The Critical Step Of Managing Change Business Essay Example

and confident decisions that are deemed right by their subordinates (Bacal, R.).

, n.d.) . The subject of our assignment is DiGi Telecommunication. DiGi Telecommunication was established in 1995 and is part of a global telecommunications provider listed in Bursa Malaysia. DiGi is the first telecommunications company in Malaysia to offer a fully digital mobile network. They focus on DiGi Prepaid, DiGi Postpaid, and DiGi Business, providing simple, advanced, and best value services for their customers.

In addition, DiGi Telecommunication has launched its initiative to provide broadband experience for their clients in this dispensable cyberspace of the electronic universe. DiGi is committed to evolving its business in financial matters and ecological responsibility through its corporate initiative, Deep Green (www.sugarcrm.com, 2009).

Definition of managing change and innovation

According to Anon (2011), managing change involves organizing various activities and inter-relationships within an organization to ensure its survival and benefit from the process of change. The challenge lies in finding the right balance between the short-term pressure for change and long-term corporate goals.

Schumpeter et al. (1930) argued that innovation can cause a shift in the values upon which a system is built. This implies that when individuals change their values (system), the old economic system will collapse, making way for a new one. From our perspective, managing change and innovation involves altering the entire organization's structure and striving to introduce something new to the organization. Additionally, it also means bringing about differences before and after in the organization. According to Robbins, DeCenzo, and Coulter (2011), changing structure encompasses any modifications in authority relationships, coordination mechanisms, centralization levels, job design, or similar variables within the organization.

DiGi Telecommunication Company has established a

well-organized management team to oversee their operations. The team is divided into various sections, including strategy and business transformation, technology, corporate affairs, marketing, corporate disposal, finance, and human resource development. DiGi's management has been highly successful in implementing structural and administrative changes, such as transitioning to a team-based structure. The marketing section has a deep understanding of customer needs and desires. The need for organizational change is driven by various external forces, such as market trends, technological advancements, government laws and regulations, economic factors, and labor markets.

Technologies are crucial for driving organizational change, as stated by Daft (2010). Introducing new products and technologies is essential for fostering innovation. A product alteration refers to a change in the organization's product or service output. Product and service innovation serve as the primary means for organizations to adjust to market, technology, and competition changes. Additionally, technical specialists are aware of the recent technological advancements.

DiGi is effectively utilizing new technology, with members from various departments collaborating in the development of new products and services. These technological changes have played a role in DiGi's success, as customers are increasingly seeking speed, convenience, quality, and good service. Recognizing the need for organizational change, DiGi has implemented a new and effective approach to conducting their business. Bateman and Snell (2004) note that signs of the impact of new technology can be seen well in advance, providing companies and individuals with time to respond.

Therefore, DiGi recognizes the potential value of cellular technology and embraces it from the beginning. Despite its perceived risks, being an early adopter gives DiGi additional advantages and enhances its reputation for innovation. For instance, DiGi has expanded its market

to the youth segment by introducing web and mobile music service called DiGi Music Unlimited. DiGi's customers are able to download their favorite songs for just RM5 per month. Additionally, DiGi utilizes Customer Relationship Management (CRM) software to manage sales and customer data. Thanks to this technology, DiGi can effectively streamline their daily operations.

In addition, DiGi Company also offers payment booths in specific locations for postpaid program subscribers to pay their bills. The payment booths provide convenience to customers and help DiGi reduce costs by minimizing the need to hire more employees for daily operations. To maintain a competitive edge, DiGi must continue to innovate.

DiGi direction recognized the need to adapt and accommodate their clients' demands. As a result, DiGi launched a great initiative to offer free access to Facebook for their clients. Additionally, according to Robbins, DeCenzo, and Coulter (2011), the internet has transformed the way we obtain information, sell products, and complete our work. As an example, DiGi has made improvements and introduced innovations to their products. On February 11, 2009, DiGi announced their entry into the online space with the launch of "my simplified," a classifieds portal. This move solidified their strategy of expanding beyond telecommunications services and staying in tune with their clients' needs.

The construct was coined to reflect DiGi 's invention and promise simpleness. Desired name, mySimplifieds, it was set up in partnership with a local content developer, Kasatria Technologies Sdn Bhd with a clear end of making a truly functional and easy-to-use service for Malayan web and nomadic users. It is a platform where people can run into on-line to purchase and sell or merely browse. Robbins, DeCenzo

and Coulter, ( 2011 ) said that, economic sciences alterations affect about all organisations. For illustration, prior to the mortgage market felt down, low involvement rates led to important growing in the lodging market this growing meant more occupations, more employee hired and important additions in gross revenues in other concerns that supported the edifice industry. For illustration, to go on lag of the economic system since 2008, coupled with escalating competition in a market that is nearing impregnation saw greater accent on DiGi ' s operational efficiency enterprises.

DiGi's focus is on improving its operating cash flow and enhancing its bottom-line, in addition to seeking top-line growth. Positive signs indicate a faster rate of economic recovery in 2010, which has led to increased business and consumer confidence. As a result, DiGi believes that there will be a further boost in demand for both mobile voice and mobile internet services this year. In response, DiGi has launched several new projects and made changes to its product offerings. It is worth noting that there are other telecommunication companies in the market.

DiGi faces strong competition from rivals such as Celcom, Maxis, Yes, and even Telekom. Therefore, to ensure net income growth, DiGi must implement advanced strategies. They need to differentiate their services and modify their current schemes to gain a competitive edge. The introduction of new technologies is also an external factor that drives the need for change in the company. To maintain stability and dominance in the market, DiGi has decided to make some changes to their business.

Internal forces can also create the need for organizational change. These forces originate from the internal operations or external impact

an organization experiences. DiGi, for example, modifies its strategies to effectively manage its organization. They not only offer mobile services but also provide internet service. On 19 March 2009, DiGi launched its broadband service with a strong commitment to delivering valuable and high-quality internet access, aiming to meet customer expectations and enhance their experience.

The focus is on improving broadband for clients with unique needs. DiGi aims to drive change in the broadband market like they did with invoicing. In 2009, DiGi also began providing their web for Mobile Network Operators (MVNO) catering to specific demographics. In May 2009, DiGi signed a deal with Baraka Telekom Sdn Bhd to supply their nationwide GSM web for the company's mobile service.

DiGi has signed an exclusive agreement to provide domestic roaming to U Mobile Sdn Bhd. The company's management understands the need for change and makes informed decisions based on the organization's needs. Specifically, they recognize the need for change when there is a performance gap within the company. For example, when new equipment is introduced, it creates an internal pressure for change, which may lead to job redesign for DiGi employees. Therefore, intensive training is provided to help employees adapt to the new working environment.

Change agents are individuals who serve as catalysts and assume responsibility for managing the change process. Any manager can act as a change agent and plays a crucial role in organizational change. They are entrusted with making decisions that shape the future of the company. For instance, in DiGi's company, the manager of the strategy and business transformation department takes decisions to conduct market research on their products and services by gathering customer feedback.

Upon receiving the survey results, the manager makes appropriate decisions and devises a new strategy for the company.

Furthermore, the director of the engineering section at DiGi's company has decided to introduce new equipment to bring about changes in the company.

Organization development (OD)

Daft (2010) defines organization development as a planned and systematic process of change that uses knowledge and techniques from behavioral science to enhance an organization's well-being and effectiveness. This is achieved by increasing its ability to adapt to the environment, improving internal relationships, and developing problem-solving capabilities. Organization development can be utilized to address various types of problems, including those previously mentioned. In order to achieve long-term success, DiGi must effectively manage organization development.

DiGi's company is implementing a change known as organization development to achieve their goal. The acceptance of employees is also important when a new plan is established by top management. However, some employees may resist the organizational change unless there is a problem or crisis. To overcome this issue, DiGi utilizes various OD techniques, such as distributing a questionnaire to gather employees' feedback on the new plan. It is common for conflicts to arise among the organization's members.

DiGi must overcome this challenge to achieve their goals. One of the primary purposes of Organizational Development (OD) is to help employees interact and develop good relationships with their colleagues, thus creating a strong team. DiGi has undertaken various team-building activities such as training courses to enhance communication skills, change attitudes, behaviors, and perceptions.

Creativity and Innovation

Creativity involves the ability to generate unique ideas or make unusual connections between different ideas. The output of the creative process needs to be transformed into useful products or

work methods, which is known as innovation. Organizations require creative thinking to drive innovation and improvement.

This could involve innovation in products, advertising strategy, and organizational structure (Robbins, DeCenzo, & Coulter, 2011). For example, DiGi fosters their creative ideas through advertising. DiGi reintroduced its brand campaign, Yellow Coverage Fellow, after an absence of 18 months through television commercials. Additionally, they utilized the song "I Will Follow You," which topped the Billboard Hot 100 chart in 1963 by Peggy March. Moreover, DiGi implemented their creative ideas at the appropriate timing.

DiGi promotes their brand by introducing "Yellow Man" through various media. Additionally, during Chinese New Year, the sales department showcases their creativity by advertising on television. The clever actions of the yellow man and the actors convey the message that DiGi has good coverage everywhere. The advertisement successfully attracts consumer attention and instills confidence in current clients. On December 21, 2006, DiGi chartered a helicopter to airlift much-needed emergency supplies to flood victims in Johor. This action was highly innovative and forward-thinking, as DiGi workers wore their distinctive yellow jerseys during the charity activity, causing everyone to take notice of their brand.

DiGi not only provides emergency telecommunication services to the affected country, but also offers a RM 3.00 talk time credit for their customers to stay connected with their loved ones. This innovative initiative was pioneered by DiGi. Additionally, DiGi introduced free access to Facebook through 0.facebook.com, effectively captivating the youth market. Recently, DiGi unveiled a new marketing strategy called 'DiGi Campus', which specifically targets students.

DiGi has introduced the first bundle exclusively for students, offering numerous unique benefits. Their approach to the telecommunications market has been characterized by

creativity and innovation, resulting in numerous accolades, including the prestigious Malaysia's Most Innovative Company award by Wall Street Journal Asia. DiGi has fostered a work environment that promotes open communication between colleagues and supervisors to enhance creativity and productivity.

DiGi has been offering flexible working hours, open-plan offices, and a strong focus on wellness, safety, and environmental concerns as part of its employee benefits. In addition, they are the first in Malaysia to provide unlimited free calls between prepaid and postpaid users through the DiGi Family Plan. This plan also includes unlimited free voice calls, SMS, and MMS for all members of the family. DiGi has also adopted creative methods to promote their various product lines, including organizing special activities throughout Malaysia. One of these activities took place in Kampar New Town.

Many clients who correctly answered questions asked by DiGi workers were given free gifts with the DiGi logo, such as umbrellas, bags, and notepads. Additionally, the clients had the opportunity to win a more valuable prize by solving a puzzle. These activities successfully attracted new clients to join DiGi.

The Key Strengths of DiGi Company

In May 1995, DiGi began operating and became the first provider of full digital communications GSM1800 services in Malaysia.

After a few years, DiGi has earned a significant amount of revenue. Its revenue has more than doubled, reaching approximately RM 4.9 billion, with a subscriber base of 7.7 million. DiGi's success can be attributed to their focus on simplicity, relevance, and providing the best deals to ensure an excellent customer experience in their mobile and internet services. Although DiGi entered the internet space late, making them a follower in this market and resulting

in lower profits compared to the leader, they have managed to overcome this by integrating their market.

DiGi started off strong with the introduction of DiGi Broadband Done Right, which promised high-value and quality online services to clients along with a positive customer experience. They also introduced DiGi Priority service, which offers personalized assistance to their premium Postpaid and Prepaid clients. Additionally, they launched DiGi's music wire service, allowing customers to send full music tracks or ringtones to loved ones and friends. Finally, they introduced Windows Messenger (IM), enabling clients to chat online from their mobile phones, PCs, and PDAs.

They introduced a new information program for BlackBerry smartphones to their corporate clients through the Think Practical run. They also expanded their insurance offerings by allowing clients to purchase higher value coverage via easy SMS activation. They organized several DiGi Showcases featuring artists like David Archuletta, Fahrenheit, and Korean vocalists. Additionally, they offered specific programs that were more focused and relevant to their clients' lifestyles through their simplified DiGi Prepaid programs and Family bundle. They also launched DiGi Music Unlimited, a web and mobile music service that offers legal unlimited music downloads from Sony Music and Universal Music.

During Malaysia's National Day celebrations, DiGi launched the highly lucrative Seribu Sejam competition, offering awards worth approximately RM1.75 million. In addition, DiGi launched the Deep Green: Challenge for Change competition as part of their commitment to promote sustainability and address climate change in their community. This competition involved 15 student teams from eight local universities, who were tasked with finding new renewable energy solutions for underserved rural communities and improving efficiency in existing micro-hydro projects throughout the country.

Furthermore, as part

of their expansion plan to bring their 3G network nationwide, DiGi introduced their 3G/Mobile Broadband service in Penang and Sabah. Following this, they also launched Turbo 3G™ for mobile phones in the Klang Valley, covering 59% of the population exceeding their target of 44% for upcoming years. These initiatives solidified their dominance in the internet space.

They made waves in the market by introducing the affordable all-in-one DiGi Smart Plan for BlackBerryA® Smartphone, which offered unlimited data usage to the mass market for only RM58 per month. Additionally, they announced a Deep Green initiative that encouraged customers to help reforest up to 120,000 square meters of forest in Sabah. During the promotional period, they donated RM3 to WWF-Malaysia for every DiGi customer who opted for electronic billing, in support of the Kinabatangan Corridor of Life reforestation project. Deep Green also encompasses their efforts to improve sustainability in their network, IT systems, buildings and facilities, fleet, and collaborations with employees, customers, partners, and the community. This strategy integrates sustainable development into all aspects of their organization. Throughout the year, they continued their focus on operational efficiency as a key initiative to maintain competitiveness. They reassessed all business processes and activities to identify both major and minor ways to enhance efficiency.

They also utilized Telenor Group Procurement in various key spend countries and continued to explore new technologies including Green ones. Additionally, they took a leading role in promoting greater infrastructure sharing among Mobile operators and will continue to do so.

The risk faced by DiGi Company:

In the normal course of conducting business activities, the Group is exposed to various financial risks, such as credit, currency, liquidity, and interest rate

risks. As a result, they aim to minimize the potential negative impacts of these risks. The Group's credit risk primarily arises in relation to product and other receivables, as well as cash and cash equivalents.

The management of credit hazard includes policies on recognition appraisal and approvals, recognition bounds, and monitoring processes. Only accredited Bankss and unit trust funds are used for short-term investments, money on call, and deposits. The Group faces foreign currency hazard due to transactions in currencies other than its functional currency, which comes from normal business activities. The main currencies causing this hazard are the United States Dollar and Special Drawing Rights. The Group continually monitors exposure to foreign currency hazard and will use financial instruments to hedge this risk in accordance with its foreign currency hedging policy, when necessary.

As of December 31, 2009, the Group had outstanding foreign currency forward contracts totaling USD10.3 million (Fanciful sum: RM35.5 million) for the purpose of hedging certain trade payables. The changes in the fair values of these derivatives impact the financial instruments. The Group monitors and maintains a level of cash and cash equivalents determined sufficient by management, for working capital purposes and to mitigate the effects of fluctuations in cash flows. The Group only invests in highly liquid cash management funds. The Group has remaining commercial papers and medium-term notes facility with an aggregate nominal value of up to RM350.0 million as an alternative source of funding that can be utilized when needed. The Group's income and operating cash flows are significantly unaffected by changes in market interest rates.

The Group is mainly exposed to interest rate risk from its deposit arrangements and interest-bearing

financial liabilities. The Group manages its interest rate risk for the interest-earning deposit arrangements by investing such balances on varying maturities and interest rate terms. The Group's policy in dealing with interest-bearing financial liabilities is to minimize the interest expense by obtaining the most favorable interest rates available.

Decision

In conclusion, through this assignment, we gained knowledge about managing change and innovation in an organization. Additionally, we also learned how to effectively and efficiently change and innovate an organization in the real business world.

Internal and external forces play a significant role in every organization. Additionally, we conducted research on DiGi Telecommunication Company, which enhanced our research skills on various aspects such as technology, promotion, economics, competitors, and other related areas. The most crucial aspect of the company's management is change and innovation in their products. In today's business world, there are numerous competitors like Celcom, Maxis, and U-mobile, which drive DiGi to continuously upgrade their products for greater success. This will help the company generate more profit in the future and meet customer demands and expectations. In the current generation, youngsters prefer spending more time on the internet. Therefore, DiGi introduced a broadband service that provides high-speed internet, meeting their needs and desires. We also studied the organization's strategic approaches extensively.

DiGi should implement innovative and appealing programs to attract more users. Currently, the company has introduced new promotions targeted at children and students. DiGi has launched a low-cost program specifically for university students, which has been very successful. The company should also take advantage of the latest technological advancements to improve its weaknesses. This will expand our perspectives and knowledge while preparing us for greater challenges in

the business world.

We also learn about different organizational schemes that can be used by a company, not forgetting what we have learned, which is the foundational experience of teamwork spirit. Each of us has completed this assignment together as a team rather than individually. Additionally, we have also learned about tolerance, which is important as we exchange ideas with different individuals.

Sometimes there is some conflict between sentiments, but we were able to resolve it peacefully. The most important lesson we learned is that we can't leave things until the last minute. Before we finish, we have a short quote: 'Sharing is Caring'.

Recommendation

In his article, David (2010) suggests that humans are resistant to change. This is because they fear uncertainty, disruption of habits, and personal losses.

Employees may face unfavorable factors that can lead to a lack of job motivation. Therefore, it is important for a company to have contingency methods to reduce these problems. We recommend that DiGi, the company we have selected, also adopt these favorable methods to enhance their management effectiveness. There are several techniques that management needs to be aware of (Robbins, DeCenzo and Coulter, 2010; David, 2010).