#1
Operational excellence is the optimization of business processes with the purpose to
increase efficiency and generate a competitive advantage. It is an initiative that fosters
continuous improvement. (Russell, 2009). In times like today, businesses no longer can afford to
be inefficient and wasteful. The ability to respond and adapt to changes in the market conditions
is a matter of survival. Managers must use operational excellence to shape their business
strategies in order to increase profits and build a competitive advantage (Russell 2009). The use
of enterprise systems allows seamless integration across many functional areas, that allows a
better visibility and reporting to all business functions. However, the use of an enterprise system
cannot alone improve an organization performance without a change on the company’s strategy
and culture.
In any organization, the use of performance metrics and sales and operations (S&OP) is
imperative in order to evaluate how the firm is performing. An organization can change its
processes, if necessary, in order to improve its performance or to achieve a goal. Operational
excellence is the pursue of continuous improvement, and it can be achieved by improving or
changing operational processes. In the simulation game, the use of performance and financial
reports were very beneficial for the teams to be able track their performance and evaluate their
strategies. In the Army, there are many reporting tools available in order to achieve goals like
inventory reduction initiatives and forecast accuracy.
Enterprise systems allow complete visibility across many functional areas of a business.
It can seamlessly unify operations and unsure tight linkage between strategy and execution
