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What is Technology Change Management?

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  • Written By: Troy Holmes
  • Edited By: W. Everett
  • Last Modified Date: 14 September 2016
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Information technology is typically an expensive undertaking that requires careful planning and analysis. Companies use this automation as a method of improving productivity and profits. Technology change management is the process of planning for an IT investment. This typically includes a detailed review of the cost, benefits, and training impacts of new automation for the company.

A cost-benefit analysis determines the true value of a new investment for a business. This analysis is often used as part of the technology change management process. The cost-benefit analysis can be reviewed by executives to determine if an IT investment should be undertaken. New processes that generate high productivity and sales with lower costs provide the best value for a company.

Most technology investments take several years to return value to an organization. This time frame is known as a return on investment (ROI) calculation. Technology change management uses ROI algorithms to determine the benefits of new technology. A company will typically look for an ROI of less then three years.

When a company implements new software products into its operation, the change will typically have long-lasting costs effects. This includes hardware maintenance, licensing, and support costs, which could last many years after the initial investment. Technology change management accounts for this cost within an algorithm known as total cost of ownership.

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A technical refresh is the replacement of a company's computers and other devices. This refresh of hardware and software is typically performed every five years. Technology change management is the formal process that tracks the need and costs associated with technical refresh endeavors. This includes cell phones, laptops, computers, and software.

Many businesses are forced to upgrade applications because the software is no longer supported by the vendor. This is a common problem because all software has built-in obsolescence. Once a product becomes unsupported, a business is forced to upgrade. This is a difficult decision for a company that requires effective technology change management techniques.

Adding new technology can have major impacts on the productivity and performance of personnel throughout the company. Effective change management requires a detailed review of the current business processes, user training strategies, and change management approaches. When new technology is introduced in a formal, strategic manner, it is more likely to be embraced by the organization.

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