Leading Fundamental Business Change

Table of Contents

1 Introduction

1.1 Background

1.2 Problem Description

1.3 Objectives and Delimitation of the Research

2 Methodology

2.1 Scientific Perspectives

2.2 Setup of the Master Thesis

2.3 Research Strategy - Expert Interviews

3 Aspects of Change and Leadership in Organizations

3.1 Types of Organizational Change

3.1.1 Change Performance / Degree of Change due to Senior (2010)

3.1.2 Timing of Organizational Change

3.1.3 The Three Stages of Change due to Lewin (1958)

3.2 Change Processes and Methodology

3.2.1 The Eight Stage Model due to Kotter (1996)

3.2.2 Psychological and Cultural Aspects

3.3 Communicating Change

3.3.1 Communication Principles due to Hartley and Bruckmann (2002)

3.3.2 Building Trust by Proper Corporate Communication

3.4 Why Learning and Innovation are Important

4 Cloud Computing and its Impact on IT Organizations

4.1 Traditional Information Technology Usage at Organizations

4.1.1 The History of Data Processing and Storage

4.1.2 Current Trends in Information Technology

4.1.3 Current Corporate Information Technology Challenges

4.2 Definition and Characteristics of Cloud Computing

4.2.1 Understanding the Definition of Cloud Computing

4.2.2 Characteristics of Cloud Computing

4.2.3 Cloud Computing Service Models

4.2.4 Cloud Computing Deployment Models

4.3 Aspects of the Change from Traditional IT to Cloud-based IT

4.3.1 Predictions of the IT environment

4.3.2 Traditional Layers of IT Operations

4.3.3 Cloud Layers of IT Operations

4.3.4 Aspects Concerning IT Security and Legal Considerations

4.4 Job Description Change of Corporate IT Workers

4.4.1 Diversification and Division of IT Workers

4.4.2 IT Tasks Affected by the Change

4.4.3 IT Roles Affected by the Change

5 Process of a Cloud-triggered Business Transformation

5.1 Relevance for the Organization

5.1.1 Classification of the Change

5.1.2 Meaning of the Change for the Employees

5.1.3 Relevance of Change in Service and IT Governance

5.2 Finding the Right People

5.2.1 Skills Required for Cloud Computing Managers

5.2.2 Psychological Barriers

5.3 Strategy Development and Vision

5.3.1 The Need for a Change of Corporate Culture

5.3.2 Developing a Vision

5.3.3 Guiding the Mission

5.4 Appropriate Business Change Communication

5.4.1 Internal and External Communication

5.4.2 Communicating the Change Mission

5.4.3 The Urgency of Short-Term Wins and Gains

5.5 Anchoring Achievements / Refreezing Phase

5.5.1 Making the Change Last

5.5.2 Preparing for Future Developments

5.5.3 Assessing the Risk of Cloud Computing

6 Conclusion

6.1 Reflection and Results

6.2 Recommendations and Critics

Research Objectives and Focus

This thesis examines the nature of fundamental business changes, specifically using the transition to Cloud Computing as a primary example to determine how management can successfully implement such large-scale shifts. The research addresses the organizational and technological impacts of this transformation and seeks to provide a roadmap for leadership to align corporate culture with evolving digital requirements.

• The impact of fundamental business change on organizational structures and personnel.
• The technological and operational transition from traditional on-premise IT to Cloud-based services.
• Psychological and cultural barriers inherent in large-scale IT transformations.
• Effective leadership strategies for managing change, including communication and vision development.
• The shifting role of IT departments and personnel from technical maintainers to cloud brokers.

Excerpt from the Thesis

Summary of Chapters

1 Introduction: Provides the background and research objectives regarding fundamental business change and the specific context of Cloud Computing.

2 Methodology: Details the scientific approach, including the use of literature and expert interviews conducted with IT managers and consultants.

3 Aspects of Change and Leadership in Organizations: Discusses various models of organizational change, leadership responsibilities, and the psychological impact on employees.

4 Cloud Computing and its Impact on IT Organizations: Explains the evolution of IT systems from mainframes to the cloud and details the technical and job-related challenges of this transition.

5 Process of a Cloud-triggered Business Transformation: Examines practical aspects of transformation, including strategy development, vision, and communication tactics within a fictional leadership team context.

6 Conclusion: Reflects on the findings, confirming that fundamental change requires a cultural shift rather than just a technological update, and offers recommendations for future-oriented IT management.

Keywords

Cloud Computing, Change Management, Leadership, Corporate Culture, IT Transformation, Enterprise 2.0, Digital Strategy, Organizational Development, IT Governance, Cloud Broker, Infrastructure as a Service, Software as a Service, Platform as a Service, Business Transformation, Skillset Evolution

Frequently Asked Questions

What is the core focus of this thesis?

The thesis investigates how companies can successfully navigate fundamental business changes, using the migration to Cloud Computing as a practical example to analyze leadership, communication, and organizational culture.

What are the primary themes discussed?

Key themes include the shift in IT operations, the necessity of changing corporate culture to support technological innovation, the importance of leadership over mere management, and the evolution of IT job roles.

What is the primary research goal?

The goal is to illustrate effective methods for managing fundamental business change by connecting management theory with the real-world, ongoing technical transformation toward Cloud-based IT environments.

Which methodology is applied in the research?

The study utilizes current scientific literature on change management and leadership, supplemented by qualitative empirical research in the form of expert interviews with IT professionals and consultants.

What is covered in the main part of the thesis?

The main sections cover organizational change models (e.g., Kotter's 8-stage model), psychological aspects of change (e.g., the four rooms model), the history and characteristics of Cloud Computing, and the specific impact on IT tasks and roles.

Which keywords best describe the work?

The most relevant keywords are Cloud Computing, Change Management, Leadership, Corporate Culture, IT Transformation, and Organizational Development.

How does the transition to Cloud Computing specifically affect IT staff?

The thesis explains that recurring, low-level technical tasks are reduced or outsourced, while the need for generalists with business process knowledge and communication skills increases, often leading to the creation of "Cloud Broker" roles.

Why is a "cloud broker team" recommended by the author?

A cloud broker team acts as a bridge between the business departments and cloud vendors, ensuring IT services are aligned with business needs while maintaining control over custom requirements and internal competitive advantages.