It Management Throughout the Past

It Management

Throughout the past recent decades, the it community has evolved at a rapid pace and has imposed the same rapid pace of development on the rest of the economy. The quick growth of the information technology community has however forced owners of it conglomerates to also develop from the business standpoint. And this development has often been created with the implementation of change.

The process of implementing organizational change is an extremely challenging one, which has to be centered on a series of key aspects, including:

The efficient identification of the need for change

The elimination of the resistance to change

The implementation and adequate management of innovation

The analysis and correlation of risks, costs and rewards

The emphasis on the human side of change, such as employee empowerment and motivation

Improve operational efficiency at the level of all organizational activities

Assess the results, monitor the change and learn from the experience (Cross).

The determinants of change are multiple. In the case of Dell for instance, the organizational process was determined by the desire to create a more efficient company which interacted directly with the customers. This business model became in fact the very core strategy at Dell. But it created a myriad of complexities, such as more tedious distribution processes or the need for increased inventory management. This very complexity of the inventory system represents the main input problem at Dell. Nevertheless, throughout the years, through gradual process of internal change and development, the problems were addressed and the direct distribution model was perfected. Today, Dell is a leader of the industry and its success is due to the changes it implemented.

Another success story is revealed by the Wal-Mart Corporation. Wal-Mart is the largest retailer in the United States of America and it has reached and maintained this position due to its implementation of the capabilities-based competition. The underlying idea behind this strategy was that of creating more organizational competencies. The first step in this direction was constituted by increasing the size of the organization. From a local purveyor, Wal-Mart eventually became a global retailer. Aside from size, emphasis was also placed on increasing the product variety. Wal-Mart as such became the one stop store in which individuals could purchase anything from detergents and foods to clothes, garden appliances or working tools. The result was the creation of scale economies, which transformed the company forever. "This allowed economies of scale in purchasing, distribution, and marketing that […] are crucial to competitive success in a mature and low-growth industry" (Stalk, Evans and Shulman, 1992).

In terms of the forces which drove the change, these refer to the organizational desire for growth and development, as well as the commitment to the objective. In terms of the principles, these refer primarily to the focus on operational efficiency as a source of cost reductions. These efforts eventually allowed Wal-Mart to implement the lowest price strategy, which still ensures its success.

The Wal-Mart Stores and Dell Inc. are two stories of how organizational change is necessary for business development. Their successes do not however automatically imply that the strategies they used are universally applicable. The final message is that success is attainable through the adequate analysis of the market, the industry and the organization and the development of customized strategic efforts which respond to the specific needs of the established goal.