Operations Management and Etisalat - Case Study Example

Operations Management and Etisalat Student’s Name Institutional Affiliation Introduction Etisalat is among the largest telecommunication service organizations in the Middle East. It is also recognized as the Emirates Telecommunication Corporation, which operates in eighteen countries globally with countries from Africa, Asia, and largely in the Middle East (Etisalat Group, 2013). In a ranking done in November 2009, the company was ranked as 13th globally among other companies within the telecommunication industries. The company’s total consumer base at the moment has more than 100 million subscribers. The company is also considered to be among the largest internet hubs especially in the UAE, where it provides connection to operators of other mobile networks within the region. The major source of the company’s revenue in the UAE is the increasing traffic in voice calling, especially international calling. Apart from its operations in the UAE, Etisalat operates in other parts of the world offering various services such as the Points of Presences (POP) services provided in Paris, London, Amsterdam, New York, and Singapore. The company has made some significant achievements in its countries of operation all over the world including establishment of Mobily in Saudi, Sudan’s Canar, PTCL within Pakistan, and EMTS within Nigeria, among others. In addition, due to its maintenance of a healthy balance sheet, the company has been ranked as an A1+ organization (Etisalat Group, 2013). In this research paper, analysis of the operation management (OM) of Etisalat shall be done and recommendations shall be made on approaches that can be adopted in OM decision making in order to facilitate further success of the organization. Strategic Outlook The Input-Process-Output Framework Etisalat utilizes a model referred to as the input-process-output in handling information, being a telecommunication organization, where all the three terms of the model have great significance to the organization’s operations (Toni, 2011). With reference to input, all telecommunication services related information is directed toward the organization. After accessing such information, it is then processed categorically in order to yield an understanding of the telecommunication industry and the organization’s services and respond appropriately. Solutions are established for the various issues that were included in the processed information thus giving outputs. However, not all the information that is processed is solved. In this case, the unsolved information is stored within and prepared for further processing in order to establish an output (Toni, 2011). Various organizations utilize this model in the assessment and also when handling any complaints they receive from their customers. At Etisalat, utilization of this model is a clear indication of how much the customer is valued by the organization and how willing the organization is in ensuring that a good relationship is maintained with the consumers (Etisalat Group, 2013). By ensuring that consumer related problems are well handled, the organization can meet the needs of the customers and thus establish brand loyalty and good positioning within the market. The linear progression approach is utilized in this model, thus facilitating successive progression from one category to another but only when all the issues in the previous category have been adequately handled. The employees’ creativity and problem solving skills at Etisalat have been well sharpened with the utilization of the input-process-output model as they meet different challenges each day and are subjected to the task of finding solutions that would offer quick but appropriate responses to the customers. It is salient to note that the three characteristics associated with the model, including trust, structuring, and planning, are essential in the implementation of the model (Toni, 2011). The employees are required to create a bond amongst them that would facilitate proper communication in order to adapt to new situations effectively and learn from them with the view of giving the best of outputs. Performance Objective The operations at Etisalat are aimed at creating a proper competitive base and ensuring that a large share of the market is achieved in order to facilitate organizational growth and sustainability (Etisalat Group, 2013). In order to achieve this, the organization's primary operational objectives include cost, flexibility, quality, dependability, and time, all of which are used in measuring performance. As such, the organization’s major drive for operation is to ensure that a large part of the population of the countries of operation can reach their services. With proper communication being part and parcel of everyday life, the company aims at achieving an increased reach to the customers by reducing the distance that exists between them and providing a cheap platform from which they can communicate as frequent as they may desire. In meeting such an objective, the company has embraced state of the art technology that ensures that network connectivity is up to date and that all the subscribed consumers can connect without barriers (Etisalat Group, 2013). The company has created an open platform for the consumers, allowing them to reach the organization as soon and as frequent as possible whenever they have any issues of concern. Customer satisfaction would not be attained without full alertness and involvement of the employees, an aspect that has necessitated increased investment in employee energy by the organization. This is aimed at nurturing individuals that can offer the best services not only within the organization but also within the telecommunication industry. Layout and Process Design Type of Process The primary type of processes utilized at Etisalat in meeting the consumer needs is Work Order Processing. This approach is effective in providing exceptional solutions to organizations in the service industry especially in handling repairs and introduction of new products (Griffin, 2013). The process is mainly under the maintenance and operations department of the organization, which tracks and responds to the work order in the organization with the most appropriate and relevant solutions. The work order is a systematically designed way of reporting any issues within the organization and consumer base in order to offer solutions in a timely and orderly manner. The work order process has a variety of advantages that have made it highly applicable at Etisalat. First, the logical design of the work order allows for prioritization of the job function in accordance with the required quality, time, and cost (Griffin, 2013). This is important in ensuring that the most urgent issues are not only responded to first, but the outcomes are of desired quality and cost-efficient. In addition, this approach makes it easier to inquire about the drill down within the organization. Such in-depth accessibility of information is important in providing permanent solutions to problems within the organization and among the customers. The work order process also enables easy identification of items that are out of stock within the organization in order to effectively influence the services within the organization. The work order process also allows rewriting of the order as it provides room for generation of the back order. The work order can be presented in various lists including the work order report; open work order report; technician report; work phase report; and work phase tools (Griffin, 2013). Process Mapping Process mapping is the structural analysis of the flow of processes including the cycle from ordering to delivery of commodities or services, creating a distinction between how work has been done and how it ought to be done (Haksever & Render, 2013). In addition, this involves a review of the functions that ought to be done by a system considering how it has been developed to carry out such functions. As such, this involves a review of information flow, major organizational activities, interconnections, and the measures of performance. Process mapping at Etisalat is aimed at ensuring that the proper sequence of offering the telecommunication services is followed and thus promote achievement of the desired outcome. At the organization, six steps are followed in mapping of the process. The first step of process mapping is to follow one product or service line, a step that has been well embraced by Etisalat where they have channeled all their resources and focus on offering telecommunication services and they have been established within the telecommunication service industry (Etisalat Group, 2013). The next step of process mapping involves correct placement of the various components of the offered services or products (Haksever & Render, 2013). At Etisalat, this has been met by forming a consumer-based group in regard to the market capture and the market potential. The third step involves showing of the components, where a decision is made concerning the market-based groups. Under this, Etisalat establishes all its strategies in accordance with its position in the market and its relation with the consumers. Events description is also an important step in process mapping especially before a final decision is made. To facilitate such description, it is important to establish in-depth knowledge of all the groups considered in the mapping. The next step involves inclusion of any other related information in the mapping of the process so that nothing is left out in the process implementation. Lastly, all the sub-services are combined in the last step, merging, in order to ensure that the services are complete. For instance, for Etisalat to make a SIM, various sub-services including internet, telecommunication facility, and GPS, among others are merged in order to create a complete SIM with all the services it intends to provide (Etisalat Group, 2013). Layout and Flow There are various steps involved in the design of the process at Etisalat. The first stage involves visiting of the business center of the company by the consumers who are availed a form that they fill to apply for increased internet speed that is updated within the company's IT system according to the requirement (Etisalat Group, 2013). The work order then proceeds to the next stage, where it is handed over to the quality team that carries out inspections. The company then moves to release the work order. It is important to note that each process is allocated an automatic port. After these initial processes have been completed, the work order is printed with the team of service providers and the services required to meet the customer needs. The supervisors sort these work orders and hand them over to the technicians to implement the desired services. The supervisors maintain any related records. The technician contacts the client to schedule for installation of the required model in the customer's computer. If the work is conducted in a proper way, the customer proceeds to sign the order, which is forwarded back to the central office for a recheck by the supervisor who later closes the order and allows for billing (Etisalat Group, 2013). At Etisalat, a long-thin business policy is preferred to a short-fat policy, meaning that the organization believes in the long-term rather than the short-term profits. As much as the profits may be less, the organization is more concerned with establishing a good and sustainable relationship with the consumers (Etisalat Group, 2013). The rationale behind the long-thin policy of the organization is, in fact, to establish a proper relationship with the consumers, thus necessitating compensation of the huge profits. Capacity and Demand Capacity Plans The capacity of Etisalat to offer services to its consumers is significantly huge as compared to demand. As such, the company is considered as one of the largest organizations in the UAE in terms of capacity planning. The organization’s capacity has been well boosted by the purchasing of the 155 Mbps broadband Europe-Asia cable between Japan and UAE (Etisalat Group, 2013). This move has allowed the organization to offer the best of internet services to its clients within the UAE and thus boost its market share. In addition, the organization operates six business centers including: Khaledia business center; Mussafah business center; Salem business center; Mafraq business center; Samha business center; and the main business center located in the Etisalat Tower. It is from these business centers that the production, manufacturing, operational, and financial functions of the organization are carried out. These business centers increase the capacity of production and service generation of the organization, an aspect that ensures that the organization meets the demand of the consumers. In addition, the organization can satisfy the needs of the growing number of consumers through its six outlets within the UAE. It is from these outlets that the organization’s services are sold to the consumers. The outlets include Marina Mall, Al wahda Mall, Abu Dhabi Mall, Madinat Zayed Malla, Khaledia Mall, and Raha Mall. It is of importance that the relationship between the capacity of Etisalat and the consumer demand is very close (Etisalat Group, 2013). As much as the demand for telecommunication services is high, the organization's processing system has been organised such that it enables the organization to develop an increased capacity that is way above the demand. Etisalat has 80 sales staff and 140 field technicians who facilitate the processing of the work orders and performance of the services as demanded by the consumers. Demand Management Management of demand is one of the most vital roles that is played by any organization intending to enhance its productivity (Haksever & Render, 2013). As earlier stated, there is a close relationship between the capacity of the organization and consumer demand. In managing the demand of the consumers, Etisalat works towards reducing the gap that exists between consumer demand and organizational capacity to meet such demands. As such, the organization’s approach involves ensuring that capacity always surpasses the consumer demand. The process of demand management at Etisalat allows the organization to determine the exact number of products and services that ought to be developed in order to satisfy the customer needs. Therefore, as much as the organization does not have to be necessarily a hundred percent efficient, it is important to ensure that it maximizes its services to full capacity. Development of the services should be based on the customer demandsr to ensure that profits are maximized and that excessive storage is avoided (Haksever & Render, 2013). Demand management is completely in the hands of the organization where the level of commitment increases with a rise in demand. The company improves the quality of services offered so as to not only increase the number of customers but also to maintain the consumer through a long-term relationship. This is an approach that should be well embraced by Etisalat, where they ought to improve on the quality in order to ensure that they meet the long-term needs of the consumers. As much as Etisalat has been able to establish a wide customer base in the UAE, it has been associated with various negative issues in relation to the quality of its services (Etisalat Group, 2013). For instance, various problems have been reported concerning the GSM services of Etisalat within the UAE. In addition, the internet connectivity of Etisalat network users with BlackBerry phones has also been noted to be a major problem of the organization. The company has not been able to develop a proper code to unlock the phones and facilitate usage of the BlackBerry phones to connect to the internet through their network connectivity. Another common problem with Etisalat is its inability to offer proper support for the iPhone users. In addition, the company’s e-support is not as effective as that of other companies within the telecommunication industry (Etisalat Group, 2013). All these concerns may threaten the organization's ability to maintain a healthy and long term relationship with the consumers. As such, it is important for the organization to maintain not only a high capacity that meets the consumer needs in terms of quantity, but also in terms of quality. Supply Chain Management Various business organizations in today’s society, including Etisalat, weigh several aspects of the supply chain. Such organizations perceive the importance of implementing comprehensive monitoring programs that would allow the organization to review their supply chains and make appropriate amends (Griffin, 2013). However, besides perceiving the importance of developing measures of performance in the supply chain, such organizations have not exhausted steps to establish proper measures of performance. At Etisalat, proper consideration of the supply chain metrics hierarchy has allowed for the development of a well-structured approach towards developing a sustainable, actual, and useful performance evaluation in the supply chain aimed at facilitating development of the organization. In the implementation of strategies within the supply chain management, measurement is an important approach to ensuring successful operations (Haksever & Render, 2013). Given the dynamism of the nature of the telecommunication industry, there is need for different organizations within the industry to invest in new and more efficient technologies and equipment that would reduce the cost of service providence, and promote the profitability of the organizations while satisfying consumer needs (Haksever & Render, 2013). This is a move that has been well embraced at Etisalat through its automation of its services, therefore, allowing for the shortening of the breakeven period for the various products and services introduced and promoting profitability of the organizations. Through embracement of new technology, the introduction of e-commerce has promoted reduction of the costs of products within the industry and thus increased the profit margin on the various products. This new way of conducting business has provided a new turn to the supply chain as the suppliers can check for any need for particular supplies and place proposals that can be later reviewed and responded to by the organization (Toni, 2011). This has made supply for the organization faster and more efficient than it used to be. Conclusion It is clear that Etisalat is one of the leading organizations in the telecommunication industry in the UAE. Regardless of its shortcomings in various sectors, the organization has still been able to establish a strong consumer base and endear itself to the society. The operation management of the organization could be attributed to such success with the input-process-output approach being at the center of all the organization’s activities. This model allows for systematic coordination of different parts of the organizations through sequential flow of information and the generation of work orders that are carried on from one step to the other towards meeting the needs of the consumers. The organization has been able to increase its capacity past the consumer demand, thus allowing it to satisfy the growing consumer needs often. Such capacity has been achieved through the acquisition of new technologies such as the Europe-Asia broadband cable, and opening up a wide range of business centers. The latter ensures that the products and services are well-developed and extended to the reach of all consumers. However, it is of significance that the company embraces quality considerations in its capacitive development in order to ensure sustainability of the consumers. Reference Etisalat Group. (2013). Annual report 2013. Retrieved from Etisalat Group: http://www.etisalat.com/en/system/docs/12-4-2013/Etisalat-AnnualReport2013-English.pdf Griffin, R. (2013). Fundamentals of management. Boston: Cengage Learning. Haksever, C., & Render, B. (2013). Service management: An integrated approach to supply chain management and operations. Upper Saddle River, New Jersey: FT Press. Toni, A. F. (Ed.). (2011). International operations management: Lessons in global business. Farnham: Gower Publishing, Ltd. Read More