Different types of Change

that needs to be managed

for introducing E-Business
into the Organization
I. Business Processes
There are different types of changes in
Business. One classification includes:
MBA FT- 7601
Incremental change involves relatively small
Managing E-Business adjustments required by changes in the
business environment. Organizations scan
their environment and make adjustments
according to the introduction of new products
from competitors, new laws or long-term
Weekly changes in customer behavior such as the
increasing spending power of teenagers.
Assignment - 10 Organizations also make changes to improve
the efficiency of their processes.
Significant discontinuous change or strategic
Submitted By: change involves a major change in the business
environment which changes the basis for
Aayush Goyal competition. The opportunities and threats
presented by wide- spread availability of low
F19-166 cost Internet connectivity is a discontinuous
change.
Then there are anticipatory and reactive
change. Anticipatory change occurs when an
organization makes proactive changes in order
Contents to improve its efficiency or to create an
Different types of Change that needs to be advantage within the competitive environment.
managed for introducing E-Business into the
Reactive change is a direct response to a
Organization ..................................................... 1
change in the external environment.
I. Business Processes ................................... 1
1. Different Types of Changes in
II. Organizational structure and culture ..... 2
Business Processes
III. Approach & Models of Change
Management ................................................. 3 a. Tuning: This is an incremental form of
change when there is no immediate need for
change. It can be categorized as ‘doing things
better’. New procedures or policies may be
used to improve process efficiency. E-business

1
involves ‘tuning’ as Internet technologies are
applied to improve efficiency.
b. Adaptation: Also an incremental form of
change, but in this case it is in response to an
external threat or opportunity. It can also be
categorized as ‘doing things better’. Managing
e-business-related change also requires
adaptation.
c. Re-orientation: A significant change or
transformation to the organization is identified
as a priority in the short-to-medium term.
There is not an immediate need for change, but
a significant change is anticipation of change.
Successful adoption of e-business also requires
re-orientation for many organizations.
d. Re-creation: In re-creation, the senior
management team of an organization decides
that a fundamental change to the way it
operates is required to compete effectively.
Both re-orientation and re-creation can be
categorized as ‘doing things differently’. E-
business has caused ‘recreation’ in a number of.
However, such dramatic change has not been
caused in every industry.
Business process management (BPM) is
how a company creates, edits, and analyzes the
predictable processes that make up the core of
its business. Business process management is
an organizational discipline where a company
takes a step back and looks at all of these
processes in total and individually. It analyzes
the current state and identifies areas of
improvement to create a more efficient and
effective organization.
Unmanaged, chaotic processes hurt business
and lead to one or more of these scenarios:
• Time wasted • More errors • Increased blame
• Lack of data • Demoralized employees
2
II. Organizational structure and
culture
1. Managing Human Resource
Changes
a. Staff Retention
‘Getting good staff is difficult, keeping them is
a nightmare!’ Since there is a highly competitive
marketplace for e-business staff, many staff
will want to move on to further their career.
b. Job Characteristics
The Job Characteristics Model enables an
organization to improve employee
performance and job satisfaction by means of
adjusting the job itself. The model states that if
you do this successfully you can create the
conditions for an employee to thrive in their
role. By thrive, we mean that the employee will
be motivated, perform to a high level, and be
satisfied by their role.
The five core job characteristics are Skill
Variety, Task Identity, Task Significance,
Autonomy and Feedback.
c. Outsourcing
Outside-in: The company starts an e-business
initiative by outsourcing some activities where
there is insufficient in-house expertise. These
may be areas such as strategy or IT
infrastructure development. The company
then builds up skills internally to manage these
areas as e-business becomes an important
contributor to the business. An outside-in
approach is driven by the need to reduce the
costs of outsourcing, poor delivery of services
by the supplier or simply a need to concentrate
a strategic core resource in-house.
Inside-out: The company starts to implement
e-business using existing resources within the
IT department and functional departments in
conjunction with recruitment of new staff.
They may then find that there are problems in Four different types of cultural orientation
developing the e-business system that meets exists in different organization. These vary
customers’ needs or in building traffic. At this according to the extent to which the company
point they may turn to outsourcing to solve the is inward-looking or outward-looking. They
problems. also reflect whether the company is structured
and formal or whether it has a more flexible,
2. Revising Organization Structures dynamic, informal character. The four types of
There are four stages in the growth of what is cultural orientation are:
refer to as ‘the digital organization’.
a. Ad hoc activity: At this stage there is no
formal organization related to e-business and
the skills are dispersed around the
organization. At this stage it is likely that there
is poor integration between online and offline
activities.
b. Focusing the effort: At this stage, efforts
are made to introduce a controlling mechanism
Figure 2. Cultural Orientations
for e-business. This is achieved through a
senior executive setting up a steering group 4. Knowledge Management
which may include interested parties from
different business units and IT experts. At this Knowledge management has an important role
stage the efforts is to control the e-business within e-business since business success is
initiative with different approaches being tried. critically dependent on staff knowledge about
all aspects of the micro-environment such as
c. Formalization: At this stage the e-business customers, suppliers, intermediaries,
initiatives will have reached a critical mass and competitors and how to shape internal
there will be a defined group or separate processes to deliver customer service.
business unit within the company which
manages all e-enabled activities. III. Approach & Models of
d. Institutionalizing capability: This stage
Change Management
also involves a formal grouping within the • The Bridges Transition Approach • The
organization, but is distinguished from the ‘Denial-Resistance-Exploration-Commitment’
previous stage in that there are formal links Model • The Performance Dip • ADKAR
created between e-business activities and the Change Management Model • Integration of
organization’s core activities. The company Individual and Organization Change
may need to be restructured in order to provide Management (OCM and ADKAR).
the necessary levels of service over the Internet
if existing processes and structures do not do
this.
3. Managing Organization Culture