IT providers have to adapt their services to the needs of their customers - and these are changing ever faster. Only through structural and organizational changes can customers' wishes be implemented in terms of cost-effectiveness. Rolf-Dieter Härter, author of the second anthology on the Enterprise Transformation Cycle, explains in an interview how such changes can be implemented sustainably and profitably.

Note from the TCI editorial team: Click here to go directly to part two of the interview - ITSM strategy: shaping the company's future

IT providers must reduce development costs and development times

Katja Heumader (KHE): What problems do IT providers often face in terms of profitability?

Rolf-Dieter Härter (RDH): Customers' requirements for IT services are currently changing very quickly. In addition to high operational stability, agility in the development of new services is also a major issue. IT providers are struggling with the cost-effectiveness of standard services, because they are comparable and often not very automated, and with the development costs and development times for new services. Sticking to existing strategies and structures is no longer an option.

KHE: How can these problems be solved?

RDH: The IT provider must look at where it stands and where its strengths lie. In other words: Where do I stand in terms of the profitability of the individual service and how do I want to shape my relationship with the customer and end user? How do I operate my ITSM (IT service management) processes from within the organization? Is my IT fast and agile? If he has the right answers to these questions, then he is a significant step closer to solving the problem.

"The biggest obstacles are the people themselves"

KHE: The coordination of processes and organization is therefore an important element in improving transparency and efficiency. How do you approach such a project effectively?

RDH: As described in the book, the "Enterprise Transformation Cycle" (ETC) is a good way to do this. You should start with the vision or the idea, develop and implement it quickly and agilely (agile) and then optimize it. This works on a large scale as well as on a small scale. It is important to keep the individual steps simple so as not to jeopardize success. If an idea does not work, it should be discarded at an early stage. A "trial and error" approach, as propagated in ITIL 4, can also lead to success.

KHE: Where could obstacles arise when adapting the organizational structure?

RDH: The biggest obstacles are usually the people themselves. Leaving well-trodden paths is always difficult. This is where management is called upon to adequately represent new ideas and to take any reservations that arise seriously and take them into account.

Of course, there is also administrative work such as new role and department descriptions. Nothing works on its own; convenience is the worst advisor at this point.

There is also a great danger that employees in new jobs, in new departments, will have to help out in their old jobs in the long term. This jeopardizes the complete success of the new concept.

KHE: What contribution can the ETC make to such an organizational restructuring?

RDH: The "Enterprise Transformation Cycle" is the guideline for the project process. Working consistently according to the ETC structure ensures that the project does not get lost in the depths of the problems. Clear sub-goals for vision and idea (Envision), quality features and measures (Engage), implementation (Transition) and optimization (Optimize) serve as markers for project success.

KHE: Thank you very much for these insights into the challenges that an IT provider faces in transformation processes.

The interview with Rolf-Dieter Härter was conducted by Dr. Katja Heumader for the TCI editorial team.

"Mastering transformation projects with the Enterprise Transformation Cycle" - published August 2020

The Transformation Consulting International has been supporting national and international transformation projects in companies for many years. Based on this extensive wealth of experience in practical implementation, the second volume, entitled "Mastering transformation projects with the Enterprise Transformation Cycle: successfully planning, implementing and completing projects" was published by the renowned Springer-Verlag. As a continuation of the first volume, it takes into account the wishes and suggestions of readers and presents concrete transformation projects and situations of action by TCI experts in their daily application of the ETC. The editors of this 500-page volume are Mario A. Pfannstiel and Peter F.-J. Steinhoff. You will find numerous theoretical and conceptual contributions as well as practical case studies on the "Enterprise Transformation Cycle".

Source cover image: © bnenin | Adobe Stock