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Types of Organizational
Change & Transformation

                 By
       Dr. Vijay Kr Khurana
THRUST AREAS OF ORGANIZATIONAL
                      CHANGES
4   main areas
•   Changing structure
•   Changing physical setting
•   Changing people
•   Changing technology / technological change
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.
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
TECHNOLOGICAL CHANGE
External 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
TECHNOLOGICAL CHANGE
External Factors Leading to Technological Change
Contd …
• Emergence of disruptive or breakthrough technologies and
  innovations whcih may change the technology within
  particular industry or nation
Internal 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
TECHNOLOGICAL CHANGE
Internal Factors Leading to Technological Change
Contd …
• 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
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.
Areas of Technological Change
• Change in product design
• Change in process design
Managing Transformation
     • A transformation means an extreme
        psychological or character change.
• E.g.     Transformational Stages in Butterfly
Managing Transformation
A 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.
Managing Transformation
A 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.
Managing Transformation
Three Stage Process
A. Introduction of Major Changes
The 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
Managing Transformation
Three Stage Process
A. Introduction of Major Changes
Contd…
• 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
Managing Transformation
Three Stage Process
B. Consolidation
Consolidation 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
Managing Transformation
Three Stage Process
C. Sustenance & Growth
Transformation 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
Managing Transformation
The 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
Types of Organizational
Change & Transformation

                 By
       Dr. Vijay Kr Khurana

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Types of changes & transformation

  • 1. Types of Organizational Change & Transformation By Dr. Vijay Kr Khurana
  • 2. THRUST AREAS OF ORGANIZATIONAL CHANGES 4 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 CHANGE External 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 CHANGE External Factors Leading to Technological Change Contd … • Emergence of disruptive or breakthrough technologies and innovations whcih may change the technology within particular industry or nation Internal 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 CHANGE Internal Factors Leading to Technological Change Contd … • 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 Transformation A 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 Transformation A 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 Transformation Three Stage Process A. Introduction of Major Changes The 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 Transformation Three Stage Process A. Introduction of Major Changes Contd… • 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 Transformation Three Stage Process B. Consolidation Consolidation 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 Transformation Three Stage Process C. Sustenance & Growth Transformation 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 Transformation The 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 Organizational Change & Transformation By Dr. Vijay Kr Khurana