The Argument against Planned Obsolescence
Planned obsolescence is often considered to be a part of the capitalist ideology. The supposed logic behind planned obsolescence is that capitalist companies put inferior components in their products. As a result, these products do not last as long. Since the products break down sooner, the customers are forced to buy new products. Opponents of […]
The Economic Effects of Digital Distractions
The 21st century is also known as the information age. The biggest companies in the world today sell nothing but information. Consider the case of Google, Facebook, and Twitter, etc. that have billions of dollars in market capitalization. Every company, big or small, now has a social media department. The job of the people in […]
Recovery Time Objective and Recovery Point Objective
The concept of insurance came about in the business field to cover the risk of loss of assets due to natural and manmade disasters as well as other calamities. In the current times, Organizations especially those which are dependant heavily on IT systems have begun to look at preventive steps as well as plan for […]
The Mouse Charmers: A Case Study of the Indian Information Technology Industry
From Snake Charmers to Mouse Charmers: The Changing Perceptions about Indian IT It would not be an exaggeration to say that India is an IT (Information Technology) powerhouse. Indeed, the Indian IT Industry is globally recognized for its ability to get quality work done at competitive rates and for its efficiency in churning out Millions […]
Step 1: Collect and Review Primary Information
The project begins when the top management assigns responsibility to the Project Champion. The Project Champion usually delegates the task of preparing the Project Charter to another team member. It is important for both the Project Champion as well as the team member to understand what information is required. Here are tips on how to […]
Managing businesses in highly competitive environment and in global scenario is highly complicated. What has made the global giants like IBM, HP, Dell, CISCO, GE, DHL, Fedex and many more companies hugely successful is the fact that they have built their Organizations on standard business processes that are refined and fine tuned to each local country requirements.
Business process and Organizational design have provided them with the ability not only to control global operations but more importantly to provide the same superior quality and commitment as well as service to the customers all across the world. This is essentially the differentiating factor that makes a Dell or an IBM stand apart from the rest of the competition.
In order to offer complete control over the product and service to its customers, IBM used to manage the service support in house globally.
In recent times of course, IBM sold its Laptop and Desktop business to Lenovo and outsourced the entire service business to Geodis Logistics. However IBM has ensured that the business processes and controls are retained and interfaced with its functional units.
This outsourcing of the parts management, delivery and service has been possible only because the entire function is defined, managed and controlled via specific business processes. IBM has not only devised detailed business processes to manage its business operations, but spends an equal amount of time and focus on auditing the business processes to ensure the process is followed, the processes are valid and the business risks arising out of process failures are identified and managed.
Continuously the Organization evaluates its processes, removes redundancy and keeps strengthening the business processes in line with the changes in its business.
Understanding how the business processes and business functions are organized in such a set up validates the significance of the business process to the Organization. Though the departments are managed by functional managers, the functions related to a particular business report to the Business Unit head.
Thus the business unit has sales as well as service functions reporting into the head. The service unit involves the technical service engineers, the sales support staff, the parts distribution managers forming one unit to service the business unit. In addition, each of these functions would be managed by and reporting to each functional head such as Head of Service Delivery, Technical Solutions Head as well as Inventory and Logistics Manager etc.
The Organizational design includes horizontal work flow with vertical staffing structure. It is the Business Process and systems that ensure smooth and seamless overlapping, integration and optimization of the functions and aligning all groups on dual reporting system and ensuring that every function is focused on the end customer.
The service parts managers are functionally responsible for procurement, inventory and logistics of the service parts components. Overriding this functional expertise is the need for the Parts Managers to be in line with the local Customer needs, the local Country situation, the Customer criticality and field support requirements and plan his function accordingly.
When Customer fulfillment becomes the primary objective even for the inventory controller and the Parts service group, every single function in the Organization gears up to work together with the single aim of servicing the customer. When this happens at a Organizational and global level, the Organization naturally becomes a global leader.
Managing global markets, different countries, different types of customers, providing superior quality and service reliability to every single customer consistently and sourcing millions of parts from across the globe, managing multiple production bases, managing innovation and product quality besides managing thousands of employees and managing the changes both internally and externally to emerge as global leaders has been made possible due to the Organizational design and functioning depending upon on Business processes and systems to manage the business operations.
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