Module 2: Managing Technology Topic 4: Information Technology Role in Organizational Change

Pressures for Change People Technology Information processing and communication Competition

Models for Change Process Researchers use a model to illustrate a change process Lewin’s process model Moorhead & Griffin’s Continuous change process model Venkatraman’s stages of change

Lewin’s Change Process Three-stage model Unfreeze  Change  Refreeze

Continuous Change Process Model (Moorhead & Griffin 1995) Change is complex and ongoing. Introduce a “change agent” as a facilitator IS/IT as a change agent.

Stages of Change (Venkatraman 1991) Change enabled by IT Five stages of change 1. Localized exploitation 2. Internal Integration 3. Business process redesign 4. Business network redesign 5. Business scope redefinition

IT as a Change Agent IT as an agent for social change IT has changed the way businesses are conducted and the way we work

Development of Technology Capabilities Once we understand the role of IT (the previous slides) and the concept of technology strategy (Topic 3), the next step is to build technology capabilities to accomplish the strategic and operational goals.

Technology Capability Definition Technology assets a firm processes which have strategic significance, as well as the processes and practices by which these assets are developed and exploited (Harrison & Samson 2002)

Core Technological Capabilities Component Skills (reside in human capital) Organizational routines (share risk and responsibility) Specific assets (Shareable platforms and databases) Ross et al. (1996) call these as 3 IT assets (Human, Relationship, and Technology Assets) Reference: Ross et al. (1996) Developing Long-Term Competitive Through IT Assets, Sloan Management Review,

Develop Technology-based Capability Three phases of technology development (Jaikumar & Bohn, 1986) Phase 1: allows technology to be developed and implemented but not easily modified or enhanced Phase 2: fines tune the system Phase 3: automates process control These 3 phases can be applied to both process technology and product technology.

Technology-based Capability We can view certain technologies generically in terms of their position or stage of development. Within a firm where many technologies exist, we can view a portfolio of technical assets that consist of mature and innovative technologies

Managing Technological Capabilities Requires a strategic approach Treats technology as a strategic tool (instead of expense) Includes technology in the business strategy A sustainable source of competitive advantage is the ability to respond consistently to changing markets with new and improved products and ever improving competitiveness (Stalk 1992)

Strategic Value Reasons why a capabilities focus increases the strategic value Dependency of technological assets Increased strategic relevance of support activities Complexity and organizational diffuseness of technical processes

Diffusion and Adaptation Technology transfer is a “process of movement or transfer of information, technical know-how, and people among corporate technical and non-technical functions in order to yield innovative products and services that meet the goals and fulfill customer needs.” (Hamilton, 1992)

Barriers of Technology Transfer Technical Barriers Attitude Barriers Comparison between US firms and Japanese firms in terms of their success/failure in transferring technology (p. 42 –43)

Critical Success Factors A focus on the development of technological capabilities An ability to develop a strategic technology culture The recognition of the importance of technological assets An ability to balance short-term requirements with long-term goals An ability to effectively adapt to technological change Top management commitment and support