Business leaders have been grappling for a long time with the need to balance operational excellence and innovations. The fascinating thing is the need to develop new products and the desire to understand the market demands which will shape the operational excellence. In this concept, it is hard to understand how a strategy willhelp the business grow before moving ahead with its implementation. Within all these concepts, the competition plays key role in defining the manner in which the product will be presented to the market and how the competitors will perform. The case of Storage Technology Corporation presents different scenarios where the successive companies such as Chief Executives failed to balance the innovations and the operational excellence, thereby giving its competitors such as IBM the opportunity to outdo them in the wider market. The question of how to align the organizational components to execute a strategy that would remove barriers to the market must be answered by managers, leading to a balance between operational excellence and innovations.
How organizations operate and how they execute their business strategies becomes more complex because of a number of reasons. For instance, the global expansion and the reality that comes with the competition from other players in the industry makes the whole process sophisticated. Other issues such as changing business models that are triggered by the need to manage several portfolios of the models, innovations, and the pressure to increase efficiency despite the emerging large of volumes. In this dimension, organizations will need to grapple with the emerging complexities. In case with IBM, the company was able to manage a multi-dimensional needs that provided them with a competitive advantage over their competitors whose management was only able to do one thing well. Storage Technology were not able to keep many balls rolling at the same time, thus they have demonstrated the inability to growth the momentum.
As Storage Technology Corporation expanded their initially successful business, they failed to notice the need to align their business in such a way that operations were as good as their innovations. In a rush to capture the new opportunities, their operations became substandard and inefficient, giving their competitors a chance to topple their market share. As businesses grow, business strategies become more complex, calling for more inputs from Chief Executives and managers who should inspire and guide individuals and teams that work on various projects. It is also important for leaders to understand the organization they manage, and the industry in which it operates. Thus the managers need to understand it and make better decisions. In this line, it is important to understand a wide range of views from numerous stakeholders, develop a clear conceptual framework that will consider all the dimensions of the business rather than one sided view that forgets to understand issues such as excellence operations.
Effective organizational management calls for leaders to enhance design process that would help them with various needs of the expanding business. For example, Storage Technology need to define the right problem by answering right questions, establish an effective design framework, engage the right people in the entire process, make use of the available talents within the organization, and implement the desired change at the right time. Once a problem is identified, the organization is able to evaluate all areas that need to be improved in order to achieve the desired balance between innovation and operational excellence. The design strategy should be able to support the execution of the strategies.