4 questions exxaa m

BCOBM312 TRANSFORMATIONAL CHANGE MANAGEMENT (5 ECTS)

Course Introduction, IT Transformation Trends Disrupting Management Practices

Professor: Omar Sakijha

Get to know your Instructor

2

• Lecturer of International Business, Innovation Management, Strategy, Design Thinking, Change Management.

• Masters degree holder in Innovation and Entrepneurship.

• Currently in the final Stages of Finishing my Doctrate in Management sciences.

• Based in Egypt

• Education Consultant at EDHUB.

• Experience in working in start-ups and corporates ( Related to Pharma)

Your Turn • Tell us about your Background ( Personal/

Professional).

• What are your main expectations from this course/ What would you like to learn ?

3

Globalization • Globalization can be defined as the shift towards a

more integrated and interdependent world economy. • In other words, the world has been moving away from

self-contained national economies, towards an interdependent, integrated global system.( Higher competition).

• Some identify globalization with the accelerated spread of communication and technology.

• Others identify it with the rising power of multinational enterprises (MNEs) and increased inequality in the world.

The world is Flat Theory by Tom Friedman

• Friedman (2005) believes globalization is accelerating and is flattening the world so that every nation will eventually be part of the global marketplace and production process.

• Dicken (2007) calls this a ‘hyper-globalist’ view. Friedman takes a technological stance on globalization, believing it to be shaped considerably by technological advances, cheap computer access and the easy assimilation and transportation of knowledge over the internet.

• Friedman argues that 10 ‘flatteners’ have shaped globalization and caused increased homogeneity in the world.

Ten Flatteners

• These ‘flatteners’ include the fall of the Berlin Wall representing economic liberalization; the development of internet protocols, workflow and open-source software; the increased use of outsourcing and offshoring; the development of global supply chains; the increased use of specialized companies to carry out internal functions; the development of search engines and, latterly, of wireless, digital, mobile, personal and virtual technologies.

6

Tom Friedman’s “The world is flat theory” Ten Flatteners ( Hyper globalist) • The fall of the Berlin wall. • The World Wide Web and the internet. • Workflow software. • Uploading. • Outsourcing. • Offshoring. • Supply chaining. ( Transportation and Logistics) • Insourcing ( develop its website internally instead of hiring an external web design agency)

Implications of globalization on business and transformation

• Economic globalization • Political globalization • Social globalization • Technological globalization ( Changing of Customer preferences) • Environmental globalization

8

Opportunities for technological globalization • Supports market expansion • Improves efficiency and productivity • Facilitates innovation and research & development • Helps to optimize the supply chain (this of course also requires cooperation with suppliers / vendors) • Enhances organizational agility and adaptability

9

Change Management

• Change management is a systematic approach to dealing with the transition or transformation of an organization's goals, processes or technologies.

• The purpose of change management is to implement strategies for effecting change, controlling change and helping people to adapt to change.

Transformational Change in an organization

• Transformational change is a type of organizational change that completely reshapes your organization.

• Occurs in response to, or anticipation of, significant changes in an organization’s environment or technology.

• These changes often are associated with significant business strategy revisions, internal structures and processes, and even corporate culture to support the new strategic direction.

Mapping Change • Change is usually analyzed as falling into one of the three

following types which can be a helpful guide for understanding the change already happening in the context. In complex situations it is probable that they are all happening at the same time. ( Types of change)

• Emergent – changes that evolve over time as the result of everyday activities and events. Emergent change happens at all levels and is uneven in terms of both the extent and the pace at which it unfolds.

• Transformative– changes that often happen in a crisis or when a previously stuck situation is released because a block to change has been overcome. Sometimes it is defined in terms of ‘unlearning’ or letting go of the old to make room for the new, which can be very difficult but is a critical factor in creating the space for change to happen.

• Planned – changes that occur in situations where stability, control mechanisms and other conditions can ensure that interventions result in desired changes. This can be both for specific problem solving and or for creating a more desirable situation.

Sociotechnical Systems

The study of information systems deals with issues and insights contributed from technical and behavioral disciplines

Source: Laudon & Laudon

The technical approach

Emphasizes mathematically based models

Source: Laudon & Laudon

• Computer science • Management

science • Operations

research

The behavioural approach

• Strategic business integration

• Design • Implementation

• Utilization

• Management

Concentrates on changes in attitudes, management and organizational policy, and behavior

Source: Laudon & Laudon

Laudon & Laudon’s sociotechnical systems viewpoint

“The successes and failures of information systems are rarely all technical or all behavioral.”

Source: Laudon & Laudon

integration • Design

• Implementation • Utilization

• Management

• Computer science • Strategic business

• Management science

• Operations research

Change management in accordance with sociotechnical systems model

• Engage and communicate well with stakeholders • Plan and make decisions collaboratively • Don’t underestimate the important of training and skill development • Ensure strong organizational culture for change and leadership support • Put a feedback loop in place • Hold a continuous improvement mindset • Evaluate and measure

17

The Stages of Digitial Transformation

18

Digitization and Digitalization

• Digitization sees something non-digital (e.g., a health record, an identity card) represented in, and/or converted into, a digital format that can then be used by a computer system

• Digitalization is a bigger concept and refers to enabling, improving or changing business operations, functions or activities by utilizing digital technologies and using digitized data to create management intelligence and actionable knowledge.

Examples of Digitazation • Digitization Examples: 1.Converting paper documents into digital PDF files for

easy storage and retrieval. 2.Scanning old photographs to create digital copies and

preserve memories. 3.Transforming physical library catalogs into digital

databases for efficient book searches. ( E-books) 4.Converting analog audio recordings into digital

formats like MP3 for convenient storage and playback. 5.Using Optical Character Recognition (OCR) to digitize

printed texts, making them searchable and editable

20

Digitalization Examples: 1.Implementing Customer Relationship

Management (CRM) software to streamline customer interactions and improve relationships.

2.Adopting Enterprise Resource Planning (ERP) systems to optimize business processes and resource management.

3.Utilizing automation tools in manufacturing processes to enhance efficiency and reduce manual labor.

4.Implementing digital marketing strategies, such as targeted online advertising and social media campaigns, to reach a wider audience.

5.Incorporating online payment systems to facilitate seamless and secure financial transactions.

21

Digitial Transformation

• Digital transformation is an even bigger concept, focusing on the whole organization, and large-scale change.

• It sees the transformation of business activities, processes, competencies and models to fully leverage the changes and opportunities of digital technologies and their impacts.

• Thus, digital transformation requires digitalization to create capabilities, and requires digitization, because digital data is the core asset here, and can be managed to create information, knowledge, intelligence, action and business model changes.

• Upskilling and reskilling ?

23

Netflix Case Digital Transformation

Companies that Applied Digital Transformation • Building a better future: IKEA

• Netflix Case

• IBM Case

24

Kotter’s 8 step change model

Lewin’s Change Management Model

Lewin’s Change Management Model

The Challenges with Stage One

• This first part of the change process is usually the most difficult and stressful for those involved.

• When a manager begins to challenge the firm’s way of doing things, everything suddenly becomes off balance.

• Processes that the organization has 'believed in' seem suddenly problematic and outdated, therefore, this can provoke strong emotions in people who are not ready to move on.

• To break it down a little more, this process of unfreezing involves three specific elements: disconfirmation, survival anxiety, and psychological safety (Schein, 2009).

Phases of culture change

• Stage one Unfreezing: the first stage of change requires the organization to accept that change is necessary.

• This will involve leaders and managers breaking down the existing ways of doing things (status quo) and explain they cannot continue.

• Therefore, the key is to show either why the current system cannot continue or expose a new approach that it is far superior.

• This will be easiest to do if leaders have facts and figures to back up their approach (Kotter, 1995).

• This may be poor financial results, poor customer feedback, or a threat of takeover on the horizon. Or they may be a clear and compelling set of reasons why it's realistic to believe that another way of doing things will drive better results.

Disconfirmation • Calls into question your organization's success. • It can be a realization that sales targets are not being

met, customer approval ratings are low, or other goals or ideals are not being reached.

• The organization might not know yet, what the source of the problem is, but it knows that things are not going as planned (Schein, 2009).

• IBM, which underwent a radical change from a technology seller to a tech consultancy giant, to explore the elements of Lewin's unfreeze change refreeze model.

• In relation to disconfirmation, Gerstner who was the incoming CEO at the time of IBM's change helped unfreeze the senior management of IBM by providing them with disconfirming data in a dramatic way that shook them out of their comfort zones.

• In his 1994 speech to the senior management, he presented two charts showing how IBM had lost market share and how it had scored poorly on customer satisfaction levels.

Survival anxiety • Occurs when the challenging data is connected to important goals or

ideals. • It is the sense that unless the organization changes, something bad will

happen to the company or its members • For instance, the company losing its financial capability or long-term

sustainability. • Thus, this pushes the employees to become more anxious. • People might start to deny the validity of the disconfirming data or argue

that it is irrelevant, rather than immediately realizing the need for change.

• Part of this denial can be caused by learning anxiety, the sense that beliefs or behavior cannot be changed without losing something valuable, like self-esteem or group identity

Changing (Stage Two)

• Once the organization has moved past the unfreezing phase (i.e. the need for change has been accepted and anxiety has been lessened), the changes start taking place.

• In practice, this means that the new behaviors which are required to affect the cultural Change need to be learned.

• Another way of putting it is that change needs to be enacted through people's repeated performance of their new tasks.

• For example, managers at IBM may have tried various ways to engage with clients under the new business model until they found approaches which worked for the clients, and which won them praise from their senior managers.

• They may have had a sense of what was going to work from watching and copying their senior managers in their new approach to clients.

Refreeze ( Stage Three)

• The final step in the change process, after learning a new behavior, is to freeze or internalize this new behavior.

• It will only be internalized as a stable part of members’ behavior if it meets the approval of important members of the employees work and social groups (Schein, 2009) and produces good results for group members and the organization (Schein, 2010).

• Whether the new behavior produces good results for the organization will depend on whether the leaders correctly diagnosed the initial problem and recommended the right behavior in response.

• Whether it produces good results for employees will depend on how leaders react to employees who adopt the new behavior, such as by rewarding them.

Chrysler and Fiat Case • Chrysler and Fiat are auto-mobile companies. Chrysler's best assets were its

Jeeps, minivans, and light trucks. • Fiat's expertise was in small car technology and fuel-efficient engines, the

very thing that Chrysler lacked. • Chrysler merged with fiat on June 10, 2009. Marchionne became CEO of the

company. In 1998 Chrysler merged with Dailmer-Ben. • But this merger was not successful one. In 2007 Daimler sold Chrysler to

Cerberus, a private equity firm but again Cerberus was not able to save company from failure.[7]

• In the past Fiat was at loss and Marchionne was the one who saved the company from failure. Now here we will find out what changes a company has to face while merger? How the leader handle these challenges?

The Industrial revolution 4.0 and its trends

36

Industry 4.0—also called the Fourth Industrial Revolution or 4IR is the next phase in the digitization of the manufacturing sector, driven by disruptive trends including the rise of data and connectivity, analytics, human-machine interaction, and improvements in robotics.

Automation

37

The use of automation has had one of the most significant effects of technology on logistics and supply chain management. Companies have been able to streamline their processes, decrease expenses, and boost efficiency thanks to automation. Automated warehouses, for example, use robots to move and store items, minimizing the need for human labor. Self-driving trucks and other automated transportation systems are also being developed, which might further reduce costs and enhance efficiency.

Artificial Intelligence

38

• Another technology that is revolutionizing logistics and supply chain management is artificial intelligence (AI).

• AI can evaluate enormous volumes of data, spot patterns, and make predictions.

• This can assist businesses in optimizing their operations, lowering expenses, and increasing customer happiness.

• AI, for example, can be used to forecast product demand, optimize delivery routes, and identify potential supply chain problems.

IoT ( Internet of Things)

39

• A network of interconnected devices that can communicate and exchange data with one another.

• IoT can be used in logistics and supply chain management to track shipments, check inventory levels, and optimize transportation routes.

• Sensors, for example, can be installed on products to track their position and condition, allowing businesses to monitor their supply chain in real time.

Blockchain

40

• Blockchain technology is a distributed ledger that enables secure and transparent transactions.

• Blockchain can be used in logistics and supply chain management to trace items, verify their authenticity, and reduce the risk of fraud. Blockchain, for example, can be used to track the provenance of products, ensuring that they are sourced and produced responsibly.

41

Why do some companies fail to adopt to new Technology ?

• Companies face numerous situations during the process of change which leads to anxiety and ambiguity.

• To become a prosperous organization, it is imperative for the companies to incorporate upgraded technologies for producing goods, innovative products to be introduced which are anticipated by the market, modern methods of administration must be executed along with improvement in the expertise of the workers.

• Companies must be capable of coping with all dimensions related to the reforms.

• The companies who get accustomed to change can boost their revenues and being appreciated as well.

The impact of technology on logistics and supply chain management • Technology has transformed the way logistics

and supply chain management are carried out. • Technology, from automation to artificial

intelligence, has helped businesses to increase productivity, cut costs, and boost customer happiness.

43

Essential Role of Technology in Modern Restructuring: • Automation and Digital Transformation • Data-Driven Decision Making: • New Technology Adoption. • Leadership in Technological Change. • Future Outlook

44

• DIGITAL TRENDS POST COVID

• HYBRID MODELS

45

46

Hybrid Models ( Agility)

47

• The hybrid working model is a work style that enables employees to blend working from different locations: home, on the go, or in the office.

• This approach allows employees to work in a way that suits their needs, enabling them to achieve greater autonomy, flexibility, high performance, collaboration, positive work relationships, and effective work habits.

Remote first Structure

• In a remote-first hybrid model, people work from home may live in different US states (or countries around the world), and hardly ever come into an office.

• Digital communications are the default in remote- first workplaces as people rarely see each other in person.

• Companies with remote-first work models may have workforces spread across different countries. They may hold annual, in-person events to promote team building and strong connections across their dispersed workforce.

48

Split-week. • Companies that prefer to work on-site but want

to provide people with flexibility may opt for the split-week hybrid model.

• With this model, companies require people to work on-site at least part of the week and from home for the rest of the week, e.g., two days at the office and three days from home.

49

Office-first • While the office-first hybrid model provides some

flexibility, most of the work is expected to be done from the office.

• Traditional work models were heavily based in the physical 'bricks and mortar’ office space ( Pre-covid Model)

• Offered little to no flexibility • “Office-first” is a new hybrid work model that

provides some flexibility • • Most of the work is expected to be done from the

office

50

Other hybrid work Models

1) Partly-remote model: Some teams are fully remote (e.g., technology functions), while others are required to be in the office (e.g., HR functions) 2) Flexible hybrid model: Gives employees more autonomy and flexibility for choosing when to work in the office vs. elsewhere.

51

Are Hybrid models here to stay ? • https://www.youtube.com/watch?v=zcKtSVgdy

b8

52

Bring your own device (BYOD) - secure integration of mobile devices into a company network

• https://www.youtube.com/watch?v=tWmfhMJoI HM

53

54

Implications of “BYOD”

• Security and data protection challenges- personal devices may not have the same level of protection • Compliance and legal considerations - particularly around privacy and security • Support and maintenance- what happens when something goes wrong.

55

Let’s discuss how work has changed since COVID-19

• What were some of the main technological changes beyond more remote work for employees due to businesses’ adaptation to COVID-19 realities? • What kind of impact do you think these changes would have had on employees? What were positive implications? Negative implications? • What is happening today in this space?

56

Any Questions ?

57