Transcript Presentation for Chapter 10

Slide 10.1
Chapter 10
Change management
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
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.
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
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?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.4
Key change management issues
•
•
•
•
•
•
•
Schedule – what are the suitable stages for introducing
change?
Budget – how much does the e-business cost?
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
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.5
Figure 10.1
Key factors in achieving change
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.6
Digital marketing activities that require management as sell-side
e-commerce
Figure 10.2
Source: Econsultancy(2005)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.7
Digital marketing activities that require management as sell-side
e-commerce (Continued)
Figure 10.2
Source: Econsultancy(2005)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.8
Table 10.1
The 7S strategic framework and its application to e-business management
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.9
The 7S strategic framework and its application to e-business management
(Continued)
Table 10.1
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.10
Table 10.2
Alternative terms for using IS to enhance company performance
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.11
Scale of 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
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.12
Scale of change (Continued)
• dramatic improvements – the aim of BPR is to achieve
improvements measured in tens or hundreds of per cent.
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
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.13
Figure 10.3
The main challenges of managing sell-side e-commerce(n = 84)
Source: Econsultancy (2005)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.14
Figure 10.4
Challenges of web project management (n = 527)
Source: Econsultancy (2007)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.15
Success factors for web project management showing percentage of
respondents who demonstrate these
Figure 10.5
Source: Econsultancy (2007)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.16
Figure 10.6
Stages in developing an e-business solution
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.17
Figure 10.7
An example web site development schedule
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.18
Figure 10.8
Typical structure and responsibilities for a large e-commerce team
Source: Econsultancy (2005)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.19
Summary of alternative organizational structures for e-commerce
suggested in Parsons et al. (1996)
Figure 10.9
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.20
Figure 10.10
Options for location of control of e-commerce
Source: Econsultancy (2005)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.21
Figure 10.10
Options for location of control of e-commerce (Continued)
Source: Econsultancy (2005)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.22
Table 10.5
Facilitating organizational change through a transition model
Source: The middle column is based on a summary of the commentary in Hayes (2002)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.23
Table 10.5
Facilitating organizational change through a transition model (Continued)
Source: The middle column is based on a summary of the commentary in Hayes (2002)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.24
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
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.25
Knowledge management
What is knowledge?
• Ref. The top paragraph on p. 591. Do you
agree to this definition?
• What’s difference between data, information,
and knowledge?
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.26
Figure 10.11
Knowledge management framework
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.27
IDC – objectives of KM
• Improving profit/growing revenue (67%)
• Retaining key talent/expertise (54%)
• Increasing customer retention and/or
satisfaction (52%)
• Defending market share against new entrants
(44%)
• Gaining faster time to market with products
(39%)
• Penetrating new market segments (39%)
• Reducing costs (38%)
• Developing new products/services (35%)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.28
Differences between knowledge management, data
processing and information management
• Consider a retail manager analyzing their sales
figures
• Raw data on sales figures consist of figures in
each individual store for a given month.
IS can present this data within the context of
sales compared to previous months as
information
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.29
Differences between knowledge management, data
processing and information management (Continued)
• This information is of little value if the manager
does not know how to act in response to it.
Managers apply their knowledge to decide how to
respond if the sales in one region are much lower
than others, or if one store is underperforming
against budget
• Thus, knowledge is the processing of information
and is a skill based on previous understanding,
procedures and experience
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.30
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
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.31
Explicit and tacit knowledge
(Continued)
• 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
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.32
Implementing KM
• It is impossible to achieve full benefits from
knowledge management unless individuals
are willing and motivated to share their
knowledge or unless organizations lose their
structural rigidity to permit information and
knowledge flow (IDC, 2000)
• Knowledge can only be volunteered – it
cannot be conscripted (Snowden, 2002)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.33
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
5. Developmental. Enhancing staff skills,
competencies – training and e-learning
6. Innovation and creation. Communities,
collaboration and virtual teamwork
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.34
Tools for KM
• Many tools are available for different types of
activities in KM
• Intranet
• Web and Web 2.0
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.35
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
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.36
Activity – identify risks for e-business project
Risk
Probability
Impact
Solution
Insufficient senior
management commitment
5
7
Education/training/lobbying by e-business manager
to achieve buy-in
High staff turnover/key staff
leave
6
5
Use monetary incentives and improve working
environment
Project milestones not met,
overrun budget
8
6
Appoint experienced project manager and provide
support and resources needed. Manager will
perform risk management such as this
Problems with new technology
delaying implementation
(bugs, speed, compatibility)
8
8
Allow sufficient time for volume, performance
testing
Staff resistance to change
4
4
Education, training identification of change
facilitators amongst staff
Problem with integrating with
partner’s systems (e.g.
customers or suppliers)
6
8
Tackle these issues early on, identify one contact
point/manager for each of the partnerships
9
See solution to delayed implementation
New system fails after
changeover (too slow or too
many crashes)
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.37
Table 10.6
Organizational risk exposure factors
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009
Slide 10.38
Case Study
Read the Case Study 10.2 on pp. 596-598 and
be prepared to discuss the questions on page
598
Dave Chaffey, E-Business and E-Commerce Management, 4th Edition, © Marketing Insights Limited 2009