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Change impact analysis can focus on the change itself or its effects on profits, hours, and corporate identity. It is part of change management, which prepares businesses for change. Conducting an impact analysis is complicated as most systems connect to dependents and parents, and changes can have a ripple effect. Change management specialists oversee projects to help companies transition smoothly.
A change impact analysis can be one of two related things. One version is about the change itself, figuring out what needs to be changed, how to change it, and how much it will cost the company. The second version focuses on the results of the change, how it will affect profits, hours and corporate identity. The two types of reporting are occasionally integrated, but an impact analysis of changes of this magnitude is often impractical for all but the largest products of the largest companies. Both types of analysis are incorporated into the larger field of change management, a discipline that encompasses the preparation, realization, and handling of business change.
The two forms of change impact analysis stem from the original interpretation of the term by two different economists. The analyzes themselves cover much of the same information, but they do so from different points of view. The version that relates to change focuses primarily on the design and method of change. The second version focuses on the overall risk and reward offered by the change. In both cases, the purpose of the analysis is to enable companies to make informed decisions about changes in methodology, process or organization.
Conducting a change impact analysis can be much more complicated than it appears on the surface. It is rare for a process to have nothing on which it depends and nothing which depends on it. These types of processes are called orphans, and they are by far the easiest things to change. When dealing with an orphan, the impact analysis of the change is usually quite straightforward, as the change will not have far-reaching effects.
Orphaned processes are very uncommon in modern business. Most systems in a company connect to dependents, which are processes that come after the system, and parents, processes that come before. How the examined system interacts with these two groups is not always clear. Furthermore, a change in any of these groups, as a result of a change in the examined system, can have a ripple effect on any of the parents and dependents. It is only by examining each of these connections that the change impact analysis can really illustrate the results of the change.
These reviews are typically part of the larger field of change management. This area focuses on the larger effects of changes on the business. People who specialize in change management often oversee projects, often independently, to help a company transition smoothly from one system to another.
Asset Smart.
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