Business Operations and Systems
Business Operations and Systems – Hutchinson 3G UK Limited
Part One
Hutchison 3G UK Limited (3UK) operates under the 3 brand. Apart from being a wireless carrier, the company also provides/offers a wide range of products such as mobile phones, laptops, Sim cards, and tablets such as iPad, iPad mini, and Nexus 3G among other devices. These devices are available from the company’s 3Store, and customers also have the option of buying them online mainly through Amazon (3UK 2013). They are competitively priced and are usually delivered to the customers when they place an order. Moreover, these devices are usually marketed through cell phone retailers who are located throughout Britain, as well as in the company’s store-within-a-store locations (3UK 2013).
Bamford and Forrester (2010) stated that business operations management covers everything including purchasing and inventory management, supply chain and logistics management, direct supervision, operations planning and quality assurance. There are several components that are essential for effective business operations management for this company. The first one is vision statement (Pycraft 2000) – A vision statement for 3UK has the potential to become a rallying cry, and a clarion call to unite everyone in the firm towards a higher purpose/goal. The vision at 3UK is focused on bringing the internet benefits to mobile handsets (3UK 2013). The company’s vision statement is inspiring and clear enough to become a powerful tool that can enhance and facilitate success at the company. The statement is definitive and bold, showing people the destination and purpose of their work.
The second business component is strategic planning – Anil and Suresh (2009) stated that this step involves shifting from the where to the how. They added that a good and effective strategic plan provides the map to attain the vision. Working through the weaknesses and strengths of the company, strategic planning outlines the actions that need to be undertaken in order to achieve the goals. The strategic plan needs to have clarity, as well as well-defined accountability and timeliness. It is imperative to have long-term strategy and to refresh the plans operationally in shorter-term periods of time so that the plan remains attainable and is not completely disconnected from reality (Anil and Suresh 2009).
The third component is budgeting – This involves walking the talk. There is no point in having a strategy if the company does not have the willingness of investing in it. In this component, the strategic planning is transformed into operational realities, and budget has to be totally aligned to the strategic plan (Pycraft 2000). The budget is broken down into tasks with timelines, and then the stakeholders who are best suited for each task are identified. Fourth component is measurements or metrics – Metrics help to measure the effectiveness and efficacy of the strategic plan as well as the execution of the strategy. Bamford and Forrester (2010) stated that metrics also serve the purpose of scoreboards/milestones for the company’s vision to keep track of the successes along the journey, creating competitive spirit and most importantly, they serve as reasons to celebrate wins along the way. The final component is Execution – This is when things get done although there could be challenges regarding the speed of executing the plan.
Wilding (2012) observed that The Parcel Delivery Conundrum is about the difficulty/confusion of getting the parcel delivered to the customers when they are not in. People should conveniently get their parcels delivered even when they are not at home. In the context of 3UK, the conundrum is with regard to the company’s delivery of products to customers when they have purchased them online for instance through Amazon. The conundrum is that the delivery is not always successful and sometimes the package containing the device may delay to get to the customer or gets lost altogether. In this conundrum, the swift and efficient world of online ordering meets the messy and muddled realities of the analogue world that we actually live in. Wilding (2012) stated that in several instances, 3UK customers expect a device they bought online to arrive, and the courier company tells them that the package containing the device from 3UK has been delivered, yet they have not received it (Trenholm 2012). In such a situation, the package could most likely have been delivered to a wrong address. Moreover, this conundrum also results in late deliveries of devices to the customers making them wait for their valuables for long.
This confusion/conundrum of missed-delivery could be due to a number of reasons. First, the person may not be in when the package is being delivered. Secondly, the individual courier drivers are seldom incentivized to successfully deliver a package first time (Thomsett 2002). This conundrum of missed-delivery costs 3UK a substantial amount of money in re-deliveries, and at the same time infuriates the customers. Delivery issues are worsened for buyers by the significant amount of time wasted, either waiting in for packages that do not arrive, or waiting in call queues when they try to chase up deliveries. Soft systems methodology (SSM) is the systems methodology used, which is simply a systematic approach used to tackle real-world problematic situations. It has seven stages and was developed by Checkland (Wilding 2012).
Figure 1 Checkland’s SSM Rich Picture
Karve (2009) stated that CATWOE analysis helps to properly formulate a Root Definition. Moreover, it helps to identify and categorize all the stakeholders – processes, people, entities, environment – of the network being analyzed for formulating the Root Definition. In the context of 3UK, Customers = customers, Actors = the company staffs, Transformation = delivering the purchased products from the company stores to the residence/house of the online buyer. Weltanschauung/world view = The device delivery services is a means of assurance to potential customers that the company possesses a specified trustworthiness and reliability in the domain of product delivery following an online purchase. Owners = 3UK, Hutchison Whampoa and its top management. Environment = Financial constraints, industry regulations. The initial step in SSM is to formulate/devise the Root Definition of the system being studied or analyzed (Karve 2009). A root definition refers to a structured description of a system and it provides a clear statement of activities, which take place or might take place in the company being studied/analyzed.
A root definition consists of three elements – what, how and why – in the form of: The system to do X, by means of Y, to achieve Z (Karve 2009). In the context of 3UK, the Root Definition of its online delivery: What – To improve online delivery of devices; How – This will be achieved through a number of solutions such as clear and accurate tracking; Why – The longer-term aim of this purposeful activity is to have zero failed/delayed deliveries. This means that after an online purchase of a product by the buyer, all deliveries will be 100% successful.
Figure 2: Rich Picture depicting the problem situation
Part two
Presently, 3UK relies on a manual system of order management, which has been a major headache for both the company and customers at large. The company should establish a technology system that will seamlessly integrate its platform to enable/facilitate accurate and rapid order management. Despite the challenges experienced during package delivery, there are various ways in which the issue can be effectively dealt with. In responding to this conundrum, I recommend the company to the following; Embrace technology – Clear and accurate online tracking is inevitable. This is very important since it will result to saving a lot of time and reduce/lessen pressure on the company’s call centers. Modern technology makes it very easy to accurately and precisely track a package from the point it departs the store to the time it arrives at the destination/customer’s house (Wilding 2013). If the company provides its customers with access to detailed real-time online tracking, it will give them a realistic idea about when to expect their delivery. The company should also consider sending them an SMS or e-mail alert an hour before their package delivery is due to arrive. Although this type of technology might cost the company more, the profit it would make from retaining satisfied customers will make it worthwhile (Trenholm 2012).
Manage the couriers – The growth of online shopping has led to a boom in home delivery companies. The company should look around and select one that suits its required service levels. The company should negotiate a service delivery level agreement that rewards quality of package deliveries rather than just quantity. Capture customer details – When 3UK’s customers place their orders, there are a number of ways in which 3UK can improve the likelihood of a successful delivery. For instance, 3UK can allow them to choose a specific or particular delivery day or time slot that makes it easier for them to arrange for someone to be at home in order to receive the package. They could also make it simple for a delivery address to be stated which may be a friend, a workplace or family member who is more likely to accept the delivery. Another way is to give the customers the option/choice of specifying a secure place where they are comfortable for the package to be left for instance in the shed or with a particular neighbor (Thomsett 2002).
Manage customer expectations – Paying for delivery is not popular with online shoppers, and the success of companies offering free delivery is clear to see. If 3UK is not in a position to offer free delivery, then it should be reasonable with its delivery charges: and the more a customer pays for package delivery, the better the service they would expect (Wilding 2013). The company should be realistic with its delivery timescales and only promise something they are sure they can provide. The company should ensure there are good levels of communication when problems occur with regard to delivery – Even the best online retailers will at times experience delivery issues now and then, and the most important thing here is to communicate with customers, the company should not make them work too hard in finding out about their delivery (Thomsett 2002).
Moreover, it is imperative that the company should provide greater levels of support to its customers. This is because it is not enough for the company to just hand over the package containing the devices to the courier and when delivery problems arise, have customers chase their order up. In such a situation, the customer will hold 3UK, not the courier, responsible for any delivery issues, and as such, I recommend that the company be proactive in following up delivery issues. Dispatch items/devices promptly – Wilding (2013) observed that it is very frustrating to pay, at time exorbitant, costs for package delivery, only for the package not to leave the store until several days later. Being sluggish in dispatching of packages should not be accepted because this would most likely lead to delays in delivery. Moreover, the company should make sure that a clear feedback loop is put in place for buyers/customers, and that all sources of data are compiled for instance emails, web feedback, social media comments and customer service calls.
The company’s current manual order management system will undergo significant changes in automating it in order to improve its performance, reliability and efficiency. According to Anderson (2007), a business process model (BPM) is used in mapping out an organization’s current processes “as-is”, in order to create/build a baseline for improvements in process and to design future, “to-be” processes with those improvements included/incorporated. In the context of 3UK, its “as-is” process is based on using a manual order management system that does not involve tracking of the package in transit, which has contributed to the serious problem of missed-deliveries, late deliveries and even lost deliveries. This has not only caused great costs being incurred by the company as a result of re-deliveries, but also infuriated the affected customers, some of whom do not buy the company’s products again because of the delivery issues.
On the other hand, the “to-be” process is whereby the company will embrace technology, which will make it easy to accurately track a package containing a device from when it leaves the company’s warehouse/store to the moment it arrives at the intended customer destination for delivery. This could be accomplished through real-time tracking using smart phones to know when it will arrive. Moreover, the “to-be” process is designed to prevent the problem of lost or late deliveries. The technological implication of this new process is that 3UK will spend a substantial amount of money to invest in an automated order management system, which will incorporate real-time tracking of packages. With regard to environmental implication, home delivery is good for the environment and there will be very little environmental pollution particularly from carbon dioxide emissions (CO2). Even if a package is re-delivered ten times, the customer still creates less CO2 than getting into his/her car to collect it.
Part three
Developing the requisite management skills for effective implementation of the new process at 3UK is imperative for the company in the competitive online delivery industry. The following managerial qualities are necessary for effective implementation of the new automated process. The first one is motivation. This is one of the most important qualities of a manager. The manager should be aware that the motivational needs of each employee with regard to implementing the new process are different, and some staff members might need more coaxing than others (Page 2010). A manager should be able to see these people and know how to work with them in order to get them work to the best of their motivational needs. The other vital managerial quality is employee engagement. Page (2010) observed that change can be scary to employees, and it is normal for the workers to wonder how the change will affect them individually. In the context of 3UK, delivery workers who fear the change, which comes with the new process, may worry that it might cost them their positions or add more stress to their daily activities, and thus, are more likely to resist it. Therefore, it is important for the manager to engage the workers in the process from the initial stages to make sure that they are on board with all the decisions. Even those employees who do not agree with the decision should be informed by the manager about the individual impact of being resistant to a coming change
Another essential managerial quality is communication/being a good communicator. The best way of improving employee engagement in changing to the new process is through constant, ongoing communication (Jeston and Nelis 2006). The manager needs to make it certain that there is open communication throughout the organization/company. This may be done by mapping the organization’s structure in order to determine the flow of information between individuals and work units. It is important for the manager to determine whether or not she has information gaps and where they occur, so that they can be closed before attempting the change implementation process. In general, no staff member can work without proper communication from the manager, and thus, communication is very important. With the managerial quality of being a good communicator, an effectual manager will be able to know how to communicate in an effective manner with 3UK employees to gain the best results with regard to implementing the new process. The manager should properly communicate the reasons and the vision for changing to the new process. With an effectual quality of communication, the company manager would be able to convince the staff members and make them accept the change more easily.
The other quality as Jeston and Nelis (2006) pointed out is knowledge. This is an essential managerial quality because the manager should have a basic understanding of the new process and convey that knowledge to the company employees. Moreover, an effectual manager should also have the knowledge of the basic skills of all their staff members so that she/he can place them in the right positions to enable them produce the best results with regard to implementing the new process.
The other quality is Enthusiasm – The manager should not be negative about the new process since this would bring the employees down. The manager should have enthusiasm and a can-do attitude. Generally, most individuals tend to follow people who have a can-do attitude. An enthusiastic manager will be committed to the goals of the new process and express this commitment through optimism (Page 2010). Another vital managerial quality is being a planner. The manager should take a long-term view; whilst an employee will be working towards established and known goals, the manager should look far ahead so that these goals are wisely chosen/selected. By thinking about the eventual consequences/outcomes of various plans, the manager selects the best possible plan for the team and then implements it. He/she makes sure that work is not repeated nor problems tackled very late. Moreover, the manager ensures that resources are allocated and arranged properly. These managerial qualities are crucial not only for the effective implementation of the new process, but are also important for the manager’s own effectiveness and efficiency.
According to Kaplan and Norton (1996), the balanced scorecard refers to a strategic planning and management system used in aligning business activities to the strategy and vision of the organization, improving external and internal communications, and monitoring the performance of the organization against strategic goals. A balanced scorecard approach usually consists of four perspectives; financial, internal business process, learning and growth, and customer (Smith 2006).
Learning and Growth Perspective – In 3UK, this perspective would include employee training as well as the corporate cultural attitudes that are associated to both individual and corporate self-improvement. In the climate of rapid technological change, it is imperative that the employees of 3UK be in a continuous learning mode. Metrics will be put in place to guide managers at the company in focusing training finances where they can help the most. At 3UK, learning will be more than just training, and will include other aspects such as tutors and mentors within the company. With regard to measuring performance in this perspective, the manager will answer the question: Are we maintaining our ability to change and improve? The Business Process Perspective – This refers to the internal business processes in 3UK, and metrics based on this perspective will allow the company managers to know how well the business is running, and whether the device delivery services conform to the requirements of the customers (the mission). Performance measure in this perspective entail the managers responding to the question: Have we improved the major business processes in order to deliver more value to the customers? (Smith 2006)
Figure 3: balance scorecard depicting how the organization will be viewed from four perspectives
Customer Perspective – It is very necessary for 3UK to realize the significance of customer satisfaction and customer focus (Kaplan & Norton 1996). This is largely because if they are unsatisfied with 3UK’s devices and delivery of the products, they will ultimately find other retailers/suppliers who will meet their needs. In developing satisfaction metrics, 3UK customers would be analyzed in terms of types of customers as well as the types of processes for which the company is providing a product/device to those customer groups. In this perspective, performance measure will involve answering the question: Do customers recognize that the company is delivering more value? The Financial Perspective – At 3UK, accurate and timely funding data will always be a priority. It is imperative that the company includes additional financial-related data for instance cost-benefit data and risk assessment, in this category. In measuring performance in this perspective, the manager will have to provide a clear response to the question: Has our financial performance improved? At 3UK, learning will be imperative in order to improve the internal business processes, which in turn, will improve the level of customer satisfaction, and in so doing improve financial results.
Reference
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Hutchison 3G UK Limited (3 UK). 2013. About Us. Retrieved from http://www.three.co.uk/About_Three/About_us?intid=topnav
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Williams, T. 2007. Post-Project Reviews to Gain Effective Lessons Learnt. Surrey: Project Management Institute
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