Challenges Of Change Management Process

Other challenges that companies are facing include:

• Global footprint – the need for effective and efficient manage complex and global R&D networks.

• Customer orientation – the need of meeting individual customer expectations and the need for greater customer participation in product innovation.

• Innovation and Lifecycle costs - the need to reduce costs for innovation and across lifecycle by implementing lean and efficient processes.

• Innovativeness – the need for differentiation from competitors and the need for fulfilling high customer expectations for each new product generation.

• Time to market – the need to address shrinking product lifecycles and the need to address overall increase in market demand.

2. COMPANIES CHANGING STRATEGY

Change is an alternation of organisation's environment structure, technology or people. Organisation often view change as a continuous process that they need to capture the learning and pass it on.

The forces of change can be divided into internal and external forces. External forces include economic factors, and new market opportunity. By contrast, the internal forces inside an organisation can lead to a change (Griffin, 2003). Organisation need to clearly clarify the factors, which have triggered the changes. After that, a change management approach should be undertaken, which comprises of change management process, approaches adopted to minimise the resistance to change and an overall performance evaluation program of the change.

companies usually change their strategy in response to a change in its industry notably a disruptive change that forces the company to rethink the way in which they are delivering value to the customer (Markides,2006). The typical external drivers of such innovation include globalisation, deregulation, the advancement in information and communication technology and even socially-oriented companies that service the bottom of the pyramids segment. (Casadesus-Masanell & Ricart,

The new discovery of the technology that used by Ford in production line became a threat for Toyota's position in the market. The only way that it could survive was by finding new and flexible production methods that could help them to create more value on car manufacturing process (Lynch, 2006).

Production Lines - There are numerous problems with Toyota (without using the technology in its TPS) (Turban, 2008):

Problem in its supply chain and its operations, and its 'car keeping' costs mounted.

Customer dissatisfaction increased due to Toyota inability to deliver cars to dealers on time.

Management used computer that generated useless reports and data. Thus, management faced the problem in using the data strategically.

Internal department often failed in file sharing and information exchange. Thus, it had slow down the speed of reporting.

Report system that used in TPS always provides inaccurate information and information overlaps.

Management failed in making decision in a given time due to the inaccurate