Nature and factors / reasons of technological change; Managing transformation .. steps for successful 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