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How would you define operation management?


The role of operations management is to manage the transformation of an organization’s inputs into finished goods and services using processes. Process technology and staff would be the main transforming resources that are directly involved in the operations process for Nokia.  Stephen Elop refers to a lack of accountability and leadership from within Nokia that has made it being left behind in the smartphone industry.  Another definition that is directly linked with the memo is “satisfying market requirements (measured by competitive factors) by setting appropriate performance objectives for operations” (James, 2011).  The explanation on the functional level strategy is directly linked to the burning platform memo. This is where functions of the business (operations, marketing, finance) make long-range plans, which support the competitive advantage being pursued by the business strategy.  A complete overhaul and applying the Hill (2005) five-framework steps for operations strategy formulations would be an ideal go forward measures that Nokia will have to undertake to keep abreast with the smartphone markets. The transformation processes need to be revamped in all of the areas of Nokia’s business organization. 

Reading the article one could infer that step 3 (Assess how different products win orders against competitors) and step 4 (Establish the most appropriate mode to deliver these sets of products by making structural decisions) are identifiable in the memo.  The CEO for Nokia has analyzed and evaluated the organization's trend and is making an assessment by comparing their products with other smartphone competitors. His assessment is based on how Nokia’s product can win orders against competitors. The memo is also urging the Nokia business staff to come up with the most appropriate mode to deliver new smartphones by making structural decisions. These decisions are crucial for Nokia since it will allow for changes in their behavior towards the smartphone market competition.  These decisions will include the design, plan, direct and improving of all the activities involved in producing Nokia smartphones. 

Internal factors are Nokia’s mobile operating system Meego and Symbian which have been used and applied to the markets but its slow production and product development to meet its ever-increasing consumer demands and preferences have led Nokia to be non-competitive in the market. The staff and leadership involved in the development and progress and marketing of these mobile operating systems have not been able to meet the demands of the global smartphone markets.
External factors include Apple, Android, MediaTek and Chinese OEMs who have redefined the smartphone markets from the high-end, mid-range and low-range levels leaving Nokia to fall behind within the industry in terms of targeted markets.  

The violent imagery of the burning platform should be taken as a bargaining tool that Stephen is using so his Nokia business can rise to the market competition provided by other smartphone companies.  The CEO is using examples of external factors and companies such as Apple that would bring about a burning desire from his staff and Nokia business to rise to the smartphone market competition.  The intent of the burning platform is that the CEO would like the internal structures within Nokia to review its operations management processes so that it stays abreast with the smartphone industry.  Making informed decisions is inevitable and Nokia needs to address them quickly so that it is not left behind in the market.  To an extent, it is motivating and encourages increased innovation and product developments.  It could backfire if there is a lack of innovation resources and facilities to help support increase product development and alterations.

Reference:
·      James, T. (2011). Operations Strategy. Bookboon.com
·       Edwards, J. (2013). Al Microsoft Employees Should Read Stephen Elop's 'Burning Platform' Memo Right Now. Business Insider. Retrieved from: http://www.businessinsider.com/stephen-elops-burning-platform-memo-2013-9 




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