1. KR: Chapter 2 Operations Strategy

2. Chapter Outline Introduction

3. Functional area strategies finance operations marketing others New Service/ Product Design design analysis development full launch Competitive Priorities Figure 2.1 Capabilities current needed planned Corporate strategy environmental scanning core competencies core processes global strategies Market analysis segmentation needs analysis Competitive priorities cost quality time flexibility

4. Chapter Outline Introduction Corporate strategy Core competencies Core processes

5. Chapter Outline Introduction Corporate strategy Competitive priorities

6. Competitive Priorities Cost Quality High-performance design Consistent quality Flexibility Customization Variety Volume flexibility Time Fast delivery On-time delivery Development speed

7. Speedster Innovators and Producers Speedster Innovators ProductDevelopmentTime OldNew HondaCars5 yrs3 yrs AT&TPhones2 yrs1 yr NavistarTrucks5 yrs2.5 yrs Hewlett-PackardComputer printers4.5 yrs22 months Speedster Producers ProductOrder-to- finished goods Time OldNew GECircuit breaker boxes3 wks3 days MotorolaPagers3 wks2 hrs Hewlett-PackardElectronic testing equipment 4 wks5 days BrunswickFishing reels3 wks1 wk MatsushitaWashing machines360 hrs2 hrs Harley-DavidsonMotorcycles360 days< 3 days

8. As Time is Compressed, Prices Can Be Increased Time Advantage Price Premium (%) Electrical Components 2:159 Locks3:125 Writing papers5:120 Commercial doors9:1100

9. Chapter Outline Introduction Corporate strategy Competitive priorities New service or product development

10. Development Strategies Beyond low prices and good quality Product variety Design Innovation Service Operation systems implications

11. Service Package Supporting facilities Facilitating goods Explicit services Implicit services

12. Post-launch review Full Launch Market promotions Sales personnel briefed Distribution processes activated Old services or products withdrawn Production of new offering and ramp-up Need to rethink the new offering or production processes Development Detailed specifications Process design Marketing program design Personnel training Testing and pilot runs Service or product not profitable Analysis Detailed review of market feasibility Prod/tech feasibility Financial feasibility New Service or Product Development Process Figure 2.2 Design Development strategy Idea generation and screening Service package or product architecture formulation