St.

Anthony’s College
San Jose Antique
BUSINESS EDUCATION DEPARTMENT

WEEK 2 HANDOUTS IN CBM 201 – OPERATIONS MANAGEMENT AND TQM

Instructor: Maureen Kristianne V. Serrano

TOPIC 5. TECHNOLOGY AND OPERATIONS MANAGEMENT

Technology and operations management (TOM) is a critical aspect of modern business that focuses on
effectively utilizing technology and operational processes to achieve organizational goals. It encompasses the
strategic planning, implementation, and optimization of technological resources and operational procedures
within an organization.

Technology refers to the application of scientific knowledge, tools, techniques, and systems to solve problems,
accomplish tasks, or achieve specific objectives. It encompasses a broad range of tangible and intangible
artifacts, processes, and methods that are developed and utilized by humans to enhance their capabilities,
improve efficiency, and facilitate communication, collaboration, and innovation.

Business Operations Before the Integration of Technology

1. Manual Processes: Before the widespread adoption of technology, many operational processes relied
heavily on manual labor and paper-based systems. This often resulted in slower processing times,
increased errors, and higher operational costs.
2. Limited Data Visibility: Without advanced data collection and analysis tools, managers had limited
visibility into operational performance and often relied on manual reporting methods. This made it
challenging to identify inefficiencies or areas for improvement.
3. Inventory Management Challenges: Inventory management was typically done manually, leading to
issues such as stockouts, overstocking, and inventory inaccuracies. This resulted in increased holding
costs and lost sales opportunities.
4. Forecasting and Planning: Forecasting demand and planning production schedules were challenging
tasks that relied heavily on historical data and intuition. This often led to inaccurate forecasts and
inefficient resource allocation.
5. Communication and Collaboration: Communication and collaboration between different departments
or locations were often hindered by physical distance and limited technological tools. This could result
in delays, misunderstandings, and coordination issues.

Business Operations After the Integration of Technology

1. Automation and Digitization: The integration of technology has led to automation and digitization of
many operational processes. Tasks that were previously done manually, such as data entry, order
processing, and inventory tracking, can now be automated using software systems and robotics.
2. Real-time Data Analytics: Advanced data analytics tools allow managers to collect, analyze, and
visualize data in real-time, providing insights into operational performance and trends. This enables
more informed decision-making and proactive problem-solving.
3. Optimized Inventory Management: Technology-enabled inventory management systems utilize
barcode scanning, Radio-Frequency Identification (RFID) technology, and real-time tracking to optimize
inventory levels, reduce stockouts, and minimize holding costs.
4. Advanced Forecasting and Planning: Forecasting and planning processes have been revolutionized by
the use of predictive analytics, machine learning, and simulation models. These tools enable
organizations to forecast demand more accurately, optimize production schedules, and improve resource
allocation.
5. Enhanced Communication and Collaboration: Technology facilitates communication and
collaboration through tools such as email, instant messaging, video conferencing, and collaboration
platforms. This enables seamless coordination between teams, regardless of their location.
 St. Anthony’s College
San Jose Antique
BUSINESS EDUCATION DEPARTMENT

Role of Technology in Operations

The strategic importance of technology in operations cannot be overstated. Some reasons why technology is
important in business operations:
1. Competitive Advantage: In today's hypercompetitive business landscape, technology can provide a
significant competitive advantage. Organizations that leverage technology effectively in their operations
can streamline processes, reduce costs, improve quality, and deliver products or services faster than their
competitors.
2. Efficiency and Productivity: Technology enables organizations to automate repetitive tasks, optimize
resource allocation, and eliminate inefficiencies in operations. This leads to increased efficiency and
productivity, allowing organizations to produce more with fewer resources and lower costs.
3. Innovation and Differentiation: Technology fosters innovation by enabling organizations to develop
new products, services, and business models. Organizations can differentiate themselves from
competitors by leveraging technology to offer unique features, capabilities, or customer experiences that
create value for customers and drive growth.
4. Globalization and Scalability: Technology facilitates global expansion by enabling organizations to
manage operations across multiple locations, time zones, and cultures. Cloud computing, communication
technologies, and collaboration tools make it easier for organizations to scale their operations globally
while maintaining centralized control and coordination.
5. Agility and Adaptability: Technology enables organizations to respond quickly to changing market
conditions, customer preferences, and competitive threats. Agile organizations can leverage technology
to rapidly reconfigure processes, reallocate resources, and seize opportunities in dynamic environments,
giving them a strategic advantage over slower-moving competitors.
6. Data-Driven Decision Making: Technology provides organizations with access to vast amounts of data
that can be analyzed to gain insights into market trends, customer behavior, and operational
performance. Data-driven decision-making enables organizations to make informed choices, optimize
strategies, and drive continuous improvement in operations.
7. Risk Management and Resilience: Technology helps organizations mitigate risks by providing real-
time visibility into operations, identifying potential issues or disruptions, and implementing contingency
plans. Robust technology infrastructure, cybersecurity measures, and disaster recovery plans enhance
organizational resilience and minimize the impact of unexpected events.
8. Customer Satisfaction and Loyalty: Technology enables organizations to deliver superior customer
experiences through personalized interactions, omnichannel engagement, and timely service delivery.
Satisfied customers are more likely to remain loyal, recommend the organization to others, and
contribute to long-term business success.

Technological Advancement that are Commonly Used in Business Operations

These are just a few examples of the types of technology used in operations today. The landscape of operational
technology is continually evolving, with new innovations and advancements emerging to address the evolving
needs of businesses across industries.
1. Enterprise Resource Planning (ERP) Systems: ERP systems integrate various core business processes
such as finance, human resources, supply chain management, and manufacturing into a single,
centralized platform. They provide real-time data, streamline operations, and improve decision-making
across the organization.
2. Customer Relationship Management (CRM) Software: CRM software helps organizations manage
interactions with current and potential customers. It centralizes customer data, tracks sales activities,
automates marketing campaigns, and enhances customer service, leading to improved customer
satisfaction and loyalty.
3. Supply Chain Management (SCM) Software: SCM software enables organizations to manage the
flow of goods, services, and information across the entire supply chain, from procurement to production
to distribution. It optimizes inventory levels, reduces lead times, minimizes costs, and enhances
collaboration with suppliers and partners.
4. Manufacturing Execution Systems (MES): MES software monitors and controls manufacturing
processes on the shop floor in real-time. It collects data from machines and sensors, tracks work orders,
 St. Anthony’s College
San Jose Antique
BUSINESS EDUCATION DEPARTMENT

schedules production activities, and ensures quality control, thereby improving efficiency and
productivity in manufacturing operations.
5. Warehouse Management Systems (WMS): WMS software manages and optimizes warehouse
operations, including receiving, storing, picking, packing, and shipping inventory. It provides visibility
into inventory levels, optimizes storage space, improves order accuracy, and streamlines fulfillment
processes.
6. Artificial Intelligence (AI) and Machine Learning: AI and machine learning technologies analyze
large datasets to identify patterns, make predictions, and automate decision-making processes. They are
used in various operational applications, such as demand forecasting, predictive maintenance, quality
control, and process optimization.
7. Robotics and Automation: Robotics and automation technologies automate repetitive tasks and
processes in manufacturing, logistics, and other operations. They improve efficiency, reduce errors, and
enhance safety by replacing manual labor with robotic systems, autonomous vehicles, and robotic arms.
8. Cloud Computing: Cloud computing enables organizations to access computing resources, such
as servers, storage, and applications, over the internet on a pay-as-you-go basis. It provides scalability,
flexibility, and cost savings, allowing organizations to deploy and manage technology solutions more
efficiently

Cybersecurity in Operations Management

Cybersecurity is of paramount importance in operations management to protect critical assets, data, and systems
from cyber threats and attacks. Here's how cybersecurity measures are essential in operations management:
1. Protecting Data Integrity: Operations management relies heavily on accurate and reliable data for
decision-making, process control, and performance monitoring. Cybersecurity measures such as
encryption, access controls, and data validation help ensure the integrity of data by preventing
unauthorized access, tampering, or manipulation.
2. Securing Operational Technology (OT): Operational technology refers to the hardware and software
used to monitor and control physical processes, such as manufacturing equipment, industrial control
systems, and IoT devices. Cybersecurity measures are essential to protect OT systems from cyber
threats, such as malware, ransomware, and unauthorized access, which could disrupt operations, cause
safety incidents, or damage equipment.
3. Preventing Disruption of Operations: Cyber-attacks targeting operations management systems can
disrupt production processes, supply chain operations, and critical infrastructure, leading to downtime,
financial losses, and reputational damage. Cybersecurity measures such as network segmentation,
intrusion detection systems, and incident response plans help prevent, detect, and mitigate cyber threats
to minimize disruptions and maintain operational continuity.
4. Ensuring Supply Chain Security: Operations management often involves collaboration with suppliers,
vendors, and partners across the supply chain. Cybersecurity measures are essential to protect sensitive
information, intellectual property, and trade secrets shared with external parties. Supplier risk
assessments, contractual obligations, and security controls help ensure supply chain security and
mitigate the risk of cyber-attacks targeting third-party vendors.
5. Compliance with Regulations: Many industries are subject to regulatory requirements and standards
related to cybersecurity, data protection, and privacy. Operations management systems must comply
with regulations such as the General Data Protection Regulation (GDPR), the Health Insurance
Portability and Accountability Act (HIPAA), and industry-specific standards such as the NIST
Cybersecurity Framework or ISO 27001. Implementing cybersecurity measures helps organizations meet
regulatory obligations and avoid fines, penalties, and legal liabilities
6. Protecting Intellectual Property: Operations management systems often contain valuable intellectual
property, proprietary information, and trade secrets that are critical to a company's competitive
advantage. Cybersecurity measures such as data encryption, access controls, and digital rights
management help protect intellectual property from theft, espionage, or unauthorized disclosure.
7. Employee Training and Awareness: Human error and insider threats are significant cybersecurity risks
in operations management. Employees must be trained on cybersecurity best practices, security policies,
and procedures to recognize and report suspicious activities, phishing attempts, and security incidents.
 St. Anthony’s College
San Jose Antique
BUSINESS EDUCATION DEPARTMENT

Employee awareness programs help cultivate a cybersecurity-aware culture and reduce the likelihood of
security breaches caused by human error.
8. Cybersecurity Incident Response: Despite preventive measures, cyber incidents may still occur in
operations management. Organizations must have robust incident response plans and procedures in place
to detect, respond to, and recover from cybersecurity incidents effectively. Incident response teams,
communication protocols, and recovery strategies help minimize the impact of cyber-attacks and restore
normal operations promptly.