Difference between revisions of "Operational Efficiency"
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| − | Operational Efficiency | + | Operational Efficiency is about doings right, minimizing the resources input requirements for a given output. Four drivers can be identified: |
| + | # '''[[Economies of scale|Economies of scale]]''' and learning | ||
| + | # '''[[Optimization of product design|Optimization of product design]]''' | ||
| + | ## Business process re-engineering and smart product design enables companies to reap efficiency benefgits. | ||
| + | # These efficiencies may be complemented by '''Lowering of input costs''' | ||
| + | # '''[[Culture and norms|Culture and norms]]''' may also increase operational efficiency. In the eyes of some employees, low cost curve is not particular attractive way to spend a working day. As a result they create organizational slack. | ||
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| + | <html><img src = "/static/files/MBI/Module%2011/operationalefficiencies.PNG" width="600"/></html> | ||
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[[Category:marketing]] | [[Category:marketing]] | ||
Latest revision as of 19:50, 27 August 2020
Operational Efficiency is about doings right, minimizing the resources input requirements for a given output. Four drivers can be identified:
- Economies of scale and learning
- Optimization of product design
- Business process re-engineering and smart product design enables companies to reap efficiency benefgits.
- These efficiencies may be complemented by Lowering of input costs
- Culture and norms may also increase operational efficiency. In the eyes of some employees, low cost curve is not particular attractive way to spend a working day. As a result they create organizational slack.
