Industrial Management

MAY-JUN 2015

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may/june 2015 21 department, especially when consid- ering whether they have passion for the field. In Good to Great , Jim Collins' landmark study of several companies that went from a good performance level to remarkable success, putting them at the top of their industries and achieving higher than market- place returns, one of the main factors attributed to excellence was getting the right people on the bus. "But I know this much: If we get the right people on the bus, the right people in the right seats, and the wrong people off the bus, then we'll figure out how to take it someplace great," Collins wrote. Passion is important simply because it will require less energy to motivate a team if members are ready to get on the proverbial bus from the time they are hired. Finding the right people is a challenge, and it may be easier to find the right people by asking the current members of the team. People are likely to have social circles that consist of individuals who are similar to them. Thus, if a manager can network with workers who are motivated and have a passion for technology, it may pose less of a challenge to maximize person-job fit. If a manager is able to do this, then he or she will have a team less likely to have job-related stress, and with a solid team he or she will be more likely to achieve excellence. Amazon.com: Robots serve customers Amazon.com, the megastar online retailer, is a prime example of how management of technology can be leveraged successfully and can continu- ously lead to innovative ways of deliv- ering new services to customers. Amazon used its technology to analyze customer information to revamp warehouse layouts to manage inventory better. It refined software to predict customer demand better and create partnerships with other vendors. Amazon recognized that certain items, such as CDs and CD players, were being sold simultaneously. To stay a leader, a manager needs to be able to respond to rapid change. Being able to recognize this pattern, Amazon reorganized warehouses to lower inventory levels, which created value to its bottom line because inventory turnover increased. In a way, the company departmentalized its customers by analyzing their buying behavior. This was also a key factor in how Amazon created recommendation lists for their customers, an important factor in customer satisfaction and service. Amazon also capitalized on its e-commerce business by partnering with other businesses. Heeding the words of Michael Porter's On Compe- tition ("The essence of strategy is choosing what not to do"), in the early 2000s, Amazon precisely figured out what not to do – to not handle and ship inventory. Amazon was able to become more efficient by creating partnerships, such as the one with Toys R Us, because officials understood that they could increase sales if they left the shipping to others. The risk inherent with this decision was that they were essentially giving some control of their reputation to other companies, as the actions of Toys R Us would have an impact on Amazon's customer experience. Zappos, an online shoe retailer, was acquired by Amazon in 2009. Both Zappos and Amazon warehouses use technology to manage inventory, efficiently fulfill customer orders quickly and drastically lower labor costs by the use of robots from a company called Kiva Systems Inc. These robots have automated handling in warehouses. A controller selects items from an order and prints a ticket for the order. Orange robots bring the product to the controller, who then scans the product to ensure it has been received, places the item or items in a box and pushes the box onto a conveyor belt for shipment. The robots' movements are coordinated by cameras and quick response code (QRC) stickers that are placed along the warehouse floor. It is an example of how powerful and influ- ential technology has become. It can be used and harnessed to serve customers better. Adapting to customer buying behavior and improving inventory management by managing available technology effectively is part of how Amazon became a leader in the market- place. To stay a leader, a manager needs to be able to respond to rapid change. "Technological connectivity is putting everything online, which has resulted in the shrinking of space and distance," Ivancevich wrote. This can be seen in how customers view movies. The old technology was to watch a movie on videotape with your

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