A comprehensive strategy for globally integrated operations

Abstract

Purpose

To aid business leaders struggling to implement global integration, IBM Consulting developed an “R‐O‐I Framework” that emphasizes repeatable processes, optimized assets and integrated operations, all on a global basis. This paper aims to look at this framework.

Design/methodology/approach

The researchers first examined data from and IBM 2008 CEO Study (more than a 1,000 respondents), and then selected 20 best practice cases to identify patterns among strategies that strong global integrators were using.

Findings

The IBM approach has identified three elements of the R‐O‐I framework that must be addressed concurrently: repeatable processes – eliminating inefficiency, optimizing effectiveness, and managing exceptions; optimized assets – managing core versus non‐core activities, optimizing locations and establishing virtual operations; and integrated operations – Optimizing global competencies via partnering and managing end‐to‐end processes on a global basis.

Practical implications

In concert with the R‐O‐I elements, three additional elements underpin the global integration transformation process and serve as the foundation that enables globally integrated operations: leadership, organization and technology.

Originality/value

The final step to global integration is managing on a global basis for every process from end‐to‐end, within and beyond company walls. Key to this is a systems view of global operations, with tools and methodologies in place to continually monitor end‐to‐end processes while adjusting to changes wherever and whenever they arise, while maintaining a continual focus on global optimization.

Citation

Lubowe, D., Cipollari, J. and Antoine, P. (2009), "A comprehensive strategy for globally integrated operations", Strategy & Leadership, Vol. 37 No. 5, pp. 22-30. https://doi.org/10.1108/10878570910986452