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An iconic british luxury brand Established in 1856 Leveraging its rich Heritage. Pioneering a social Revolution in the fashion Industry through a new normal Approach to it-enabled change, Innovation & collaboration.
T a b l e
o f
C o n t e n t s
The
Transformation
Capabilities
within
E x e c u t i v e
S u m m a r y
Burberry (the client) has internally completed a business strategy exercise that has consequently resulted in the identification of several opportunities from investments in IT-enabled change. Internally, Business Sponsors and Project Managers have been agreed and the business case, strategic themes and project management methodology have been outlined in the below table (see table 1.0). Z0916511 (the consultant) has been asked to contribute to the detailed project planning, including the developments of benefits realisation plans to help ensure that the programme succeeds in realising benefits. An interview with Angela Ahrendts, Burberry CEO, believes that closely connected global teams and creative thinking culture will be key to achieving sustained competitive advantage (Burberry, 2011). After much consideration and a full cost-benefits analysis, Z0916511 will look to 1 implement a collaborative work tool that will foster learning in an attempt to develop a long-term and compelling innovation strategy enabled by IT. It is hoped that the project and programme will improve the competitive position from success to prosperity as we enter fiercely competitive global markets (see table 2.0). This project will be in conjunction with other third party vendors and is agreed to be a strategic investment under the IT Investment Portfolio (see table 3.0). The following report will be comprised of three components: (i) Tackling the challenges of IT-enabled change; (ii) Business innovation enabled by IT; (iii) Building the transformation capability of the organisation. The intended reader of the following report is the Program Manager, and functional business analysts. A one-page overview is provided in the appendix for C-Level Directors and technical details are available upon request.
Collaborative
Work
Tool
is
an
enterprise
social
network
(ESN)
used
primarily
but
not
limited
to
internal
use.
ESN
will
be
used
interchangeably
between
collaboration
work
tool
or
(enterprise)
social
network
throughout
this
paper.
7
Business Drivers Organisational Culture Design, Marketing and Retail led Core values to protect, explore and strategies inspire Digital focus and integration Democratic and meritocratic ethos Channel Diversity: Retail, ecommerce, Collaboration and connectedness wholesale and licencing Philanthropy Global Reach: across core regions and emerging markets Source: (Burberry, 2011)
4+1 The project management methodology used globally across the entire change portfolio is the e project framework. This methodology was chosen as it provides a flexible and agile platform that will enable innovation within a benefits-led approach to IT-enabled change.
Burberry information systems and business process are inline with industry standards within the luxury consumer goods market. In an attempt to attain sustained competitive advantage its been identified that Burberry must attempt to improve customer intimacy, product leadership and operational excellence if they are to ensure further strong financial performance in adverse economic conditions.
Source: Ward and Daniel (2005), Benefits Management (Pg.81) Table 2.0
There are a number of on going process improvements throughout the organisation. For example the constant development and evolution of the SAP HR system would be assimilated in support, supply chain and financials would be in core operations. The internal collaborative tools that Burberry wish to implement is considered a exploratory investment, as its perceived that this will enhance knowledge sharing and bring about innovation. In time, however this ESN will become a strategic investment, as it will become crucial to sustain competitive advantage. There will be other concurrent projects that will run simultaneously that will be managed by the programme office.
10
T a c k l i n g t h e c h a l l e n g e s o f I T e n a b l e d c h a n g e
In
previous
eras
to
benefits-led
IT-enabled
change
was
focused
on
selecting
the
technology
that
was
perceived
to
bring
the
most
business
value
and
to
manage
them
successfully
through
to
implementation
(Ward
and
Peppard,
2004).
A
fourth
era,
based
on
capabilities
is
proposed
with
a
distinct
differentiation
on
leveraging
technology
through
a
human
process.
In
the
past
determining
the
success
of
a
project
has
often
relied
on
the
tangible
metrics
such
as;
was
the
project
delivered
to
time
and
budget
or
has
user
adoption
increased
by
x%.
It
has
been
well
documented
that
there
is
a
high
failure
rate
(>70%)
which
often
results
in
the
projects
coming
to
an
abrupt
end
part
way
through
the
development
lifecycle
or
completed
systems
never
being
used
(Ward
and
Peppard,
2004).
This
section
of
the
report
will
outline
the
latest
thinking
of
benefits-driven
change,
followed
by
the
key
challenges
that
organisations
face,
which
should
be
mitigated
by
the
Burberry
Change
Group
and
will
explore
some
of
the
opportunities
that
can
be
exploited
from
this
transformation
process.
To realise the benefits from the on going programs within the Burberry Change Portfolio it is worth considering some of the external factors that are facing the organisation. The economic climate is on the edge of austerity, there is increased global competition and there are ever changing social tastes within the fashion industry. Some of the latest thinking on benefits driven approaches to IT-enabled change addresses these factors, which should be taken into consideration from the beginning of the project/program lifecycle. Change management dominated business journals and industry analysts followed during the 1990s. Much of the literature and models that were developed suggested that organisations should follow a linear, rational framework, whereby disturbances should be stabilised and controlled (Graetz and Smith, 2010). Effectively once change has occurred, stop. The new normal is an approach that makes management think differently about how they go about change. New Normal is concerned with the evolution of change rather than the short-term disruptions to business activity. From this fresh approach to change management there are three key elements that emerge: Not Business as Usual, Process and Power and New Competencies for achieving change (Falkerberg and Ashurst, 2010), which have led to the development of benefits-led IT-enabled change.
11
2.2.2 Process and Power A continual change program can cause change fatigue and create a power struggle across the organisation. These power struggles can cause resistance to change from higher levels of management or lower levels, both are detrimental to project deliver. Establishing the change vision is a key part of the organisational change process. The process of establishing the vision and what is most important in the visioning process needs to be more fully understood in research and related practice. Once established, an accepted vision becomes a change driver, which prior research clearly supports can facilitate the on going change process, (Wheelan- Berry and Somerville, 2010). Political structures can be adjusted through sense-giving (taking control of a process, due to project failure or self interest) or by sense-making (the process of influencing others through the mobilisation of resources) (Hope, 2010). These two strategies can be used to your advantage and disadvantage if management are unfamiliar. 2.2.3 New Competencies for the new normal Dynamic Capabilities have been the result from the resource based view and is defined as the ability to change the way a firm solves its problems (Ashurst and Hodges, 2010). A benefits-driven approach to IT- enabled change focus on the outcomes of the project to determine whether or not the implementation has been successful. It is recognised that these benefits cannot be realised through technology alone and there are a number of factors to consider, such organisational change and culture (Doherty, Ashurst and Peppard, 2011). It has been heavily emphasised that the benefits from an investment in technology arises when people do things differently (Ashurst, 2011). Benefits Planning: It addresses mission critical questions that need to be established at a holistic vantage point; why do we need to change, what improvements will be seen and where will these changes occur. Benefits Delivery: Not forgetting previous eras of success information strategies it then addresses the delivery of the project through skilled project teams. Benefits Exploitation: The model demonstrates that the benefits are exploited through the interpretation of information and the actual use of the information within the workforce. Benefits Review: Review the successes and failures from the project implementation and learn from them.
12
Building upon the benefits realisation model, it cannot be over looked that there are a number of external pressures described in the new normal approach that have significant bearings on the benefits being realised (such as macro-economic conditions). These seem to have been missed in Ashursts (2008) benefits model. A further extension would be to say how the, benefits planning, delivery, exploitation and review is linked across the entire organisation. This can be achieved using the 3C collaboration model: Communicate, Coordinate and Cooperate, which need to be embraced by all stakeholders to realise these benefits (Borghoff and Schlichter, 2000).
13
14
This
metaphor
could
be
imposed
to
reduce
change
fatigue
and
highlight
that
innovation
does
not
just
occur
on
the
run-way
but
also
internally
to
business
process
and
systems.
However
its
not
enough
to
consider
the
firm
from
a
single
perspective,
especially
an
ESN,
which
is
constantly
evolving.
Linking
15
this to the project could reduce change fatigue and spark innovation as the use of metaphors should encourage a different way of thinking that would lead to innovation, and evolution. One metaphor that is commonly used is Jazz, as it is governed by particular constructs and rules whilst also allowing scope for improvisation and creativity across an ensemble (the organisation). However due the ambiguity of such metaphors, they can create some confusion and therefore how they are communicated/perceived is of great importance. 2.3.3 Communication, Coordination and Cooperation Barriers Communication amongst stakeholders, coordination of project tasks and deliverables and the cooperation of stakeholders is essential for the benefits to be realised. Although these elements are emphasised within IT-enabled change literature, it is not always explained, done or done well. Firstly, a lack of communication can cause a misalignment of organisations goals across geographic and functional divisions, for example not communicating the companys vision or for what reasons change is occurring. This can lead to poor user adoption and resistance to change. Secondly, productivity could be reduced as a result of poor communication and collaboration across multiple divisions. Its been suggested that improving collaboration within an organisation can enhance productivity by reducing duplicate efforts and learning from past mistakes. Another implication is the coordination and clarity of tasks. Poor project management relating to the coordination of tasks (despite the agile) environment can result in project deliverables to over running in terms of cost. In relation to the specific project poor coordination of information can limit the perceived value from the system and which lead to a reduction in user adoption. Its therefore important that information is distributed correctly and that employees know who, where and how to access the information. Studies by the Oracle Research team (2010) have shown that the average worker spends over an hour per week assimilating and locating documents within work place ESNs. In the first stages of agile methodology suitability filters are generally assessed, as the cooperation of all stakeholders is required throughout the implementation. A benefits-driven approach to IT-enabled change is focussed on the human elements of the project. It also states that the benefits are realised post-implementation, through adoption and usability of the system. A lack of cooperation can cause a collaborative work tool to become somewhat of a glorified directory or database. Peppard (2002) believes that the social capital and the closeness of relationships is the main driver behind cooperation. Specifically for an ESN, the cooperation of the workforce is essential as the greatest benefits are seen over time when tacit knowledge is shared and exchanged. This can become labouring - research has suggested that tacit knowledge is exchanged in non-virtual social environment (Ferrona, Massaa and Odellab, 2011). Incentives can be used to enhance collaboration, however Burberrys embedded values of collaboration and connectedness should limit these potential implications. Relating this to the project Burberry could employ a rating system for new ideas those that are like should attain sponsorship from management to drive the change. 2.3.4 A Lack of Training and Post Implementation Support In a similar vain to the latter implications, training and user engagement should not be discontinued once the collaborative system has been implemented. Research by Ashurst and Hodges (2010), illustrated that training needs to be continual and incremental in order for the change programme to realise potential benefits. This proposed method of training would also benefit the project as there are unknown-unknowns and therefore the training can evolve as the system develops. The Oracle Research team (2010) also found that 44% of 2000 respondents found that the insufficient training was a barrier to newly implemented technologies. This is different from the previous section in relation to cooperation, however the link between cooperation and the willingness to learn and be trained are interrelated. Case study findings have often shown that firms underestimate the cost and time needed of training and support (Sumner, 2000). It is important to highlight that although these views on training are not new in terms of maximising the ROI of new IS initiatives, it is of huge importance to a benefits-led IT-enabled change programme as these latest ways of thinking place such an emphasis on the human element.
16
2.4 Conclusion
In this section a review and critique has been made in relation to the benefits-driven approach to IT enabled change. In addition the limitations have been highlighted and contextualised in relation to the collaborative group ware project. There appears to be a gap in Ashursts (2008) Benefits-Driven approach to IT-enable change as it fails to consider the wider environment factors that were discussed in section 2.2.2. In addition to this the New Normal and the Benefits-Driven approach fail to consider that ESNs often start at low ends of the organisation rather than from a top down approach (McAfee, 2009). Often ESNs breakout of the organisation and depending on the number of key influencers will spread virally throughout the organisation. It is the recommendation that a top-down benefits-driven approach is inappropriate for this change project. The corporate vision should be coordinated to its employees but the change is likely to rise from within and spread virally. To support this notion over 70% of Burberrys employees are under the age of thirty (Hinchcliffe, 2012), which would imply they have grown up in an open, social and connected world and are more inclined to embrace social collaborative tools in a content era.
17
Burberry is Global, Dynamic with a clear strategy . . . . . . Let us be youre R&D . . . Lets Innovate together
18
B u s i n e s s I n n o v a t i o n E n a b l e d b y I T
3.1 Introduction
Innovation is the process of creating or modifying processes, systems or organisational structures to create value for the customer and financial returns for the organisation (Joshi et al., 2010). In line with what Z0916511 has been asked to carry out by Burberry we are looking to attain and maintain innovation to improve the companys operational excellence based on the competitive competency model (see table 2.0) The proposed project that Z0916511 has been asked to carryout is to develop an ESN to enhance connectedness globally in an attempt to foster innovation enabled by IT. Establishing innovation enabled by IT it is firstly important to ascertain what technologies enable innovation; how is technology used to engage wide participation and what business benefits can be achieved through IT-enabled change. This formulates part of a tool-kit for innovation, which is proposed by Lead and Transform (2011) (see table 4.0), which will be used throughout this chapter to establish how business innovation is enabled by IT. Scope in Delivering Innovation Enabled by IT Drivers Culture IT What Business Conditions What types of organisational What type of technologies Stimulate innovation? cultures embrace innovation? enables innovation? Whats the role of IT leaders in What type of leadership How is technology used to driving innovation? enables innovation practices? engage wide participation? How are innovation priorities What are the barriers to What business benefits can be set along side business as innovation and how are they achieved through IT-enabled usual? overcome? innovation? Source: (Lead and Transform IT, 2011) Table 4.0
Z0916511 proposes that Burberry implement an ESN that will act as the sole purpose of internal communication. The argument for this is that ESNs increase innovation and increase productivity within an organisation (Pankake, 2002). It is hoped that the by implementing this ESN operational excellence will expand from survival to prosperity along the competitive competency model (see table 2.0). Having carried out a cost-benefit analysis the benefits of implementing a social collaborative tool internally will greatly impact the speed and quality of innovation (Bibikas et al., 2008). With over 70% of Burberrys current staff under the age of thirty (Hinchcliffe, 2012), employees are more likely to be familiar with an open and transparent way of communication that is more efficient than a closed network such as email. As more millenials become Burberry employees in the coming years, they will inherently have an understanding of such social networking tools and this will be seen as the norm. Therefore adopting an innovative concept in the form of an ESN, Burberry will be well positioned against their competitors to attain and sustain its competitive advantage.
19
To understand how the ESNs will be used, its worth exploring the components of collaboration. Castells (2000) defines collaboration as an open and evolving network that relies on the cooperation of its participants (Balatatzis, Ormrod and Grainger, 2008). Balatatzis et al., (2008) conceptualised this to produce the 3C collaboration model (see table 5.0) that argues that a communicated purpose needs to be coordinated to the relevant people in department or groups and crucially relies on the cooperation of the employee network. The importance of this conceptualised framework for collaboration forms the basis of how modern ESNS are used today. 3C collaboration Model
Table 5.0 Source: (Borghoff and Schlichter, 2000) Andrew McAfee (2003), looks at the features of ESNs and theorises the SLATES Framework, which defines the functionality that ESNs should encompass. These include ease of use for searching, links, authorship, tags, extensions and signals, some of these will be explored throughout this section however for a detailed explanation of the model please refer to the appendix 1.
Implementing an ESN throughout Burberry globally has the potential to expand their position of operational excellence, product leadership and bring the company closer to its customers. However technology alone will not bring about such benefits. Competitive advantage will be created through the adoption of best practices and the cooperation of all employees. With any information system it is important to remember three elements, the technology, people and the process. In other words the system is only as good as the data input, and the data output is only as good as the way it is perceived. The business proposition argues that an ESN will enable innovation and productivity throughout the organisation. To analyse this in more detail a breakdown of the company functions will be analysed including; product design, supply chain operations, retail operations and planning, however the schools of thought can be extended to all other areas of Burberry including; on-line sales, HR, Finance and so on.
20
3.4.1Product Design Product design will be connected globally, creating, sharing and evolving knowledge as a result of an ESN. The knowledge transfer process is extremely important to the product design team because they will be able to respond to information concerning social tastes in the fashion industry. This in turn will lead to a fast innovation process within this business unit as they; share designs of new collections and can build upon each others ideas. Not only will the speed of innovation increase but the quality of the new products will also increase. This is because the system is open and transparent; the entire business unit will see the quality of work from the individuals. This transparency will lead to an increase in operational excellence amongst the business unit. Responding to a demand for fashionable products without a trade-off in quality will also lead to an expansion in the product leadership. 3.4.2 Retail Operations Retail Operations will also be connected to share information on stock levels, purchasing behaviours and social tastes based on geo-locations. This information is important so that the allocation of resources can be planned from a supply chain perspective but also this the information can be shared with other members of the team and then communicated back to the product design teams globally, who will design items based on their interpretations. The advantage again, is that the operational efficiency as a result of collaboration contributes to the innovation process. This will provide Burberry with a competitive edge over its competitors and allow them to stay ahead of its competition in the luxury fashion industry. In addition to the improvements in operational excellence, it can be inferred that customer intimacy will also increase, as consumers feel that Burberry are listening to their requirements.
3.5 Conclusion
Applying the delivering innovation enabled by IT model by Lead and Transform (2011) we have addressed the questions concerning what technologies will be used, and how the organisation will be used to engage a wide participation. Although this framework considers the drivers, culture and the leadership of the organisation it neglects the role of the individual and the business unit. As discussed in the conclusion of the latter chapter, collaborative tools often evolve within small teams and spread virally throughout the organisation. In effect, this unintentionally lacks granularity in asking the question will the technology be used. We have also analysed some of the business benefits that can be realised from the implementation of these tools to the users, business units and Burberry overall. The questions will the technology be used, will be answered in the following chapter. In summary the driver behind this implementation is to increase Burberrys competitive position in the high-end fashion industry. This was broken down using Porters Value Chain (1985) and Barneys (1991) resource-based-view of the firm, to look assess the benefits to the business units, which ultimately lead to a greater productivity and increasing rates of innovation. The tool will help lead Burberry to a position of competitive advantage through the expansion of operational excellence company wide that in turn will lead to expansions to prosperity in customer intimacy and product leadership as shown above. As learned from the first section of this report, the benefits driven approach emphasises the importance of the employees using this systems. The benefits outlined above will be void should the improper transformation approaches are adopted.
21
22
T C B f
h a u o
e T r a n s f o r m a t i o n p a b i l i t i e s w i t h i n r b e r r y : a c h a n g e r g o o d
4.1 Introduction
This section of the report will aim to establish the transformation capabilities of Burberry in relation to the ESN project. Section 4.2 will provide an overview of existing traditional methods of change management. Section 4.3 will discuss the findings of a recent MIT Sloan Management Journal (March 2012) on Successful Strategic Transformation. Recommendations will be explained in section 4.4 to allow Burberry to adapt and transform in a rapidly changing and competitive market.
The successful process of change management is an apparent obstacle for organisations, as they attempt to adapt and transform to enhance their organisational competitiveness. Much of transformation literature has focussed on the planned and emergent approaches to change management (Ashurst and Hodges, 2010). Successful transformations are not based on exploiting historical capabilities (Johnson, Yip and Hensmans, 2012), but are built on dynamic capabilities (Teece, Pisano and Shuen, 1997; Teece, 2007). 4.2.1 Planned Approach The planned approach is a process of making incremental and small-scale changes (Ashurst and Hodges, 2010) that would not affect business-as-usual processes. These small-scale changes shared a number of similarities to that of a versioned release. By adopting the planned approach by implementing versioned release to change management Burberry would benefit from clearly defined goals and the encouragement of small and continuous incremental improvements. According to Ward and Peppard (2004), Burberry would sustain competitive advantage.
This
application
of
this
approach
to
transformation
would
therefore
be
inappropriate
within
Burberry
as
constant
evolving
markets,
tastes
and
social
preferences
are
the
core
its
business.
In
the
context
of
the
ESN
project,
this
approach
would
also
be
unsuitable,
as
we
have
learned
in
the
previous
sections,
that
these
systems
are
constantly
evolving.
As
a
result
more
adaptive
approach
is
required
to
transform.
However
this
could
be
a
useful
in
developing
the
change
capabilities
during
the
testing
stages
of
the
roll
out
of
the
Enterprise
Social
Network
for
example,
departmental
or
for
particular
projects
Fashion
week
projects
or
The
Art
of
Trench
Project.
23
Although this approach has proved to be a successful method of change in the past (Burns, 2005) it has however since become dated and in appropriate for todays rapidly changing markets (Senior and Fleming, 2006). The planned approach does not allow for exponential or rapid change, it provides a false sense of a certain future, because the planned approach does not consider the changing external factors (Pillay, Hackney and Braganza, 2012). Empirical evidence has also illustrated the link between the planned approach and high rates of project failures (Pillay, Hackney and Braganza, 2012). However this must be treated with caution, as there may be a fallacy of composition concerning the ESN within Burberry, as ESNs are a relatively new area. 4.2.2 Emergent Approach The emergent approach is somewhat of a philosophical approach to change, rather than the planned approach that assumes change as a process, or to that of the systems approach developed in the 1960s. The emergent approach assumes that organisations are dynamic and non-linear, of which their outcomes are unpredictable (Ashurst and Hodges, 2010). It has been argued by Styhre (2002), that this approach has been linked to failure, as change attempts have been top-down, rather than allowing the self-organisation structures develop. Styhre (2002) means that this emergent approach should be allowed to change and transform from within. Therefore imposing such changes, re- engineering should be made to policies, structures and practices where self-organisation can occur (Ashurst and Hodges, 2010). The emergent approach shares a number of similarities to that of the learned approach, whereby, much of the outcomes are reported and then adopted to a new way of achieving organisations goals. At an operational level this can be seen through leveraging the concepts of single and double-loop learning (Senge et al., 2002). The emergent approach assumes that the internal changes are synchronic with the external environment (Pillay, Hackney and Braganza, 2012). In addition, Pillay et al., (2012) state that the emergent approach is unproductive as the ability to plan financially and to time constraints are ignored. They believe that this approach is highly wasteful. Despite this approach pertaining many useful characteristics such as a bottom-up, self-organising structure, which observed in section 2.0 were important for the ESN project it fails to lack a degree of control and planning. In an industry where deadlines are always looming this approach would perhaps not be suitable within Burberry. 4.2.3 Dynamic capabilities / Benefits Realisation approach Dynamic Capabilities and the benefits realisation approach have been important links in the literature of change management as it considers the organisation as a whole rather than just the IT department (Ashurst and Hodges, 2010). It expands on the ideas of the fourth era proposed by Ward and Peppard (2004), which implies that the IS capability is a facilitator for competitive advantage, which is realised through a flow of short-term sources of competitive advantages. The benefits realisation approach considers the humanistic elements of transformation as well as considering the effects to the organisation as a whole. This is proves useful in assessing an implementing a strategic transformation vision for the employees. The benefits realisation model has been explored in section 2.2.3 of this report. The benefits driven approach to change establishes the link between the human elements of transition management as well as the connecting the entire organisation. This connectivity between departments should be considered when implementing change within Burberry. However, similar to that of the emergent approach Styhre (2002), suggests that project failure may have been the result of a top-down management style imposing a bottom-up strategy. For the success of the ESN project, a combination of the traditional methods should be applied. This is because the traditional methods of transformation management have illustrated their past successes and failures. However due to the relatively new area of enterprise social networks it would appear that an element of experimentation is required.
24
ensure that processes are constantly re-evaluated. However as explored in section 2.0, change fatigue is also a risk factor that needs to be considered. 4.3.3 Exploiting Happy Accidents Johnson et al, (2012) describes happy accidents as black swan events that lead to positive outcomes. For instance the new CEO, of Marks and Spencer, Robert Colvill decided to sell the Luxury clothing brand Brooks Brothers for 160 million less than what it was originally purchased for (Osbourne, 2001). Although at the time this may not have been realised as a happy accident, the sale of this brand and decision to exit the US market led to a successful transformation in the UK. This built upon it historic capabilities, such as a reputation for quality, but allowed the dynamic capability in the UK grocery market, which is seen as its dynamic capability (Peter Allen, 2012). An obvious issue, is that it is not until after an event has taken place that a happy accident is realised. In the case of Burberry, in 2005, the firm experienced a 7% decline in sales revenue in the UK. After 2 analysis, it was determined that this was due to a chav-effect (Wallop, 2005). This resulted a change to Burberrys supply chain and tighter control factors of counterfeit goods. The decision to restrict the channels of distribution of off-season clothing allowed a greater amount of control of the brand. As a result the Burberry has seen an higher share price (230p as of 02/01/2003 compared to 1246p as of 03/01/2012). The decision to change, adapt and transform have allowed Burberry to become one of the worlds most innovative companies (Moira, 2012).
4.4 Recommendations
The following recommendations are to ensure the successful transformation of Burberry Change Programme and portfolio of projects. As examined throughout section 4.0 Burberry has been demonstrated that it has the capability to change, transform and adapt to fiercely competitive markets. However an air of complacency could still provide a threat to Burberrys future growth and shareholder wealth. Direction for Further Transformation Build on It is important to build on the history of the organisation. Burberry has is famous for History the trench coat and the recent integrating new interactive media marketing campaigns such as The Art of Trench has illustrated its diffusion of historic and dynamic capabilities, enabled by building internal coalitions. Building on history allows management to predict the future direction of environmental and organisational success factors (Johnson, Yip and Hensmans, 2012). The ESN can act as a dynamic and emergent content management system, providing management and new employees to quickly establish who are the influencers as well as make an immediate impact. Select and Develop a new set of leaders from within. Findings from Johnson et al., (2012) Develop a research illustrate that it is often difficult to establish the correct balance between New new management that are willing to challenge the status quo. It is therefore Generation important that the development of next generation management are groomed in a of Leaders way that will allow them to go against business as usual processes and go-outside conventional processes. Key influencers can become change champions or selected for next-gen leadership roles, based on their ESN contributions. Accept and It was highlighted in the research that constructive conflicts were good for business. Encourage By challenging ideas, will provide rigour. However, management should be reminded Constructive that an intelligent workforce will be able to identify problems within new processes, Leadership however an exceptional workforce will make these processes work (Johnson, Yip and Hensmans, 2012). Leaders are challenged to provide rigor and validity for key strategic management decisions.
Chav-effect,
was
termed
as
an
undesirable
segment
of
the
market
began
to
adopt
to
the
Luxury
clothing
brand.
Much
of
the
items
were
counterfeit
or
purchased
at
outlet
stores
(Wallop,
2005).
26
Ensure
Johnson
et
al
(2012),
believe
that
it
is
essential
for
an
organisation
to
build
processes
Decision
that
challenge
that
of
dominant
logic.
This
is
similar
to
that
of
the
emergent
approach,
Making
but
the
chaotic
structures
would
be
reduced.
Allows
for
Innovative
solutions
can
be
developed,
critically
analysed
and
reworked.
Dissent
Management
decisions
can
be
contested
openly
through
secure
networks
to
challenge
logic.
This
idea
is
to
positively
encourage
a
different
perspective
on
a
business
processes.
Create
Being
able
to
achieve
this
is
a
transformation
process.
Management
should
feel
enabling
structures
comfortable
to
allow
the
transition
of
a
process
be
owned
or
challenged
by
new
departments
in
the
organisation.
Implementing
the
collaborative
work
tool
will
that
provide
this
luxury.
encourage
Praise
can
be
give
for
good
work,
within
the
meritocratic
environment
using
positive
tension
reinforcement.
An
element
of
gamification
can
be
applied
to
encourage
the
transformational
process
of
collaboration
for
using
the
new
technologies.
Following
the
dissent
and
challenging
the
business
processes,
it
is
essential
that
that
Expect
the
organisational
goals
are
aligned
throughout
the
organisation.
Communicating
this
everyone
to
get
message
to
employees
will
be
essential
to
ensure
that
the
organisation
communicates,
cooperates,
and
coordinate
their
efforts
in
the
right
direction
behind
(Borghoff
and
Schlichter,
2000).
decisions
Voting
can
be
incorporated
in
to
ideas
or
workflows,
similarly
to
the
Like
button
once
they
defined
by
Facebook.
are
made
Develop
an
An
overarching
rationale
should
state
what
the
company
is
aiming
to
achieve,
but
overarching
these
need
to
be
more
than
words
(Johnson,
Yip
and
Hensmans,
2012).
For
instance
these
corporate
values
need
to
be
evident
and
believable,
which
will
create
a
rationale
culture
to
try
new
methods
and
business
processes.
If
transformation
is
evident,
a
culture
of
change
will
be
embedded
throughout
the
organisation.
It
is
important
that
employees
can
see
the
benefits
of
change.
A
way
that
Burberry
can
achieve
this
is
through
the
use
of
success
stories.
Align
the
corporate
strategies
globally
with
ease.
Sharing
stories
of
success
to
encourage
new
ways
of
working
can
be
shared
faster
and
can
spread
virally
throughout
departments
and
geo-locations.
Beware
of
Companies
that
have
are
vying
for
market
dominance
need
to
compete
with
their
market
size
competitors
of
which
they
are
constantly
looking
to
adapt
and
transform.
Burberry
should
be
cautious
not
to
become
complacent
once
their
medium-term
objectives
are
and
dominance
completed.
As
evident
from
the
Johnson
et
al
(2012)
case
studies
firm
with
market
dominance
such
as
Sainsbury,
Unilever,
lost
market
share
as
a
result
of
complacency.
A
long-term
view
must
be
applied
to
counter
strategic
drift.
Sharing
of
information
is
faster
and
more
efficient
with
ESNs,
therefore
warning
signs
of
changing
market
conditions
can
be
mitigated
in
a
timely
fashion.
Source:
Recommendations
adapted
from
(Johnson,
Yip
and
Hensmans,
2012).
In
summary,
Burberry
has
a
prestigious
heritage,
whereby
they
have
experienced
happy
accidents
that
have
allowed
them
to
transform
their
supply
change
capabilities.
With
the
implementation
of
the
Enterprise
social
networking
tool
it
will
help
align
their
corporate
vision
thus
breaking
down
organisational
silos.
This
will
enable
Burberry
to
develop
an
overarching
rationale,
enable
structures
of
tension
and
dissent;
these
steps
and
if
implemented
correctly
will
allow
the
organisation
to
develop
its
transformation
capability.
Moreover,
it
is
essential
that
Burberry
do
not
become
complacent
with
leading
the
social
enterprise
revolution
and
that
they
continue
to
develop
and
innovate
through
their
transformational
capabilities.
Burberry
is
well
positioned
to
adapt
and
transform
within
the
luxury
fashion
industry
as
it
has
strong
management
capabilities
and
employees
who
embrace
these
movements.
The
ESN
is
much
of
an
enabler
of
transformation
management,
as
transformational
management
will
be
needed
during
the
implementation
of
the
new
technology.
27
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