Business Change Analysis

Change management is a business process where owners and managers review their company's operations and look to improve production output or decrease business costs. Business change analysis is only a part of change management. Owners and managers must ensure that they are not simply making changes for no reason, but that a positive end result exists.

Facts

Business change analysis can be a time-consuming and difficult task. Owners and managers must begin by creating a plan, setting a timeline and creating objectives for change. Making changes can be the result of a shift in consumer preference, availability of economic resources or an increase in the number of competitors.

Types

Owners and managers typically make changes to one or both of the following areas: structure or operating costs. The organizational structure of a company is the policies, framework and responsibilities of individuals. Operating costs represent the capital spent on producing goods and services.

Function

Making changes in business can help companies remain flexible and maintain a competitive advantage. Change is often needed to stay current with consumer demand or government regulatory changes. Accepting new opportunities or expanding operations also requires the need for business change analysis.

References

• Google Books: Managing Change and Transition