The Operations And Innovation : Be More Ruthless About Terminating Loss Makers
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In relation to operations and innovation, Ghemawat calls for companies to, “be more ruthless about terminating loss makers”. A key focus area here is in the operations and the supply chain. Organizations who realized the practice of offshoring were more than just sending products overseas to be created, they were able to build relationships and foster true lines of leadership. They created opportunities for meaningful measurement and the capability to further innovate and streamline across their supply chain.
In a Forbes article, Chris Wilder (2015) argues that customer value will be driven by the supply chain. Wilder claims that “innovation, rapid response, and the increased need for actionable data have put immense pressure on the…show more content… Those firms that choose not to will suffer from both late to market costs, as well as increased costs to build their supply chain. Cost, Production, and Quality across the supply chain must be measureable. Maintaining the perspective of a global workforce remains a vital way of doing business, however,. it must continue and grow stronger through innovation to better meet the needs of the customer. Shortening supply chains and making them simpler yet more robust, is something that Ghemawat believes is a critical requirement.
Thinking strategically about increasing customer value by focusing on innovation and operations across a global work place is subject to political issues. When China devalues their currency and does not post realistic data regarding their economy, data in the global supply chain becomes tainted and serious implications are detected. Often, the cry for bringing all production back onshore is heard. Protectionist ideology hurts business in many ways and the global lack of engineering to keep pace with innovative and intelligent growth will certainly occur. Ghemawat suggests “protectionism” is something to keep an eye on as the ever expanding capability of workforces brings choice to the market. This choice, if leveraged correctly, will lead to even greater customer value. WE NEED TO EVALUATE PROTECTIONISM VS THE CONCEPT OF “IMPORTING PROCESS INNOVATION OR MOVING