Page 221 - Operations Strategy

CHAPTER 6 • PRoCEss TECHnology sTRATEgy
ChaPter
6 Process technology strategy

Introduction
Technology has always had a profound impact on all operations, and with the emer-
gence of powerful new technologies this impact is becoming even more significant.
These new technologies can emerge because of the ‘push’ or ‘supply’ of new knowledge,
or the ‘pull’ from the ‘demand’ from market opportunities. Yet, despite a widespread
acceptance of its significance, strategic analysis too often treats it as a ‘black box’ – fit
only for technical experts. However, all operations need to understand the analytical
dimensions for identifying the technical, managerial and ‘operations strategy’ charac-
teristics of technology. This is an essential prerequisite for deciding ‘what’ technologi-
cal options to explore. Operations managers need to clarify ‘what’ technology options
exist, ‘why’ potential investments in process technology investments can give strategic
advantage, and explore ‘how’ managers can make such investments work in practice.
The risks associated with implementation are particularly important given the number
of high-profile failures and claims of waste that seem to go hand-in-hand with such
investments See figure 6.1.

Figure 6.1 Issues covered in this chapter

Resource usage

Issues include:
Quality Characterising process
Performance objectives Dependability The e ect of new forms of Market competitiveness
technologies
Understanding the general
Speed
characteristics of process
technologies over time
technology on performance
Evaluating process technology
Flexibility
technology on performance
Cost The impact of process
objectives
Development
Supply Process technology
Capacity and
network strategy
organisation
Decision areas

M06 Operations Strategy 62492.indd 196 02/03/2017 13:05