1. Slide 10.1 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Part 3 Implementation Chapter 10 Change management

2. Slide 10.2 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Learning outcomes Identify the different types of change that need to be managed for e-commerce Develop an outline plan for implementing e-commerce change Describe alternative approaches to organisational structure resulting from organisational change

3. Slide 10.3 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Management issues What are the success factors in managing change? Should we change organisational structure in response to e-business? If so, what are the options? How do we manage the human aspects of the implementation of organisational change? How do we share knowledge between staff in the light of high staff turnover and rapid changes in market conditions?

4. Slide 10.4 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Key change management issues Scheduling – what are the suitable stages for introducing change? Budgeting – how do we cost investment in digital business systems and projects? Resources needed – what type of resources do we need, what are their responsibilities and where do we obtain them? Organisational structures – do we need to revise organisational structure? Managing the human impact of change – what is the best way to introduce large-scale e-business change to employees? Technologies to support digital business change – the roles of knowledge management, groupware and intranets are explored. Risk management – approaches to managing risk in digital business projects.

5. Slide 10.5 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 10.1 Key factors in achieving change Challanges of digital business transformation

6. Slide 10.6 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Table 10.1 The 7S strategic framework and its application to digital business management Challanges of sell-side e-commerce implementation: The 7S framework

7. Slide 10.7 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Table 10.1 The 7S strategic framework and its application to digital business management (Continued) Challanges of sell-side e-commerce implementation: The 7S framework

8. Slide 10.8 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 10.2 Digital marketing activities that require management as sell-side e-commerce Source: E-consultancy (2005). Challanges of sell-side e-commerce implementation

9. Slide 10.9 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 10.2 Digital marketing activities that require management as sell-side e-commerce (Continued) Source: E-consultancy (2005). Challanges of sell-side e-commerce implementation

10. Slide 10.10 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 10.3 The main challenges of managing sell-side e-commerce (n = 84) Source: E-consultancy (2005). Challanges of sell-side e-commerce implementation

11. Slide 10.11 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Different types of change in business Incremental change Discontunious change Organisational change Anticipatory change Reactive change Tuning Adaptation Re-orientation Re-creation

12. Slide 10.12 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Table 10.2 Alternative terms for using IS to enhance company performance Different types of change in business: Discontinuous process change

13. Slide 10.13 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Hammer and Champy (1993) defined BPR as ‘the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed’ Fundamental rethinking – re-engineering usually refers to changing of significant business processes such as customer service, sales order processing or manufacturing. Different types of change in business: Scale of change

14. Slide 10.14 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Radical redesign – re-engineering is not involved with minor, incremental change or automation of existing ways of working. It involves a complete rethinking about the way business processes operate. Dramatic improvements – the aim of BPR is to achieve improvements measured in tens or hundreds of per cent. With automation of existing processes only single-figure improvements may be possible. Critical contemporary measures of performance – this point refers to the importance of measuring how well the processes operate in terms of the four important measures of cost, quality, service and speed. Different types of change in business: Scale of change (con’t)

15. Slide 10.15 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 10.4 Challenges of web project management (n = 527) Source: E-consultancy (2007). Requirements for project management

16. Slide 10.16 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 10.5 Success factors for web project management showing percentage of respondents who demonstrate these Source: E-consultancy (2007). Requirements for project management – con't

17. Slide 10.17 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 10.6 Stages in developing a digital business solution Effective project management Estimation Resource allocation Schedule/plan Monitoring and control

18. Slide 10.18 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 10.7 An example website development schedule Schedule for a digital busines system

19. Slide 10.19 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 10.8 Typical structure and responsibilities for a large e-commerce team Source: E-consultancy (2005). Human resource requirements

20. Slide 10.20 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 10.9 Summary of alternative organisational structures for e-commerce suggested in Parsons et al. (1996) Organisational structures

21. Slide 10.21 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 10.10 Options for location of control of e-commerce Source: E-consultancy (2005). Organisational structures – con't

22. Slide 10.22 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Table 10.5 Facilitating organisational change through a transition model Source: The middle column is based on a summary of the commentary in Hayes (2002). Managing change

23. Slide 10.23 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Table 10.5 Facilitating organisational change through a transition model (Continued) Source: The middle column is based on a summary of the commentary in Hayes (2002). Managing change – con't

24. Slide 10.24 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Knowledge management ‘Every day, knowledge essential to your business walks out of your door, and much of it never comes back. Employees leave, customers come and go and their knowledge leaves with them. This information drain costs you time, money and customers.’ Saunders (2000)

25. Slide 10.25 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 What is knowledge? Explicit – details of processes and procedures. Explicit knowledge can be readily detailed in procedural manuals and databases. Examples include records of meetings between sales representatives and key customers, procedures for dealing with customer service queries and management reporting processes. Tacit – less tangible than explicit knowledge, this is experience on how to react to a situation when many different variables are involved. It is more difficult to encapsulate this knowledge, which often resides in the heads of employees.

26. Slide 10.26 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Figure 10.11 Knowledge management framework Knowledge managemet

27. Slide 10.27 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Objectives of knowledge management Improving profit/growing revenue (67%) Retaining key talent/expertise (54%) Increasing customer retention and/or satisfaction (52%) Defending market share against new entrants (44%) Gaining faster time to market with products (39%) Penetrating new market segments (39%) Reducing costs (38%) Developing new products/services (35%).

28. Slide 10.28 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Implementing knowledge management Lack of understanding of KM and its benefits (55%) Lack of employee time for KM (45%) Lack of skill in KM techniques (40%) Lack of encouragement in the current culture for sharing (35%) Lack of incentives/rewards to share (30%) Lack of funding for KM initiatives (24%) Lack of appropriate technology (18%) Lack of commitment from senior management (15%) Main problems

29. Slide 10.29 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Implementing knowledge management – con’t It is impossible to achieve full benefits from knowledge management unless individuals are willing and motivated to share their knowledge or unless organizations lose their structural rigidity to permit information and knowledge flow. (IDC, 2000) Knowledge can only be volunteered – it cannot be conscripted. (Snowden, 2002)

30. Slide 10.30 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Technologies for implementing KM 1. Transactional. Help desk and customer service applications 2. Analytical. Data warehousing and data mining for CRM applications 3. Asset management. Document and content management 4. Process support. TQM, benchmarketing, BPR, Six Sigma 5. Developmental. Enhancing staff skills, competencies – training and e-learning 6. Innovation and creation. Communities, collaboration and virtual teamwork.

31. Slide 10.31 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Differences between knowledge management, data processing and information management Consider a retail manager analysing their sales figures Raw data on sales figures consist of figures in each individual store for a given month. IS can present this data within the context of sales compared to previous months as information.

32. Slide 10.32 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 This information is of little value if the manager does not know how to act in response to it. Managers apply their knowledge to decide how to respond if the sales in one region are much lower than others, or if one store is underperforming against budget. Thus, knowledge is the processing of information and is a skill based on previous understanding, procedures and experience. Differences between knowledge management, data processing and information management (Continued)

33. Slide 10.33 Chaffey, Digital Business and E-commerce Management Powerpoints on the Web, 6 th edition © Marketing Insights Limited 2015 Risk management 1. Identify risks including their probabilities and impacts 2. Identify possible solutions to these risks 3. Implement the solutions, targeting the highest impact, most likely risks 4. Monitor the risks to learn for future risk assessment.