As the chart below indicates, there are four possible scenarios, each of which demands a different approach to managing change. Executives must discover which category best defines their firm to manage change appropriately. Based on these categories, here are the three most interesting change models.
Controlled
High Business Model Change/Internal Source of E-Commerce Strategy
Companies in the controlled category are making investments in e-commerce applications that are likely to substantially change an activity that has a significant impact on the relationships with customers. Because the firm directs this change process at its own initiative, the company is in control of the design of the e-commerce application and the pace of its implementation. The key difference between the controlled and the incremental change processes is that the controlled process involves the resolution of strategic business issues before the implementation process begins.
Examples of the controlled approach include Charles Schwab in online trading, Microsoft in browsers and Sapient in Web consulting.
Reactive
High Business Model Change/External Source of E-Commerce Strategy
Firms in the reactive category are making similar customer-focused investments in e-commerce applications, but the impetus for change is an upstart competitor. The key difference between the reactive and the imitative change processes is that the reactive process is much more intense and involves the resolution of strategic business issues, about which there may be serious internal disagreement.
