Delivery and Operations Capabilities

The Delivery and Operations Capabilities translate customer orders into delivered products and / or services. These product / service capabilities consists of the following elements:

• Promotion and Pricing
• Sales and Order Administration
• Scheduling
• Production
• Service Delivery
• Warranty
• Recycle
• Waste disposal
• Customer Feedback

Customer Satisfaction is a primary measure of this system. Any part of the system can cause the customer to change their perception of the product or service that is delivered. These capabilities can be defined to deliver value in small chunks, and deliver value frequently. Here is an example of the capabilities based upon the Delivery and Operations Process Model:

The customer satisfaction can also be influenced by the performance of the Supplier Management and Product / Service Delivery capabilities as well as how well the Customer's management capability performs.

Capturing the customers needs and requirements also provides an excellent basis for making / revising products and services. This information is valuable and needs to be fed back into the product / service strategies of the organization. (Sense and Respond capabilities here).

The Product and Service Delivery capability is described by the following elements:

This capability consists of the following types of components:

• Various teams and people and associated rewards / motivation (part of the organization design).
• Various Processes and Tools (descriptions of the work and tools to automate the work).
• Various components of the product or service sourced from suppliers or developed internally (it systems, parts, etc) These may be developed as part of Sub-Systems of this system.
• Various physical machinery (capital) and space (facilities).

This Product / Service Capability and its related capabilities are designed and developed as part of the Product / Service Innovation Capability.

An organization may have more than one product / service delivery capability depending upon the organization's mission and purpose. Each product / service will have its own Capability Requirements (resources, functions, and performance). These capabilities may operate independently or may be interfaced through various plans. Where there are multiple product / service delivery capabilities, some care must be taken to ensure that the point at which the customer is engaged has some consistency.

The Purpose of the Delivery Capability is:

• To deliver products and services as designed
• To assess the market place and listen for new ideas
• To provide warranty and support for the products and services.
• To Delight customers.

Key performance areas for delivery:

• Time from order to delivery
• Number of complaints or feedback
• Time to resolve a complaint.
• etc.

NOTE: these are capability level performance areas that no one team can be responsible for. So all teams in the delivery capability need to work together to achieve these objectives.

Resources required to deliver the objectives of the delivery capability.

The primary design elements include:

• Sense and Respond capabilities
• Sales promotion and administration
• Production
• Distribution
• Warranty
• Support
• Continuous improvement and monitoring / auditing (including resource / capacity planning)
• Regulatory requirements

These elements will typically be designed through the new product / service investments.

There may be further capabilities defined for the delivery capability:

• IT / IS operations.

The following process design patterns support delivery of these capabilities: