Part A: State of the Art Review
Process technology is a growing phenomenon in contemporary organizations. This paper looks at its trend in the production and service industries. The discussion looks at some of the principles in used in technology processes in order to bring out its importance. Highlighting its role in strategic management, it explains its challenges. Among this is the uncertainty that technology has and its inability to manage sustainability in low carbon release. Global factors contribute to the changes in technology and organizations. The discussion brings out the role of group technology and the integration of technology in some functions. The review of some of the most recent journals in international production is ideal for practical issues in the contemporary setting.
Trends in the operation management indicate the use of technology on a large scale (Wemmerlov & Hyler, 2011). This article is a discussion based on a research carried out within the large technology and metalwork production units. It reveals the use of technology applications for group design, process planning, business transactions, sizing and selection of tools. The technology varies from customized systems such as machines, identification systems, security application, process controls and robots. The article brings out the common trends in integrated systems for different functions and operations. These include storage and retrieval, computerized manufacturing among others. Technology machine installations improve processes for better productivity and precision while digital applications facilitate for the data collection, analysis, and speed as well as accuracy procedures. Technology is necessary for controlling and monitoring of the process. However, this article leaves out strategic implementation of technology in multitasking, which helps organizations to save time and costs. Evidently, technology trends influence the people, practices, processes, policies and performance systems.
Factors influencing the process technology include efficiency, performance improvement and optimization. Technology selection may be within the set standards or externally influenced (Mondragon, et al., 2016). This is agreeable because production units incorporate technology that reduces costs and elevates profitability. Different activities and functions depend on the artificial intelligence in order to deliver or surpass the expected results. The management of facilities, time in deliveries, and complex productions, requires a set out plan. However, to determine the process of technology and its execution calls for structural changes and diversities in the support systems (Mayadah, et al., 2015). Its functions in a service process include, the establishment of up to date facilities, technologies, tools, equipment, layout and interfaces. Automation produces faster functions such as the movement of goods and people across distances. Production units have the capacity to produce in high volumes within a short period because of technology. In the service industry, technology enhances communication, electronic transfers and digital operations. The hospitality industry also invests in technology for simplified electronic bookings and customer service.
Principles used in process technology indicate a systematic process that is innovative (Roubaund, et al., 2017). Technology processes also operates on the efficiency factor. This means a reduction of wastage and efficient implementation of resources. Faster processes accomplish tasks within a short time and they encourage timely deliveries within the specified demands. The transport system uses satellite navigation to arrive at the destination without wasting time. In health care, technology process enhances the monitoring of patients in order to save costs of hiring extra workers to do the job. This ability to manage complex systems applies energy saving principles for sustainable processes. Since technology is not static, organizations need to train its people for its management and maintenance. Technology keeps changing for the better and processes define the implementation process. The process integrates different functions under guiding principles of management for people, process and technology functions. Consequently, operations management continues to redefine itself because of the changes in the industry (McIntosh & Ketokivi, 2017). Technology changes are also unpredictable making this process harder to predict.
Process Technology Review
Opportunities for expansion of process technology comes from global, and industry contexts (Liu, et al., 2014). Emerging technologies such as e-business and logistic processes bring about changes in the implementation, adoption and adaptation. Organizations have to reexamine their use of technology every now and then. The result is the diversification of technologies, and integration for exceptional delivery. The expected outcome is the realization of service delivery in accordance with customer expectations or the organization’s technology concepts. An assessment of existing gaps usually determines the systems upgrade. The unification of crucial operation segments namely the service, supply chain, learning and operations paves the way for the organization to achieve its goals efficiently. This integration process is another opportunity and it involves both the internal and external applications.
Challenges in technology process include the complexities in the production environment, which compromise the performances (Thome, et al., 2016). Machines are not perfect and technology does not always give results. The practical application in operations also depends on the connection between the people, technology and processes. Failure on one part compromises the other. The management of low carbon release remains a challenge and this raises concerns about the ability of technology process to address ethical issues of a production process (Marcelo, et al., 2017). Technology process also has uncertainties therefore; it is difficult to use its principles in all risk management strategies. Although technology is one of the determinants of an organization’s competitive edge, it has limitations in terms of security risks, organizational benchmarking and the high costs of advanced technology.
In conclusion, research into production management covers the supply chain management and service operation factors. Effective process technology revolves around concepts of efficiency, strategic management and sustainability. These create changes in the global markets as more organizations search for technology solutions that have a competitive edge. This process presents opportunities for the organization to grow locally or internationally. As the business adopts new technology, it needs to brace itself for new trends in the market as well as fresh challenges. Flexibility helps organizations to try new technology approaches that enhance performance. Future trends highlight information sharing in global supply chains for international organizations, which have multilevel complex structures (Olhager, et al., 2017).
Next is a fashion retailer industry in the UK with a huge global presence. Specialized in clothing and footwear, the brand has established itself regionally and it has units across the world. Its competitors are giant retail companies in Fashion like H &M and Mark & Spenser. The management of branches across Europe, the Middle East and Asia is not easy. The brand has different segments for its target customers. Among these are clothing items, footwear, households and accessories among others (NextPlc, 2017). The brand has over 700 retail stores located in 60 nations. This diversification is a strategy against the complex consumer trends and competition in the fashion industry. The volatile shift in customer demand and the high expectation on product quality poses a challenge for the supply chain process. The company has offline stores as well as successful online sale. With more than 4 million online buyers, the brand has a simplified system for placing orders in its next day delivery. With over 6000 employees in the factory and non-factory segments, the brand needs a stable base for its global suppliers.
Opportunities and Challenges of Process Technology
For over 150 years, the brand has been able to maintain its quality. Next retail is part of Next Plc a clothing and footwear retailer. Its processes involve the product design, manufacturing and distribution. Its strategy of using large distributions joints instead of the smaller ones is successful because of the use of technology in the online shopping. The brand has gone through changes over the years in order to become efficient. Part of the changes include restructuring processes in which it had to close some stores. It has also gained expansion of its chains through franchising in Asia, parts of Europe and Middle East. With annual returns of £650 million, the brand has multiple departments within its large and small stores.
Next retail has more than 180 global stores and its business model involves both retail and wholesale channels. Its online business operates through web links. The integration of its design, manufacturing and distribution points requires a holistic approach. Next has a manufacturing unit in Asia-Hong Kong. In order for the brand to communicate with its multilevel functions, it needs technology. The brand uses the website as a technology process to announce its style designed for men, women and children.
The retail business industry in the UK is highly competitive. In this industry, operational efficiency is a key factor of management processes. Next makes most of its profits in online sales, this call for e-marketing plans with broader benefits (Mckendrick, 2017). Customers need faster and efficient online transaction links. Next invests in online technology for safer transactions and strategic tracking systems.
Technology processes online provide data analytics for market research. The social media platforms has information about the customer’s interaction as well as their response. Next is a modern retail business whose management concern is:
- Cost reduction
- Efficient inventory management
- Improved product quality
- Faster business functions
- Reduced risks
- Greener production with low carbon and energy efficiency
In addition to these, managers in contemporary logistics focus on customer service, partner relationships and talent management (Tayur, et al., 2012). There are technology applications for each of these processes. An overview of its implementation indicates different configurations suitable for the fashion industry (Spina, et al., 2014). Size, volume and complex mechanisms determine the adaptation of technology. Technology is significant in improving the lifecycle, speed of production and risk management.
When making decisions about the choice of technology, factors affecting the planning and control are, its efficiency, costs and higher returns are (Mayadah, et al., 2015). The organization, structure, resources and the business environment should complement the technology. Mobile technology is a boost to e-commerce because of the personalization of information. The use of mobile services for target marketing and communication is a new strategy for regional and national communications. Next has a structure that consumers trust for online transactions because the modern consumer has choices that influence the success or failure of a process (Mikhailov, 2017). Its use of Facebook Messenger to access customers is prone to misuse and misunderstandings. To avoid this, Next invests in a number of websites, links and social media links. The use of Twitter and LinkedIn for professional communication caters for business networks with other brands (Riff, et al., 2014).
Principles used in Process Technology
The critical analysis of operations, transformation process for the product measuring performance in the technology process is complex. It requires the validity of the technology process as well as improvement techniques such as integration. Next as a retail store has an objective of improving its sales. Processes that contribute to the achievement of this goal include customer relations, retail sales, resource management, supply chain and leadership. The integrated technology process streamlines major segments of the production process (Montabon, et al., 2017). Like other reputable brands, Next uses the Customer Relationship Management (CRM) system, which combines people, processes, and technology (Weske, 2012).
The performance of a technology process in a supply chain management depends on the information exchange process, quality of the process and the contents (Nadler, et al., 2016). This guides the implementation plan for stakeholders involved. Performance improvement depends on the capability of the new technology. Technology gives Next and edge because it stays ahead of its competition (Chambers, 2017). Performance management includes having control over the rising expenses in the production unit. Next has inbuilt systems designed with energy efficient and sustainable processes as part of compliance to the manufacturing regulations.
Economic production concepts like trade off analysis helps Next to balance its costs, speed, dependability and flexibility. The operations manager overcomes these by limiting wastage across its operations. NeXT’s idea of having a production unit in Hong Kong is good because it saves on shipping and transport costs. However, the brand also needs to consider recycling as part of its organizational goals. Technology solutions include e-waste recycling of energy, and in process recycling of water and raw materials. Ethical fashion is one idea that Next needs to adopt for its web and social media campaigns.
The company’s operations indicate the adoption of technology process as a trend. From the brand campaigns, it is evident that it borrows its strategies from the external factors in the competitive market. As a best practice, the brand incorporates digital technology and manufacturing systems that enhance performance (Loudmouth, 2017). As part of the plan, Next has a Digital Asset Management (DAM) for content management of its videos and photos. For efficiency in technology processes, the brand collaborates with technology firms for large-scale installations.
Technology has specific roles and functions for solving different problems. Its capabilities create relationships between the supply chain and the organization. Its responsiveness to the supply chain enables its integration. Group technology has benefits but it requires an advanced method of coding and processing by the groups (Maleki & Hung, 2013). Next use of efficient tools for project management and data collection helps its decision making process. Techniques such as SWOT analysis, continuous improvement and performance indicators use technology support systems for individuals and groups working for Next Retail. Businesses rely on technology for basic ideas (Neely, et al., 2016). The adoption process at Next is in line with the global market trend. The brand also invests in training its employees for successful implementation.
Conclusion
The success of global retail brands in the Fashion industry cannot ignore technology process. The commercial and retail industry within which Next Retail exists revolves around the strategic adoption, management and implementation of ICT. Modern manufacturers seek for cost effective technology tools and applications for supply chain management. Saving on costs and minimizing wastage contributes to revenue increase. Technology is an answer to such controls. The Next case study is proof that an integrated approach to management of technology is beneficial to the organization. The use of digital technology for business to consumer interactions helps Next to communicate its innovative ideas effectively. There are platforms in e-business for business-to-business interaction which allow Next to communicate with its distributors, wholesalers and other retailers. The review on current production journals points to the fact that modern brands lean towards process technology that is efficient, high in performance improvement and optimization. The integration of strategic concepts whose focus is on people, process and practice is beneficial. Such strategies incorporate ethical concepts such as sustainability and energy efficiency. Factors of performance indicator engraved within the management processes include task oriented, internal capabilities, external trends and resource availability.
Part B: Company Analysis
References
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