|Matrix of Change
|Table of contents
|Building the matrix
|Interpreting the matrix
|Interpreting the Matrix
The benefits of Matrix of Change analysis is that it helps to identify how the existing and proposed business systems interact with each other, represented in the transition matrix. The square transition matrix provides insights into the degree of asset and practice complementarities when the two systems are directly compared. This analysis can proceed in varying levels of detail, but at the most general level, the degree of complementarity of the two systems is represented by the number and pattern of interaction signs in key matrix cells.
Interpreting and Using the Matrix:
Feasibility: Do the set of practices representing the goal state constitute a coherent and stable system? Is our current set of practices coherent and stable? Is the transition likely to be difficult? For more discussion click here.
Sequence of Execution: Where should change begin? How does the sequence of change affect success? Are there reasonable stopping points? For more discussion click here.
Location: Are we better off instituting the new system in a greenfield site or can we reorganize the existing location at a reasonable cost? For more discussion click here.
Pace and Nature of Change: Should the change be slow or fast? Incremental or radical? Which groups of practices, if any, must be changed at the same time? For more discussion click here.
Stakeholder Evaluations: Have we considered the insights from all stakeholders? Have we overlooked any important practices or interactions? For more discussion click here.
Each major area in the Matrix of Change serves various roles and addresses different aspects of these five issues. Taken together, they offer useful guidelines on where, when, and how fast to implement change.
Investigation of the UPS matrix of change analysis suggests a preponderance of positive (complementary) interactions between the company's existing business system, and the staged rollout of services planned in its e-Logistics venture.
The analysis illustrates the synergies between UPS's traditional business strengths and its target e-business practices. The positive transition matrix shows that the Internet venture is a complementary channel to UPS's traditional services, allowing the company to design and implement a staged rollout of complementary e-Logistics service enhancements. For example, UPS's existing logistics advisory services have been expanded to include e-Supply demand forecasting and inventory management services in the e-Logistics unit. It is important to note as well that UPS successfully leveraged its IT systems architecture, in particular their relational database and tracking systems application, as well as the company's expertise in logistics to help customers manage their electronic supply chains.
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