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Chapter IV. A Change Management Framewor... > Three-Phase Change Management Framew...

Three-Phase Change Management Framework for E-Business Transformation

Theories concerning the nature of change include description of the main components of the change process and methods of introducing change (Carnell, 1995; Carney, 2001). There has been much debate on the factors that contribute to the successful implementation of change, but views differ on how this might be achieved. The change management framework could be highly effective in understanding how the change process is managed (Clarke & Garside, 1997). The components identified for e-transformation model in the previous section are a very useful guide in developing change management framework constructs. Initial lists of change management framework constructs are thus developed using e-transformation model (as shown in Figure 1). To derive a comprehensive change management framework, such constructs are adapted from ideas generated in a matrix related to change presented by Clarke and Garside (1997) and Process-Technology-People (P-T-P) Model (Sharpe, 1989). The framework could be tested for validity and reliability. It attempts to make sense of the building blocks or components identified as being critical to the successful management of change. The principal components of the framework are: the people, processes, and technology, and customers and value chain partners. Ultimately, research constructs for the framework include qualitative and quantitative, internal and external factors (Stewart, 2000).

The proposed three-phase change management framework starts with preparing organizations for change, re-engineering efforts and building on new infrastructure and capabilities to enhance and extend the original business models, and then focuses on outward relationships to create new businesses (Davidson, 1999). The first phase of the change process is focused on people, which includes identifying champions for the change process, setting up a vision, communicating with all the constituents and preparing employees for a change. The second phase focuses on re-engineering processes and automation of existing activities to reduce cost and raise capacity, and expands to encompass a broader range of applications to optimize operations. Third phase begins shifting the focus from optimizing internal operations to enhancing transactions and relations with customers, suppliers and other value chain partners. Enhancements typically appear first in the form of value-added activities in areas such as order entry and tracking, delivery, and customer service functions. While these applications simply enhance existing activities, new services may appear in the form of augmented flows of information to the customer, new customer service functions, and new features and options (Schuh, Mueller, & Tockenbuerger, 2002). Such developments are central in the third phase of the transformation process. The details of change management framework and the various parameters that should be addressed in each phase are shown in Figure 2 and are described in the following sections.


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