Abstract
LEAD FPX 5220 Assessment 2 A strong infrastructure is important to enable communication within an organization. With a strategic infrastructure, organizations can reduce inconsistency and communication issues, improving both cross-functional and interpersonal communication. This paper presents how XYZ Corporation’s infrastructure was unsustainable from the very beginning. Changing IT infrastructure is like redesigning a home while still living in it—if done incorrectly, it can result in serious issues. Proper technology is necessary for a business to run smoothly.
An ill-designed IT infrastructure not only annoys employees but also decreases efficiency and productivity, causing long-term high costs (Lazor, 2020). The rationale presented in this paper emphasizes the crucial importance of strategic infrastructure to the success of an organization. Its absence led to confusion and shutdown for a period of months. The conclusion presents recommendations for changes needed and their importance to future success and sustainability of the organization.
Change Challenge
Change in any organization is inevitable; however, the approach of change managed by an organization will be what destroys or builds an organization. In order to preserve anonymity, the subject company will thereafter be referred to as XYZ Corporation. As Director of Finance in the gaming industry, I am aware that transformation is very prevalent in that there’s constant development and release of new games. Preparing a web game involves numerous details, and there wasn’t enough infrastructure in place, created by personnel who lacked IT skills. Although the initial equipment sufficed for the limited games published, with growth in the business, upgrades were no longer far fetched but not recognized as necessary by the leadership team.
Then the portfolio included three games and one data center with an estimate of four servers, routers, firewalls, storage, server racks with about five staff members. The data center was crucial to game operations and organizational operations. During a period of high growth in the early 2000s, the game portfolio expanded from three to fifteen, and the number of staff members expanded from five to 215. XYZ Corporation delivered quality games, excellent customer service, and a cash shop with costumes and customization that players liked. Its revenues increased from $500,000 in the year 2001 to $3.5 million in the year 2003 to $7.5 million in 2004. The company continued doing better than expected until 2005.
Consumer complaints started surfacing in April 2005 regarding server issues, including connectivity and game-dropping issues, and lost avatars and failed cash shop transactions. Internally, there were also complaints of faulty office servers; email operations crashed, the network storage was full, and critical information was lost since there was no backup server.
Factor Driving Change
LEAD FPX 5220 Assessment 2 Thriving through the ceaselessly repeating cycle of change is essential to the success of any organization. Change affects everyone—firms, industries, and people—affecting them every day. The two central causes of change are external and internal.
External Factor
Technology is a key driver that pushes change. In today’s digital era, organizations must constantly update their technologies in order to stay competitive. One of the substantial requirements for a long-term and effective operation of any organization is the ability to forecast events and respond to market conditions” (Jan & Veronika, 2017, p. 5). Unfortunately, XYZ Corporation lacked an experienced IT expert who identified the necessity for technological advancements. Thus, the corporation was forced to go through a six-month closure to hire IT consultants to examine and improve infrastructure.
Internal Factors
Management’s lack of vision strongly prevents organizations from achieving their goals and mission. Frequent leadership changes can disrupt continuity and introduce new strategies that may not be compatible with existing goals. Ineffective leadership negatively impacted XYZ Corporation, resulting in an inability to develop strategies for improvement or transformation.
Identify the Change
XYZ Corporation requires investment in new technology and professional personnel to proceed. Current technological inefficiencies jeopardize the company’s momentum in the North American gaming industry. Ineffective strategic leadership has lost out on millions of potential revenue. To eliminate these hindrances, the company has to re-evaluate its IT systems and strategic processes. “People resist change as a defense mechanism since change of any type elicits some level of anxiety” (Staren & Eckes, 2013).
Readiness for Change and Heightened Awareness
Force Field Analysis Approach
LEAD FPX 5220 Assessment 2 Force field analysis (FFA) by Lewin is a scientific method of effecting efficient change management. FFA has five stages: (1) identify planned change, (2) identify driving forces, (3) identify restraining forces, (4) formulate driving force increasing strategies, and (5) devise strategies to decrease resisting forces.
Driving Force #1: The Digital Revolution
Shortfall of equipment has propelled the digital revolution as a major driver. Customers require unbroken gameplay, quick server feedback, and cash shop transaction successes. The cost of new equipment and the low manning levels, however, are weighty barriers. The wave of digitalization has weighed more on XYZ Corporation than was initially anticipated, leading to success with operational servers beyond expectations.
Driving Force #2: Globalization
Inadequate executive mandate and management trust has made globalization another driving force. Low level of understanding firm goals and insufficient incentives slow down the transition towards a global frame of mind. Organizations must be able to understand the impact of globalization so they can take advantage of global patterns and expand their market base (Morris, 2013). As the subsidiary of a multinational corporation, XYZ’s managers did not even think about markets in Asia but only North America, which created adverse effects during 2005.
Driving Force #3: Acceleration
The sooner changes that the customers anticipate are an acting driving force. The expanding portfolio is a restraining force. In Morris’ (2013) statement, “the driving forces are mutually interdependent, and they feed off one another” (p. 11), the immediate changes that customers anticipate are an acting driving force. The momentum of change in XYZ, the increase from three to fifteen games and five to 215 employees in just four years, necessitates reconsideration of strategy for operation.
Recommendation
I recommend upgrading current technology with more robust equipment, including establishing additional data centers to support global expansion. According to Dallas (2015), “once you’ve gathered your data… you’ll be ready to make a recommendation” (p. 27). XYZ Corporation has demonstrated potential in the gaming industry and can enhance its position by broadening its strategic outlook. Investing in very talented individuals is key to achieving long-term objectives, getting the right people in the right places to do good for XYZ in the future and now.
References
Dallas, H. J. (2015). Mastering the challenges of leading change: Inspire the people and succeed where others fail. Hoboken: John Wiley & Sons. Retrieved from ProQuest
Jan, D., & Veronika, T. (2017). Examination of factors affecting the implementation of organizational changes. Journal of Competitiveness, 9(4), 5-17. doi:http://dx.doi.org.library.capella.edu
Lazor, D. (2020, September 21). Laser Point. Retrieved from Lazor Point
Mak, A. H., & Chang, R. C. (2019). The driving and restraining forces for environmental strategy adoption in the hotel industry: A force field analysis approach. Tourism Management, 73, 48-60. Retrieved from ScienceDirect
LEAD FPX 5220 Assessment 2 Assessing Priorities and Planning for Change
Morris, L. (2013, July 18). Innovation Management. Retrieved from Innovation Management
Staren, E., & Eckes, C. (2013). Optimizing organizational change. Physician Executive, 39(3), 58-60. Retrieved from ProQuest
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