Vdocuments - MX - Chap 10 Change Management

Slide 10.
CHAPTER 10
CHANGE MANAGEMENT
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.2
Learning outcomes
 Identify the different types of change that need to
managed for e-commerce
 Develop an outline plan for implementing
e-commerce change
 Describe alternative approaches to organizational
structure resulting from organizational change.
Slide 10.3
Management issues
 What are the success factors in managing change?
 Should we change organizational structure in
response to e-business? If so, what are the options?
 How do we manage the human aspects of the
implementation of organizational change?
 How do we share knowledge between staff in the
light of high staff turnover and rapid changes in
market conditions?
Slide 10.4
Key change management issues

 Schedule – what are the suitable stages for introducing change?
 Budget – how do we cost e-business?
 Resources needed – what type of resources do we need, what are their
responsibilities and where do we obtain them?
 Organizational structures – do we need to revise organizational structure?
 Managing the human impact of change – what is the best way to introduce
large-scale e-business change to employees?
 Technologies to support e-business change – the role of knowledge
management, groupware and intranets are explored.
 Risk management approaches to e-business led change.
Slide 10.5
The challenges of e-business

transformation
 To help achieve change
 Management buy-in
 Effective project management
 Action to attract staff
 Employee ownership of change
Figure 10.1 Key factors in achieving change
Slide 10.7
The challenges of sell-side e-

commerce
The 7S strategic framework
 Strategy
 Structure
 Systems
 Staff
 Style
 Skills
 Superordinate
Digital marketing activities that require management as sell-side
Figure 10.2
e commerce
Source: E-consultancy (2005)
Slide 10.9
Key Challenges of e-business

marketing
 Gaining buy-in and budget
 Conflicts of ownership
 Coordination with different channels
 Managing and integrating customer info.
 Achieving a unified reporting
 Structuring the specialist digital team
 In-sourcing vs. outsourcing online marketing
 Staff recruitment and retention
Figure 10.3 The main challenges of managing sell-side e-commerce (n = 84)
Slide 10.11
Different types of change

 Incremental – relatively small adjustment
 Discontinuous – major transformation
 Organizational – includes both incremental and
discontinuous
 Anticipatory – initiate change
 Reactive – direct response to change
Slide 10.12
Business process management

 An approach supported by software tools intended
to increase process efficiency by improving
information flows between people as they perform
business tasks
 Continuous, incremental change
Slide 10.13
Discontinuous Process Change

 Hammer and Champy (1993) defined BPR as:
the fundamental rethinking and radical redesign of business processes to achieve
dramatic improvements in critical, contemporary measures of performance, such as
cost, quality, service, and speed.
 Fundamental rethinking – re-engineering usually refers to changing of significant

business processes such as customer service, sales order processing or manufacturing.
 radical redesign – re-engineering is not involved with minor, incremental change or
automation of existing ways of working. It involves a complete rethinking about the
way business processes operate.
 dramatic improvements – the aim of BPR is to achieve improvements measured in
tens or hundreds of percent. With automation of existing processes only single-figure
improvements may be possible.
 critical contemporary measures of performance – this point refers to the importance
of measuring how well the processes operate in terms of the four important measures
of cost, quality, service and speed.
Slide 10.14
Emerging of new concepts

 BPR often linked to downsizing
 New terms emerged:
 Business Process Improvement: Optimizing existing
processes
 Business Process Automation: Automating existing
ways of working manually through information
technology
Slide 10.15
Planning Change
 E-business projects need project governance
 Effective project management must includes:
 Estimation
 Resource allocation
 Schedule/plan
 Monitoring and control
Figure 10.4 Stages in developing an e-business solution
Slide 10.17
Differences with typical IS

 The timescales for delivery of the system are
compressed
 The e-commerce system may be hosted outside
 The focus of project is content and services
 Once launched the site is more dynamic
Figure 10.5 An example web site development schedule for The B2C Company
Slide 10.19
Prototyping
 Rapid
 Simple
 Iterative
 Incremental
 User-centred
Slide 10.20
Staff retention
Hackman and Oldham (1980):
 Skill variety
 Task identity
 Task significance
 Autonomy
 Feedback from employer
Figure 10.6 Typical structure and responsibilities for a large e-commerce team
Slide 10.22
Outsourcing
 Outside-in
 Inside-out
Slide 10.23
Revising organizational structure

Four stages of growth:
 Ad hoc activity
 Focusing the effort
 Formalization
 Institutionalizing capability
Advantages and disadvantages of the organizational structures shown in
Table 10.4
Figure 10.7
Figure 10.8 Options for location of control of e-commerce
Slide 10.26
Approaches to managing change

 Collaborative – widespread participation of
employees
 Consultative – management take final decisions
 Directive – the management team takes the
decisions
 Coercive – the management team takes the decision
with very limited recourse to employees
Slide 10.27
Knowledge management – Saunders

(2000)
Every day, knowledge essential to your business
walks out of your door, and much of it never comes
back. Employees leave, customers come and go and
their knowledge leaves with them. This information
drain costs you time, money and customers.
Slide 10.28
Explicit and tacit knowledge

 Knowledge Management - Techniques and tools for capturing
and disseminating knowledge within an organization.
 Explicit – details of processes and procedures. Explicit
knowledge can be readily detailed in procedural manuals and
databases. Examples include records of meetings between sales
representatives and key customers, procedures for dealing with
customer service queries and management reporting processes.
 Tacit – less tangible than explicit knowledge, this is experience
on how to react to a situation when many different variables are
involved. It is more difficult to encapsulate this knowledge,
which often resides in the heads of employees.
Figure 10.9 Knowledge management framework
Slide 10.30
KM framework
1. Identify knowledge
2. Create new knowledge
3. Store knowledge
4. Share knowledge
5. Use knowledge
Slide 10.31
IDC – Objectives of KM
 Improving profit/growing revenue (67 per cent)
 Retaining key talent/expertise (54 per cent)
 Increasing customer retention and/or satisfaction (52 per cent)
 Defending market share against new entrants (44 per cent)
 Gaining faster time to market with products (39 per cent)
 Penetrating new market segments (39 per cent)
 Reducing costs (38 per cent)
 Developing new products/services (35 per cent).
Slide 10.32
Binney – classes of KM
applications
1. Transactional. Help desk and customer service applications.
2. Analytical. Data warehousing and data mining for CRM
applications.
3. Asset management. Document and content management.
4. Process support. TQM, benchmarketing, BPR, Six Sigma.
5. Developmental. Enhancing staff skills, competencies – training
and e-learning.
6. Innovation and creation. Communities, collaboration and
virtual teamwork.
Slide 10.33
Alternative tools for managing

knowledge
 Knowledge capture tools, e.g. mind maps
 Knowledge sharing techniques, e.g. chat
 Knowledge delivery tools, e.g. email
 Knowledge storage, e.g. database
 Electronic document management system
 Expert systems
Slide 10.34
Risk management
1. Identify risks, including their probabilities and
impacts.
2. Identify possible solutions to these risks.
3. Implement the solutions targeting the highest
impact, most likely risks.
4. Monitor the risks to learn for future risk
assessment.
Slide 10.35
Activity – identify risks for e-business

project
Risk Probability Impact Solution
Insufficient senior 5 7 Education/training/lobbying by e-business

management commitment manager to achieve buy-in
High staff turnover/key staff 6 5 Use monetary incentives and improve working
leave environment
Project milestones not met, 8 6 Appoint experienced project manager and provide
overrun budget support and resources needed. Manager will
perform risk management such as this
Problems with new 8 8 Allow sufficient time for volume, performance

technology delaying testing
implementation (bugs, speed,
compatibility)
Staff resistance to change 4 4 Education, training identification of change
facilitators amongst staff
Problem with integrating with 6 8 Tackle these issues early on, identify one contact
partner’s systems (e.g. point/manager for each of partnerships
customers or suppliers)
New system fails after 9 See solution to delayed implementation
changeover (too slow or too
many crashes)

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Slide 10.

Key change management issues

The challenges of e-business

The challenges of sell-side e-

Key Challenges of e-business

Different types of change

Business process management

Discontinuous Process Change

 Fundamental rethinking – re-engineering usually refers to changing of significant

Emerging of new concepts

Differences with typical IS

 Feedback from employer

Revising organizational structure

 Focusing the effort

Approaches to managing change

Knowledge management – Saunders

Explicit and tacit knowledge

Alternative tools for managing

Activity – identify risks for e-business

Insufficient senior 5 7 Education/training/lobbying by e-business

Problems with new 8 8 Allow sufficient time for volume, performance

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