Globalisation and Technology

Introduction to Influences on Operations Management

Definition of Operations Management

Operations Management: Oversees production processes to ensure both efficiency and effectiveness. It manages resources to meet customer requirements, ensures quality, and supervises operations. The core activities include planning, organising, and controlling.

Key Influences on Operations Management

Operations management is considerably affected by several key factors, necessitating constant adaptation and strategic planning.

Influence	Description	Example Impact
Globalisation	Promotes the integration of international markets. It necessitates adaptation to diverse consumer demands and efficient global supply chains.	Companies adapting products for local markets, such as customised fast-food menus.
Technology	Requires continual skill upgrades and system integration. Enhances efficiencies in production and data management.	Automation reducing lead times or tech startups leveraging cloud-based solutions.

Roles and Responsibilities of Operations Managers

Operations managers have a wide range of responsibilities:

• Planning: Designing production schedules for efficiency. Example: Creating timelines for project delivery phases, such as organising a year's supply chain cycle.
• Organising: Structuring resources for optimal performance. Example: Coordinating teams for a product launch.
• Controlling: Ensuring standards are met and processes remain efficient. Example: Conducting quality checks on products.
• Leading: Encouraging teams to achieve operational goals. Example: Leading workshops on new technologies.

Significance of Globalisation and Technology

Globalisation and technology transform business operations by:

• Expanding markets through international reach.
• Enhancing production processes with advanced technology.
• Strengthening customer relations via digital platforms.

Challenge Note: Implementing technology requires robust cybersecurity measures.

Strategic Insight: "Rapid adoption of emerging technologies provides a competitive advantage in global markets. Effective team management is crucial to harness these technological benefits."

Preview Strategic Importance

Operations management can strategically utilise globalisation and technology by:

• Market Expansion: Reaching new customers worldwide. Example: Entering new international markets, such as targeting a new Asian demographic.
• Process Innovation: Implementing technologies like automation. Example: Using robots to boost manufacturing.
• Customer Engagement: Building stronger relationships through digital platforms. Example: Using social media for customer feedback.

Introduction to Globalisation

Globalisation is the integration and interconnection of companies across international borders, encompassing not only the exchange of goods and services but also technology and information. Companies must adapt to varied markets and consumer demands, exemplified by multinational giants like McDonald's and Coca-Cola.

Scope and Characteristics

• Geographical Spread:

  • An excellent example is McDonald's, which adapts its menu globally. Products such as the "McAloo Tikki" in India and the "Teriyaki Burger" in Japan are tailored to local preferences.

• Trade Liberalisation:

  • Trade agreements such as NAFTA and EU Trade Deals reduce tariffs, boosting international sales. A significant impact is observed in industries like agriculture, where lower tariffs enhance export potential.

Impact on Supply Chain Management

• Integration:
  • Globalisation makes the integration of supply chains essential. Companies like Amazon and Apple utilise global sourcing to effectively manage resources.

• Market Opportunities:
  • Access to international markets presents significant opportunities. Globalisation contributes to a 5% annual growth in global markets. Companies capitalising on this expansion see increased demand and customer diversity, supported by Amazon's growth in international sales.

Technology's Role in Operations

• Technology in Operations: Technology transforms manual processes into digital systems, thereby enhancing efficiency.

• Historical Contrast:

  • Pre-Tech Era: Characterised by a manual workforce with frequent human errors and operational inefficiencies.
  • Post-Tech Era:
    • Automation introduces streamlined processes.
    • Marked improvements in productivity.

• Automation:

  • Definition: Automation: The use of machines to perform tasks without human intervention.
  • Example: Robotic process automation (RPA) in manufacturing reduces errors and enhances productivity.

• Enterprise Resource Planning (ERP) Systems:

  • Definition: ERP Systems: Software that integrates business processes across various departments.
  • Example: Employed in logistics for synchronised inventory and order management.

• Artificial Intelligence (AI):

  • Definition: AI: Systems designed to mimic human intelligence, improving decision-making.
  • Example: Used for predictive analytics, optimising stock levels based on customer demand insights, as demonstrated by companies like Amazon.

Enhancement of Efficiency and Productivity

• Operational Efficiency:

  • Elevated through technology's precision and speed capabilities:
    • Robotics: Efficiently manage repetitive tasks with accuracy.
    • Data Analytics: Provides insights into customer behaviour and stock management.

• Improvement in Productivity:

  • Technology minimises downtime, resulting in leaner, cost-effective operations.

Benefits of Technological Integration

• Improved Communication: Facilitates seamless global communication through platforms like Slack and Teams.

• Quality Control: Technology ensures consistent quality through precise monitoring.

• Impact Example:

  • Coca-Cola's use of digital sensors has reduced defect rates and increased production speed.

Risks and Challenges

• Cyber Security Risks:

  • Increased reliance on technology raises the risk of data breaches, necessitating enhanced cybersecurity infrastructure.

• Obsolescence:

  • Rapid technological advancements can render systems obsolete. Companies face potential high costs for updates and replacements.

Case Study Analysis

• Strategic Implementation:
  • Companies adopting cloud solutions and real-time data analytics witness substantial operational improvements.
  • Real-time analytics greatly enhances decision-making processes.

Interplay of Globalisation and Technology

Introduction to Interplay

Globalisation and Technology: These two interconnected forces play a crucial role in transforming operations management and enable businesses to operate beyond borders through enhanced innovation and efficiency.

• Real-World Example: Amazon uses technology to effectively manage its complex global supply chains, highlighting how these forces interact to optimise operations.

Comparative Analysis

Developing a framework to compare globalisation and technology reveals their distinct roles in operations.

Globalisation	Technology
Expanding markets	Automation of processes
Cross-border operations	Enhanced data analytics
Cultural integration	Improved communication networks

Examples in Practice: Uber, for instance, leverages digital mapping and communication technology to adjust services according to local cultural needs, illustrating the diverse utility of these forces.

Facilitation Mechanism

Technology Facilitating Globalisation

• Global Operations: Technologies like the internet facilitate seamless international teamwork and operational coordination.
• Amazon Case Study: Employs logistics technology to manage global supplies efficiently, showcasing technology's role in enabling globalisation.

Globalisation Facilitating Tech Spread

• Tech Diffusion: Global markets promote the adoption of technologies, such as IoT and AI.
• Industry Impact: These technologies spread rapidly across borders, enhancing sectors like logistics.

Strategies for Integration

Strategic Approaches

• For SMEs: Connecting with local suppliers through digital platforms links them to global markets.
• Industry Examples: Telemedicine breaks geographical barriers, demonstrating cross-industry integration.

Real-world Strategies

• Operational Integration: Utilising global IT platforms enhances operational coherence.
• Digital Tools: E-commerce is vital for SMEs to achieve global reach.

Visualization of Intersecting Influences

Key Terms and Concepts

• These concepts might appear in essay questions like "Discuss the role of globalisation in enhancing technological innovation."

Constructing Effective Answers

• Framework:
  • PEE (Point, Evidence, Explanation)

• Mini-Paragraph Example:
  • Point: Globalisation leads to economic growth.
  • Evidence: GDP data indicates increased trade volumes.
  • Explanation: These activities boost capital flow, promoting economic development.