What is operational effectiveness ?

Résumé du document

After reading Michael Porter's article "what is strategy" which appeared in the Harvard Business Review in 1996. We can retain some key points such as "the growth trap", trades off or "fit" for example, but in this essay, I have decided to focus only on a single point, which is "operational effectiveness" (OE).

Extraits

[...] What is operational effectiveness? After reading Michael Porter's article "what is strategy" which appeared in the Harvard Business Review in 1996. We can retain some key points such as "the growth trap", trades off or "fit" for example, but in the next paragraphs, I have decided to focus only on a single point, which is "operational effectiveness" (OE). First of all, before going into more detail on this concept, we must first explain and understand it. what is operational effectiveness? [...]

[...] Secondly, what does this mean in real situations? In an organization, for instance, OE could be studied by examining the company's key performance indicators (KPIs) such as the results obtained by each department or the overall equipment effectiveness. The perfect example to describe this concept is "Amazon". Amazon warehouses a very different from the traditional ones. Generally, in a warehouse, when a shipment arrives, an employee takes care of putting the same products together in a well-established order, while at Amazon, the process works differently. [...]

[...] The firm goes even further, in some of its warehouses, robots capable of carrying up to 340 kilos are in charge of bringing the shelves with the different products to the operators in order to reduce downtime, which makes the process even more fluid. In conclusion, trying to have better operational effectiveness is undoubtedly beneficial for their organization as it helps them to lower their cost and push them to provide their customer with the best experience possible. From a customer point of view, this is a good thing because if there is more competition on the market, this logically means better products or services at low prices. [...]