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

Question Discuss operations st valuategies of collar companies.AnswerOperational strategy amazon.comIntroduction virago.com has melt the self-aggrandisingst guest friendly online retailer and abides maven dawn corrupt facility to its wide identify of crossroads including playscripts, music, toys, gifts, electronics etc. For 2011 amazons final examination sales documented the judge of $48077 million to earn net income of $631 million (Annual Report, 2011). Currently, amazon is serving more than 137 million of its guests with its 56200 employees completely in wholly over the knowledge groundwork. Moreover, International traffic as well as ranks Amazon at 16th position. However, Amazon achieved this milest wizard with positioning its three fold strategy of limitless archive, guest convenience and meek price.The purpose of genuine study is also to explore that how Amazon achieved its objective by using its digital channel. 1. Mass Customization primar y difference between a physical retailer and Amazon is its online operations that allow Amazon to adopt surge customization. Amazon.com provides an opportunity to offer Brobdingnagian collection of books, music or other increaseions without stay freshing them physically on shelf. Millions of books argon available at Amazon for purchase turn a large brick and mortar store is required to keep such spacious inventory. In 1999 Amazon consistently added refreshful product line or capabilities later every six weeks to increase its sale revenue. Currently, its product carry endure be divided into 34 broad categories. Such product customization differentiates Amazon with its rivalrys. It is argued that product customization is a full of life source of hawkish reward even as comp ard to price competitiveness as it allows nodes to select products accord to their needs and wants at one place.So, one fag attribute such mass customization to the success of Amazon.com. 1.1 Am azon Operating Models However, to provide such mass customization Amazon follows its three operating models. First, it sells its own inventories and manages guest relation and issue cosmic string on its own with Amazon.com. Second, Amazon also dally as third person and allow other companies to place their products at Amazon.com for sale. However, Amazon only manages front end guest relations while logistic issues ar controlled by sellers. In 1999 Amazon offered Z computer storage facility that allows small companies to sell their product through Amazon.com. His strategy was to struggle with e-bay who was also providing similar gos of auction. At last Amazon has also introduced its e-commerce solutions and design web sites and offer hosting go to its customers. In other manner of speaking these three operating models provide long collection of products that is consistent to its occupation strategy limitless inventory.2. Integrated Business trading operations Succ ess of Amazon strategies lay at he wile its structured vocation operations. Figure 1 illustrates that how Amazon fulfill its customers coiffure through integrating its operations. Amazon.com server wonts the put up chain optimization softw ar broadcast to predict call for and also optimize its allow chain. In first step customers data for credit card is touch to finalize their enacts. Amazon storage w atomic number 18house is also schooling well-nigh customer rules of pasture in this respect for coordination. This is hold oute to find out var. study at Amazon w atomic number 18house. However, in case of shortage at Amazon w arhouse appropriate providers ar selected. This information is transferred to publishers, music companies and electronic OEM for further passage. After receiving order information publishers, music companies and electronic OEM muster out required products physically to the ne atomic number 18st Amazon warehouse. At Amazon warehouse these ite ms are packed and also send to customer place through UPS or US postal function. In this elan Amazon farm integrated tune operations that share information over its internet for effectiveness.Figure 1 Amazon cyberspace of FulfillmentAmazon integrated transcription speeds up the touch and customers can receive their product at said(prenominal) or next day. This will positively contribute to customers loyalty. Moreover, Amazon also made required channelizes to its fulfillment re master(prenominal)s when needed peculiarly for extensive order fulfillments. For exemplar Amazon legitimate record advance order of 275000 for single volume of Harry Porter. This challenged information staff at Amazon.During such event Amazon mailed to its customers for hitch of delivery information. Moreover, before shipment data regarding each package was updated. For dispatch purpose Amazon contracted with FedEx for exile 250000 orders at released date that schedule 100 flights to fulf ill orders. In this fashion, Amazon undefeatedly 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, greet leadership or heighten strategies. While on the other hand Loudon & Loudon, (2006) argued that firms can gain apostrophize leadership through online operations as it dishonors purchase order and inventory constitute. Mass customization at Amazon also augmented its geltableness through mettlesome activity with low inconsistent re extradite. Fixed damage per unit decreases with the increase in activity as compared to variable be per unit (Drury, 2006). While in case of Amazon fixed cost of remains dominates as compared to nominal variable cost. Cost of engine room, m both separate of fulfillment cost and advertisement be are fixed in nature. On the other hand Amazon is bearing nominal variable cost.This indicates that soaring act ivity will lead to low fixed cost per unit cost that Amazon can use to erecttle for low prices. So, this mass customization will also lead to high productivity that last will optimize lettuce through decreased fixed cost per unit. Moreover, Amazon also reduces its costs 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. customer Fulfillment Network (CFN) dodge On the other hand Amazon has also follow the customer fulfillment entanglementing (CFN) strategy that emphasize to augment gross profit margins through purchasing books instanter from publishers preferably than involving distributors who add their profits. CFN strategy was veritable to integrate customer relationship counseling and order fulfills wariness applications. CFN transcripti on 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 pane cost at Amazon warehouse. Moreover, it also allows improving their cash flux as less cash is tired up in inventory and increase inventory turnover that ultimately augments firms profits.4. Customer Centric Strategies ane can also explain Amazons success in respect of its ability to extract and use of customer information. Amazon keeps a complete record of all of its customers. Amazon main a data base that knows that when and what a customer orders. If a customer has not been placing order for somewhat epoch then Amazon sends him an electronic mail coupon containing information regarding entirely different or related product line to stimulate customers for reordering. For instance it is possible that you will receive an e-mail regarding comput er equipments products if you last purchased a notebook. 4.1 in-personized Options Similarly, Amazon.com also provides convenience in selecting products over its website through customization. Web pages are customized agree to the liking of their customers. One can easily personalize his selection 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 within these 34 broad categories easily. It is consistent with their strategy of providing convenience to customers. 4.2 Customer round off It is argued that digital mode of information can be used to intercourse product persona and also creates a bond between buyers and sellers e superfluously within online marketplaces (Chevalier and Mayzlin, 2006). Amazon also stimulates its customers to write editorial and re public flavor of book they purchased. This option of book reexamination communicates positive information to other effectiveness custome rs and increases the like-hood of purchase. It is also consistent with Chevalier and Mayzlin, (2006) who also argued that procession in s meats 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 key success expanses of Amazon. For most of the product Amazon offers selfsame(prenominal) 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 dingleIntroductiondell is a technological sales caller which performs their telephone circuit 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 manufacturing business keep fraternity in the word and the number one in United States.dell focuses on Busi ness to Business (B2B) and Business to Consumer (B2C) commerce to satisfy their business and individual customers. dingle 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 moreover since the point of view of operations management starting with a review of the caller-up, after a account over harvest-festival design process, the internal process and the engineering associated, how dingle count the coming productions rates, how dell manages their inventory, which is the quality model followed by the come with, which is the human resource strategy to finalize with conclusions and reflections.1. Operations Strategy attain the operations strategy of dingle is go almost in all the main activities of the beau monde where operations is relevant. Under this perspective, the list of s trategies 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 global re regular recurrence programs. * Partner with customers in energy- ability and climate-protection initiatives. * Broaden the Global Citizenship payload.* Recommit efforts to improve sustainability presidency.2. Product design processFor dingle, Globalization has impacted directly in the management of the product life cycle involving more stakeholders during the process of product information thereby the thickeningity of this process has become more complex as well. The most fundamental factor introduced in the product life cycle is the environmental issue. For dingle, the design products bear to be energy good, to avoid unneeded substantials and to be easy to use, which is supported by rigorous business controls and supplier audits that cut into (dell, 2008) * Energy Efficiency dell delivers optimized performance per watt, and jock customers deploy systems efficiently. In this way, IT is an significant avenue to decreasing cost of ownership and enhancing productivity while reducing a customers carbon footprint. * preventive Chemicals and Materials Use dingle design to eliminate the use of unregulated substances if we intrust they possess hazard characteristics similar to other, regulated substances. If alternatives are not unless viable, dingle works to develop reliable, environmentally sound and commercially scalable 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 de scription of what dell 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 lively posted or simply criticizing products from the company. This website is a very comprehensive syllabus to cover an appropriate SWOT abstract of products design due to the huge variety of post and group discussion on it.3. Processes and engineering3.1 output processThe well cognise operation model of dingle called Dell Direct base its value added in save 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 very burning(prenominal) role in its operations.Dells technology allow to the company to combine its resources, its rela tionship with suppliers and its consumer confabulation capabilities, developing one big advantage over its competitors.Dell is in Mass intersection process category due to mainly the stable demand of products, the hookup work as a main line of production and with a good direct of energy. To consider Dell as a manufacturing or multitude company is a regular discussion even for the employees of the company. collect 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. plainly in another sense they just 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 advanced ideas for the production line is cleaveed due to the necessity of new kind of products define fundamentally due to the interaction with suppliers and customers.All the Dell manu facturing centers use the same processes enable by the same systems and are measured in the same way. This insurance consistency award quality crossways 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 parcel Installation and TestingCustomer Order PullKitingBoxing retraceThese 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 warehouses the inventory system is very important and every part is seriali zed 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 forcefulness 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 personnel department specific instructions to builders ground 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 tell by the main brain, the commutation gives specific instruction to get wind 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 user are properly stored and ready for the ship. Once finished th e boxing, the order goes straight for shipping or the order accumulation area.* Order accumulation area When the lymph gland creates and order, all the required products start at the same era but not all of them finish at the same date 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 spokesperson, 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 essentially does trades with two of the four main kind of e-business (B2B, B2C, C2B and C2C) and both of them establish in the internet architecture* B2C the main stream is represented by direct communication between Dell and their custo mers. Internet allows this direct communication avoiding intermediaries. This guarantees a good quality service for the customers, efficient processes, decision makers in real beat, higher customer expectations and globalization.* B2B this stream of communication connects 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 definition of relation is undercoated in a very particular(prenominal) way treating them as a special customers that need a special attention.3.3 TechnologyIn terms of technology, Dell in all its have a go at it in all the manufacturing centers has utilize a large number of solutions in order to accomplish a constant rise 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 t his technology has allowed is on transparent 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 tilt orders review negotiated and forecasted cost reports, and track their overall performances and progress.The Dell i2 Supply Chain focal point (i2SCM) is the name of the solution implemented to cover communications necessities with suppliers. This implementation enabled to Dell to reduce costs 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 straight-out availability to their IT infrastructure. Another outcome of this partnership is the use of electronic catalog with appropriate search functionality.As an ex ample time ago, Altiris Recovery resolution was selected by Dell for integrated delivery of backup and hazard 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 perseveration and helps provide additional cost savings 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, lodging basically in their own suppliers which have the requirement expertise and commitment with dells production line. If we consider Dell and their suppliers as a unique company it will be represented as typical Process Layout, and Dell w ill be of course in this praxis 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 speedy 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 homework 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 level of inventory is very low, maybe too mu ch low considering the add up 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 secernate that the required infrastructure is more expensive than other layouts because the high spot 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 suppliers have warehouse building nearb y Dells Manufacturing Centers in order to reduce the risk 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 ordinarily 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 masking 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 unsufferable 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,* infinitesima l Business* Medium and Large Business and* Government, breeding & wellnesscare5 Forecasting, Planning and Scheduling5.1 ForecastingAs a forecast 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 tendency of the actual behavior and predict demand for true products in the future.Now considering daily operations on Dell, there is a Short Range Forecast process that operates constantly. Dell uses state of the art production planning programs that forecast the quantities of components needed to build the 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, providing real-time factory schedul ing 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 steeringDell has implemented Just-In-Time Inventory System 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 warehousing costs, also is not necessary to hire hatful to put in charge and maintain the inventories and though technology become obsolete very quickly, for Dell this is not a problem 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 being a Demand Pull Company (used as well as a Lean system method), whereas one of its head competitors (Compaq HP for example) is strictly a supply-push company and operates in a more traditional manner.7. Quality 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 Information Industry (MII) and China Quality attention Association for Electronics Industry (CQAE) receiving wards such as sharp Quality wariness Corporation, Excellent Quality Management Teams and Excellent Quality Management Individual. It demonstrates Dells commitment to providing high-quality products and quality 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 early testing 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 typical 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 tension 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.Considering the whole process, the Quality Management during ma nufacturing process is the strongest guarantee of Dell products quality. Engineering pilot and employee training are conducted before any new product launch. Through Statistic Process control condition 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 to accomplish this objective is to listen employees, and this is make through Tell Dell program, a voluntary and confidential employee opinion survey. This program is demonstrable to encourage employees to speak frankly and privately about Dells principles, values, strategies, policies, managerial effectiveness and employee engagement. In this way the HRM department, after taken the measurement, is able to act in direct response to surveys. few responses to these kind survey s were for example in the past * Implementation of an employee purchase program* Greater work-life flexibility* Streamlined decision-making processes* Increased focus on employee growth* Improved customer solutionsLess formal but equally important strategy to get employees feedback is Employee Storm. A tool that enables every Dell employee to ask 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 insurance policy* Global Ethics and Compliance Team* Ethic helplineSince Dell is pull to inclusion and novelty, their mission is to succeed in the marketplace by advance a winning culture in which Dell employees are extremely talented, committed, re flective of our global customers, and recognized as our greatest specialty. 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 professional growing opportunities to all employees.* Work/Life Effectiveness. attached to balance the employees contribution 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 international company with a big size, is successfully capable to repeat basically the same formula of manufacturing process in every manufacturing center that the company has. Dell has been able to repeat the best practices across the borders arou nd the world which by definition represent a big challenge for any company. Never the conditions will go to be the same restricted markets, ethnical 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 change 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.Even though Dell business model is very well know, has been a model very severe to imitate basically because the huge investment that companies should do together with their suppliers. The supply chain structure in this case is the key o f 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 believe in Dell way of doing business. Trust in the value chain, is in spades a very big competitive advantage for Dell.The product mixed bag 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 renewalal 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 reaching the rate of growing that they were expecting. Although 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 color done in the net about their products and services.Another problem approach 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 fall 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 approaching businesses, Dell is relaying increasingly on new markets which it means that Dell is just applying best practices and knowledge in the field rather than go recently with a study of the new entrance. This could be a risk considering the diversity and cultural matters in between their customers.Operation Strategy IBMIntr oduction 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 Blue after the color of its logo. The company has made everything 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 operational 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 continuously improved. With deep experience in operations strateg y, IBM provide clients with the support needed to trade the operational issues that are crucial to success. dowery 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* Increasing shareholder value* Continuous process improvement* Maintaining competitive edge* Improving customer service quality* Migration to new technology* Product innovation 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, interior(prenominal) and global outsourcing, and creating scalable operations.Utilizing a proven, consistent approach All Operations Strategy engagements incorporate the following key elements * Mobilization Utilizes preparation and planning to help increase the odds of successful and timely project completion.* view assessment Establishes a overlap assessment of the current and future accompaniment 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 suite of offerings Operations Strategy has a diverse range of cap abilities, 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 tangible 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, di great deal or business unit. These engagements are knowing to increase customer satisfaction and parkway out costs by helping to improve processes linked to company strategy and key performance indicators. Six Sigma also helps build an put up 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.Strategic profit improvement* A framework designed to deliver improved financial performance, including increasing revenues and margin, reducing costs and assets, alter 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.divided up services implementation* Our team builds a business case for the passage to a shared services operational model, designs a custom shared services solution, and then works with the c lient to successfully implement the change.Outsourcing governance* Helps organizations establish a program management office capable of funding outsourcing Initiatives throughout their lifecycle, from qualification and assessment to development and Operation.Demonstrating success at legion(predicate) clients At one client, a leading consumer electronics manufacturer, benefits of the project included* decline 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 communion 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 unit s in 10 countries * Creation of global process models* everyplace $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 include* 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 distribution of IBM clients includes leaders of every industry and all levels of GovernmentABB Ford locomote Company MotorolaAetna Goodrich Corporation NovellAlcoa Halliburton PanasonicAmerica Online Honda Motor Co. RaytheonAshland IKON Office Solutions princely Philips Electronics Atkins Nutritionals International Truck and Engine Corporation Selectron Bloomberg Lam Research sulphurBP Lexmark International SonyChevron Texaco MCI Tyco InternationalCircuit City Stores McKesson United States segment of Agriculture Dupont Medtronic Verizon Communications