Every business relies on a series of operations to continue running properly and in order for the business to succeed, effective management of these operations is essential.
Operations management (often shortened to OM) comprises all of the administrative processes that a business undergoes in order to enhance workflow efficiency. OM enables a business to stay on top of its budgets, investments, and overall finances to reduce costs and maximize profits.
In this article, we are going to cover everything you need to know about operations management. If you would like to learn more than is detailed in this article, head over to https://www.servicenow.com/products/it-operations-management/what-is-aiops.html, where you can read about the management of IT Operations (ITops) and Artificial Intelligence for Operations (AIops).
What is Operations Management?
Operations management involves the effective utilization of all of the resources, materials, technologies, and staff members in a business. The aim of OM is to reduce waste, enhance workflow efficiency, and increase quality control.
Optimal OM looks different for every business, depending on its unique operations and offerings. For example, an e-commerce brand’s operations management might revolve around the effective use of raw materials and the efficiency of the manufacturing and fulfillment processes.
Why is Operations Management Important?
Great operations management enables businesses to optimize their resources, and provide better products and services to their customers. It also encompasses the effective handling and transfer of information from one department to another.
Some of the key benefits of practicing effective operations management include:
- Increased operational efficiency
- Easier product innovation
- Optimization of resources
- Better communication between departments within a business
- Minimized operational costs
- Easier data storage and analysis
- Improved employee and customer satisfaction
What Does an Operations Manager Do and What Skills Do They Require?
Nowadays, most businesses specifically hire a dedicated operations manager who deals with the optimization of OM. The duties of an operations manager are extensive and they must be able to handle multiple things at once.
Depending on the unique operations of the business they work for, the role of an operations manager might vary slightly from person to person. However, there are some general duties that every operations manager will perform, including:
- Analyzing and managing financial data
- Organizing team members
- Creating financial forecasts and budgets
- Identifying the most effective software and IT systems for great operations management
- Overseeing multiple projects and operational systems in the workplace
- Liaise with senior staff members to generate operational plans and strategies
- Interacting with clients when necessary
- Conducting industry research to determine the most cost-effective and time-efficient operational processes
To be successful in their role, an operations manager needs to possess a wide range of skills, including:
- Strong leadership skills and the ability to efficiently delegate tasks
- Great at time management
- Effective communication skills
- Problem-solving and analytical abilities
- The ability to work well in a team
- The ability to provide constructive criticism to team members