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Showing posts with the label operational innovation

Focusing on Selling Experiences versus Products in the New Economy

Service dominated logic or S-D Logic may be a better viewpoint to train managers and teach college students about the nature of modern business. Considering how much society has changed over the past few decades the movement from tangible goods to service offerings creates a fundamental shift in the economic system. This fundamental shift should be incorporated into training and education so that decision-makers can master new economic conditions. A total of 75% of all business revenue is currently service oriented while 80% of the GNP is service related (Ford & Bowen, 2008). That is a huge number! With this fundamental change from agricultural, products, and commodities to service oriented offerings it is necessary to train managers on the new S-D vantage point of seeing and perceiving their operations in a new light. Such an approach will help decision makers view organizations and problems from a perspective that actually reflects current economic activities. The

Organizational Configuration and Operational Efficiency

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Organizations seek to create market advantages and higher levels performance. While executives try and make a market impact it is the investors who desire to obtain stock value increases. Spending fewer resources while creating efficiencies raises the value of both the organization and its stock price. Improvements in organizational efficiency can be found through the proper implementation of strategy and the alignment of all the parts. Synergy is created through both management and employee participation.   Configuration theory posits that each company has certain characteristics based upon their strategic objectives and that through configuration of these characteristic elements a higher yield of performance can be found (Van de Ven and Drazin, 1985). Efficiency is found through aligning various departments, specialties and resources in order to create less transactional waste and additional focus on objectives. Unfortunately, organizations often fail to create this synerg