Strategic Change

Bit Service Software Corporation Ltd. has been dealing in the production, distribution, marketing and maintenance of industry software, which is used by the government agency and company and its software is diffused around 300cities in China. It was founded in Nov 1991, with the development and deliberate preparation of the core products, now she is facing strategic change including its vision, mission, leadership, structure, culture, etc.

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The nature of change Strategic change is the proactive management of change in one organisation to achieve clearly identified strategic objectives (Lynch 1997), whilst an organisation face the turbulent environment, making the organisations change (Bob de Wit & Ron Meyer 1998), Bit Service improves itself continuously. Before 1999, the main product is the software being used by government agency, covering the Real Estate and Construction Departments, it didn’t face the serious competition or strong competitor for long time, there were 10 branches around in China and two R;D centers in Chengdu city and Xi’an city; the revenue of fiscal year 1999 is RMB125million (USD12.5million)

R&D center has been undertaking the research of E-business, includes ERP, CRM, KM, SCM etc from 1995. With the development of the market and the maturity of the products, it begins to hit the market. This change is deliberate for long preparation, of course, it is based on the forecast to the future event through the prediction of the market, also on the basis of the continuous improvement and learning process. Herein the researcher will use the mental models – 8 steps to organisational change (John Kotter, 1995) to analysis the change in Bit Service. Establish a sense of urgency. 1, The target market is different, it will be facing the powerful rivalry, such as IBM, ORACLE, Siebel, SAP, CA and other domestic software company. It needs to reposition itself in the industry and market through identify the threats and opportunities.

2, Continuously emphasis the importance of the competitors and communicate inside the company. Form a powerful guiding coalition. 1, The top management and CEO, David Zhang, Mr. David Zhang, who is CEO of Bit Service, leading the change and communicating the vision with other members, leading the innovation, taking the risk to be confront with the new competition 2, Downsizing the strategic unit across China, focus on the developed district, Nanjing, Wuhan, Shenyan and zhengzou branch is merged by Beijing, Jinan and Guangzhou branch, the staff were re-arranged across in these different SBU.

Create a vision  Vision Bit Service transforms its vision into reality through corporate strategy and its formulation and implementation, with new product into new market. From the exclusive software provider for the government to the general provider for any organisation. The vision is to become the best software provider in China, and establish the best professional consultant and expert image to the industry (David Zhang, 1999). This is the result of the joint effort between Bit Service and Softwind Corporation, Hongkong, which is the foreign investing party.