Question: Greentech June 2009

It is a difficult question I think! I would approach it as follows: Fulfilling a strategy requires an organisation to carry out a number of activities. These can be shown on the value chain, so would include inbound logistics, operations, outbound logistics etc. A company might have a cost leadership strategy. If so it will have to design processes which allow cost leadership to be achieved. This might include just-in-time inventory, very high automation and long batch runs. I could also mean that in some cases the process is outsourced to a company who can carry ot out cheaply. If the company has a diffeentiation strategy, then its processes might have to allow tailoring products and services to individual needs, do the production process will have to allow flexiblity and the technology development activity/process will have to be responsive to customer requirements. The link between strtegy and design can also be seen other strategic decisions. For example, if a company sees that it has to befin selling on-line to compete, thenit will have to design processes for taking orders, processing credit cards on-line, packing and depatching goods. Process design is essential to strategy implementation. Hope that helps.

Thank you gromit. You made the concept very very simple. Now i can understand it. Thank you again :)