How will you run your business operations?

Once you’ve raised funding, then you need to think about how you’ll run your company. Whether you’re leading a start-up, scale up or mature SME, business operations present similar challenges.

This month’s newsletter explores the evolving meaning of ‘Operations’ and how this helps us pursue profits. Future editions will explain more about applying Operations thinking to different areas of your business.

What are business Operations?

‘Classic’ Operations

The classic definition of business operations often focuses on the production of physical products. Nigel Slack’s book Operations Management is a good reference here. This covers the value chain from suppliers, through assembly to distribution and logistics.

‘Order to Cash’

In many companies, ‘Operations’ describes the entire process of converting customer orders into cash. This includes receiving a purchase order, delivering the product or service, sending invoices, and receiving payments. Many businesses automate these activities electronically. If the product or service is itself digital, then the whole sales process can be integrated into a single workflow.

Prospect to Payment 

Marketing and Sales can add another layer to operations. Customer Relationship Management enables an operational approach from identifying prospects through to recording payments. Digital businesses take this to the next level, operating a seamless customer journey from discovery to delivery.

How should Operations work with Development?

Developing for Operations

Developing a physical product often includes designing the processes for its production. Cloud software development should also consider operational design as it services many customers at once. Agile methodologies such as DevOps take this further, making one team responsible for both.

Customer Development

New products can also benefit from collaboration between development and operational teams. ‘Customer Discovery’ helps improve product specifications. Early customers can also validate new products’ readiness for market. Finally, successful New Product Introduction relies on cross functional teamwork. Product Management is key to ensuring all this works well.

How an ‘Operations’ approach can help your business

‘Operations’ means different things in every business. In essence, it is a mindset and a toolbox not a rigid framework. As your company grows, you will need to review where an operational approach would help provide focus and discipline. Designing how your business will operate is just as important as developing your products!