Chapter 10 :

Change Management
Member of Group 4 :
1. FEBRIANTI (1810631020014)
2. LARAS PUSPITA DEWI (1810631020021)
3. GINA SARTIKA (1810631020063)
4. ALFINA AGUSTIN (1810631020077)
5. ADE LIANI (1810631020227)
6. RISHA FATIKHA SARI (1810631020294)

http://www.free-powerpoint-templates-design.com
What is Change Management?

01 Change Management

Change management is managing process,

structural, technical, staff and culture change within
an organization.

02 Business Transformation

Business transformation is significant changes to

organizational processes implemented to improve
organizational performance.
 The different aspects of change we
need to plan for, these include:

Organizational structures
Schedulling
Do we need to revise organizational
What are the suitable stages for structure?
introducing change?

Managing the human impact of

Budgeting change
How do we cost e-business? What is the best way to introduce
large-scale e-business change to
employees?

Technologies to support e-
Resources needed
business change
What type of resources do we need,
what are their responsibilities and The roles of knowledge management,
where do we obtain them? groupware and intranets are explored.
The callenges of E-bussiness transformation
 The challenges of E-bussiness transformation
These are all major changes that are required in order
for an organization to be agile enough to respond to
marketplace changes and deliver competitive customer
service. To help achieve these different aspects of
change, a series of success factors seem to be
required. These include :

1 3
Management buy-in Action to attract and
and ownership; keep the right staff
to achieve change;

2 4
Effective project Employee ownership
management; of change.
 The challenges of sell-side e-commerce
implementation
1 2 3
The research
E-consultancy showed that
Strategy Structure Skills and staff managing the
(2005) surveyed
UK e-commerce Limited capabilities Structural and These issues were interfaces between
managers to to integrate Internet process issues are indicated by the e-commerce
strategy into core indicated by the difficulties in finding team and other parts
assess their views
marketing and challenges of specialist staff or of the organization
on the main business strategy gaining resource agencies.
challenges of as discussed in
was a major
and buy-in from
managing e- Chapter 5 is challenge for many
traditional marketing
commerce within indicated by and IT functions. organizations.
an organization.we frustration on Managing these
can summarize the gaining appropriate interfaces is a key
budgets. role of the head of e-
main challenges as
follows : commerce and
managers within
their team.
Different types of changes in bussiness
Incremental change
Involves relatively small adjustments
required by changes in the businesss
environment

Discontinuous change
or transformational change involves a major
change in the business environment which
changes the basis for competition

Organizationalchange
Mirrors that at industry level. It can occur on
a continuous or incremental basis or on a
discontinuous basis. The introduction of e-
business requires organizations to manage
both types of change.
Different types of changes in bussiness
Nadler et al. (1995) developed a useful way of classifying types of organizational change. This
uses the concepts of incremental and discontinuous change together with anticipatory or
reactive change. Anticipatory change occurs when an organization makes proactive changes
in order to improve its efficiency or to create an advantage within the competitive environment.
Reactive change is a direct response to a change in the external environment.

TUNING

ADAPTATION
The four different forms of organizational
change identified by Nadler et al. (1995)
RE-ORIENTATION

RE-CREATION
Bussiness process
management

Business process management

(BPM) An approach supported by
software tools intended to
increase process efficiency by
improving information flows
between people as they perform
business tasks
 Discontinuous process change
In the early-to-mid 1990s organization-wide transformational change was advocated under the label of
‘business process re-engineering’ (BPR). Business process re-engineering (BPR) identifying radical, new ways
, often enabled by new IT capabilities.
of carrying out business operations,
 Planning Change
The imperative for project governance?
A recent survey of the challenges of managing e-business
implementation projects is indicated by a survey of over 600
European and US businesses involved in management of web
related projects (Econsultancy, 2007). The research found
that:

Only 58% of respondents say
that their projects always
achieve their goals, and yet
only 21% of them say they
always achieve deadlines.
Only 39% always achieve Over 8% of respondents never Nearly half of all respondents
budget and a positive ROI. meet their project deadlines (45.5%) do not have a
and nearly 6% never deliver structured approach to
their projects within budget. managing their web projects.

The project plan and schedule for an e-business system

Systems development lifecycle is the sequence in which a system is created from
initiation, analysis, design, implementation, build and maintenance.
The project plan and schedule for
an e-business system
 Human Resource Requierments
E-business project managers have a choice of building a new skills set within
their organization or outsourcing and partnering with other organizations.

1.
Skill variety. 2.
Task identity, how well the work is defined relative to
Staff retention other tasks and whether an employee sees a job through
‘from start to finish’.
The job characteristics
model developed by
Hackman and Oldham 3.
(1980) provides a Task significance or the
useful framework for importance of the work.
designing jobs that
provide a good
experience to improve
staff motivation and so
help retention. The five
intrinsic characteristics 4.
of a job are:
5. Autonomy or freedom in
Feedback from employer. completing work.
Outsourcing
Observation of the practice of outsourcing suggests that two conflicting patterns are evident:

02
01
Inside-out
Outside-in
The company starts to implement
The company starts an
e-business using existing
e-business initiative by
resources within the IT
outsourcing some activities
department and marketing
where there is insufficient
department in conjunction with
in-house expertise.
recruitment of new media staff.
 Revising organizational structures
When a company first embarks on e-business, perhaps
through creating a new website to promote its products, it
will normally operate within the existing company structure,
perhaps using outsourcing to make good a resource deficit.
There is four stages in the growth of ‘the digital marketing
organization’:

1. Ad hoc activity 2. Focusing the effort.

3. Focusing the effort. 4. Institutionalizing capability.

Approaches to managing change

Change management is conducted by change agents

who are the managers responsible for controlling
change. In the context of e-business, the change agent
could be the project manager responsible for
implementing a new information system, an e-business
manager responsible for increasing adoption of e-
business by an organization, or specialist digital
marketing or supply chain managers seeking to increase
adoption of e-channels.
Senior management involvement

Cope and Waddell (2001) have assessed the role of

leadership style in e-commerce implementations.
They assessed the most common approaches to
e-commerce implementation, distinguishing between
these approaches:
• Collaborative
• Consultative
• Directive
• Coercive
Models for achieving change

There are many process models for achieving change which can
be usefully applied to managing e-business-related change. A
classic model for achieving organizational change was suggested
by Lewin and Schein. It involves three stages:
1. Unfreeze the present position by creating a climate of change
by education, training and motivation of future participants.
2. Quickly move from the present position by developing and
implementing the new system.
3. Refreeze by making the system an accepted part of the way
the organization works.
 Organizational cultural
Boddy et al. (2001) summarize four different types of cultural orientation
that may be identified in different companies. These vary according to
the extent to which the company is inward-looking or outward-looking,
in other words to what extent it is affected by its environment. They also
reflect whether the company is structured and formal or whether it has
a more flexible, dynamic, informal character.
The four types of cultural orientation are:

1. Survival (outward- 2. Productivity (outward-

looking, flexible) looking, ordered)

3. Human relations 4. Stability (inward-

(inward-looking, flexible) looking, ordered)
 Knowledge Management
Knowledge Management is the management of
activities and processes for leveraging knowledge
to enhance competitiveness through better use and
creation of individual and collective knowledge
resources.

Theorists have identified two different types of

knowledge, and different approaches can be
used to disseminate each type of knowledge
within an organization:

1. Explicit knowledge is knowledge that can be

readily expressed and recorded within
information systems.
2. Tacit knowledge mainly intangible
knowledge that is typically intuitive and not
recorded since it is part of the human mind.
 Risk management
Risk management is intended to identify potential
risks in a range of situations and then take actions
to minimize the risks. We all unconsciously perform
risk management throughout our lives. Risk
management involves these stages:

Identify risks, including Implement the

their probabilities and solutions targeting the
impacts. highest-impact, most-
likely risks.

Identify possible Monitor the risks to

solutions to these risks. learn for future risk
assessment.
Thank you
Any Question???????????
 Fully Editable Icon Sets: C
You can Resize without
losing quality
You can Change Fill
Color &
Line Color

FREE
PPT
TEMPLATES
www.allppt.com