Strategic Operations
OPERATIONS STRATEGY Instructor: Gad Allon Contact: g-‐‑allon@kellogg.northwestern.edu
Class 1 Description Framework for operations strategy Tailoring operations strategy Investor/External view of operations: - Operations Forensics - Linking to Financials (ROIC tree) Asset strategy, operational hedging and risk mgmt. Sourcing strategy: Global networks and offshoring Strategic sourcing and supplier relations Reading Swiss Watch Industry (Ch1, p. 32) Peapod (Ch. 13, p. 415)
Hand-‐‑In (Before class)
Project Progress (After class)
2
Peapod
External view of the organization’s operations. Risk assessment Operational hedges Sourcing challenges Plan for next steps
3 4
Seagate Technology (Ch. 12, p. 405)
Simulation preparation
Course Description and Objectives
THE GOAL OF THIS COURSE is to understand how strategic operations decisions impact the performance of the firm. The key will be to understand the link between the operating system configurations, the customer experience, and the financial performance of the firm. We will approach operations strategy by taking a holistic view that incorporates competitive strategy, financial evaluation, and the customer experience. Operations strategy is a plan for developing assets and configuring processes such that the resulting competencies maximize value for stakeholders. We focus on decisions and challenges that many firms face: assessing the attractiveness of a firm’s operating system from an investor/external perspective and a management/internal perspective. Then we study building competencies in-‐‑house
Class 1 Description Framework for operations strategy Tailoring operations strategy Investor/External view of operations: - Operations Forensics - Linking to Financials (ROIC tree) Asset strategy, operational hedging and risk mgmt. Sourcing strategy: Global networks and offshoring Strategic sourcing and supplier relations Reading Swiss Watch Industry (Ch1, p. 32) Peapod (Ch. 13, p. 415)
Hand-‐‑In (Before class)
Project Progress (After class)
2
Peapod
External view of the organization’s operations. Risk assessment Operational hedges Sourcing challenges Plan for next steps
3 4
Seagate Technology (Ch. 12, p. 405)
Simulation preparation
Course Description and Objectives
THE GOAL OF THIS COURSE is to understand how strategic operations decisions impact the performance of the firm. The key will be to understand the link between the operating system configurations, the customer experience, and the financial performance of the firm. We will approach operations strategy by taking a holistic view that incorporates competitive strategy, financial evaluation, and the customer experience. Operations strategy is a plan for developing assets and configuring processes such that the resulting competencies maximize value for stakeholders. We focus on decisions and challenges that many firms face: assessing the attractiveness of a firm’s operating system from an investor/external perspective and a management/internal perspective. Then we study building competencies in-‐‑house