1. Types of OrganizationalChange & Transformation By Dr. Vijay Kr Khurana
2. THRUST AREAS OF ORGANIZATIONAL CHANGES4 main areas• Changing structure• Changing physical setting• Changing people• Changing technology / technological change
3. TECHNOLOGICAL CHANGE• Technological Change occurs when there is a change or addition to the underlying scientific principles which give a specific technology its particular character.• Technical Change is regarded as a subset of technological change. Technical change is confined to changes within one or more of other constituents of a technology, perticularly to techniques and knowhow. Technological change can produce technical change and the inverse is less likely.
4. TECHNOLOGICAL CHANGE• Tecnological Progress describes the capability of a technology to satisfy human wants for goods and services. In commercial terms, it provides increased customer value.• Technological progress comes in two basic ways: Further development or improvement of existing product, service and process technologies Emergence of new, hybrid or improved technologies
5. TECHNOLOGICAL CHANGEExternal Factors Leading to Technological Change• Overall increase of stock of technological knowledge of a nation• Overall technological advancement and progress in the specific industry• Government may change the structure of competition by easing entry norms• Government may open up the national economy and integrate with international economy• Spinoff of technology or technology diffusion from one industry to another industry• May be necessitated by changes in government regulations and rules
6. TECHNOLOGICAL CHANGEExternal Factors Leading to Technological ChangeContd …• Emergence of disruptive or breakthrough technologies and innovations whcih may change the technology within particular industry or nationInternal Factors Leading to Technological Change• Improvement in one particular technology within the technology portfolio of the enterprise may lead to imbalance in such technology portfolio, leading to improvement and advancement of other technologies in the portfolio• Some of the older, hazardous, unsafe, ineffeicient inappropriate technologies may be required to be phased out• Firm may pursue technology leadership strategy
7. TECHNOLOGICAL CHANGEInternal Factors Leading to Technological ChangeContd …• The enterprise may be guided by the goal to improve quality level or to be known as quality leader• Changes in consumer requirements• Increasing or adding more features to the product or service• Desire to tap new markets or new market segements• Lack of availability of spares, components.• Controlling and reducing maintenance costs• Controlling and reducing process wastages and defectives generation• Controlling and reducing processing and production costs• Increasing efficiency of operations• Gaining competitive edge
8. TECHNOLOGICAL CHANGE Characteristics of Technological Change• It is inevitable in this era of technology based competition.• Generally, it is an ongoing activity. At times, it may be one-time or episodic activity.• It occurs in all organizations, though at varying rates of speed and varying degree of significance.• It occurs in all parts or functions of an organization, though at varying rates of speed and varying degree of significance.• It occurs at all levels of an organiztion i.e. top level, middle level & bottom level, though at varying rates of speed and varying degree of significance.• Factors causing technological change may be internal as well as external to the organiztion.• It leads to changes in technologies, products, services, tools, equipements, processes or systems of the organization.
9. Areas of Technological Change• Change in product design• Change in process design
10. Managing Transformation • A transformation means an extreme psychological or character change.• E.g. Transformational Stages in Butterfly
11. Managing TransformationA Business transformation --- is a key executive management initiative that attempts to align the technology initiatives of a company more closely with its business strategies and vision support and help innovate new business strategies. The degree to which a company can implement new initiatives to support changes in business strategy is known as business agility. Business transformation is achieved through efforts from the business and IT sides of the company.
12. Managing TransformationA busniess transformation --- is a process by which an organization achieves and maintains opeartional and competitive advantage by …• Changes in technology• Changes in operational concepts (Tactics, Techniques & Procedures)• Changes in organizational structure (Roles & Responsibilities)• Any combination of these three.
13. Managing TransformationThree Stage ProcessA. Introduction of Major ChangesThe business transformation may require some major changes as under:• Changing the culture of organization• Investment in transformational technologies and rapidly transitioning those technologies into operational systems• Process Systems Engineering• Enhanced Training• Quality Improvement
14. Managing TransformationThree Stage ProcessA. Introduction of Major ChangesContd…• Making changes to roles & responsibilities so that it can harness the power and synergy of its people• Increased functional integration• Board reconstitution• Opti-sizing and VRS• Investments in international WOS• Encourage innovation
15. Managing TransformationThree Stage ProcessB. ConsolidationConsolidation may be attained through :• Continued focus on key operating parameters• Corporate initiatives on – Sourcing, Channel and Service• Requiring leadership with accountability• Leveraging reach & service business potential• Senior mangement commitment• increased integration• Focus on performance• Prioritization of efforts
16. Managing TransformationThree Stage ProcessC. Sustenance & GrowthTransformation may be sustained through:• Ever-increasing emphasis on mission assurance• Senior mangement commitment• Further improving integration• Reviewing and improving business strategy• Sustaining cost & quality optimisation• Reinforcing performance culture• Reiterating customer focus• Sustaining operational efficiency improvement program
17. Managing TransformationThe transformation does not happen only on balance sheets. It happens in people’s minds. It reflects in the way:• Employee think• Employee speak• Employees act & respond
18. Types of OrganizationalChange & Transformation By Dr. Vijay Kr Khurana