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'Change Model' Jargon

 

 
 

Change Models

Simply, those models for action which have been used to successfully change processes or organizations.

The best model for a particular change program must have some features that are deeply imbedded in the current state and current culture.  Otherwise, the change will not take root.

 

 
 

Reengineering

Rebuilding the process by leveraging dramatic change in supporting technologies.

Michael Hammer used the rapid advances in computer technology to argue for massive reengineering of most organizations and business processes.
[M Hammer, J Champy, Reengineering the Corporation. Wiley:1993.]

 

 
 

Process Redesign

Changing the process by seizing ‘internal’ opportunities that occur within the existing process.

The business grows and can afford more specialization.  The resources contract, so the process must be simplified, simply to work.  Changes in other processes change the boundaries between processes.

 

 
 

Continuous Improvement

Improving the process by analyzing the existing practice for problems or barriers and overcoming them with incremental changes.

W. Edwards Deming and J. M. Juran used continuous Improvement as the principal change mechanism in the Total Quality Management movement of the 1980's.
[W E Deming, Out of the Crisis. M.I.T.:1982]
[J M Juran, Juran on Leadership for Quality: An Executive Handbook. Free Press:1989]

 

 
 

Increasing-
Returns Economics

"The rich get richer."

A market dynamic where those who are ahead, tend to get further ahead. Usually up-front costs are significant compared to production costs so unit cost declines with increased sales. Newcomers and small volume producers have more and more difficulty as the market matures.

[see Arthur, W. Brian. "Increasing Returns and the New World of Business", Seeing Differently: Insights on Innovation, JS Brown (ed) [Harvard: 1997], p. 3.]

 

 
 

Network Effect

"The more, the merrier."

A market dynamic where each additional unit put into use enhances the value of all previously deployed units. 

The classic example was the telephone.  A single telephone would have been utterly useless.  So Alexander Graham Bell built two and initiated the first 9-1-1 call, "Watson, come here. I need you."  Soon everybody needed a telephone.

 

 


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