Change, Competitive Advantage and Role of OD

Submitted to:Anshika Yadav

Submitted by:Manupriya PareekhMeenakshi SinghMeenal KapoorMayuri Gupta

BANASTHALI UNIVERSITY,JAIPUR

Organisational change of any sort will usually be triggered by either a problem or an opportunity, although there is a special trigger for change that could be called “just for the heck of it” or “because we’re human and can’t stand still”. There are other drivers for change (new CEO with new ideas), but the main two are problems and opportunities - current or future - real or perceived. 

From small companies to larger companies. By a growth process.

The SLEPT Analysis:

Social factors Legal factors Economic factors  Political factors  Technological factors 

A competitive advantage answers the question, “Why should the customer purchase from this organisation rather than the competition?”

In simple terms, it is an advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers than its competition. There can be many types of competitive advantages including the firm's cost structure, product offerings, distribution network and customer support.

Competitive Advantage

There are two main types of Competitive Advantages:

1. Comparative advantage, or cost advantage, is a firm's ability to produce a good or service at a lower cost than its competitors, which gives the firm the ability sell its goods or services at a lower price than its competition or to generate a larger margin on sales. 

2. A differential advantage is created when a firm's products or services differ from its competitors and are seen as better than a competitor's products by customers.

HOW TO ATTAIN C.A. ??The 7s is a framework for achieving competitive advantage by a

company.StrategyStructureSystemStyleSkillsStaffShared Values

ROLE OF OD IN C. AOrganizational Development (OD) is a key element in the strategic management of change for achieving competitive advantage.  It allows better use of resources and creates a sense of purpose – with everyone driving in the same direction to attain company objectives. 

An Organizational Development approach will benefit the organization when you want to manage changes in strategy, culture, re-structuring or processes.  It can be used to improve the performance of teams, departments or the whole organization.

How a company can attain C.A. through OD??

Coaching and training organization leaders.Designing and implementation of work teams.Planning and managing strategic organization

change.Training and facilitating continuous process

improvement.Designing performance management process.Mediating conflict resolution.Assessing organization culture.Designing reward and recognition system.

Effectiveness of OD InterventionsOD Interventions have major effect in bringing about

change in the organization from the attitudinal and satisfaction point of view. Such changes caused play a significant role in scoring competitive advantage.

Examples of some Interventions that help create positive changes in the organization.

Team Building InterventionSocio-technical Systems InterventionGain sharing InterventionTechno-structural InterventionEducation and Training Activities

Old v/s New logic for ODPeople are the secondary

source of C.A.Bureaucracy is the most

effective source of control.Top management and

technical staff should add most of the value.

Hierarchical processes are the key to organizational effectiveness.

Organization should be designed around functions.

People can be the ultimate source of C.A.

Involvement is the most effective source of control (MBO,QC)

All employees must add significant value.

Lateral processes are the key to organizational effectiveness.

Organization should be designed around products and customers.

C. A. ExamplesSkill Advantage: software companiesIPR (Intellectual Property Rights) Strategic Partnerships: Maruti SuzukiFirst Mover Position: Motorola, AmulAdded Value, Less Cost: Nirma v/s SurfKnow How Competitive Advantage: To help deliver a

long-term competitive advantage for Intel, Intel IT incorporated the tenets of user experience design (UED) into our products and services.

Location as Competitive Advantage: Local Retailers