Transcript Technologies to support e-business change

Slide 10.1
Chapter 10
Change management
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
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, 3rd Edition © Marketing Insights Ltd 2007
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, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.4
Key change management issues
• Schedule – what are the suitable stages for introducing change?
• Budget – 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 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, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.5
Figure 10.1
Key factors in achieving change
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.6
Scale of change
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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.
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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.
dramatic improvements – the aim of BPR is to achieve improvements
measured in tens or hundreds of percent. 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, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.7
Digital marketing activities that require management as sell-side
e commerce
Figure 10.2
Source: E-consultancy (2005)
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.8
Figure 10.3
The main challenges of managing sell-side e-commerce (n = 84)
Source: E-consultancy (2005)
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.9
Figure 10.4
Stages in developing an e-business solution
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.10
Figure 10.5
An example web site development schedule for The B2C Company
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.11
Figure 10.6
Typical structure and responsibilities for a large e-commerce team
Source: E-consultancy (2005)
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.12
Advantages and disadvantages of the organizational structures shown in
Figure 10.7
Table 10.4
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.13
Summary of alternative organizational structures for e-commerce
suggested in Parsons et al. (1996)
Figure 10.7
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.14
Figure 10.8
Options for location of control of e-commerce
Source: E-consultancy (2005)
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.15
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, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.16
IDC – objectives of KM
• Improving profit/growing revenue (67 per cent)
• Retaining key talent/expertize (54 per cent)
• Increasing customer retention and/or satisfaction (52
per cent)
• Defending market share against new entrants (44 per
cent)
• Gaining faster time to market with products (39 per
cent)
• Penetrating new market segments (39 per cent)
• Reducing costs (38 per cent)
• Developing new products/services (35 per cent).
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.17
Differences between knowledge management, data
processing and information management
• Consider a retail manager analysing 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.
• 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, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.18
Explicit and tacit knowledge
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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.
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, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.19
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, Six
Sigma.
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, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.20
perspectives on 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, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.21
Chevron example – connections in $2 billion saving
1. Connection to the explicit knowledge via an intranet
with a portal with search tools and a directory of
information.
2. Connection of people to people with specialized
knowledge through an expertize locator; a type of
phone directory with people in different expertize
categories, again also accessed via search tools.
3. Connection to communities of practice which can
help sharing and learning between people.
4. Connection of knowledge and people with processes,
products and services.
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.22
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, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.23
Figure 10.9
Knowledge management framework
Dave Chaffey, E-Business and E-Commerce Management, 3rd Edition © Marketing Insights Ltd 2007
Slide 10.24
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 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, 3rd Edition © Marketing Insights Ltd 2007