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quality practices; but less as an answer and more as one tool in the toolkit。 
Philosophy 
W Edwards Deming (deming); an American statistician and 
member of the faculty at the New York University Graduate School of 
Business and Columbia University; where he taught up until 10 days 
before his death in 1993; is considered as the founder of modern quality 
management。 He took the inspection aspect of quality control a stage 
further with the introduction of statistical probability techniques。 His view 
was that quality should be designed into products and processes and that 
mass inspection was redundant as statistical sampling using control charts 
will signal when a process is out of control。 
Deming is remembered most for his 14…point ‘System of Profound 
Knowledge’。 In this he explains that being a quality…driven organization 
requires everyone; starting with top management; ‘to fully embrace a 
new way of thinking that involves seeking the greater good for everyone 
Operations Management 243 
involved and implementing continuous improvement’。 He wanted slogans; 
targets and numerical targets removed and emphasized to all employees 
in the pany that if change is to be made and processes are to be continuously 
improved then it’s down to them to achieve it。 Deming’s ideas 
were adopted enthusiastically by the Japanese whose economy; having been 
crippled by the war (WW2); was ready to embrace radical change。 It was 
not until the Japanese motor industry was cu。。ing deep into its home market 
that US industry woke up to Deming’s message on quality。 Total Quality 
Management; Quality Circles and Six Sigma have bee buzzwords for 
variations and extensions of Deming and other pioneers’ work on quality。 
The la。。er term was in use in the 1920s where mathematicians used it as the 
symbol for a unit of measurement in product quality variation。 But it was 
not until the mid…1980s that engineers in the US pany Motorola used 
‘Six Sigma’ first as an informal name – later as a brand – for their initiative 
aimed at reducing defects in production processes。 The name Six Sigma 
was chosen because mathematically it represents 3。4 parts – or defects – per 
million; an extremely high level of quality。 
INFORMATION TECHNOLOGY 
Information technology is universally seen as important by all major business 
schools; but taught differently and with a different level of emphasis 
by all。 At London Business School the course is relatively short; entitled ‘IT 
for Business Value’; and has two intended outputs: to enhance students’ 
confidence in choosing the right technology for meeting business needs; 
and to examine issues involved in managing the implementation of business 
systems。 At Wharton the Management Information Systems (MIS) 
course on the MBA programme covers ‘the practice of using puter 
and munication systems to solve problems in organizations and provide 
the essential skills and technology…based insights needed in order to 
manage effective problem solving with information technologies and 
systems (IT&S); and to extract the most value from an actual or potential 
information system’。 The course itself is organized around several ‘hands 
on’ cases or projects; through which student teams bee familiar with 
important information technologies; including databases and the internet。 
MBAs will be expected to have some appreciation of these key issues; 
though they will usually expect to be able to rely on professional expertise 
either from within the organization or outside。 
Data protection 
Holding data on customers; employees and indeed on any living person 
requires an organization to register with the Information missioner’s 
244 The Thirty…Day MBA 
Office (ico。gov。uk 》 For organizations 》 Data protection guide) and 
to ply with the Data Protection Act’s eight principles; which make sure 
that personal information is: 
。 fairly and lawfully processed; 
。 processed for limited purposes; 
。 adequate; relevant and not excessive; 
。 accurate and up to date; 
。 not kept for longer than is necessary; 
。 processed in line with your rights; 
。 secure; 
。 not transferred to other countries without adequate protection。 
Website operations 
MBAs need a good grasp of how the internet is currently affecting the 
business operations。 Everything from books and DVDs; through puters; 
medicines and financial services; on to vehicles and real estate is being sold 
or having a major part of the selling process transacted online。 Not only 
are products and services being sold online; they are being supported both 
technically and mercially and to an increasing extent being fulfilled 
online too。 So。。ware; films and books are just three ‘tangible’ product categories 
for which more or less every business operation can be and is being 
delivered via the internet。 Holidays; airline tickets; so。。ware; training and 
even university degrees are bundled in with the mass of conventional 
retailers such as Tesco who fight for a share of the ever…growing online 
market。 The online gaming market alone has over 217 million users。 
The value of web transactions in the United States in 2007/08 was over 
450bn and in the UK alone was £55。5bn; up from £19bn in 2002; the value 
of sales to households as opposed to businesses over the same period 
doubled to £14bn; £78 in every £100 spent in 2007/08 on the internet was 
used to buy physical goods。 In the United States 16 million people visited 
jewellery websites; 35 million hit flower and gi。。 sites and 42 million looked 
for travel…related products and services。 
Not all business sectors are penetrated to the same extent by the internet; 
according to Forrester (forrester); the internet research pany; 
although sales of clothing and footwear online is a multi…billion business 
it accounts for only 8 per cent of total sales。 Contrast that with puters 
where 41 per cent of sales occur online。 
According to eMarketer (emarketer); 88 per cent of shoppers 
prefer online to conventional shopping because they can shop at any time; 
66 per cent like being able to shop for more than one product and in many 
outlets at the same time; 54 per cent claim that there are products that they 
Operations Management 245 
can only find online; 53 per cent like not having to deal with salespeople; 
44 per cent reckon product information is be。。er online; and perhaps the 
most revealing statistic of all; only 40 per cent preferred online to offline 
because they expected to find lower prices。 
Information systems (IS) 
If the internet is the external operations powerhouse; IS systems are the 
mirror image; handling all the data needed to run a 21st…century organization。 
Every part of a business collects data; production monitors output 
efficiencies; stock levels and quality; finance gets the accounts; marketing 
gets figures on customer demand and petitor market share; HR keeps 
track of pay; training; accidents at work and sickness。 But none of this data 
is much use unless there is an integrated system that can integrate; collate; 
analyse and disseminate this information in a timely manner and in a 
format that can be understood and used by operating management。 
To be effective; IS needs an appropriate amount of hardware and so。。ware; 
as firms that effectively exploit the power muter information systems 
can deliver can outperform others。 It can play a major role in opening new 
distribution channels; streamlining supply chains and providing efficient 
electronic markets。 Mainframe/legacy systems; PCs; workstations; intranets 
and the internet; as well as local area networks (LANs) and wide area 
networks (WANs); customer relationship management (CRM) and the 
ubiquitous Moore’s Law stating that processing power doubles every 18 
months while costs halve; are all vital elements in an MBA’s IS vocabulary。
Quantitative 
and qualitative 
research and 
analysis 
。 Decision…making tools 
。 Statistical methods 
。 Making forecasts 
。 Assessing cause and effect 
。 So。。 studies 
。 Carrying out surveys 
Finance; marketing; operations and HRM (human resource management) 
collect an 

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