CHANGE MANAGEMENT

GROUP MEMEBERS
Major Fida Hussain
Major Mamoon Shahzad
Sub Faisal Iqbal
Bilal Haider
Hina Abbas
Nimra
 Learning Objectives
After presenting this presentation we should be able to:
Identify the different types of change that need to be
managed for e-commerce
Develop an outline plan for implementing e-commerce
change
Describe alternative approaches to organizational
structure resulting from organizational change
 Management issues
The issues for managers raised in this presentation include

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?
 Scheme of Presentation
Introduction and The challenges of e-business
transformation By Major Fida Hussain
Different types of change in business By Nimra
Case Study - Process management: making
complex business simpler
By All members
 Scheme of Presentation
Planning change and Human resource requirements
By Hina Abbas
Revising organizational structures and Approaches to
managing change By Sub Faisal Iqbal

Risk management By Bilal Haider

Focus on Knowledge management By Major Mamoon

Shahzad
INTRODUCTION
 What we anticipate seldom occurs: what
we least expect generally happens.
(Benjamin Disraeli)
 Introduction
Disraelis quote, referring to changes that need to be
responded to in government
Perhaps the greatest challenge faced by both B2B and
B2C companies as they adopt e-business practices is
how to manage the change
Approaches to managing changes to organizational
processes and structures and their impact on
organization staff and culture is known as change
management
 Introduction
Change management Managing process, structural,
technical, staff and culture change within an
organization
Business transformation Significant changes to
organizational processes implemented to improve
organizational performance
The introduction of e-business often requires its users to
learn how to use new internal information systems
The changes experienced by staff tend to be greatest for
large-scale projects which are intended to achieve business
transformation
The challenges of Implementing and
Managing e-commerce
 The Challenges of Implementing and
Managing E-Commerce
Scheduling what are the suitable stages for introducing
change?
Budgeting 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 changethe roles of
knowledge management, group ware and intranets are
explored
The challenges of e-business
transformation
 The challenges of e-business transformation
In above Figure shows key aspects or levers of change that need to
be assessed in order to maximize the benefits of e-business, The
main change levers required are:
Market and business model
Business process
Organizational structure, culture and staff responsibilities
Technology infrastructure changes
 Aspects of change or a series of success
factors
To help achieve these different aspects of change, a series of
success factors seem to be required, These include:
Management buy-in and ownership
Effective project management
Action to attract and keep the right staff to achieve
change
Employee ownership of change
The challenges of sell-side e-
commerce implementation
 The challenges of sell-side e-commerce
Implementation
A useful framework for reviewing an organizations
capabilities to manage e-business related change is shown in
Table of 7S framework which was developed by McKinsey
consultants in the 1970s and summarized by Waterman et
al.(1980)
 7S Framework
In the context of the 7 Ss, we can summarize the main
challenges as follows:
Strategy Limited capabilities to integrate Internet
strategy into core marketing and business strategy is
indicated by frustration on gaining appropriate budgets
Structure Structural and process issues are indicated by
the challenges of gaining resource and buy-in from
traditional marketing and IT functions
Skills and staff These issues were indicated by difficulties
in finding specialist staff or agencies
Types of Change in Business
By Nimra Mehar
 Change
There are many issues to consider in managing business
change - whether the changes you're planning are minor or
major. The first step in managing your people through
change is identifying the type of changes you are making to
your business. This step will help you decide how to plan
your change process and support your people effectively
 Types of change

Incremental change

Discontinuous change

Anticipatory change

Reactive change
 Incremental Change
Incremental change means introducing many small,
gradual changes to a business instead of a few large,
rapid changes
Relatively small adjustments required by an
organization in response to its business environment
Examples of incremental change might include
continuous improvement as a quality management
process or implementation of new computer system to
increase efficiencies
 Incremental Change
EXAMPLE - APPLE IPOD

The original iPod came in just white, and enabled you

to store and play your mp3 music collection only.

Incremental change have occurred over time so that

today you can buy them in many different colours; store
your family photographs and even your video collection
 Discontinuous Change
Change involving a major transformation in an industry
Also knows as transformational change
It can change the basis of competition
Non-incremental, sudden change that threatens
existing or traditional authority or power structure,
because it drastically alters the way things are currently
done or have been done for years
 Anticipatory Change
It occurs when an organization makes proactive
changes in order to improve its efficiency
Or to create an advantage within the competitive
environment
If you are proactive, you make things happen, instead
of waiting for them to happen to you. Active means
"doing something." The prefix pro- means "before." So
if you are proactive, you are ready before something
happens
 Anticipatory Change
These are planned changes implemented to handle
expected situations
Anticipatory changes are often the easiest changes to
implement, given the time allowed in advance to form
prepared responses to any issues
 Reactive change
A direct response by an organization to a change in its
environment
These are changes implemented to handle unexpected
situations (i.e., business closings due to extensive flood
damage)
Reactive changes are often difficult to implement,
especially if a "just in case" workflow is not already in
place for unexpected situations that arise
Tuning , Adaptation Re-orientation
Re-creation
 Tuning
Occurs where incremental changes are made that
anticipate changes to the external environment
These changes involve adjustment or modification to
enable a better fit between the organization and the
environment
It can be categorized as DOING THINGS BETTER
New procedures or policies may be used to improve
process efficiency
E- business involves tuning as internet technologies
are applied to improve efficiency
 Adaptation
Adaptive changes are incremental but reactive to
changes made by other organizations
It can also be categorized as DOING THING BETTER
E.g. a competitor may introduce a new product ,
response is required but it does not involve a significant
change in the basis for competition.
 Re-orientation
Reorientation is an anticipatory, discontinuous change
that involves frame bending; that is, major
modification of the organization but by building on past
strengths and history

There is not an immediate need for change , but a

significant change is anticipation of change
 Re-orientation
When IBM was one of the first organization to introduce
the concept of e-business in the mid 1990, this was the re-
orientation in a way it delivered its services which helped
to spark a wider change in the way businesses worked

Successful adaptation of e-business also requires re-

orientation for many organizations - DOING THINGS
DIFFERENTLY
 Re-creation
Change that is reactive and involves frame breaking;
that is, major upheaval where the organization breaks with
past practices and directions.
The senior management team of an organization decides
that a fundamental changes to the way its operates is
required to compete effectively.
In the airline industry, established airlines have had to
establish change programmes to respond to the low cost
carriers, for e.g. by emphasizing service quality
It also categorizes as DOING THING DIFFERENTLY
Planning Change and Human
Resource Requirements
By Hina Abbas
 Why Plan?
Want to plan change, not become a victim of change
Planning is an effort to anticipate future change
Gives the organization a sense of direction
Involve staff in decision making
Helps coordinate the different functions and
departments
Facilitate control and demonstrate accountability
 Factors in Planning
Time frame
Collecting and analyzing data
Levels of planning in the organizational structure
Flexibility
Accountability
 Planning Change
Effective project management must includes:
Estimation - Identifying the activities involved in
project(WBS)
Resource allocation
Schedule/plan - Assign jobs to people, assign time for
each task
Monitoring and control - Ensuring the project completes
on time by hitting millstones (key deadline to be
achieved during project, usually with defined
deliverables)
 Process Changes
E-business projects need project governance
Responsibility of top management
Not only have to manage their employees but their whole
environment thats affected:
Suppliers
Customers
Competitors
Can be very draining on finances and people involved
 Stages in planning changes

Initiation

Prototyping

Final implementation

Maintenance
Figure 10.4 Stages in developing an e-business solution
 Initiation

Feasibility analysis(budget, cost and hr.)

Project planning

Change and risk management

 System Development Lifecycle
System development lifecycle
the sequence in which a system is created from initiation
,analysis, design ,implementation, build and maintenance
Differences to be take in to account
The timescales for delivery of the system are compressed
The e-commerce system may be hosted
outside(constrained)
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
 Prototyping

Prototyping is an alterative process in which

websites users suggest modifications before further
prototyping and the live versions of sites are developed
 Types of prototyping
Rapid(RAD)
Simple(skeleton prototyping that do not contain
all functions)
Interactive
Incremental
User-centered
 Agile Software Development
An interactive approach to developing software and websites
functionality with the emphasis on face to face
communications to elicit , define and test requirements
SCRUM
A methodology that supports agile software
development based on 15-30 day sprints to implement
features from a product backlog
 Types of prototype
'Throw-away' prototyping a small part of the system is
developed and then given to the end user to try out and
evaluate. The user provides feedback which can quickly be
incorporated into the development of the main system.
The prototype is then discarded or thrown away
Evolutionary prototyping is a lifecycle model in which the
system is developed in increments so that it can readily be
modified in response to end-user and customer feedback
 Types of prototype
Incremental Prototyping. The incremental approach
can be likened to 'building blocks'; incrementing each time
a new component is added or integrated, based on an
overall design solution. When all of the components are in
place, the solution is complete
 Final implementations and maintenance
System and acceptance testing

Data migrations and changeover

Monitoring and enhancing

 Human Resources Requirement

E- business requires specialists skills that may not be

present within an organization

E-business project managers have a choice of building a

new skill set within their organization or outsourcing
 Staff retention
Hackman and Oldham (1980):
Skill variety(degree of variation among jobs)
Task identity(extent to which a job evolves)
Task significance
Autonomy
Feedback from employer
 Staff retention
For enhancing employees satisfaction to retain for long
time Hackman suggested following tricks
Task combination
Establish customer relation
Vertical loading(employees take responsibility of task
completed by supervisors)
Opening feedback channel
Natural workgroups
Figure 10.6 Typical structure and responsibilities for a large
e-commerce team
Source: E-consultancy (2005)
 Types of Collaborations
Co locating staff
Job swapping
Interim collaborative teams
Creation of a center
Combined planning sessions
 Outsourcing
Outsourcing includes both foreign and domestic
contracting, and sometimes includes offshoring
(relocating a business function to a distant country) or
nearshoring (transferring a business process to a nearby
country)
Revising Organizational Structures
BY Sub Faisal Iqbal
Revising Organizational Structures
 Digital Marketing Organization
Ad hoc activity At this stage there is no formal organization
related to e-commerce and the skills are dispersed around the
organization.
Focusing the effort At this stage, efforts are made to
introduce a controlling mechanism for Internet marketing
 Digital Marketing Organization
Formalization At this stage the authors suggest that
Internet marketing will have reached a critical mass and there
will be a defined group or separate business unit within the
company which manages all digital marketing.
Institutionalizing capability This stage also involves a formal
grouping within the organization, but is distinguished from
the previous stage in that there are formal links created
between digital marketing and a companys core activities
Advantages and disadvantages of the organizational
structures
Best Organization Structure for E-Commerce
Options for location of Control of e-Commerce
Options for location of Control of e-Commerce (A)
Options for location of Control of e-Commerce (B)
Options for location of Control of e-Commerce (C)
Options for location of Control of e-Commerce (D)
Approaches to managing change
 Change Agent

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
specialist digital marketing or supply chain managers seeking to
increase adoption of e-channels.
 Approaches to E-commerce Implementation

Collaborative widespread participation of employees occurs to

define the changes required and techniques to achieve them.
Consultative management takes the final decision, after calling on
some employees for input.
Directive the management team takes the decisions, with the
employees generally trusting them to do so and being generally
informed.
Coercive the management team takes the decision with very
limited recourse to employees.
 Models for Achieving Change
A classic model for achieving organizational change was suggested
by Lewin and Schein. It involves three stages:
Unfreeze the present position by creating a climate of change
by education, training and motivation of future participants
Quickly move from the present position by developing and
implementing the new system
Refreeze by making the system an accepted part of the way the
organization works
Risk Management
BY Bilal Haider
 Risk management
Risk management is intended to identify potential risks
in a range of situations and then take actions to
minimize the risks
Risk management is the process of identifying risk,
assessing risk, and taking steps to reduce risk to an
acceptable level and the risk management is an
important component of a IT security program
In the new Internet economy, risk management
plays a critical role to protect the organization
and its ability to perform their business mission,
not just its IT assets
Risk Management Involves in These Stages

Identify risks, including their probabilities and impacts

Identify possible solutions to these risks

Implement the solutions targeting the highest-impact,

most-likely risks

Monitor the risks to learn for future risk assessment

 Characteristics of a strong risk
Management Program

Senior management champions the program

As with so many business initiatives, the success of a risk
management program depends on the active support of
senior management
 Characteristics of a strong risk
Management Program
They are inclusive
Effective risk management programs do not rely on the
work and resources of any single person or group
within the organization
While often led by a risk management officer, the best
programs draw on the input and co operation of every
part of the organization.
 Characteristics of a strong risk management
program
They are transparent
Risk management programs work best and companies reap
the greatest possible benefit from them when their goals,
processes and results are shared with all the companys
stakeholders.
They are holistic
The best risk management programs not only address all the
risks to which modern corporations are susceptible, they also
consider how these various
risks can affect the companys stakeholders and operations
 Characteristics of a strong risk management
program

They are proactive

Effective risk management programs do not merely
insure companies against downside risks, they also include
proactive systems and processes to maximize the
opportunities the opportunities presented by variable risks
Knowledge Management
Major Mamoon Shahzad
 What is knowledge?
The concept of knowledge is more difficult to state than that of
data or information. It can be regarded as the next level of
sophistication or business value in the cycle from data through
information to knowledge
Applying experience to problem solving
Knowledge is
the combination of data and information,
to which is added expert opinion, skills and experience,
to result in a valuable asset
which can be used to aid decision making
Knowledge may be explicit and/or tacit, individual and/or collective
 Types of Knowledge
Theorists have identified two different types of knowledge, and
different approaches can be used to disseminate each type of
knowledge within an organization:

Explicit knowledge
Knowledge that can be readily expressed and recorded within
information systems

Tacit knowledge
Mainly intangible knowledge that is typically intuitive and not recorded
since it is part of the human mind
 Explicit Knowledge
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 Knowledge
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. Techniques for sharing this knowledge
include learning stories and histories
To acquire tacit knowledge may rely on sharing knowledge within
organization and with partners outside the company or others in
different sectors
Examples include knowing how to react when changes occur in the
marketplace, such as a competitor launching a new product. Knowing
how to analyse and respond to information in management reports
 What is Knowledge management ?
The management of activities and processes for leveraging
knowledge to enhance competitiveness through better use of
individual and collective knowledge resources
Techniques and tools disseminating knowledge within an organization

Knowledge management is as likely, if not more so, to act as a

process of managing people or information than as a practice
attuned to facilitating knowledge creation.
(Alvesson and Karreman, 2002)
 Views of KM
Sveiby (19972000) suggests that one of the best ways to understand
knowledge management is by looking at how people use the term
knowledge management.
This includes academic researchers, consultants and industry
practitioners.
The two different views of knowledge management are:
IT-based view of knowledge management. In this view, knowledge
can be stored as objects within databases and information systems.
People-track view of knowledge management. In this view,
knowledge management is about trying to improve individual skills
and behaviour
 KM Role in E-Business
Knowledge management has an important role within e-business
since business success is critically dependent on staff knowledge
about all aspects of the micro-environment such as customers,
suppliers, intermediaries, competitors and how to shape internal
processes to best deliver customer service

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
 Knowledge Management Goal

One goal of knowledge management is to turn tacit knowledge

into explicit knowledge which can then be shared between
employees and used to train new employees
 KM Activities

Identify knowledge
Create new knowledge
Store knowledge
Share knowledge
Use knowledge
 KM Objectives
Improving profit/growing revenue
Retaining key talent/expertise
Increasing customer retention and/or satisfaction
Defending market share against new entrants
Gaining faster time to market with products
Penetrating new market segments
Reducing costs
Developing new products/services
 Difficulties moving to KM
Lack of understanding of KM and its benefits
Lack of employee time for KM
Lack of skill in KM techniques
Lack of encouragement in the current culture for sharing
Lack of incentives/rewards to share
Lack of funding for KM initiatives
Lack of appropriate technology
Lack of commitment from senior management
 Technologies for implementing KM
Binney (2001) identifies six different classes of KM applications
1. Transactional. Helpdesk and customer service applications
2. Analytical. Data warehousing and data mining for CRM applications
3. Asset management. Document and content management
4. Process support. Total quality management, benchmarking, BPR, Six
Sigma (see www.isixsigma.com for further information)
5. Developmental. Enhancing staff skills and competencies training
and e-learning
6. Innovation and creation. Communities, collaboration and virtual
teamwork.
 Alternative tools for managing knowledge
Knowledge capture tools such as software for devising knowledge
maps and mind maps
Knowledge sharing techniques such as chat, discussion groups, wikis,
webinars and videoconferencing
Knowledge delivery tools such as intranets and e-mail
Knowledge storage in document databases or knowledge bases such
as Lotus Notes/Domino and content management systems
Electronic document management systems such as Interleaf publisher
Expert systems used to capture specific task-based knowledge and
deliver a solution
 Intranet three stages for KM
1. Static. Basic web pages stored on a web server. Information
publishing is centrally controlled. Employees browse and search for
information but do not interact. Content is refreshed on an irregular basis. The
danger at this stage is that the intranet will become a silo of underused
information, employees will not trust the intranet as a tool to assist in
knowledge work.
2. Interaction. The intranet evolves into a dynamic environment
developing around the knowledge needs of employees. Publishing
becomes a regular process that many employees are involved with.
Discussion boards and bulletin boards are introduced. Employees
start to develop trust in using the intranet to share and locate
knowledge.
 Intranet three stages for KM
3. Collaborative electronic workspace. The intranet becomes a
self-service environment where all employees are empowered to
share knowledge via publishing mechanisms and collaborative tools.
It becomes the starting point for discovering explicit knowledge. All
core business processes will take place across the intranet platform.
 Using Web 2.0 approaches for KM
Web 2.0 concepts such as social networks, blogs and
microblogging are increasingly being used for knowledge management
within companies
Use of content management systems such as Microsoft Sharepoint
Server for managing intranet content;
Use of internal blogs where staff can blog about project work in
different categories;
Use of microblogging using tools like Yammer which has been dubbed
Twitter for business
 Using Web 2.0 approaches for KM
Use of social networks within a business. Services such as Ning
(www.ning.com) can potentially be used for this. There is also an open-
source knowledge management solution
CY.in (www.cyn.in) which will support this. CY.in allows users to create
organized workspaces to collaborate with colleagues. Permissions can
be selectively allocated to view, edit and review the space content.
Content can be collaboratively created inside spaces using the various
applications like wiki, file repositories, discussion boards, event
calendars, blogs and galleries;
Use of wikis
Conclusion