MU0018 - CHANGE MANAGEMENT

1. Define the term organizational transformation. Discuss the various strategies to manage transformation in organizations.

Ans:

Organisational Transformation is a term referring collectively to such activities as reengineering, redesigning and redefining business systems. The dominant enabling technology in transforming organization is information and technology.As business model change rapidly in the financial environment and mergers and acquisition change the face of the organization. So, organization continually need to

a. A flexible, effective and efficient organization.b. A customer-centric approach to organizational activitiesc. Recognition of current strengths to create a more productive environmentd. Understanding and reaping the benefits of competitive IT and business alignmente. Promotion of an integrated approach to IT and businessThree Types of Transformation

1. Improving Operation: To achieve a quantum improvement in the firm's efficiency, often by reducing costs, improving quality and services and reducing development time.2. Strategic Transformation: The process of changing strategy seeks to regain a sustainable competitive advantage by redefining business objectives, creating new competences and harnessing these capabilities to meet market opportunities.3. Corporate Self-Renewal: Self-Renewal creates the ability for a firm to anticipate and cope with change so that strategic and operational gap does not develop.Phases of Transformation

Phase-1: It begins with the automation of existing activities to reduce cost and raise capacities and expands to encompass a broader range of applications to optimize operations.Phase-2: It focuses on adding features, functions, value-added processes and new service to the core business.Phase 3: It may become principal vehicles for growth; the existing business can be redefined.

Transformation Strategies