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Operations Management
Process Analysis, Product, Process Design& Quality Systems Deployment
IT CORPORATION Canada Corporation
July 18, 2002
Susan Blouin
Athabasca University, Center for InnovativeManagement MBA Program, Operations Management Paper
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Operations Management
TABLE OF CONTENTS
PROCESS ANALYSIS, PRODUCT, PROCESS DESIGN .......................................................................1
& QUALITY SYSTEMS DEPLOYMENT..................................................................................................1
IT CORPORATION CANADA CORPORATION.....................................................................................1
OPERATING STRATEGY......................................................................................................................4
OPERATING MODEL..........................................................................................................................5
HOW IT CORPORATION CANADAIS STRUCTUREDTO MEETITS MAJORISSUES...........................6
INDUSTRY TRENDS ...........................................................................................................................6
CUSTOMER SERVICE.........................................................................................................................9Instituting a Quality Management System.............................................................................................10
Analysis of Business Process Management and Process Design Related Issues...................................13
Production/Delivery Processes..............................................................................................................14Business Processes.................................................................................................................................14
DEPLOYINGAPROCESSFOCUSEDAPPROACHTOMANAGINGWORKISNEEDED........................................15
ANALYSISOF CUSTOMERSERVICE RELATED ISSUES..........................................................................17
THE CUSTOMERDRIVEN ENTERPRISE MANAGEMENT MODELANDTHE TIES BETWEEN IT CORPORATION
CURRENT STRATEGIC ISSUES ..........................................................................................................17
ANALYSISOFTHE QUALITY RELATED ISSUES....................................................................................21
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Operations Management
EXECUTIVE SUMMARY
The overall shift toward enhanced services and applications support results in a clear need for
closer relationships with customers and increased focus on the personalization and customization
of services. As the number of users subscribing to value-added applications continues to grow,
their expectations in terms of personalization and specialized services also continue to evolve.
The one-size-fits-all service concept becomes invalid in an increasingly fragmented marketplace.
Embracing this mass personalization will take a serious effort on the part of IT CORPORATION
Canada to meet these new needs of its new customer base.
This report will review the current state of issues facing IT CORPORATION Canada, and outline
the success criteria needed for IT CORPORATION to accomplish meeting the appropriate
objectives in order to manage their operational issues and complexities.
The analysis of the current issues will detail the related business process, customer service and
operational complexities surrounding the organization. The recommendations will provide insight
on mandatory requirements that will lead towards a new operational platform, implementing a
more customer-focused enterprise and instituting a quality management system through the
organization.
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Operations Management
THE ORGANIZATION
IT CORPORATION Canada's presence in the business long distance, local, data and Internet
and E-Business solutions markets allows it to bundle a full spectrum of products. With its
extensive local and long distance facilities and interconnection arrangements, IT CORPORATION
Canada is capable of serving more than 85% of the Canadian business telecommunications
market on its network. Its strategic partnerships and interconnection agreements with other
international service providers, including IT CORPORATIONCorp. and British Telecom, allow it to
provide global voice, data, Internet and E-Business solutions to its business customers.
Operating Strategy
The vast majority of IT Corporation business is represented by the base of its Operating Strategy.
This is data transport, access and the hosting business where the company generates more than
90% of its revenue; where most of its capital is invested and where the vast majority of the
employees work1.
IT Corporation goal remains in strengthening the foundation of its operating strategy. This is
where the bulk of the process improvement work is going on, designed to improve the customer
experience.
1IT Corporation Proprietary, 2002
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Operating Model
IT Corporation Operating Model defines how IT CORPORATION Canada will succeed by aligning
its strategies with its actions, and illustrates how the company will be managed2.
The company's goal is to achieve sustained success. This can only be accomplished with a
balanced approach.
How IT CORPORATION Canada's leadership team manages and operates the company is
reflected in the other components of the Operating Model: Mission, Vision, Values, Baldridge
Process Discipline, Improvement, Learning, and Management and Leadership.
IT Corporation Operating Model is currently surrounded by key "Imperatives" describing areas of
focus for the business that relate to Customer Satisfaction, Process Improvement, Engaged
Leadership and Growth. The core of the model remains consistent as it represents a balanced
2IT Corporation Proprietary, 2002
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managed system on which to operate the company. The key imperatives from 2001 have been
transformed and map very logically against the Business Priorities for 20023.
The operating organization shown below, is responsible for leading operational
imperatives which are still relevant and will be folded into how the company will
manage the business under the four banners of Customer Satisfaction, Process
Improvement, Engaged Leadership and Growth. The operating organization is
structured in the following verticals Marketing, Sales, and Customer Service that
shape the framework of the company. This is how IT CORPORATION is structured
today to meet their current issues and operational management requirements.
How IT CORPORATION Canada is Structured to Meet its Major Issues.
Industry Trends
The year 2002 is positioned to be the year value-added services and personalization becomes
the key service drivers for the telecommunications industry4. With the high level of confidence
coming from the past few years of exponential Internet growth as a network and a revenue-
generating industry, IT CORPORATION Canada and analysts believe service differentiation will
continue this growth. Time to market for new services will also be part of the service
differentiation that drives industry growth. As the telecommunications industry evolves, IT
3Ibid.
4Lemay Yates, 2001
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Operations Management
CORPORATION Canada needs to package and deliver new services or bundles as quickly as
possible.
KEY ASSUMPTIONS
The following are assumptions that are relative to the companys operating strategy and
operational model:
- The underlying assumptions of the operating model this was created for, are valid
- The current cost and pace of technology will continue such that the basic cost of telecom will
still be perceived as cost effective
- Continued trained workforce will still be in place
- IT CORPORATION Canada will maintain the pace to be able to move into the higher levels of
value-added solutions, towards the internet and managed network services
- Continued customer and value support
- Cost Related External Factor: The regulator environment will at least support and will be able
to enable a suitable business and competitive environment, as this can effect our cost
structure and IT Corporation operations of their business in what they are able to sell.
MAJOR ISSUES
IT CORPORATION is faced with three major issues in their current operations related to the
management and servicing of delivering non-standard custom solutions. The analysis will
address the deficiencies in business process managementand the inefficiencies in customer
service, and the need for instituting a
