ch. 10

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Nov 20, 2013 (3 years and 10 months ago)

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Slide 10.
1

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Chapter 10

Change management

Slide 10.
2

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

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.

Slide 10.
3

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

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?

Slide 10.
4

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

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

Slide 10.
5

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Figure 10.1

Key factors in achieving change

Slide 10.
6

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Figure 10.2

Digital marketing activities that require management as sell
-
side

e
-
commerce

Source
:

Econsultancy(2005)

Slide 10.
7

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Figure 10.2

Digital marketing activities that require management as sell
-
side

e
-
commerce (Continued)

Source
:

Econsultancy(2005)

Slide 10.
8

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Table 10.1

The 7S strategic framework and its application to e
-
business management

Slide 10.
9

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Table 10.1

The 7S strategic framework and its application to e
-
business management
(Continued)

Slide 10.
10

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Table 10.2

Alternative terms for using IS to enhance company performance

Slide 10.
11

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

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

Slide 10.
12

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

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

Slide 10.
13

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Figure 10.3

The main challenges of managing sell
-
side e
-
commerce(
n
= 84)

Source:
Econsultancy (2005)

Slide 10.
14

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Figure 10.4

Challenges of web project management (
n
= 527)

Source:
Econsultancy (2007)

Slide 10.
15

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Figure 10.5

Success factors for web project management showing percentage of

respondents who demonstrate these

Source:
Econsultancy (2007)

Slide 10.
16

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Figure 10.6

Stages in developing an e
-
business solution

Slide 10.
17

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Figure 10.7

An example web site development schedule

Slide 10.
18

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Figure 10.8

Typical structure and responsibilities for a large e
-
commerce team

Source
: Econsultancy (2005)

Slide 10.
19

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Figure 10.9

Summary of alternative organizational structures for e
-
commerce

suggested in Parsons
et

al
. (1996)

Slide 10.
20

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Figure 10.10

Options for location of control of e
-
commerce

Source
: Econsultancy (2005)

Slide 10.
21

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Figure 10.10

Options for location of control of e
-
commerce (Continued)

Source
: Econsultancy (2005)

Slide 10.
22

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

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)

Slide 10.
23

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

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)

Slide 10.
24

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

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

Slide 10.
25

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

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?


Slide 10.
26

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Figure 10.11

Knowledge management framework

Slide 10.
27

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

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%)

Slide 10.
28

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

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

Slide 10.
29

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

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

Slide 10.
30

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

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

Slide 10.
31

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

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

Slide 10.
32

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

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)

Slide 10.
33

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

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

Slide 10.
34

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Tools for KM


Many tools are available for different types of
activities in KM


Intranet


Web and Web 2.0


Slide 10.
35

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

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

Slide 10.
36

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

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

New system fails after
changeover (too slow or too
many crashes)

9

See solution to delayed implementation

Slide 10.
37

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Table 10.6

Organizational risk exposure factors

Slide 10.
38

Dave Chaffey,
E
-
Business and E
-
Commerce Management
, 4
th

Edition, © Marketing Insights
Limited 2009

Case Study

Read the Case Study 10.2 on pp. 596
-
598 and
be prepared to discuss the questions on page
598