Discretion and complexity in customer focused environments

Operations have traditionally focused on reductive analysis; transactional processes open to mass-customisation and standardisation. This study proposes that service complexity created by extensive ‘reasonable’ customer demand limits the ability to standardise and manage systems through mass-customisation. Beyond mass-customisation we propose management is by discretion. Discretion is difficult, if not impossible to codify, so operations are ‘managed’ via framework principles that also are difficult to replicate and provide a source of sustainable competitive advantage. The study furthers the servitisation discussion through a public sector services case.

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