This is for the second question – how to justify this investment to the board of directors – here it

is to explain the importance of change and therefore the investment is justified to do the change

If there is anything that is stead fast and unchanging, it is change itself. Change is inevitable, and
those organizations who do not keep up with change will become unstable, with long-term
survivability in question.

There are things, events, or situations that occur that affect the way a business operates, either in
a positive or negative way. These things, situations, or events that occur that affect a business in
either a positive or negative way are called "driving forces or environmental factors."

There are two kinds of driving forces; Internal driving forces, and external driving forces.
Internal driving forces are those kinds of things, situations, or events that occur inside the
business, and are generally under the control of the company. Examples might be as follows

· Organization of machinery and equipment,

· Technological capacity,
· Organizational culture,
· Management systems,
· Financial management
· Employee morale.

External driving forces are those kinds of things, situation, or events that occur outside of the
company and are by and large beyond the control of the company. Examples of external driving
forces might be, the industry itself, the economy, demographics, competition, political
interference, etc.

Whether they are internal or external driving forces, one thing is certain for both. Change will
occur! A company must be cognizant of these changes, flexible, and willing to respond to them
in an appropriate way.

External driving forces can bury a business if not appropriately dealt with. The question is, how
does a business know what changes are occurring so that they can deal with them in a positive
way. OK, that's the next issue.

In order for a business to succeed and gain the competitive edge, the business must know what
changes are indeed occurring, and what changes might be coming up in the future. I guess you
might call this forecasting. Thus, critical to the business is what we call "informational
resources." It is the collection and analyzation of data. Some examples of critical information
might include the following:

 Competition (what are they doing?)

 Customer behavior (needs, wants, and desires)
 Industry out look (local, national, global)
 Demographics (the change populations, there density, etc.)
  Economy (are we peaking, or moving negatively)
 Political movements and/or interference
 Social environment
 Technological changes
 General environmental changes

The above are just some issues organizations must be on top of. Well it's never easy, but
businesses that are successful include all of the above (and more), to develop the appropriate
tactics, strategies, and best practices, to ensure successful out comes.
This is for first question - “What many organizations don’t realize is that if you don’t manage
the business part of a technology change, you can fail even if the technology part succeeds” –
what are the types of organizational changes and how to cope with it

Those the related case is only for technological change but I have explain all types of
organizational changes here

Organizational change occurs when a company makes a transition from its current state to some
desired future state. Managing organizational change is the process of planning and
implementing change in organizations in such a way as to minimize employee resistance and
cost to the organization, while also maximizing the effectiveness of the change effort.

Today's business environment requires companies to undergo changes almost constantly if they
are to remain competitive. Factors such as globalization of markets and rapidly evolving
technology force businesses to respond in order to survive. Such changes may be relatively
minor—as in the case of installing a new software program—or quite major—as in the case of
refocusing an overall marketing strategy.

Four major areas of organizational change: strategy, technology, structure, and people. All four
areas are related, and companies often must institute changes in the other areas when they
attempt to change one area.

The first area, strategy changes, can take place on a large scale—for example, when a company
shifts its resources to enter a new line of business—or on a small scale—for example, when a
company makes productivity improvements in order to reduce costs. There are three basic stages
for a company making a strategic change:1) realizing that the current strategy is no longer
suitable for the company's situation; 2) establishing a vision for the company's future direction;
and 3) implementing the change and setting up new systems to support it.

Technological changes are often introduced as components of larger strategic changes, although
they sometimes take place on their own. An important aspect of changing technology is
determining who in the organization will be threatened by the change. To be successful, a
technology change must be incorporated into the company's overall systems, and a management
structure must be created to support it.

Structural changes can also occur due to strategic changes—as in the case where a company
decides to acquire another business and must integrate it—as well as due to operational changes
or changes in managerial style. For example, a company that wished to implement more
participative decision making might need to change its hierarchical structure.

People changes can become necessary due to other changes, or sometimes companies simply
seek to change workers' attitudes and behaviors in order to increase their effectiveness.
"Attempting a strategic change, introducing a new technology, and other changes in the work
environment may affect people's attitudes (sometimes in a negative way), " "But management
frequently initiates programs with a conscious goal of directly and positively changing the
people themselves." In any case, people changes can be the most difficult and important part of
the overall change process. The science of organization development was created to deal with
changing people on the job through techniques such as education and training, team building,
and career planning

Resistance to Change

A manager trying to implement a change, no matter how small, should expect to encounter some
resistance from within the organization. Resistance to change is a normal reaction from people
who have become accustomed to a certain way of doing things. Of course, certain situations or
tactics can increase resistance. "Individuals, groups, and organizations must be motivated to
change. But if people perceive no performance gap or if they consider the gap un-important, they
will not have this motivation. Moreover, they will resist changes that others try to introduce, "

There are number of common reasons that people tend to resist change. These include: inertia, or
the tendency of people to become comfortable with the status quo; timing, as when change
efforts are introduced at a time when workers are busy or have a bad relationship with
management; surprise, because people's reflex is to resist when they must deal with a sudden,
radical change; or peer pressure, which may cause a group to resist due to anti-management
feelings even if individual members do not oppose the change. Resistance can also grow out of
people's perceptions of how the change will affect them personally. They may resist because they
fear that they will lose their jobs or their status, because they do not understand the purpose of
the change, or simply because they have a different perspective on the change than management

There are a number of steps managers can take to help overcome resistance to change. One
proven method is education and communication. Employees can be informed about both the
nature of the change and the logic behind it before it takes place through reports, memos, group
presentations, or individual discussions. Another important component of overcoming resistance
is inviting employee participation and involvement in both the design and implementation phases
of the change effort. "People who are involved in decisions understand them better and are more
committed to them, " Another possible approach to managing resistance to change is through
facilitation and support. Managers should be sure to provide employees with the resources they
need to make the change, be supportive of their efforts, listen to their problems with empathy,
and accept that their performance level may drop initially.

Some companies manage to overcome resistance to change through negotiation and rewards.
They offer employees concrete incentives to ensure their cooperation. Other companies resort to
manipulation, or using subtle tactics such as giving a resistance leader a prominent position in
the change effort. A final option is coercion, which involves punishing people who resist or
using force to ensure their cooperation. Although this method can be useful when speed is of the
essence, it can have lingering negative effects on the company. Of course, no method is
appropriate to every situation, and a number of different methods may be combined as needed
This is what we have discussed about technology – what factors to be considered before
changing or adapting any technology --- this is additional

Building, operating, and maintaining information systems are challenging for a number of
reasons." For example, some information cannot be captured and put into a system. Computers
often cannot be programmed to take into account competitor responses to marketing tactics or
changes in economic conditions, among other things. In addition, the value of information erodes
over time, and rapid changes in technology can make systems become obsolete very quickly.
Finally, many companies find systems development to be problematic because the services of
skilled programmers are at a premium.

Knowledge management (KM) is a relatively new form of MIS that expands the concept to
include information systems that provide decision-making tools and data to people at all levels of
a company. The idea behind KM is to facilitate the sharing of information within a company in
order to eliminate redundant work and improve decision-making. KM becomes particularly
important as a small business grows. When there are only a few employees, they can remain in
constant contact with one another and share knowledge directly. But as the number of employees
increases and they are divided into teams or functional units, it becomes more difficult to keep
the lines of communication open and encourage the sharing of ideas.

Knowledge management is a way of using technology to facilitate the process of collaboration

across an organization. A small business might begin sharing information between groups of
employees by creating a best-practices database or designing an electronic company directory
indicating who holds what knowledge. Larger companies can implement KM systems through
targeted pilot projects or through a broader strategy involving the firm's technical infrastructure.
Many companies have installed intranets—or enterprise-wide computer networks with databases
all employees can access—as a form of KM. A number of software programs exist to facilitate
KM efforts. Some of the leaders in the field include Lotus Notes, Microsoft Exchange Server,
and a variety of systems based on XML.