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UoB No: 12001015 1

Operations Management

Name Batch No UoB No FIN No Lecturer Date

: Nitesh Gupta : MBBD51214A : 12001015 : G11362369M : Dr. Eric Kuan : 8th April 2013

I hereby certify that this assignment is my own work and within the guidelines of MDIS and Bradford School of Management.

________________ Signature

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Table of Contents
1 INTRODUCTION .............................................................................................................3 1.1 1.2 2 Company Information .................................................................................................3 Objective .....................................................................................................................3

Chapter 1 Service Design Process ..................................................................................4 2.1 2.2 2.3 2.4 Theoretical view on service design - Definition .........................................................4 Characteristics of Service............................................................................................4 Service Design in Regards to Operations Management..............................................5 Application of Service Design Theory........................................................................5 Objective ..............................................................................................................5

2.4.1 3

Chapter 2 Process of Technology ...................................................................................7 3.1 3.2 3.3 Theoretical Approach to Technology Selection..........................................................7 Application of Technology to Service Operation .......................................................8 Impact of technology on Operations Management .....................................................8

Chapter 3 Service Quality Management .......................................................................10 4.1 4.2 Characteristics of Service Quality.............................................................................10 The GAP Model ........................................................................................................11

5 6

Conclusion .......................................................................................................................13 Bibliography ....................................................................................................................14

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1 INTRODUCTION
The aim of the paper is to correlate the theory of operation management with you own sphere of influence. This report will be based on service industry.

1.1 Company Information


Zscaler Inc. is a MNC based out of Sunnyvale, California, USA founded by Jay Chaudhry, Zscalers CEO in year 2008. Now a Billion Dollar company. Company is into service industry and to a very unique one i.e. Software as a Service (SaaS). Zscaler have bought a revolution into IT security industry by introducing a completely new technology for securing people from cyber-attack called Cloud Security. This concept have given enhanced security to various industries and as a cherry on top helps them reducing their bills for the same as they are completely a cloud based solution hence eliminating the need of hardware generally required for such kind of security (Zscaler Inc., 2013).

1.2 Objective
This report will mainly be focusing on a small but extremely important department of Zscaler called Transition Department. In order to convince the client, company offers a free trial period for the duration ranging from 1 to 3 months. Hence those three months is the crucial period for Zscaler to convert the lead into a client. This time period is handled by above mentioned department. Paper will be focusing on two aspect of operations management i.e. Service Management & Quality Management.

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2 Chapter 1 Service Design Process

2.1 Theoretical view on service design - Definition


The Copenhagen Institute of Design defines service as a process which creates an experience which is well though by using the mixture of intangible and tangible channels. It provides benefits to end user experience when applied to various industries. Service design as a practice generally results in the design of systems and processes aimed at providing a complete service to the user. This cross-disciplinary practice combines numerous skills in design, management and process engineering. Services have existed and have been organised in various forms since time immemorial. However, determinedly designed services that incorporate new business models are vicarious to user needs and attempt to create new socioeconomic value in society. Service design is essential in a knowledge driven economy (Schindlholzer, 2008).

2.2 Characteristics of Service


As (Render, 2008) advised that service provided have various characteristics which are defined below: They Often Produced and consumed simultaneously Generally have high customer interaction They have Inconsistent production definition Services are often knowledge based It is generally dispersed due to different customer location Services are often not unique

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2.3 Service Design in Regards to Operations Management


There 4Vs that are important and considered when design process is initiated in operations management that are Volume, Variety, Variability & Visibility. The two identities i.e. volume & variety are the major factors because they define the nature of service. Usually they are inversely proportional which means if the volume of output is high the variety of output will be low & if volume is low then variety will be high which is very true in case Zscaler (Pycraft, 2007). Variety of Output is low as only single outcome is expected i.e. all the threats against the It security are eliminated any other out may result in product failure. Volume of Output is high because at single point of time millions of data run in and out of an organization hence all have to be treated at the same given point with appropriate response. Variability of Output is low because the output of service can be stabilized & predicted due to low variety of output. Visibility of Output is high because Short waiting tolerance, Satisfaction governed by customer perception, received variety is medium not very high or low.

2.4 Application of Service Design Theory


2.4.1 Objective Its a waste of effort if the company dont have the clear idea what is the purpose of the service to be designed. As mentioned earlier in characteristics of the services which states that services are often not new which is very true in case of Zscaler but on the contrary the technology used is very new. Hence Zscaler designed its services of IT security with clear intention of providing its clients with a faster, better & cheaper option. Therefore the following played extremely important role in the design process: Dependability Service provided by Zscaler has to be reliable as IT security of the client business is totally dependent on its services. A single glitch in the service could result in huge loss to client further leading to failure of the objective of service design. Hence dependability of the services builds the trust of the client in the company.

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Speed In order to explain this lets take an example of one of the top trading company like Zecco Trading where billions of data transaction take place every second from every part of the world where speed is very essential to the business, if Zscaler is the IT security provider for the company then even a second delay in the service could result in big loss to Zecco. Hence Zscaler has to design its service without introducing any delay in speed of its services. Flexibility It is a high volume low variety service, need of such a service has nearly disappeared but in this industry it is still in demand. Zscaler had to design a product which is not only catered the enterprises but also to SMEs hence it is again an essential trait for service design process. This could solve yet another issue which generally occurred in enterprises i.e. upsizing and downsizing hence enabling an organization to be flexible on using the Zscaler services. Quality Service or Good quality is major factor for the client to be loyal to Zscaler it have to provide quality and it had to maintain its quality by taking care of two things i.e. customer service and updated technology. Being into IT security new threats arise everyday hence Zscaler have to prepare it self for this and have partnered with the IT giant Microsoft for research and development. As far as the customer service is concerned which is again an essential feature of the service has to impeccable because if the customer does not get the support on time or efficiently could result him a heavy loss. Cost Unit cost of the service is dependent on both volume and variety of the output which in general higher the volume lower the unit cost which is again very right for the service designed by Zscaler. It is very simple more the units of product purchased lesser the cost higher the discount.

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3 Chapter 2 Process of Technology

3.1 Theoretical Approach to Technology Selection


Process technologies are the machine, equipment & device used which helps the operation to transform materials and information and customers in order to add value and fulfil the operation strategic objective (Pycraft, 2007). Further operation management concept defines that the factors that affect the design and maintenance of operation system are: Point of customers participation in the process and Point to which technology is positioned.

Self-Created (2013) Service Technology Defines the discovery and development which leads to a new product. Engineers and researchers use the scientific means to develop new idea and convert the same into a product or a service (Stewenson, 2005). Process technology is a secondary stage in which efficient methods, procedures & equipments are used to produce the researched the service or product. This includes both internal and external processes like supply chain (Stewenson, 2005).

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Information technology defines the use of IT product such as computers and other electronic equipments to deliver the product to end user. It is applicable to almost all the industries (Stewenson, 2005).

3.2 Application of Technology to Service Operation


Theory mentioned above has been truly applied to Zscaler. As far as the product technology is concerned product development is in-house process to Zscaler whereas some part of research is outsourced by shaking hands with IT giant Microsoft. To elaborate the scenario the product design like every other company have been kept with Zscaler due to infringement issue and the research regarding the new threats in IT industry is outsourced. Coming to the second stage process technology leaving aside the development marketing and customer services and the equipments used like the whole office setup was outsourced to third party but in order to maintain the quality of services were converted to in-house process. Zscaler being an IT security company have utilized the best the money can buy infrastructure when it comes to selecting Information Technology. There are two reasons to do so as the security of the client is involved hence no chances are to be taken secondly they market the product to hardware less hence they have to use their own hardware to provide the service without any lag.

3.3 Impact of technology on Operations Management


As discussed above for an organization to design a service it has to consider dependability, flexibility, speed, cost and quality of service. Hence selection of technology used has quite an effect on the mentioned factors. Scalability and degree of scale achievable: technology selected has clear and drastic effect scalability on services provided. The services provided by Zscaler are global hence it has to equipped with the such high end technology which could support its scope of service that to without any delays as the services are also time sensitive. Leadership & Innovation: In order gain leadership and maintain the same Zscaler has to produce innovative service which it has achieved in a very short time by selecting the appropriate service technology. Delivery of Services: It is again an important decision for operation to determine how to deliver the service in case of Zscaler they have increased the ease of its customers

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by choosing such a technology which eliminates need of any hardware or software at client side. Hence making it easy to deploy their product. Choosing the development and deployment of product to be in-house or Outsourced Technology helps operations to make decision whether the process to develop & deploy the product should be insource or to outsource which in case of Zscaler was a bit tricky they could outsource the product development due to infringement but they tried the deployment to be out sourced later the decision was reversed to maintain the quality of service. Labour Intensive or Automated Process Zscaler mainly have automated process one deployed until unless it comes to rectifying the glitch it the service which definitely performed by professionals. Innovation & Improvement Being an IT security company Zscaler have to regularly updated on the latest threats in the industry hence it has outsourced the same to the specialist whereas in order to improve its product otherwise have opted for the world class technology. Ability to facilitate development and delivery of innovation product or services Suppleness in product offered to customers is significant in real-time work environment. Customisation of the product according to client or customers requirement gets more sales revenue for the company.

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4 Chapter 3 Service Quality Management


Quality Is Consistent conformance to customers expectations (Pycraft, 2007) the conformance is used imply that there is a need to meet the clear specification and ensuring that a product or a service conforms to the task which is a key task for operations. It is again important because some services are measured according to their quality which affects the sales and revenue of the organization. Whereas service quality is different to quality in products as Quality must be seen in the eyes of the customers, who only recognise what they are getting out of the service and not what the firm puts in (Naylor, 1994).

4.1 Characteristics of Service Quality


The factors the defines the quality of services in regards to Zscaler are given below Reliability This defines the performance and dependability of the service. In case of Zscaler With over 100 data centres around the globe, Zscaler provides a highly accessible, reliable. If one of their data centres were to be disrupted, client traffic would continue to flow unobstructed since the failover option would simply redirect traffic to the next nearest data centre. This highly scalable cloud processes over 8 billion transactions a day more transactions than Google Search globally. This gives company a reliable product. Responsiveness This shows the willingness of the service provider to assists its customers in regards to Zscaler its responsiveness is quite impeccable as cant afford not to assist there customer which result them in losing the customer. Competence As far as the competence is considered Zscaler is well settled there as they are the first in the industry to provide with multi-tenant SaaS. Hence making them the market leader. Communication It directly means the language in which the service provider communicates with its customer. Zscaler certainly lack in this department as the product offered only comes in English hence making it difficult for the end users with English as second language to use the service. Credibility This defines the honest and trustworthiness of the service providers. As far Zscaler credibility is concerned its high customers can simply vouch for it as

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Zscaler has some big players as its clientele like Coca-Cola, Avaya, Volkswagen etc. which are from different industry and region. Access It states that the service provider is approachable by in other word the ease of contacting the service provider. In the case of Zscaler it might not be easily accessible physically but is available 24/7 virtually as all the quarries can be handles online if still requires a physical presence technicians are always available on a single phone call. Courtesy This defines the service providers politeness, respect, consideration and friendliness which in the case of Zscaler is not much relevant as they are conducting a very professional business but still at all the physical point of contact courtesy is presence in abundance.

4.2 The GAP Model


Companies should always concern in regards to quality of services provided and sometimes there is decline in quality the reason is very simple difference between Objective Quality and the perceived quality. In simple word when the crisis occur when a service provider thinks that quality of his services are meeting the standards it has defined but those standard do not see eye to eye with customers perceived quality for example a car is designed to be serviced after 10000 kilometres whereas the customer may expect 15000 kilometres (Pycraft, 2007). There are several ways to mis-specify and mismanage the creation and delivery of high levels of quality which are identified by the GAP model (Evans J.R. and Colliers D.A. , 2007).

(Source: http://www.staffs.ac.uk, 2013)

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GAP 1 this occurs when there is inconsistency between the internal quality specification of the product or services and the expectation of the customer. The responsibility goes to marketing, operations & service development.

GAP 2 this occurs when the internal specification of the service or the product does not meet its proposed design. Departments responsible for this are again marketing, operations & service development.

GAP 3 this occurs when there is a miss-match between the actual service or product and the internal specification the burden to rectify the fault is on operations. GAP 4 this arises when the promises made to the customers are not fulfilled, either they delivered late or not delivered at all. Marketing is responsible for it as they are face of the company.

GAP 5 as mentioned above this situation occurs when there is a difference between quality objective and the perceived quality.

If we apply the above given model on Zscaler result would be that it should take special care for GAP 4 as according to me this is the only where they lack. Employees in marketing department sometimes use the Convince, Confuse or Con policy when it comes to SME.

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5 Conclusion
Operations management is vital at least for two reasons i.e. it can improve productivity which further results in an improvement of organizations financial health and secondly it can help meet customers competitive priorities. The choices it makes have a major impact on the expense of creating products or services and how well the products and services are produced and delivered which has a major impact on the returns coming into the organisation. So, operations management has a significant control on both revenue and cost and consequently profits. This also applies to not-for-profit organisations. In a local government service, for example, good operations management can produce services which satisfy the community and are produced efficiently. So the community are getting value for money from their local services.

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6 Bibliography
Evans J.R. and Colliers D.A. . (2007). Operations Managment - An integrated goods and Service Approach, 1st Edition. China: Thomson South-Western. Naylor, J. (1994). Operations Managment 5th Edition. London: Pitman. Pycraft, M. (2007). Operations Management. South Africa: Pearson Education. Render, H. &. (2008). Operations Managment. New Jersey: Pearson Prentice Hall. Schindlholzer, B. (2008, March 21). A Definition of Service Design. Retrieved March 2013, 21, from http://www.cxacademy.org/: http://www.cxacademy.org/a-definition-forservice-design.html Stewenson, W. (2005). Operations Management, 8th Edition. Irwin: McGraw-Hill. Zscaler Inc. (2013). About Zscaler. Retrieved March 21, 2013, from http://www.zscaler.com/: http://www.zscaler.com/aboutus.php