Managing Operational Improvement: Forces of Change Report

This report, prepared for the Australian Institute of Business's GSB005 course, examines the forces of change and digitalization within the harness racing industry. It begins with an executive summary and introduction, setting the stage for an in-depth analysis of the challenges and opportunities presented by digitalization. The report identifies key forces of change, including declining attendance and increased competition, and assesses the current operational approach of Harness Racing Victoria (HRV). It explores the impact of technology, the need for digital transformation, and the importance of understanding order winners and qualifiers to meet customer needs. The analysis includes performance gaps, benefits of digitalization, and risks associated with digital transformation, offering recommendations for operational improvement. The report concludes with a discussion of the benefits of a blended approach, integrating existing talent with new innovators, to create a successful digital workplace ecosystem. The report emphasizes the importance of strategic vision, building training/leadership capabilities, and sustainable digital transformation to achieve operational excellence and competitive advantage.

Cover Page
Course Title: Managing Operational Improvement
Course Code; GSB005
Project #1 (Report)
Topic: Forces of Change and Digitalisation for Operational Improvement
Submitted To:
Facilitator
Australian Institute of Business
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Table of Contents
1. Self-Declaration
2. Executive Summary
3. Introduction
4. Forces of Change
5. Order Winners & Qualifiers
6. Digitisation benefits and performance gaps
7. Risks and Operational Improvement
8. Conclusion
9. References
10. Appendices
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Self-Declaration
This assessment is mywork.
It has not been copied from any other source except where due acknowledgement
which is noted the list of references or after each paragraph.
This assessment has not been written for meby any other person.
Any collaboration piece has been noted and authorised by the lecturer/teacher concerned.
Please note this is my first project with AIM or any college at this level for that matter, so
any feedback for future improvement will be much appreciated.
Anita Rozen 27/05/20
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Executive Summary
Advanced technologies are a prevalent and crucial factor in the success of any
business. Successful development and implementation of digitalisation requires careful
attention to the people, operations, safety, financial feasibility and the competitive
environment. Appropriate consideration of each factor requires conscious choices and actions
from all levels of the organisational chain of command. As technology rapidly evolves, it
proves to be challenging integrating older employees with the demand for change within the
Harness Racing sector.
With a blended approach, utilising the skills and knowledge from our existing talent
pool and future young innovators, we should see the benefits of a successful digital
workplace ecosystem. Some new initiatives have been considered, and that will no doubt
transform the sector and learning environment for Harness Racing.
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Introduction
Gary Coleman communicated that the Fourth Industrial Revolution is still in its early
undeveloped state. But with the fast pace of change and disruption to business andcommunity
of people/all good people in the world, the time to join in is now (Deloitte India, n.d.).
The enhancement witnessed within Digitalisation in the current corporate and
business environment with initiatives such as i4.0, machine learning, AI, IoT, self-driving
cars and so forth have driven the world towards anticipating even impossible things to unveil
in future due to improvisation and new innovation in various industrial practices and
offerings.
There are various digital advancements and all are related to the next generation of
digitised changes enabling individuals to revolutionise in ways of how business is done.
Managing Operational Improvement is an art of developing and maintaining a
competitive business environment, where members of Harness Racing Victoria can work
together and accomplish business objectives efficiently and effectively.
Therefore, this report would be emphasising on understanding the forces of change
and the elements which HRV must focus upon in order to reach their goals and increase
competitiveness. This report contains information about the racing industry and what it will
take to revolutionise the way they do business.
Forces of change
Harness Racing’s current social landscape is slowly declining, and new thinking and
direction is required to reinvigorate their future and its longevity. A total of 48 clubs, 28
racetracks, 10,435 participants and 4,495 individuals are directly employed in Harness
Racing. This industry has attracted a small yet devoted core of participants. However, despite
such effective numbers presented above, attendances have decreased significantly, as it has
become far more convenient to wager on races from venues such as hotels, clubs and various
mobile devices from the comfort of one’s own home. Hence, this is one of the biggest and
massive forces of change within the industry which has both a negative and positive impact
on the current harness racing industry, as well as on HRV. In relation to positive, it brings in
the opportunity for the firm to embed the digitalisation within its functions. Moreover, as for
the negative impact, digitalisation has caused the majority of audiences to not turning up to
the events, which lowers down the spirit of the game.
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While recognising horse racing’s place in history and tradition, there are broader
social and economic changes and challenges that need consideration, along with the impact of
technology that has changed the environment in which the industry has operated. Increased
competition from a variety of sources, such as the greyhound and thoroughbred racing and
the absence of past initiatives began to pose a threat to harness racing’s long-term viability in
its current form. Therefore, this brings in another major force for change which required the
firms within the industry such as HRV to ensure transformation in its processes in order to
stay ahead of the competition.
(RNSW Strategic Plan FY2004-2006, HRNSW, 2003)
Current Approach to Operations
It is highly imperative towards determining the current approach of the organisation
towards their operations, along with analysis of the responses of the company towards the
challenges. Hence, in relation to HRV, below are various business challenges faced by the
firm along with a long-term view towards achieving transformation objectives across the two
dimensions of Industry 4.0;
HRV Current
Challenges
Suggested
Improvements
Potential Risks after
implementation
Potential Risk of
not acting
1. Technology &
System
Ageing
technology.
Lack of i4.0
strategy
comprehension.
Lengthy queues
at race events
Analysis of
data and
technological
infrastructure.
Development
of technology
roadmap for
the coming 10
years
HRV
customised
Security of a login,
meaning no confidential
content could be
deployed.
Management through the
years and oversight
Site crashes.
Ethical obligations
Controlling the
human interface
and
safeguarding the
security of funds
More rapid
decline in the
effectiveness of
the industry in
long term.
Loss of revenue.
Decline in
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Mobile
Application
towards protecting the
safety and security of
personal information of
customers
Customer
satisfaction rates
due to enhanced
waiting time
2. Qualifications for
Industry 4.0-
Training Overhaul
Manual based
process
inclusive of high
human
intervention
Lack of
simulated
offline learning
environment
Design and
implement a
regulatory
framework-
LMS platform
Micro-learning
and offline
eLearning
options
Upskill tracking of
current and new
employees
Design and development
of the courseware
Slow process
times and
increased delays
Lack of
qualified
trainers
Table 1.1
HRV's vision is to create a vibrant and sustainable harness racing industry; however,
there is minimal, bold action to become a smart, interconnect persuasive business. This could
be reflected through its current operations in terms of organising the funding, managing
customers, as well as managing the human resources within which the company is still very
much reliable over the traditional methods which are slowly degrading the firm’s
performance in the marketplace.
HRV will need to look for practical and effective ways to scale their business up to
create real enterprise value – to transform performance and unlock sustainable competitive
advantages.
By exploring HRV’s two primary goals and what they want to achieve, we can then
define the strategic vision and create our roadmap to success, focusing on technologies, in
making real enterprise value from an operational improvement perspective.
1. Build Training/Leadership Capabilities
2. Sustainable digital transformation
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Operational Performance Gaps (Winners and qualifiers framework)
According to Hill (2020), the reason many organisations fail to gain advantages in the
market competition is because they lack a clear definition for quality and delivery reliability.
(Yen, Hu and Chiu, 2009) Journal
When HRV's current performance is reviewed in context of quality and delivery, it
was noted that two areas need focus, which are people within the organisation, i.e., the
employees and customer.
There are various front house roles that deal with customers, providing an exceptional
customer experience along with adhering to their requirements. HRV offers a help desk
where customers come in and direct their concerns. The people dealing with these always
understand the customer’s problems and perspectives and then take appropriate action. HRV
has a website where any customer can contact the team for further assistance.
As the move over to a digitised platform is concerned, it must be ensured that
consistent and reliable customer service is offered to customers. Customer engagement and
loyalty within the organisation is required which must be provided in the way of products,
services and information that will be tailored and ready for them via whatever channel they
choose. It is essential to know how customers interact with products, services, various
circuits, employees, infrastructure and brand.
The people component is equally important as they play a big part in the operational
model. Motivating, educating, training and skill development will be keys to motivating and
winning HRV employees over in joining the digitalised journey.
Deloitte (2015)
On the other hand, by undertaking a training needs analysis, performance gaps could
be identified and question some basics; How can it be identified which part of the interaction
can be digitally enhanced or enabled? Where are the pain points for customers? How can
these points be fixed?
Dashper, K discusses the complexity of the industry through the people within the
industry and focuses on their relationship with horses, wagering, racing and events. It also
provides parallels between economic and technological changes along with environmental,
cultural and ethical issues.
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(Dashper, 2015b)Journal
Considering table 1.1, it could be observed that some significant initiatives within the
technology and systems space could be taken; however, for HRV to meet these objectives,
the firm will need to ensure they meet market requirements.
To qualify for a patron’s consideration and gain their trust and loyalty we need to
make sure that the offeringwill be the vital winning reasons a consumer will change over i.e.;
price, range of tools for wagering and ease of transaction for each stage of the process which
will include troubleshooting.
The following table identifies the performance gaps and areas for improvement.
Qualifiers &
Winners
Performance Gaps for review
Delivery reliability Review process times for wagering and 1:1 assistance.
Standardise process across the business.
Standardise technology.
Service product
range and quality
Implement a rewards and loyalty program for current and new
clients.
Enhanced training for front-line staff and implement an incentive
program.
Table 1.2
Considerations; How can the younger population be attracted to a location out in the
West? What value is there in becoming a member? Why harness racing must be chosen over
thoroughbreds? Are there any animal welfare considerations? Is showcasing the athleticism
of the horses and skill of the drivers enough?
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Table 1.3
Based on the above report and my analysis, I have hypothesised areas for
improvement of current processes.
The younger generation appreciate a more straightforward option for delivering
content via mobile-friendly websites. Such an initiative would report on each content piece
using Google analytics for several views, location of users etc. Each content piece would
have a 'like 'feature and a 'comments 'section where users would access the content.
Content pieces can range from product, events, race meetings, family days, racing
information, animal welfare updates loyalty program, and track their wagering efforts.
It would be a great option to generate excitement amongst the user group and deliver metrics
to demonstrate take-up for a more substantial investment.
The above scenario would free up our current front of house resources to invest
customer service time with our ageing population who are not technologically savvy, in turn
reducing wait times at venues and higher customer satisfaction.
(Yeonghoon Kwon, 2008)Journal
Rationale and benefits of digitalisation
A journal published by the research centre of England (Antikainen, Uusitalo and
Kivikytö-Reponen, 2018c) Digitalisation can boost the change towards a more sustainable
circular economy. It can help closing the performance gaps by providing accurate
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MeetCustomerNeeds-(QualityandDelivery)Order-winnerorqualifier

information on the business product and services. The way of the future is to minimise waste,
increase recourseefficiency and financial burden during the transformation into a digitised
workspace.
There are many challenges to be solved to gain the desired benefits and gaps
hindering digital technology. This new technology is yet to be measured and reported in full,
so there are research gaps and a lack of thorough understanding as to what those challenges
may look like. The study conducted at the research centre, identified problems related to
adopting novel business models, data collection and management, collaboration and
competence requirements. The virtualisation of products and processes, collaboration with
stakeholders and utilising digitalisation were highlighted to be significant opportunities in
adopting customer experience-based business models.
Risks, barriers and enablers for digitisation and operational improvement
This above journal highlights some very valid points that we will need to explore
during iteration of digitisation implementation for HRV.
A few potential risks/barriers are hindering the potential gained benefits such as
measuring financial benefits, missing exchange information, unclear responsibility
distribution, Therefore, in order to overcome these risks and to ensure successful application
of i4.0 required there are three features to integrate a new process across the organisation:
If vertical integration is considered to manage the whole process from start to finish, it
would observe the advantages and disadvantages related with the implementation.
From my research, if we can that control sole ownership of a digitalised project, this
will reduce costs, utilise own current resources, leverage from our existing skill base and
secure jobs in house.
However, it is worth noting that the barriers may consist of a lack of quality, skills,
choice, growth and long-term sustainability. Therefore, if robust processes and procedures are
implemented, as well as positioning this project as a priority, we can then leverage of current
skills, build a solid business case and apply for additional funds in order to make the change
happen.
Once HRV is operating efficiently with the new initiatives, we would consider
exploring the advantages of horizontal integration for an opportunity to capture a unique
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opportunity, market, customers, products, procurement and perhaps a merger with other
racing industries.
According to (Ruth j Maddigan), a business will need to develop a measure of vertical
integration so that it can be studied and implemented. The journal makes mention that if
vertical integration were proven to lower costs and reduce risks over time; we would observe
several businesses apply this concept. Looking over HRV annual report, this required
information was not readily available to make an informed decision either way.
(Maddigan, 1981) Journal
Conclusion
For Industry 4.0 to succeed within Harness Racing, the training and qualification of current
and skilled workers will have to be changed to fit the new need of digital production.
The use of mobile terminal devices, such as tablets and smartphones, within the industry, is
needed to survive and ensure this long-held tradition survives into the future.
Planning and organisation for the networking of smart systems will be crucial, and the time is
now to start factoring digitisation as part of our operational improvement processes.
Current and future tech intelligent workers will play an essential role as a problem
solvers, experienced experts, and decision-makers within this racing industry.
They will remain irreplaceable in the future as idea generators, and developers of new produc
ts and work processes, enabling their abilities and skills to continuously
change and get better, enabling their capabilities and expertise to evolve into an essential
customer engagement piece continually.
The initial investments do not need to be huge, but the overall structure needs to be well
thought throughto strengthening the bond and loyalty with the HRV customers.
It will be imperative we re-examine the current HRV strategy, establish some achievable
objectives over a long-term period, deal with the big picture stuff and not let business as
usual cloud or confuse their goals to move into a digitised era.
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Referencing
 Article in a book-www.gihub.org. (n.d.). Everything You Need to Know About
Industry 4.0.
 Article from a website-Deloitte India. (n.d.). Regulating the revolution. [online]
Available at: https://www2.deloitte.com/lk/en/pages/about-deloitte/articles/blogs/
regulating-revolution-gary-coleman.html.
 Article in a book-www.harness.org.au. (n.d.). HRA Papers: Evolution of Australian
Harness Racing.
 Article in a book-Westerman, G., Bonnet, D. and Mcafee, A. (2014b). Leading
digital: turning technology into business transformation.
 Article in a book-Hill, A. and Hill, T. (2018). Operations strategy : design,
implementation and delivery. London: Palgrave Macmillan.
 Article in a book-Slack, N. and Alistair Brandon-Jones (2019). Operations
management. Harlow, England ; New York: Pearson.
 Article in a Journal-Antikainen, M., Uusitalo, T. and Kivikytö-Reponen, P. (2018b).
Digitalisation as an Enabler of Circular Economy.
 Article in a Journal-Yen, T.-M., Hu, H.-Y. and Chiu, S.-I. (2009). Modified IPA for
Order-Winner Criteria Improvement: A MICMAC Approach.
 Article in a Journal-Dashper, K. (2015b). The global horseracing industry: social,
economic, environmental and ethical perspectives, by Phil McManus, Glenn Albrecht
and Raewyn Graham. Leisure/Loisir.
 Article in a Journal-Yen, T.-M., Hu, H.-Y. and Chiu, S.-I. (2009). Modified IPA for
Order-Winner Criteria Improvement: A MICMAC Approach.
 Article in a Journal-Maddigan, R.J. (1981). The Measurement of Vertical
Integration. The Review of Economics and Statistics.
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 Appendices (included throughout the report)
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