Digitalisation and Change in the Management of IT

Abstract

As digitalisation sweeps through industries, companies are having to deal with the resultant changes in business models, core processes and organisational structures. This includes the reassessment of the role of the IT department, traditionally the guardians of technology standards and providers of corporate systems and infrastructure, and their ongoing maintenance. This article investigates this dynamic in two research studies. Study 1 focuses on the German automotive industry and adopts a qualitative inductive approach based on interviews with IT practitioners to ascertain the key aspects of digitalisation impacting the industry and to chart the emergence of a new model for the management of IT. Study 2 then reviews the deployment of digital technologies in other industry sectors via questionnaire responses from senior IT professionals in eight organisations. The results suggest that the transfer of IT roles and responsibilities to business functions, evident in the German automotive industry, is being replicated in other organisations in which digital technologies are now embedded in an organisation’s products or services. This article concludes with a model for cross-referencing the role of the IT function with the impact of digital technologies, representing a contribution to the growing literature on digital technology deployment in organisations.

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