Business Operations Models: Becoming a Disruptive Competitor 1st Edition

Every company needs “operations” and operational management at the heart of its business for fairly obvious reasons, yet rather too many companies fail to view this as something that deserves to be managed with a strategy. This book seeks to change that.The authors believe that by strategically utilising a company’s operations, a company can transition and up its game, possibly leading to greater profits, greater business, increased customer satisfaction and many other positive metrics. It need not necessarily cost a lot more to implement either and it could save money in many cases.By highlighting successful companies that have transformed their businesses, the authors seek to show that there is a gap between the accepted theory and devolved practice. As well as acting as cheerleaders-in-chief for this desired change, they also provide frameworks that can help integration and take-up. The world might be your oyster with a bit of focussed, operational strategy to join the other dots on the corporate roadmap.The book’s message itself won’t be new; for example academics studying operations and supply chain management this is not “rocket science” even if this is a very good, clear introduction to the subject. For those who it could really matter to, it has the potential to be a powerful (metaphorical) kick up the backside. The wise recipient of the kick may realise why it has happened, the less-wise may look astounded, but maybe the message will seep through eventually. The authors managed to make a book that serves several reader groups at the same time; the generalist can improve their knowledge; the academic can get a clear understanding to the problem in relatively few words and the professional who is doing this stuff for their day job could (or should) understand the importance of the subject and the necessity for change.If you suspect that your company is not making the most out of its operations functions then you should strongly consider this book. If you believe you are already utilising them to the max, maybe anyway you should take a second opinion with this book?

“The big idea behind this book is that the way a company configures its operations to deliver this brand experience to customers – while delivering viable financial performance – is an opportunity for significant competitive advantage and marketplace disruption.” (p. 2)Business Operations Models: Becoming a Disruptive Competitor by Alan Braithwaite and Martin Christopher (Leading Procurement Strategy, Humanitarian Logistics) is a book that sort of sums it all up on its own with the ‘big idea’ quote above. Changing the configuration of an operation to get a different result is a straightforward enough idea. Why, then, do you need to read beyond page 2? The answer to that question lies in the many case studies and visuals in the book. Needing to reconfigure your operating model for competitive advantage might be an easy concept to accept, but the execution is likely to be difficult.Carrying out such a change requires a single coherent value proposition for everyone in the organization – those who touch customers or finished product and otherwise. According to Braithwaite and Christopher, the power of operational excellence has been underestimated in practice and from the perspective of shareholders and the board. I struggled with this idea a bit (because how could leadership not recognize the importance of an effective operational model to their success?) until I read their observations of corporate strategy statements.“Strategy statements are most usually expressed in goal-driven terms based on market size estimates, competitive structures, price points in the market and high-level views of potential; their development is normally anchored in economic or competition theory. Practical operational capabilities are often taken as read, or not seen as a source for step-change performance.” (p. 3)This latent potential exists for organizations who see the structure of their operations as a means to effect the value delivered to customers. Competitive advantage is compellingly characterized by the authors as not one ‘thing’ to be created but rather an inherent capability to be agile and dynamic (and therefore opportunistic) in response to shifting conditions.Having an operational model is not unique – all companies have them – It is how and why you structure the operation a certain way and how that leads to competitive advantage the enables a company to be a disruptive force. The alignment of all functions in this way means that instead of brand vs. offerings vs. price point vs. performance, all of these (and more) come together cohesively.Since I read this book from a procurement perspective, I appreciated the authors’ position that sourcing and supply should not be about functional optimization but rather contribution to operational excellence (hint, hint finance…) and the idea that any effort to lower costs must be done without damaging the value to customers in order to undercut the competition.There is some lean thinking in the book, although the authors are not heavy handed about it. They mostly focus on lean methodology as a way to reduce operational waste such as inventory when it does not offer justifying value.I think there are two target reader segments for this book. The first is executive leaders that want to transform their operation in a way that will alter their role in a market. The other would be managers in any of the operational functions mentioned in the book that have high aspirations and a vision for the true contribution they could make if they were positioned differently.

For most academics and professionals working in the area of Operations and Supply Chain Management, none of the underlying ideas of this book will be really new. Based supply chain concepts like lean or S&OP, this book supports academia’s demand for increased strategic importance for Operations.However, this doesn’t make it any less worthy to read. It is an easy-to-read summary of various complex theories – allowing their dissemination to everyone interested, regardless of their background. Moreover, the authors’ practical experience and deep involvement with industry enable the shift from purely theoretical and academic considerations to their application in the real world of business.In spite of its roots, “Business Operations Models” is not just another demand that Operations and Supply Chain should be more strategic. While supporting the request for Operation’s seat at the boardroom table, Braithwaite and Cristopher rely on the concept of a bidirectional relationship between Operations and corporate strategy. Their definition of a more strategic operational function focuses on Operations informing corporate strategy, while acting within the set boundaries and according to given directions. Their explanations and case studies clearly demonstrate how to leverage Operations in this position – and the related benefits.What I personally like most about this book are the exercises at the end of each chapter, which allow the application of the described theories and the development of a disruptive business model. Even with the limited information and room for discussion I had while reading, the tasks and prescriptions allowed me to come up with some creative ideas.This book is a straightforward and easily understandable summary of existing concepts on business strategy and Operations, but it is also so much more than that. It is a guide to transforming your business – and becoming a disruptor.

Beautiful book.

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