Companies should totally adopt the agile approach to tackle the uncertainty issues arising within their operations and supply chains
Introduction
Currently, nearly all the companies are under increasing degrees of pressure to deal with issues of uncertainty. One of the ways to deal with the ongoing uncertainties is adopting the agile approach. Agile approach is an effective business approach that focuses on empowering people and their associations. It also concentrates on early and constant delivery of value into a business (Dobell, 2020). On the other hand, agile project management concentrates on delivering maximum value against business priorities in the provided time and budget, particularly in a scenarios when the drive to deliver is higher than the risk. This paper takes an in-depth examination on the significance of adopting agile approach to manage the uncertainty issues that are arising within operations and supply chains of companies.
Integrating business strategy with operations
Company operations and its management plays a critical role for any kind of business. However, the primary role of operations management is offering a plan for the operations function so that companies can effectively exploit their resources. Through appropriate operations management and particularly strategy, firms are able to specific the policies and plans for using the available resources in an effort to foster their long term competitive strategy. Also, operations management can help in designing how to efficiently use resources in the course of fostering business strategy (Hoogveld & Koster 2016).
Nearly all firms have a strategic plan. However, for a long time, many companies misunderstand the components of an effective and efficient strategy thus making the strategic plan fail to integrate with the operations which in turn results poor executions in operations. Another course of poor integration is ignored time to time, challenge to challenge mode of management continues to be left out. The developed operations strategy within a company should be implemented to put into practice the facets outlined within the strategic plan (Rigby, Sutherland, and Noble 2018).
A major challenge towards the success of many businesses is having a properly planned and defined action plan that ensures that growth and development is being consistently and appropriately put into practice. There have been objectives that some operations with companies are often diametrically contrasted to one another and function in a way that makes it challenging to have meaningful business performance development. Therefore, through the integration of agile operations in a business, there are high chances that companies will be able to define and come to a consensus on appropriate business goals, performance measures, action plans and operational objectives. For a company to have an effective business strategy, operation performance and efficient supply chains, there is need for a dynamic, methodical approach that ensures the company is focused and remains forced on the right operations and supply chains (Walter-Güpner, 2017).
Agile approach and its strategy
The concept of agile operations or rather working entails the ability of companies to rapidly adapt to changes within the business environment in a cost efficient manner. Agile approach is practiced through the combination of company’s attributes such as flexibility, preparedness, adaptability, speed and awareness. In the current fast changing business environment, agile mode of operations is beginning to be embraced as an effective and method of choice for managing operations and supply chains. The concept of agile approach sheds light on how strategy and innovation are related through philosophies such as fail fast and pivot (Carvalho, Azevedo and Cruz-Machado 2012).The approach proposes the use of little experiments to ascertain the best strategies to be employed and identify the strategies that are not appropriate or effective. In the current uncertain business environment, agile approach can be the best method. The model is grounded on different related practices such as change and performance management and strategic planning and execution. Therefore, the integration of the approach in companies will ascertain the success and sustainability of companies (Bicocchi et al. 2019).
The stated agile organizational practices are business oriented and incorporate short cycles that are appropriate to business operations and performance. When integrating agile approach to a business, it is essential to ensure that the approach and its practices minimizes the time used to tangible value and anticipated outcomes attained. Also, the practices should aid a company in maintaining momentum on the implementation of long term strategic planning through broken operational cycles that meet both short and long term needs of a firm. Additionally, the agile practices ought to facilitate the ability to adjust or pivot a course reactively and proactively to adapt to the internal and external rapid changes in a business’s environment (Kawa & Maryniak 2019).
Agile methodology aims at making firms internal structures more organized and outstandingly productive. With the right people, resources and processes, agile methodology can make a company thrive even at the midst of uncertainties. The methodology aids companies to find and retain the best talents. The technique discourages traditional approaches such as manual and labor intensive work. It encourages the use of tools, resources and products that automate repeatable practices and reduces mindless work to attain necessary transformation. Furthermore, it helps in the establishment of an effective environment where operations can develop and refine operations and supply chain techniques to facilitate efficient and consistent operations and performance (Alzoubi & Yanamandra 2020).
How to integrate agile approach in companies operations
There is sufficient literature which supports the integration of agile model into companies operations. Bargshady et al (2016) note that agile approach has an impact on the traditional culture since it introduces novel mechanisms of operations management and strategy. However, integrating a new method of running things within an organization is not always easy. The concept of agile operations has been in existence for decades. Nonetheless, it is still surrounded by myriad misconceptions, mistrust and misgiving by many people since it requires a change in culture and generally changing how things are done within an organization. Even though agile approach calls for a change in many things within the business’s operations and supply chain, it proves to be very effective technique especially when there are a lot of uncertainties and the market is unpredictable (Bargshady et al. 2016).
When proposing to use agile model, many fail because they think that agile approach is the solution thus practicing its principles without full comprehension of what should be done. Therefore, when opting for agile approach in a company, the critical management decision is to choose the appropriate approach as a segment of the operations strategy. Therefore, the degree of certainty versus time to market is the balance that ought to be put under consideration when choosing the most appropriate operations to integrate agile. Subsequently, companies ought to be realistic since the objective is not ensuring agile approach has been integrating but ensuring that good delivery is attained. Another key objective is ensuring that the measured evaluation of the preferred method is significant in achieving the goal of the company. This decision can be deduced by the kind of operations that a company runs, its objectives and the environment in which the firm operates (Holbeche, 2018).
Integrating agile approach in a company calls for breaking operations into smaller pieces and then prioritizing them in relation to their significance. The agile model fosters collaborative working especially with clients. Also, agile approach reflects, learns and adjusts at regular shifts to ascertain the satisfaction of clients. Moreover, the model provides results in benefits. The approach integrates planning with execution thus allowing a company to develop a working mindset that helps the employees to respond effectively to the changing needs and environment (Dobell, 2020).
Advantages of integrating agile approach in company operations
There are numerous benefits that can be attained when a company integrates agile working in its operations. One of the advantages is that agile approach strengths the people who are involved in a company’s operations. There’s significant data showing that agile approach helps in establishing accountability, fostering diversity of ideas, making it possible for effective, efficient and early release of benefits and promotion of constant and continuous development. Also, agile aids in building client and user engagement since changes are incremental and evolutionary and not revolutionary. Therefore, it is effective in fostering cultural change that is crucial to the achievement of numerous transformation project within a company especially in times of market uncertainty like the current period when Covid-19 is on the rise and its future uncertain (Dobell, 2020). Additionally, agile approach makes it possible for decisions to be tested, examined, passed or rejected early. The model’s tight feedback loops offers benefits in agile that are not easily evident. Roscoe et al (2020) assert that agile approach helps to deliver transformation when the requirements are uncertain. It also focuses on what is most beneficial thus can aid in decision making considering that its feedback loops aid in saving costs, reinvesting and releasing quick wins.
Integrating agile approach to companies supply chains
Within the contemporary business environment, is essential to create an environment whereby the supply chains in a company compete. In the past, companies used to ensure that they compete with their rivals to remain at the top of the business. However, there have been transformations within the business sectors around the world. According to Holbeche (2018), dealing with uncertainty issues in the 21st century requires businesses not only to focus with competition from the external environment but also integrate competition within the business’s operations and supply chains.
The achievement or failure of supply chains is entirely reliant in the marketplace by the customers. It is important for companies to ensure that they produce the right product, at the right time, pricing it at the right price to ensure that satisfaction of consumers is enhanced. This technique does not only ascertain the competitive advantage of a firm but also its survival. Therefore, market-place comprehension and the satisfaction of customers is a critical element for consideration when coming up with supply chains strategies. Moreover, proper understanding of the necessities and challenges of the industry is crucial towards the establishment of a strategy that will meet both the requirements of an effective supply chain and the targeted customers (Zhukov et al. 2019).
The current uncertain business environments calls for businesses’ operations and supply chains to become more agile and adept in coping with challenges, particularly the evident uncertainties. There is sufficient proof that agile approach will improve the performance of companies’ supply chain performance and their competitiveness. It is essential for business to adopt effective strategies that will enhance rapid responses to the unpredictable changes in the markets marked by increasing degrees of environmental instability (Chibani et al. 2018). Agile approach enhances response time to demand variations by creating a significant competitive advantage. Usually, the primary objective of supply chain is distributing the right product, in the right quantity and condition to the appropriate destination and the right time and price. Due to the fact that customers’ needs change constantly, it is integral that supply chains transform into being adaptable to the constant changes. Therefore, an agile supply chain refers to an integration of company partners to facilitate new competencies that will offer rapid response to the rapid changes and the growing fragmented markets (Kawa & Maryniak 2018).
AlKahtani et al (2019) assert that agile supply chain management technique relies on several variables. The variables comprise of market sensitivity, delivery sped, introduction of new products, customer satisfaction, improvement of quality, accuracy of data, process integration, the use of new technology tools, reduction of lead time, improvement of service, minimizing operational costs, reduction of resistance to uncertainty and centralized and collaborative planning (AlKahtani et al. 2010).
Conclusion
In conclusion, the paper has taken an in-depth analysis of the various facets surrounding agile approach and its adoption to companies’ operations and supply chains. It is apparent from the presented literature that agile approach is an effective and essential tool especially within the contemporary market that seems to be so uncertain. Through the integration of agile methodology, companies will be able to focus on important issues and develop effective strategies that will ensure their survival and sustainability within the ever changing market. However, the success of companies is not solely reliant on the adoption of agile approach but rather appropriate integration of the methodology and its principles within the operations and supply chains of companies.
References
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