Business in the 1990s: Emerging opportunities for the OR practitioner

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EDITORIAL

Business in the 1990s: Emerging opportunities for the OR practitioner The business world is undergoing rapid change as we

enter the last decade of the 20th Centuiy.

power and consumer demand were rising strongly, and for the next decade the challenge for most firms was that

their implications and the opportunities for OR in

development in the practical application of OR, and much

PAUL THORNTON assesses the changes and outlines some of

of maximizing output.

This was a period of rapid

of the work done made direct use of what are now

practice.

regarded as classical OR techniques - linear

Business in the 1990s

programming, stock control, queueing theory, etc. There was an excellent fit between the pressing needs of most

organizations for greater efficiency, better use of

The current debate about alternative futures for OR centres around two themes:

resources, higher productivity, etc., and the benefits

extending OR's clientele to include, for example, community groups as well as business enterprises

which OR could deliver.

reappralsing the role of the OR practitioner in adding value for clients, and the methodology and toolset to fulfil that role.

This decade was very much the heyday of the corporate planner. As competition intensified,

1965-1975

and government; and

companies turned to new markets, diversification, vertical

integration and international expansion.

Most organizations were still managed centrally, with large head-office staffs, and their response to the growing complexity of business management was to develop

This debate is not fuelled by any immediate crisis in OR practice: indeed, many OR groups are experiencing greater demand than ever before. But there is a widelyheld view that much more needs to be done to ensure that OR realises its full potential, that it contributes to the

improved systems for planning and control. Although the use of classical OR techniques waned during this period,

major decisions, and that it does not become

OR was still very much at the centre of things, valued

increasingly for the ability to harness management

marginalized.

information and computer technology in the service of business planning. OR was involved more with the planning process than with the content of individual decisions. This time-frame also saw very rapid

A comprehensive review of the current situation and its economic, social and educational dimensions is quite outside the scope of this article. However, it is clear that, however effectively we extend our client base (and I fully support the Society's efforts on this), the health of OR in practice will for the next several years be determined by its success within the business community (the more so under the present administration, since the private sector will be expected increasingly to fund activities within the educational and voluntary sectors).

development in the numbers and standing of the business schools, and the rise of the MBA.

1975-1 985 Following the oil crises and the deterioration of

business pe