Chapter Eight-Innovation and Change

授課教授：任維廉老師報告人： 9732519 林幼芝

2009 年 11 月 26 日

Why need changes?

How to change?

Strategy types of changes

Implementations of changes

General thoughts

Outline

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Environmental Forces Driving the Need

More Large-Scale Changes in Organizations•Structure change Mergers, joint ventures, consortia•Strategic change Horizontal organizing, teams, networks•Culture change New technologies, products•Knowledge management, enterprise New business processes resource planning E-business•Quality programs Learning organizations

More Threats•More domestic competition•Increased Speed•International competition

Global Changes, Competition and Markets• Technological Change• International Economic Integration• Maturation of Markets in Developed Countries• Fall of Communist and Socialist Regimes

More Opportunities•Bigger markets•Fewer barriers•More international markets

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Changes Type of changes

Incremental changes Radical changes

Elements for successful changes

SuppliersProfessionalAssociationsConsultants

Researchliterature

CustomersCompetitionLegislationRegulationLabor force

1. Ideas

2. Needs3. Adoption 4.Implementation

5. Resources

InternalCreativity and

Inventions

PerceivedProblems or

Opportunities

Organization

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Integrated Integrated !!

International Environment

Strategic Types of Change

Leadership Vision

Technology

Productand

Service

Strategy and

StructureCulture

The Market

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Technology Change

General Manager

Creative DepartmentExpand capabilities —Explore and develop new ideas(Organic structure)

Using DepartmentExploit capabilities —Routine application of new ideas(Mechanistic structure)

•Switching structures -- brainstorm new ideas•Creative departments -- organic and mechanistic•Venture teams -- new-venture fund•Corporate entrepreneurship -- idea or management champion

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New products and Services

TechnicalDevelopments

CustomerNeeds

GeneralManager

R&DDepartment

MarketingDepartment

ProductionDepartment

Coord

Coord Coord

Coord Coord

Market success rate for R&D projects: 12%

→ Customer’s need !

Horizontal Coordination Model

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Strategy and Structure Change Administrative changes

-Design and structure of a organization -control and information systems, authority hierarchy and departmental grouping.

Type of Innovation DesiredAdministrative

Structure Technology

Direction of Change: Top-Down Bottom-Up

Examples of Change: Strategy Production Downsizing techniques Structure Workflow

Best Organizational Design for Change: Mechanistic Organic

AdministrativeCore

TechnicalCore

Dual Core Approach

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Culture Change Forces for culture change

Reengineering/Horizontal organization Diversity The learning organization (organization

development)

OD culture changes interventions Large group intervention Team building Interdepartmental activities

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交通大學碩士班 林幼芝

Most important crucial and difficult. Leadership for change

Strategies for implementing changes

Commitment

Acceptance

Preparation

Institutionalization

Installation

Decision to Implement

Understanding

Awareness

Initial Contact

Leve

l of

Su

pp

ort

for

Ch

an

ge

Passage of Time

Stages of Commitment to Change

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交通大學碩士班 林幼芝

Barriers to change Excessive focus on costs Failure to perceive benefits Lack of coordination and cooperation Uncertainty avoidance Fear if loss of power or status

Techniques for implementation Establish a sense of urgency for change Establish a coalition to guide the change Create a vision and Strategy for change Develop plans to overcome resistance to change Create change teams Foster idea champions

Strategies for implementing changes

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Thoughts Around the idea of integration

Different departments Previous chapters: culture, strategy…….

When the best timing for change? The final moment or be the first? Relates to the organizations’ strategy?

Feedback Mechanisms Correlations? Integrated of changes Separate evaluation? Or joint evaluation is

enough?

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Q&A

Thanks for your listening !!

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交通大學碩士班 林幼芝

Continuousprogression

Paradigm-breakingburst

Through normal structure and management

processes

Transform entireorganization

Affect Organizational

part

Create new structureand management

Technologyimprovements

Breakthroughtechnology

Productimprovement

New products,new markets

Incremental Change Radical Change

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