11Managing Service Operations
11.1. Operational efficiency
The way a company manages its operations defines its operational efficiency. Operational efficiency is an issue for any company, whether it is an industrial or service company. This challenge is all the more urgent as the competitive environment intensifies and the company’s competitiveness needs to be strengthened. In services, operations and processes have specificities that must guide the choices and actions of the service provider in improving its operational efficiency.
11.1.1. Operational effectiveness framework
11.1.1.1. Purpose
When reading through corporate reports, operational efficiency is a recurring theme in the presentation of goals and strategies. Operational efficiency is seen as a key factor in solid, profitable and responsible corporate growth. The link between operational and financial performance is widely emphasized to justify the focus on operational efficiency strategies and approaches. Efficiency is used as a powerful lever for business competitiveness, which is all the more powerful in a turbulent competitive environment.
Operational efficiency aims to improve all the processes of the company that lead to the product or service, that is, the operational execution. It is the performance in terms of productivity, quality of the offer and cost reduction that the company aims to increase through the implementation of an operational efficiency process. It is its value creation that the company ...
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