Operational Management Issues for Services - Essay Example

Operational Management Issues for Services Introduction The conception of operations management is fundamentally described as the procedure which alters as well as combines different resources that are made use of in the production system of a particular organisation. Thus, it can be stated that the operations management generally involves certain interconnected management actions that are extended to service management of an organisation (Shim & Siegel, 1999). The business organisation i.e. Pinnacle has been recognised to be one of the leaders in its business market segment and especially its brand recognition is extremely high. The organisation generally offers next day gift delivery service throughout the United Kingdom and also in the overseas business market. However, in recent times, new market players have considerably entered into the business market of Pinnacle due to increased market competition and thus the organisation is quite concerned to reconsider its superior market position. The chief vision of Pinnacle is to remain as the topmost brand as well as the first choice of gift delivery service for the customers. In this particular paper, a comprehensive analysis regarding the business operations that are performed by Pinnacle in relation to the business goals as well as the levels of customer service of the organisation will be taken into concern. Moreover, certain alternatives that might enhance the business operations of Pinnacle, suggestion of suitable options along with covering implementation issues and depicting appropriate recommendations for Pinnacle will also be addressed. A Critical Review of the Business Operations of Pinnacle The crucial business function of Pinnacle is generally associated with offering gift delivery service throughout the UK and also in the overseas regions. The majority of the sales of the organisation usually arrive from next day gift delivery service. The organisation possesses broad number of retail outlets or stores in the UK along with in the overseas regions. Pinnacle holds or bears a central administration function that essentially handles the direct services of the organisation. The business orders of the organisation are performed on the basis of placing the orders at a shop or alternatively, placing the orders centrally. In this context, all the orders of the organisation are delivered by the respective outlets or stores. The retail outlets or the stores are independently owned and perform the business transactions under Pinnacle brand name. From the perspective of the business operations in relation to order distribution and processing, Pinnacle places its business orders from one shop to other shop within the UK. In order to place its business orders in the overseas regions, the organisation executes this sort of business operation through its established mode of central operation. In terms of performing direct sales, the organisation fundamentally conducts its direct sales through a nationally advertised free contact number, online sales through making use of the website of Pinnacle and direct mailing responses that come over phone. It has been viewed that the main business operational systems of Pinnacle include paper based system for taking business orders from the customers by contacting them directly over telephone and PDQ (credit card swipe) machines for the purpose of effectively processing all credit card related payments. Furthermore, the other chief operational systems of Pinnacle include the website of the organisation for performing online sales and an outdated Automated Call Distribution System for directing the calls of the customers in relation to the placement of the business orders of the organisation. In this context, Pinnacle should introduce a unique or innovative Automated Call Distribution System that can direct more customer calls and thus ultimately can raise the business orders of the organisation by a significant level. On the basis of the flow chart, in relation to the business objectives along with the level of the customer service of the business organisation, it has been recognised that Pinnacle follows a simple business operations management procedure in order to attain its expected business targets. According to the diagrammatic view of the flowchart, the organisation generally places its business orders through online means by the implementation of the website of the organisation. This particular performance of online business operations could be advantageous for Pinnacle due to the changes in the purchasing channels along with the increased pressure in the lifestyles of the customers. Moreover, the increased rate of traffic as well as parking restrictions in major towns and cities possess a negative impact upon retail businesses. As a consequence, the internet or the online mode of business operations ultimately has become a primary direct procedure of placing business orders and is growing quite considerably. It has been observed in the flow chart that initially the business order of Pinnacle is placed through online mode and then the business order or the sales proceeds and the money arrives into the account of the organisation by executing the Process Data Quickly (PDQ) (credit card swipe) procedure. Once the payment is approved, then the product is ordered to be shopped, despatched and ultimately delivered to the customers. This systematic procedure and execution of the business operations online can assist the organisation to attain its desired business goals along with enabling it to provide high level of customer service, significantly. A Brief Overview of the Proposed Alternatives for Pinnacle The idea of technology plays an imperative part in the operations management of a particular business organisation such as Pinnacle. It is gradually becoming as a structural as well as an essential element in the study of operations management. The adequate introduction and the execution of technology factor ultimately enhance the performance of the working operations of the organisations. It also facilitates to establish certain innovative business features that ultimately support the organisations to attain their expected business aims. The technological factor delivers smooth working environment for the different organisational functional areas that broadly include design, distribution as well as production along with effective business operations of a particular business organisation (The Open University, 2012). In order to improve the business operations in terms of technology, Pinnacle can broadly introduce various alternatives such as developing a unique e-commerce based website and maintaining a strong database in order to list or to keep a trail of its different valuable brands or products. Additionally, Pinnacle can introduce different technologies in order to deliver adequate online support to the customers by introducing frequently asked questions (FAQs), discussion boards and chat rooms (Anajana, 2004). The above discussed technologies would be the most sensible technological options for Pinnacle in order to enhance its business operations along with attaining its expected business targets. From the viewpoint of developing an e-commerce based website, the business organisation i.e. Pinnacle can generate effective as well as smooth business relationship with the potential customers, product manufacturers and business associates. Moreover, the development of e-commerce based website would also enable an organisation such as Pinnacle to possess unlimited store hours along with delivering non-stop business services and increasing brand or product awareness towards the customers. In addition, it would also facilitate the organisation to establish customer loyalty, diminish various business related costs and make easy delivery of product related information (eCommerce Optimization, 2008). In relation to the technology factor, maintaining database would ultimately help Pinnacle to lessen data redundancy, update errors, increase consistency and enhance data security along with facilitating towards advancement of new application programs. All these significant benefits of maintaining database would ultimately improve the business operations of Pinnacle by a considerable extent. Besides, from the viewpoint of delivering superior quality customer service along with improving the business operations, Pinnacle could adopt the different technological features like chat rooms, discussion boards and frequently asked questions (FAQs) similar to other online business organisation such as eBay (Chen, 2005). These sorts of unique as well as significant technological features that are implemented by eBay represent widespread assortment of many commonly asked questions that are ultimately provided to the users which are listed as well as categorised on the website of the organisation with the intention of supporting the new users. Pinnacle could implement the above discussed technologies because the organisation can post various useful as well as valuable messages in relation to its several brands or products that would ultimately facilitate it to ensure smooth implementation of its business operations. The crucial benefit that can be obtained from executing these technologies is in terms of having an option to adequately keep a trail of the customers or the users regarding their likings, attitudes, behaviours as well as preferences towards the different brands or products which can make the business operation of the organisation simpler and well-organised (Chen, 2005). Thus, it can be stated that the above discussed proposed alternatives would be most sensible as well as logical options for Pinnacle in order to enhance its business operation functions along with attaining its expected business targets on the basis of technological factors. A Brief Idea Regarding the Implementation Issues of the Proposed Alternatives For the purpose of introducing as well as improving overall business operations, Pinnacle would have to implement the prescribed alternatives tactfully. In this context, there might lay certain major issues while implementing the prescribed alternatives in relation to technological factors. From the viewpoint of developing and introducing the e-commerce based website, Pinnacle might face certain important implementation issues that might restrict the company from improving its business operations by a certain level. In terms of technological advancements, one of the significant limitations of introducing an e-commerce based website can be restricting a substantial number of people from using the e-commerce website. This may be due to the reason of deficiency in knowledge as well as trust of the customers or the users towards the conception of e-commerce website and business as well. Moreover, due to this particular reason, a major volume of people do not use internet and thus may not concentrate deeply upon the online business operations that are performed by the organisation. This similar fact is also associated with the proposed alternative of introducing chat rooms, discussion boards and FAQs. The customers or the users might fail to share their preferences and likings because of having deficiency in internet knowledge and business operation (eCommerce Optimization, 2008). In relation to the alternative of maintaining databases, the implementation issue that the organisation might face is regarding the factor of time and procedure. The database systems are considered to be quite complex along with time-consuming as huge quantity of data or information are stored in a systematic way. Besides, the start-up costs of the required hardware as well as software related components while maintaining database are substantial and also primary training is necessary for the users and the programmers in order to maintain the database efficiently. Therefore, these are certain crucial implementation issues relative to the prescribed alternatives that might be faced by Pinnacle for the motive of enhancing its different valuable business operational functions (Pratt & Adamski, 2011). Conclusion After acquiring a brief idea regarding the aspect of operations management, it can be stated that this particular element i.e. the idea of operations management possesses immense value towards a particular business organisation, and supports the organisation to raise the level of customer service as well as attain expected business goals. It has been recognised on the basis of the flow chart diagram that the business organisation i.e. Pinnacle generally performs its business operations through the execution of online sales via the medium of internet and it ultimately tends to increase its level of customer service considerably. Apart from the outlook of the business operations that are perform by Pinnacle, certain other significant alternatives have also been prescribed for Pinnacle in order to enhance especially the business operations of the organisation. The important prescribed alternatives include the development and the introduction of an e-commerce based website, maintaining databases and the implementation of chat rooms, discussion boards and FAQs. On the basis of these crucial technological facets, it is expected that Pinnacle can improve its business operations more efficiently in the long run. Recommendations Pinnacle, in order to improve the business operations, would have to upgrade to data storage management or the database system, which it could maintain for implementing superior business operational functions. By upgrading to data storage management system, it would be quite easy for the organisation to save as well as to use the relevant data that embraces contact information of the customer and the business orders that are to be processed among others (CenturyLink, Inc., 2011). The other probable recommendations for Pinnacle in order to enhance its business operations include maximising the internet connection on the basis of which the entire business operations of Pinnacle depends by a considerable extent. Moreover, along with maximising the internet connection, the organisation would also have to select an appropriate and a superior email system for performing successful and enhanced business operations. By focusing upon this particular fact of selecting a suitable email system, the organisation can acquire deeper understanding regarding the mobility, security along with different cost requirements that might prove beneficial for the organisation to improve its business operations by a significant level (CenturyLink, Inc., 2011). References Anajana, C. S. (2004). Online internet business models. Retrieved from http://www.stylusinc.com/website/business_models.htm CenturyLink, Inc. (2011). Improve business operations through technology. Retrieved from http://www.centurylink.com/small-business/resource-center/sites/default/files/pdfs/P2_Improve_Business_Operations_Through_Technology_Brochure.pdf Chen, E. T. (2005). Leveraging IT for a competitive advantage-case of EBAY. Issues in Information Systems VI(2), pp.77-82. eCommerce Optimization. (2008). What are the benefits of eCommerce & eBusiness? Retrieved from http://www.ecommerceoptimization.com/ecommerce-introduction/ Pratt, P. J., & Adamski, J. J. (2011). Concepts of database management. US: Cengage Learning. Shim, J. K., & Siegel, J. G. (1999). Operations management. US: Barrons Educational Series. The Open University. (2012). The role of technology. Retrieved from http://openlearn.open.ac.uk/mod/oucontent/view.php?id=399417§ion=3.7 Read More