ABSTRACT

This chapter focuses on the role of operations managers who define the process capabilities that critically impact a firm’s competitive advantage. Process capabilities are embodied in manufacturing equipment, information technology (IT), workforce, distribution systems, materials, and procedures. For the purposes of this chapter, we establish two key characteristics of process capabilities. First, examples from managerial practice demonstrate how process capabilities drive the creation of new products, services, and business models as well as improvements in those that already exist. Second, these examples also demonstrate the importance of pursuing advances in science and technology to innovate process capabilities (Gaimon 2008).