Changes are required for continuous improvement.They can be Administrative or Human Resources or Technical. Of the three technical or technological changes are the most costly but contribute much to the competition and profitability. If an organization tends to be stagnant and does not implement any changes the firm will go out of the market and finally end up in the Red. Finally it may go out of business.
A methodology for technology change must be evolved keeping in mind a nation’s goals, needs and special environment. The cost of hardware and software should, first of all, be justified by the production/marketing volume. Although there is flexibility to manage variety and to handle changing situations, which phenomenon is described by some as economies of scope, a certain minimum amount of economies of scale is necessary. The latter is not easy to achieve.
Even Japan, which being singular in its export performance is now feeling the need to enhance the internal market. Moreover, demographical necessities, the level of unemployment and the distribution of the degrees of skill area all factors which must be considered when introducing new technology. We cannot transplant any technology or system without adequately considering our country’s economic, social and cultural background.
Yet advancement in technology is also inevitable if we are to be a part of the changing scenario in the rest of the world. For the past several decades and continuing into the present, in the global market India has taken a niche as a low cost producer of items that are either primary or are at the lower end of technology. This is also true of its computer software products. In India much of our research and development takes place in the government sector and very little in the private companies. Consequently, our developments in technology have taken place mostly in the space and atomic energy sectors with very little trickle of benefits to the other sectors. But it must be well understood that being a low cost low tech producer is not a very sustainable position in the global market. There is somebody else tomorrow who will figure out how to do it cheaper. India has the brain power and the technology base to move out of this niche. Hence we must be open to advancements and evolve our own strategy for technological change suited to our special needs and social environment while assessing current and future impacts.
Service Orientation and customer Focus:
Countries such as India are now becoming centers for services in Information Technology (IT) and Business Process Outsourcing (BPO). The vital resource in these organizations is the human resource. Most of the operations performed here are the human operations. Operations management is impossible to separate from human resources management in these organizations.
There are the operations that need to be examined for improvement and much of these operations that depend critically upon the human skills and the abilities be managed effectively and efficiently. How should effectiveness and efficiency be defined/described in these cases? The known operations management principles be applied to the organizations. These are some of the questions that need to be addressed with respect to these organizations. New Dimensions of service could be learnt through a study of these operations.
Services sector has expanded rapidly in most countries of the world. In several countries it is the predominant sector of the national economy. With these developments it is being realized with force that the questions of operations and production management are not just about the machines and materials as was the case traditionally. And, this is true of the service organizations as well as the manufacturing organizations.
Service has now become the core of the business philosophy worldwide. Hence, production and operations management as an integral part of the business has to be customer focused. That is, it should be externally, not internally, focused. Managing production and operations is much more than just an efficient arrangement of the physical resources. It should be oriented towards providing service to the customers and be conscious about its responsibility to the society at large. These requirements necessitate that human relations be emphasized a change be brought about in the work culture an in the total industrial /business culture.