Costco

Paper Summary:

The paper evaluates the validity and utility of five different models, or theories of organizational change, as they relate to Costco's adoption of several electronic initiatives. The initiatives discussed include online catalogs and a re-vamped website that includes order capture and order management systems. In addition this paper defines in detail the human implications of introducing technologies into companies and the resulting organizational changes that occur. The paper further discusses the critical success factors for organizational change and how these can be applied to Costco.com.

Outline:
Introduction
Overview of the DICE Model
Business Process Reengineering
Exploring Lewin's Model
Exploring the Speed of Change Model
Theories E and O of Change
The Only Constant Is Change: How Technology is Changing Organizations
Success Factors in managing Change Management at Costco
Conclusion

From the Paper:

"In defining their DICE model, the authors contend that the soft factors of change management including culture, leadership, and motivation have been overplayed in many strategies companies have used in the past. DICE is a framework for capturing the "hard" factors of change management, or those that can be more easily quantified and measured. This methodology of measuring change management began in 1992 and was strengthened by research completed in 1994 and ensuing years at Boston Consulting Group. The authors use this Harvard Business Review article to illustrate the methodology of applying quantitative measures to each element of the DICE framework, then chart the correlations of completed products to each projects' respective DICE score."

Sample of Sources Used:

• Daryl R. Conner (1993) - Managing at the Speed of Change. Villard Books, 1993.
• Davenport (1992) - Process Innovation: Reengineering Work through Information Technology. Harvard Business School Press. October 1992.
• Dyche (2002) - The CRM Handbook. Jill Dyche. Addison-Wesley Pearson Education. ISBN 780201 730623.
• IT Managers Have Become Adept At Cost-Cutting (2004) - From the article of the same name. Computer Weekly Magazine. Page 42. October 26, 2004.
• Managing Change is IT Directors' Toughest Job (2002) - Computer Weekly Magazine. Page 8. June 27, 2002

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