In every business offered by any organizations, it is very important to ensure that the customers will always satisfied with services provided. People nowadays are looking for the new technologies, new markets, new ideas and also new inventions. Thus the organization must always keep up with the current changes in demand to ensure that their services are still relevant to the customers. The changes of demand also called as an evolution and to achieve these, the organizations are advised to have a process that we called as “Business Transformation” (“Business Transformation: The Importance of Change,” 2014).
The transformation means the implementation of new technology, outsourcing and also the efficiency of process. Most of the leaders are very passionate in preventing incompetence and waste to be happen in the organization yet they are neglecting the power of transformation (Filippone, Youden, Pennington, & Fersht, 2012). According to Schroeder (2013), the transformation will focus on the changes which related to the cultural and people. Transformations also focus on the changes in an aspect of systems and strategic.
Basically transformation strategies are quite complicated because the process of innovation in any business environments will depends on it. We knows that in order to develop a business environment that supports the activities of innovation, most of the organizations will require an extensive changes in terms of the culture and systems of the organizational itself. The process can be difficult to achieve and also can caused disruptive, cost overflowing and time consuming. The innovation can give the potential of long term benefits but most of organizations more interested in short terms gains and cost reductions. The...
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...llenging to the organization is undeniable thus the organizations really have to come out with competitive transformation strategies so that they are strong enough to compete with their business competitors (Tonono, 2008).
The transformation strategies can provide the organization the strength and confidence to make the changes and innovation of the business during the time being and also in the future. The strategies is for the future planning and from that, the organization can see the opportunities that they can gain later (McLocklin, 2009).
For the organizations which implementing innovation in their business environment, it is not easy for them to cope with the changes. With the transformation strategies, it can help the organizations to adapt the changes and ready to be productive as mentioned in Formulation of Organizational Transformation Strategies (2014).
Innovation has rapidly assumed a position of prominence in world competition on a global scale. To compete in this environment, organizations need a level of innovation. As competition becomes more global and time-based, organizations must develop and deliver new and superior products or services in less time. The challenge for modern organizations is to revitalize them so they can successfully and continuously develop newer products and enhance business development.
It is important that if you are ever running a business, you change before the change comes to you. Change can have either a positive or negative effect on a business and it is extremely important to strive to make it a positive
Incremental renewal is about business evolution by expanding current business into new product lines or services or to seek improvement in current lines of production. It is related to gradual improvement over long period of time. For example, Swiss Business School has been developing since 1998 by adding off-site programs, expanding international network, etc. Transformational strategic renewal is fundamental change such as brand or model of business. This type seeks to redefine customer’s expectations. Transformational renewal is drastic change that happens at once. For instance, McDonalds introdiced McCafe as an additional part of its chain. Even though transformational changes involve large scale of changes, we must try to explain the obstacles of these changes to come into life on individual and large scale
Hawkins (2009) states that transformational leaders scaffold all employees’ efforts towards the mission, advance communication avenues within the organization, and share all threats from competition to organizational waste to define the problems in addition to the need to reorganize for the future success and survival of the organization. Transformational leadership styles are critical to the progression of IT governance through achieving rap...
“Leading Change: Why Transformation Efforts Fail” is an article written by John P. Kotter in the Harvard Business Review, which outlines eight critical factors to help leaders successfully transform a business. Since leading requires the ability to influence other people to reach a goal, the leadership needs to take steps to cope with a new, more challenging global market environment. Kotter emphasizes the mistakes corporations make when implementing change and why those efforts create failure; therefore, it is essential that leaders learn to apply change effectively in order for it to be beneficial in the long-term (Kotter).
In the nutshell, changes in business environment are unforeseeable. It is common that sometimes company’s activity shall change to continues sustainable in the open market. Some company may threat of downsizing, bankruptcy or changing business model due to unfavorably change of business environment. Thus, it is important to manage change of business environment, which involved internal and external forces of change that contribute to incremental changes and transformation quantum changes in the organisation.
Kotter, J. P. (2007). ‘Leading change: Why transformation efforts fail’. Harvard Business Review, January: 96-103.
Organizational change is described as an examination made on business processes and management structures and how these can be modified to obtain greater success and adapt to changes in the market. For small business in particular change is required in order to develop and sustain success
Not only the type of the work employees are required to do changes, place, method, and environment of the work is also subject to transformation. With high turnover being common characteristic among modern organizations, people have to work in teams each time composed of different people.
Achieving organizational objectives or improving on them is typically a combination of strategic planning, tactical planning and some form of change management (Starke & Sexty, 1992, p.97-99). Goals must be defined (strategic planning); courses of action adopted and implemented (tactical planning) and ultimately reinforced, introduced or replace an existing system within the work environment (change). Firms have conducted such planning in all core business units such as Marketing, Finance, Human Resources and IT in the hopes that the aforementioned strategies translate into some degree of competitive advantage.
Transformational change thinks about with choices organizations create to enhance their competitive performance. Activities those square measure unique, valuable, and difficult to imitate enhance the organization’s performance by establishing a competitive advantage over its rivals. The success of a competitive strategy depends on organization responses that lead to unique, valuable, and difficult-to-imitate benefits. Transformational change assists organizations in developing these benefits and managing strategic change.
The idea of change is the most constant factor in business today and organisational change therefore plays a crucial role in this highly dynamic environment. It is defined as a company that is going through a transformation and is in a progressive step towards improving their existing capabilities. Organisational change is important as managers need to continue to commit and deliver today but must also think of changes that lie ahead tomorrow. This is a difficult task because management systems are design, and people are rewarded for stability. These two main factors will be discussed with reasons as to why organisational change is necessary for survival, but on the other hand why it is difficult to accomplish.
After reading chapters one through four of the book Leading Change by Kotter, a better understanding of the eight steps of creating major changes in an organization has been gained by the author. Change is always happening in some shape or form. Competition drives change within organizations. Companies drive each other; they can challenge each other to compete. A good example of that is Ford and Chevy; they have been battling each other for decades on who can make the nest sports car in America. Competition is good for both the consumer and the organizations: it can lead to numerous great ideas.
Why do organizations change? With time goes by, rapid development of science and technology had led us to a world full of competitions. Change and stay alert to keep up with the current trend is essential asset to survive in this aggressive global economy. As the framework indicated by Pettigrew, there are two key context factors makes a great deal of effects on the reason for companies to change. Those are outer context and Inner context. Outer context could refer to the surrounding environment around the firm and the global economics status, etc. Inner context could be downsizing, restructuring the Gestalt, or the problem with coherent design archetype. Under the stress of the outer and inner context, forces or triggers will bring out the revolution. Change can be seen in a short term way and also in a long term way. Short term change could be a sudden, discontinuous and frame-breaking rupture which has an impact on the whole organisation, or new forms of management ad structure of the firm itself, or the breakthrough created by the major innovations or even can refers to the impact of new product and new market opportunities. Normally, financial crisis will be an initiative as a trigger to revolution. At first of the revolution, there would probably already has small changes in normal management and structure. As a long term way to apply the change, change agents are needed to do an ongoing, continuous and gradual progression or give some simpler initiatives such as improvements to existing products and product range.
Organizational change is a process of developing a strategic plan for modifying an enterprise’s business processes through the modification of policies, procedures and processes to move the organization from an “as is” state to a “to be” state.