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MU0018 - CHANGE MANAGEMENT

1. Define the term organizational transformation. Discuss the various


strategies to manage transformation in organizations.
Ans:
Organisational Transformation is a term referring collectively to such activities as
reengineering, redesigning and redefining business systems. The dominant enabling
technology in transforming organization is information and technology.
As business model change rapidly in the financial environment and mergers and acquisition
change the face of the organization. So, organization continually need to
a. A flexible, effective and efficient organization.
b. A customer-centric approach to organizational activities
c. Recognition of current strengths to create a more productive environment
d. Understanding and reaping the benefits of competitive IT and business alignment
e. Promotion of an integrated approach to IT and business
Three Types of Transformation
1. Improving Operation: To achieve a quantum improvement in the firm's efficiency, often
by reducing costs, improving quality and services and reducing development time.
2. Strategic Transformation: The process of changing strategy seeks to regain a sustainable
competitive advantage by redefining business objectives, creating new competences and
harnessing these capabilities to meet market opportunities.
3. Corporate Self-Renewal: Self-Renewal creates the ability for a firm to anticipate and cope
with change so that strategic and operational gap does not develop.
Phases of Transformation

Phase-1: It begins with the automation of existing activities to reduce cost and raise
capacities and expands to encompass a broader range of applications to optimize
operations.
Phase-2: It focuses on adding features, functions, value-added processes and new service
to the core business.
Phase 3: It may become principal vehicles for growth; the existing business can be
redefined.
Transformation Strategies