All businesses need operations management in order to function

Operations management is the function that turns an organization’s resources (materials, labor) into products and services. That’s why it is “the main reason for existence for any organization”, according to Ángel Díaz, professor and chair of the operations management department at IE Business School.

If you work in manufacturing, understanding operations is important as this is the areas of the business where a vast majority of a company’s money is made or lost. For those working in service industries, it’s important to understand operations as it’s a key differentiating or determining factor between companies in the same area. When thinking about banks or logistics companies, the value proposition they offer consumers is often based on functions provided by the operations department.