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Paper Example Undergraduate 2,857 words

IT strategy and change management interdependence in digital transformation

Last reviewed: September 30, 2019 ~15 min read
Essay 2,857 words

Individual Research Question

IT Strategy and Change Management: You Can't Plan One without the Other
Abstract
Change is inevitable. More so, change is unavoidable in this present era where technology is advancing at an immense rate. The purpose of this paper is to assess the concepts of IT strategy and change management, and discuss how the planning of one cannot be done without the other. In order for a company to avoid becoming obsolete and embrace change that is constantly taking place, it is imperative to incorporate new technologies into the business practices. The most ideal way of doing so is through the establishment and implementation of IT strategies. In the same way, the implementation of IT strategies within the organization necessitates change management. Research has indicated that approximately 90 percent of Chief Information Officers (CIOs) and technology leaders who have attempted to implement digital transformation initiatives end up failing. This is largely owing to the lack of proper assimilation of the technologies within the organization. Change management is necessary to ensure that all members are on board. That is, the personnel who usually feel threatened by these new IT strategies. More often than not, they have these emotional responses for the reason that they usually have inadequate information regarding the scope of the change, the training consequences, and the potential effect on role changes.

Introduction
In the present day’s fast paced and progressively more intricate world, change has come to be inevitable and inescapable. The amount of substantial, usually traumatic change within organizations has been mounting in recent changes and specialists consent that in the forthcoming number of decades, the business setting will experience progressively more volatility. As a result, organizations are in dire need of strategies to uninterruptedly adapt to their environments (Kottler, 1996). Change management ought to therefore involve considerate planning and profound execution, and most of all, discussion with, and participation of, the people impacted by the changes. It is imperative for change to be realistic, achievable and measurable.
Globalization, high speed technological advancements and economic factors are a number of the aspects that drive the change within the business setting. As much as there is change externally, there is a conceited change internally, and therefore organizations need to stay in touch with rapid advancements in the business setting in order to survive. In order to attain proper adjustments, organizations have come to be more technologically driven as compared to previous time. This necessitates organization to be prepared, willing and open to change, and subsequent to making the decision to go through a radical change, substantial effort is required to implement and manage it (Guler, 2010). Innovation and technology management practices play a key role in cultivating modernization purposed at guaranteeing business survival, growth and development, via the establishments of an inventive culture within organizations. This is a pivotal aspect in this day and age. Owing to the management of innovation and technology, an organization is able to attain competitive advantage through the creation of new products and services as well as business systems. Imperatively, technology can be delineated as the assimilation of human knowledge, human abilities and information. As a result of technology management, it becomes conceivable for an entity to transform knowledge at hand into different products and services (Dodgson, Gann and Salter, 2008). The purpose of this paper is to assess the concepts of IT strategy and change management and how you cannot plan one without another.

Significance of IT Strategy on implementing Change Management

Change management is a collection of procedures and processes that is carried out to make certain that significant changes are executed in an organized, controlled and methodical manner to effect organizational change (Todnem, 2005). Notably, one of the fundamental goals and objectives of change management within an organization is with respect to the human aspects of overcoming resistance to change in order for members within the organization to buy into change and accomplish the organization's objective of a well-ordered and efficacious transformation (Diefenbach, 2007). Change management necessitates proper conception and implementation of information technology strategies.
For the most part, there is the assumption that a company will purchase a new technology product or employ a technological strategy, then instantaneously the entire organization will become streamlined, the personnel become thrilled and all consumers satisfied. However, this is not the case in reality and does not work in that manner. Technology can be a significant constituent in undertaking organizational change management, but characteristically you cannot do it all by itself. Furthermore, change management is difficult. Several organizations, for instance, McKinsey & Co. have carried out research and established that as small as one third of organizational change management initiatives have attained success (Laserfiche, 2019). The role that technology has in initiating change in the organization cannot be overemphasized. A great deal of information and data, content, processes and people are prevalent across majority of the businesses. In the digital era, organizations necessitate precisely the opposite, that is, better connectivity across these resources to render enhanced clarity, focus, and swiftness so as to react more rapidly to the changes that digitization facilitates.
Information technology strategies should not be viewed as a method for business processes change. Instead, they should be perceived as a tool that is supporting its sensible undertaking. The managers that are not taking this fact into account are not able to implement the aims concerning the instigated change management. More often than not, managers have the belief that automation is a collection of powerful approaches that will provide resolutions to their organizational problems complexities and also that information technologies are a standalone condition for properly performed change processes. However, it is imperative to note that change management necessitates the introduction of contemporary information technologies so as to attain optimal results from the efforts and determinations of the persons in the organization (Stoyanov, 2013). The implementation of change devoid of initial setting of the goals and objectives of the changes gives rise to nothing else but to the non-existence of sufficient strategy for fundamental management of the processes. In this regard, the effect that is attained is modification or fine-tuning but not a radical change. It is for this reason why it is essential to ascertain the significance, the mode of systems, and the implementers of the change of the business procedures through the use of modern information technology strategies (Turban, 2007).
Change management necessitates effective IT strategies owing to the reason that the latter incorporates all aspects of technology management, software and hardware management, human capital management, cost management, in addition to risk management. Technology can be delineated as the skills, information, experience, body of scientific understanding and tools used in the design of production of goods and services (Barcan, 2012). Technology and organizational innovation are the fundamental instigators of change, shaping, reshaping and every now and then totally upending the prevailing order. As times have shown, technology changes exceedingly fast. Technology stresses the importance of problem-solving skills, a variety of analysis tools ranging from basic to sophisticated, the capacity to ascertain and review various approaches to a problem, and the capability to combine information to attain significant conclusions. These rapid changes necessitate a well-outlined plan or strategy that can provide direction (Barcan, 2012).
Significance of Change Management on Implementing IT Strategy

Essentially, an information technology (IT) strategy is a wide-ranging and extensive plan that delineates the manner in which technology ought to be utilized in order to attain IT and organizational goals. This strategy takes into account the manifold factors that have an impact on the business’ investment in and utilization of technology. The IT strategy ought to be flexible enough in order to change in reaction to new organizational situations, industry and market circumstances, business primacies and objectives, financial constraints, accessible competencies and skill sets and advancements in technology (Rouse, 2017). Implementing an IT strategy necessitates strong IT leadership. It is essential for the chief information officer (CIO) and the chief technology officer (CTO) to work in tandem and have close ties with the other functions and departments of the organization and user groups to attain its success. Change management is pivotal to the effective implementation of an IT strategy.
A strong IT strategy delivers a plan and outline of the manner in which technology aids the supporting and shaping of the firm’s general business strategy. The plan’s strategic goals and objectives ought to reflect organizational projects, that is, organizational alignment, and take into consideration the necessities of fundamental stakeholders comprising of employees, consumers and also partners. An IT strategy ought to provide an examination into the firm’s prevailing technology posture and provide a conception of where IT should progress in the forthcoming years (Rouse, 2017). An IT strategy has turned out to be a pivotal aspect for organizational leadership in recent times. Its mounting significance reflects the upsurge of technology itself as a pivotal aspect for organizational success. The significance of an IT strategy has been intensified over the preceding number of years as the firm’s emphasis on digital transformation and flourishing in the digital age. Imperatively, technology is indispensable for generating new business simulations, products and services; augmenting customer service in addition to customer satisfactions; growing sales; empowering workers and enhancing productivity; and backing interrelations with retailers and other business partners (Rouse, 2017).
In spite of the knowledge of the key components of an effective digital transformation, research has indicated that approximately 90 percent of Chief Information Officers (CIOs) and technology leaders who have attempted to implement digital transformation initiatives end up failing. Change management plays a fundamental role in attaining successful results. Nonetheless, most change management determinations experience failure owing to outdated technological models and change management techniques that are primarily not in line with the present day’s dynamic business setting (Davidson, 2018). Digital transformation is fundamental to firm survival. However, such transformations are substantially challenging and usually fail. Devoid of successful and effective change management, digital transformation determinations and endeavors will fail to render sought after outcomes.
Numerous digital transformations and IT strategy implementations end up failing owing to the lack of adequate resources, attention and insight of the work necessitated to efficaciously carry out a change management plan. Organizations that fail emphasize their time, finances and focus only on program design and development. It is essential for organization to place an equivalent quantity of determination and resource to change management. All things considered, change management encompasses getting individuals tools utilized created for them in order to attain true business value (Davidson, 2018).
The application of information systems in change management of the organizational processes would not be conceivable if there lacks human factor in the course of undertaking this activity. In this regard, managers and CIOs in IT exercise pivotal influence for their sensible implementation. This is why it is essential to assess them as a key factor for structuring of the information interchange in the organization. IT strategies cannot be functional and effective devoid of incorporation of humans who partake in the everyday execution of such plans. The fundamental role of the IT managers and CIOs in the organization for organizational practice change is to render pertinent conditions for their efficacy (Stoyanov, 2013). In this case, it is essential that they conduct actions for everyday use of information techniques and systems. Furthermore, Stoyanov (2013) asserts that priority identification in UIT is a pivotal element in the CIOs’ and IT managers’ activities. The IT specialists are also one of the factors with high importance to the degree that the presented change is concerned. They have direct impact on the development and the application of the software products in the organization. What is more they add to the efficacious execution of the operational work in the field of information technology.
To respond to fast-paced change in the present times, numerous organizations have spent time and resources to come up with effective IT strategies and invested in technology with the objective of diminishing cost and increasing productivity. Hornstein (2008) makes the argument that it is not the IT strategy and or the technology acquisitions alone that direct organizational success, but rather their assimilation into organizational change management practices that uplift the significance of the human system. According to the author, research studies have indicated that almost 66 percent of the information technology strategies and information system projects failed or ended up being challenging owing to the failure of these strategies failing to efficaciously assimilating employee adoption. This indicates the significance of change management. It is imperative for the users of IT tools to acknowledge that IT strategies make the effect that they promise, they must acknowledge that the users ought to be engaged in executing planning at the commencement rather than as a second thought or late addition (Hornstein, 2008). The change challenge faced by IT departments when new IT strategies and initiatives are instigated is to involve the members of staff within the organization that are most impact. That is, the personnel who usually feel threatened by these new IT strategies. More often than not, they have these emotional responses for the reason that they usually have inadequate information regarding the scope of the change, the training consequences, and the potential effect on role changes. The information void is often packed with anecdotes rather than assimilating and engaging all employees with the technology and business process development activities (Hornstein, 2008). Based on Kotter’s model of change management, this is building a core coalition and it encompasses gathering the leaders and stakeholders within the entity and ensuring they are convinced of the need to change (Varkey and Antonio, 2010). This includes having the capacity to delineate the changes and the vision that is set. It ensures getting all parties on board and the dynamic changes are conveyed to the rest of the entity including the employees. It also comprises of having frequent meetings to deliberate upon the vision and changes with the different teams.
The necessity for change management whilst planning and implementing IT strategy is because the latter should not be excessively rigid. The rapid pace of advancement in technology and constant innovation necessitate organizations to have agility is they want to capitalize on new, and at times unpredicted, developments that can aid them in becoming more competitive and rendering better products and services to the market. Therefore, technology strategies need flexibility. What is more, CTOs, CIOs together with other members of the organization ought to be nimble and they ought to anticipate the reassessment and redevelopment of IT strategies annually and reviewing them more frequently. This indicates the significance of change management in ensuring that such shifting dynamics are not only in line with the goals and objectives of the organization but are also fully embrace throughout the entity (Rouse, 2017).
Conclusion
IT strategies and change management necessitate each other to be effective. In conditions of change management within the organization, the implementation of IT strategies is pivotal for their coherent management. To begin with, IT strategy is a tool and instrument to change the business practices within the organization through the adaptation of modern and efficacious high technology products. In the present day, there is constant change in the industry and market owing to novel and advanced innovation and technologies. Therefore, the implementation of IT strategies is necessary in guaranteeing that the organization attains a competitive advantage and does not become obsolete. Change management is necessary in this regard to guarantee that such shifting dynamics and embraced by all members and there is smooth sailing. In the same manner, whilst implementing change management, IT strategies are pivotal because they assimilate all aspects of technology management, software and hardware management, human capital management, cost management, in addition to risk management. It is essential to determine the significance, the mode of systems, and the executors of the change of the business procedures through the use of cutting edge information technology strategies.

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PaperDue. (2019). IT strategy and change management interdependence in digital transformation. PaperDue. https://www.paperdue.com/essay/it-strategy-and-management-of-change-research-paper-2174278

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