Decision Logic Map For Outsourcing In Operations Management

Value added for the customers and the organization

• As the Operations Manager for any of the listed companies below, you are tasked with the decision to outsource part of their products or services for added value to the customer.

• Using the decision logic of outsourcing, provide a detailed Logic map to indicate what should be outsourced and what is to be kept in-house.

• Analyse the factors that influence your decision to outsource or to remain in-house using the 5 Performance objectives.

• Evaluate the risks involved in the process of decision making and recommend mitigating strategies to the risks.

Google is used as a search engine for the internet associated purpose, it is an American Company. In the early stage the founder of Google Company named it as ‘Back Rub’. The products and the services that are provides by the Google company are internet related. The products and services includes searching, Google translate, cloud computing, Motorola Mobile and the technologies which can be use for the advertisement purpose. Google believe that the company should raise the standard of product every time, for the customer’s satisfaction. In this context we will discuss about the decision made by the Google Company for outsourcing its products and services for added value to the customers, and also about the factors that influence the decision of the managers by using five performance objectives. At last the risk involved in the decision making process and the recommendation to overcome from the risk.

The products and the services offered by the Google organization should satisfy the customers for the ‘Value added’. Satisfaction of the customers in terms of psychological and the monetary value from the customer point of view. The Google Company wants that before offering any products or services to the ultimate customers any small or large scale industry should adapt their product (Uncles, East and Lomax, 2013). Now a day the current market situation is very tough, because there are so many competitors in the market for the same type of products and services. Value added has two spectrum of it’s, either value added increase the value of the product or it may rise in the price of the product. The value added process for the Google Company may be the unique products or services that offers by the Google. It also discriminate the same type products from one another, which help the Google Company for competitive advantage in the global market (Nell and Ambos, 2013).

Outsourcing of the Products of the Google Company

The Google Company can out source its products and services to get the competitive advantage in the global market. For Google Company, out sourcing the products and services from outside can be the best way by which the company can stratify its customers. Out Sourcing the products and services can help the organization to increase the profit margin of the Google Company.  Being an operation manager I suggest the Google Company that the company should outsource some of its product and service, from outside the company, or from the one who are expert to produce certain types of products. This Outsourcing may help the organization in various ways, for example; attaining high profit, the quality of the product will be good, if it is done by the experts, and lastly it will take less time than producing a product. The Operation managers can also take the decision to outsource the products and services for the value added purpose, as the quality of the outsourcing product will be good, and may be unique in type. In this competitive market the needs of the customers changes very frequently, so the Google Company should take the decision regarding outsourcing its product and services in order to satisfy the customers (Rutkin, 2014).

• The main reason for Google Company to outsource its products and services, because the outsourcing will take less cost rather than producing of goods and services inside the company. The process will also be faster, which means if the Google Company may outsource the parts of the products and it will take less time to complete the whole product (Lee and Yin, 2012).
   
• By doing the outsourcing the products and services the Google Company can be in touched with the small or large scale industry, as they are doing the same type of business.
   
• The outsource of the products and services can also help the Google company to increase the numbers of customers by providing good quality of products and services, as the products are made by the experts.

The measurement of the operational performance is very necessary for the Google Company, because it will provide the overall information and the current status of the Company (Quintana and Leung, 2012). Some of the important established operational performances are:

• Performance of the sales
• Ratio of the expenses of the Company
• Terminations policy
• Decision of the operational managers to outsource or not

The operation Manager is the important person to take the decision about the outsourcing of the products and services of the company. There are several things which can take into consideration for outsourcing the products and services for the company. They are:

• The area and the climatic condition of the place where the company is situated is good or not for outsourcing of the products and services (Olson, 2013).
   
• The economic condition of the country is also the important factor which should keep into the mind of the operation managers before outsourcing the products or services for the company.
   
• The Demographic conditions is also important to keep in mind of the operation manager, because demographic condition include, sex ration of the region, and also the ages of the customers.
   
• The demand of the customers is also one of the important factors to take the decision about the outsourcing, as if there is no demand for the products in the market, than there is any use to outsource of products and services (Long and Wong, 2014).
   
• The price of the products and services and its substitutes set by the competitors may also be important for the outsourcing of the product.

Complexity and Dynamics Process

Out source	Kept in House
Automated Outsource	Not Outsources

Strategic Importance

With the low Strategic Importance Complexity and Dynamics: High Process

• It is important for the Google Company to outsource the product as well as to retain the product in house.
   
• If the Google Company outsources the product, than it may take time to complete the product and deliver the product to the ultimate customers.
   
• If the Google Company retains the product in house, than cost for training and development of the employees of the organization may increase.
   
• The automated task adopt by the Google Company may need high capital for the company and as a result of continuous change in the demand of the customers, the Google may fail to satisfy the need of the customers (Xiang and Tang, 2015).

With the low Strategic Importance Complexity and Dynamics: Low Process

• If the Google Company outsources the products it may lower in cost.
   
• The Outsourcing of the products may not create any impact on the objectives of the Google business. The sudden change may not be required, as the Google Company is outsourcing the product so the expert members should not require in the company.
   
• If there is lot of demand in the market then outsourcing of the product is required for the Google Company.
   
• If there is not investment, then also the outsourcing of the product is required for the Google Company (Buendía, 2013).

With high strategic importance Complexity and Dynamics: High Process

• The employee of the organization need high quality of training and development program, as the Google will follow the product change.
   
• The operation manager should provide guide and motivation to the employees of the Google Company to retain he products (Hastings, 2014).

With high strategic importance Complexity and Dynamics: Low Process

• If the Google is getting the products with low cost than automated adaptation will not hamper the Google Company.
   
• Cost is the main factor for the Google Company because the lower cost of products can give the competitive advantage to the Google Company.

The products that should Out Source:

1. Google Car
2. Google Ad word
3. Google Scholar
4. Google Translate
5. Motorola Mobility LCC

The products that should be retain by the Company:

1. Google Apps Engine
2. Google Chrome
3. Google Search
4. Google Alert

1. Quality:  For the Google Company it is important to maintain the quality of the products and the services that are offers by the Company. It is the first priority of the Google Company, as the quality is the necessary factor to create the attraction in the customers. The Google Company cannot compromise with the quality of products, because if the quality of the products is not good than the customers will not buy the products from the Google Company (Kent, 2011).

Reasons for outsourcing

2. Cost: With the maintenance of the quality of the products and services the Google Company also keep in mind that the price of the products shall not be high. As there is many competitors in the market for the same type of products and services and if the price of the Google products is high than no one is going to use the products and services from the Google Company (Uyiomendo and Tore, 2015).

3. Speed: It is also important for the Google Company to maintain the time. In this context we are talking about the delivery of the products to the customers, and also the time which required for producing the product. Now a day everyone is more or less busy with their work, so the customers prefer the online buying system, and also want that the delivery of the products should be on time (Frimpong, 2013).

4. Dependability: With the maintenance of the quality, speed another important thing for the Google Company is maintain the time. Time is regarding about the delivery of the time taken by the organization. If the customers buy online products, the organization give a specific time and promise to deliver the product on time. So the Google need to maintain the time as well to satisfy the customers (Sharma, 2013). The aspects of dependability are

Internal: In the internal aspects the Google Company is depending on its employees that they can manage the time and take less time to produce the products

External: In external aspect the Google Company try to deliver the ordered products to the customer on time, so that the customers can believe in the company.

5. Flexibility: The flexibility is also required for the Google Organization as, there is different customer who wants different types of products, for which the company have the flexibility in the working system to produce different types of products for the different customers. it is seen that in the time of buying the products online the customers go for different choice and look for the new collections of products, so it is necessary for the Google to produces different types of products (Bennett, 2015).

The operation managers always faces some of the risk in the decision making process. There is an obvious reason for the risk in the decision making process, as the decision may not be correct all the time. The risk involves like; the customers may loss interest to retain in the company, as a result the demand will also fall. If the demand of the products of the company falls then the company may face loss in the future (Sum, 2015).

• Identifying and understanding the risk is important for the operation managers, because if the operation managers identify and understand the risk, than it will not be very hard for the manager to solve the issue.
• The operation manager has to do the proper coordinating with the employees of the organization, if the manager monitors the work than there is less chance of making mistake.
• The rechecking of the plan is also necessary for the operation managers, it will reduce the risk in the decision making process.

Conclusion:

In this context we have discussed about outsource of the Google Company, how the company and add the value to the products and services. The correction in the decision making process is important for the Google company. The operation managers is trying to reduce the risk that is involve in the decision making process.

References List

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Hastings, A. (2014). Temporal scales of resource variability: Effects on population dynamics of structured populations. Ecological Complexity, 18, pp.6-9.

Kent, P. (2011). The decision to outsource management advisory services. Managerial Auditing Journal, 26(8), pp.672-696.

Lee, E. and Yin, Y. (2012). Off-shoring and out-sourcing for shareholder value: Promise versus reality. Accounting Forum, 36(1), pp.18-26.

Long, C. and Wong, R. (2014). Viral marketing for dedicated customers. Information Systems, 46, pp.1-23.

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Olson, R. (2013). Does It Make Sense to Outsource Utility Operations?. OPF, pp.26-27.

Quintana, R. and Leung, M. (2012). A case study of Bayesian belief networks in industrial work process design based on utility expectation and operational performance. Int J Productivity & Perf Mgmt, 61(7), pp.765-777.

Rutkin, A. (2014). Google Street View cars sniff out gas leaks in cities. New Scientist, 223(2979), p.20.

Sharma, S. (2013). Maintenance reengineering framework: a case study. Journal of Quality in Maintenance Engineering, 19(2), pp.96-113.

Sum, R. (2015). Risk management decision-making: the analytic hierarchy process approach. JIBED, 8(2), p.108.

Uncles, M., East, R. and Lomax, W. (2013). Good customers: The value of customers by mode of acquisition. Australasian Marketing Journal (AMJ), 21(2), pp.119-125.

Uyiomendo, E. and Tore, M. (2015). Subsea maintenance service delivery. Journal of Quality in Maintenance Engineering, 21(1), pp.34-54.

Xiang, C. and Tang, C. (2015). Securely verifiable outsourcing schemes of matrix calculation. International Journal of High Performance Computing and Networking, 8(2), p.93.