Chapter Eight- Innovation and Change 授課教授：任維廉老師 報告人： 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 2009/11/262 交通大學碩士班 林幼芝

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 T echnological 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 2009/11/263 交通大學碩士班 林幼芝

Changes  Type of changes  Incremental changes  Radical changes  Elements for successful changes Suppliers Professional Associations Consultants Research literature Customers Competition Legislation Regulation Labor force 1. Ideas 2. Needs 3. Adoption4.Implementation 5. Resources Internal Creativity and Inventions Perceived Problems or Opportunities Organization 2009/11/264 交通大學碩士班 林幼芝 Integrated !

International Environment Strategic Types of Change Leadership Vision Technology Product and Service Strategy and Structure Culture The Market 2009/11/265 交通大學碩士班 林幼芝

Technology Change General Manager Creative Department Expand capabilities — Explore and develop new ideas (Organic structure) Using Department Exploit 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 2009/11/266 交通大學碩士班 林幼芝

New products and Services Environment Technical Developments Environment Customer Needs Organization General Manager R&D Department Marketing Department Production Department Coord Market success rate for R&D projects: 12% → Customer’s need ! Horizontal Coordination Model 2009/11/267 交通大學碩士班 林幼芝

Strategy and Structure Change  Administrative changes -Design and structure of a organization -control and information systems, authority hierarchy and departmental grouping. Type of Innovation Desired Administrative 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 Administrative Core Technical Core Dual Core Approach 2009/11/268 交通大學碩士班 林幼芝

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 2009/11/269 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 Level of Support for Change Passage of Time Stages of Commitment to Change 2009/11/2610

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 2009/11/2611

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? 交通大學碩士班 林幼芝 2009/11/2612

Q&A Thanks for your listening !! 交通大學碩士班 林幼芝 2009/11/2613

交通大學碩士班 林幼芝 Continuous progression Paradigm-breaking burst Through normal structure and management processes Transform entire organization Affect Organizational part Create new structure and management Technology improvements Breakthrough technology Product improvement New products, new markets Incremental ChangeRadical Change 2009/11/2614