment. However, it is required for the company to utilize the right digital tools which can be beneficial as well as attract new customers.
Summary of key points and findings or observations discussed, including any additional reflections and final observations about digitalization for operational improvement
With increased globalization, businesses around the world are finding it hard to cope and adopt newer technologies into prevalent systems. Adoption of newer technology can help user the required revolution 4.0 which can eventually help various business sectors to connect better with their customers, make real-time decisions using business analytics and adopt relevant marketing strategies that can enhance the customer base of businesses and provide them with greater exposure of the market space. Other than enhanced customer base and better connectivity, adoption of newer technology can also be beneficial in expanding business operations virtually through the use of e-commerce options.
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