Towards a Change Management Framework for Cloud Transitions:
Findings from a Case Study at a German Machine Manufacturer
Gloria Bondel
1
, Sophie Buchelt
1
, Natascha Ulrich
1
, Horst Urlberger
1
, Christian Kabelin
2
and Florian Matthes
1
1
Chair for Software Engineering for Business Information Systems, Faculty of Informatics, Technical University of Munich,
Boltzmannstrasse 3, Garching, Germany
2
Ventum Consulting, Infanteriestraße 11a, Munich, Germany
Keywords:
Change Management, Organizational Change, Cloud Transition.
Abstract:
Cloud computing provides benefits such as cost savings, a high degree of flexibility, as well as advanced se-
curity opportunities. However, introducing a cloud environment into an established enterprise requires both
technical and structural changes in the organization. Thus, a well-planned change management approach is
essential to ensure a successful transition. The goal of this paper is to contribute to change management re-
search by providing a change management framework for cloud transitions. Furthermore, we present measures
to implement the framework consisting of a vision statement definition, communities of practice, a learning
journey, a change story, and a collaboration tool. Finally, we also provide a roadmap for the sequential imple-
mentation of the identified measures. Our results are based on an extensive literature review and a case study
approach, including eight expert interviews.
1 INTRODUCTION
Cloud computing has a high potential to transform IT
and other industries through more attractive software
services (Armbrust et al., 2010). More and more orga-
nizations are using cloud services to enable cost sav-
ings and to release employees of basic infrastructure
management tasks. However, transitioning to cloud
computing describes a radical change, which needs
to be managed within the company to ensure project
success.
The increasing rate of technological advancement
and growing global competition call for a continued
need for organizational change in the future (Appel-
baum et al., 2012). Thus, the active management of
change is necessary, as reflected in evolving litera-
ture on change management, that experiences influ-
ence from different conversational streams, including
theoretical and practical scholars, e.g., (Kotter, 1995)
and Lewin (Hussain et al., 2018).
However, change management needs to be
adapted to different contexts, i.e. cloud transition.
Hence, our research paper investigates the following
research questions:
RQ1: What components should a change manage-
ment framework for a cloud transition comprise?
RQ2: How could the change management framework
for cloud transition be implemented?
Our contribution consists of the identification of
four components for a change management frame-
work for cloud transitions based on a literature review.
Furthermore, we present measures to implement these
components derived from a case study conducted at a
European machine manufacturer. Lastly, we present a
roadmap to put the measures in chronological order.
In the following sections, we describe the con-
cepts of change management and cloud transitions,
followed by our research approach. Afterward, we
present our contributions being a change management
framework, measures for implementing the frame-
work, and the roadmap for its implementation. Fi-
nally, we present a short conclusion, including limita-
tions and future work.
2 FOUNDATIONS
In this section we first introduce the concept of change
management. Afterward we present the concept of
cloud transition and its connection to change man-
agement. To the best of the authors’ knowledge, no
related work for change management in the context
Bondel, G., Buchelt, S., Ulrich, N., Urlberger, H., Kabelin, C. and Matthes, F.
Towards a Change Management Framework for Cloud Transitions: Findings from a Case Study at a German Machine Manufacturer.
DOI: 10.5220/0009385905470554
In Proceedings of the 22nd International Conference on Enterprise Information Systems (ICEIS 2020) - Volume 2, pages 547-554
ISBN: 978-989-758-423-7
Copyright
c
2020 by SCITEPRESS Science and Technology Publications, Lda. All rights reserved
547
of a cloud transition exists.
2.1 Change Management
Organizational change aims at adapting an organiza-
tion to the dynamically changing environment it op-
erates in. Thus, organizational change can be defined
as the observation of shifts in shape, quality, or state
of an organization after the introduction of new ways
of thinking, acting, and operating (Pardo del Val and
Mart
´
ınez Fuentes, 2003).
To increase the likeliness of successful change, ac-
tive management is necessary. Thus, change manage-
ment describes the goal-oriented, comprehensive, and
often cross-departmental redesign of structures, pro-
cesses, business areas, or entire companies (Dichter
et al., 1993). Change management processes usually
comprise several phases.
According to Lewin (Hussain et al., 2018), a
change management process comprises three phases.
First, the organization realizes that the status quo no
longer meets the requirements of the markets in the
unfreezing phase. The moving phase describes the
second phase, which identifies change objectives and
necessary changes to achieve these objectives. In this
phase, the organization leaves behind the status quo
and creates space for new structures, processes, busi-
ness areas, and corporate strategies. Finally, the re-
freezing phase anchors the new state of the organiza-
tion (Hussain et al., 2018).
Furthermore, Kotter (Kotter, 1995) provides an
eight-stage model for successful change. The process
stages comprise the establishment of a sense of ur-
gency, the creation of a guiding coalition, the devel-
opment of a vision and strategy, the communication
of the change vision, the empowerment of actions for
change of internal structures and systems, the gen-
eration of short term wins, the realization of larger
change projects, and the anchoring of new approaches
in the corporate culture. However, Kotter’s model is
criticized to be based only on his own experiences in
practice, lacking a scientific basis. Nevertheless, it be-
came a success quickly in practice at the time it was
advocated, and it remains a key reference in the field
of change management (Appelbaum et al., 2012).
2.2 Cloud Transition
Cloud computing is a research area with increas-
ing amounts of published research in recent years.
The National Institute of Standards and Technology
(NIST) defines cloud computing as “a model for en-
abling ubiquitous, convenient, on-demand network
access to a shared pool of configurable computing
resources, (e.g., networks, servers, storage, applica-
tions, and services), that can be rapidly provisioned
and released with minimal management effort or ser-
vice provider interaction” (Mell and Grance, 2011).
Besides, cloud computing can be distinguished in
three distinct service models being Infrastructure,
Platform, and Software as a Service (IaaS, PaaS, and
SaaS), as well as in four different deployment mod-
els which are private, community, public, and hybrid
cloud (Mell and Grance, 2011).
Thus, management, operation, and ownership of
infrastructures, platforms, and application capabilities
are repositioned to cloud providers and accessed re-
motely by customers (Mell and Grance, 2011; Schnei-
der and Sunyaev, 2016). This enables the realiza-
tion of many advantages, e.g., cost savings and a high
degree of flexibility (Schneider and Sunyaev, 2016;
Yahya et al., 2019). However, cloud computing also
bears challenges which have to be actively addressed,
i.e., increased need for security (Yahya et al., 2019) or
federation of several cloud services (Hohenstein et al.,
2017).
However, a cloud transition is a complex un-
dertaking for an organization, both from an orga-
nizational and technical perspective. The introduc-
tion of cloud computing changes the role of the
IT department and introduces new tasks (Choudhary
and Vithayathil, 2013). Generally, tasks shift from
low-level infrastructure, platform, and service devel-
opment and maintenance to more conceptual tasks
like identifying value-adding constellations of cloud
services and service provider management. Thus,
change management processes need to prepare em-
ployees for changing circumstances in the course of a
cloud transition.
3 RESEARCH APPROACH
This section presents the applied research approach.
RQ1 is answered based on a literature review. To an-
swer RQ2, we conducted a case study building on the
results of RQ1.
3.1 Literature Review
To identify components of a change management
framework for a cloud transition, we conducted an ex-
tensive literature review on the two concepts change
management and cloud transition. We systematically
reviewed the literature including forward and back-
ward search.
ICEIS 2020 - 22nd International Conference on Enterprise Information Systems
548
3.2 Case Study
To derive an approach for implementing a cloud tran-
sition using an action roadmap, we combined the re-
sults from RQ1 with a case study approach. A case
study approach is suitable due to the explorative na-
ture of the research endeavor. To guide our research,
we applied Yin’s framework (Yin, 2013) due to its
clearly defined structure. We conduct the case study
at a European machine manufacturer who is currently
preparing a cloud transition.
Data collection consists of eight expert interviews
with employees in management positions at the ma-
chine manufacturer (see Tab. 1). The semi-structured
interview guideline aims at identifying concrete mea-
sures to implement the change management frame-
work as well as temporal dependencies between mea-
sures. We transcribed all interviews.
Data analysis follows a grounded theory method-
ology (Eisenhardt, 1989). First, we coded the inter-
views according to our change management frame-
work presented in section 4. Afterward, we ana-
lyzed the codes, deriving concrete recommendations
for measures to implement the change management
framework as well as a roadmap for the investigated
company.
Table 1: Overview of interview partners.
ID Role
Interview
Duration
I1 Global IT Architecture 37:24 min
I2 Head Commercial Services 31:44 min
I3 Head IT China 17:38 min
I4 Head of Global Talent Mgmt. 18:03 min
I5 Global IT (PLM / CAD) 20:52 min
I6 DevOps Innovation 30:44 min
I7 Product Owner IoT 31:37 min
I8 Engineering Lead 23:43 min
4 CHANGE MANAGEMENT
FRAMEWORK
Based on the literature review, we created a frame-
work for change management for a cloud transition
consisting of the four key components vision, man-
agement, communication, and collaboration.
4.1 Vision
According to Kotter (Kotter, 1995; Kotter, 1996), a
vision is crucial to driving change within an organi-
zation. A clearly defined vision helps employees to
understand and implement the change and acts as a
guideline that leads projects into the desired direction.
Furthermore, it is an essential measure to break the
status quo by looking behind the quick goals.
Empirical results undermine the importance of a
clear vision for change. First, (Appelbaum et al.,
2012) found that several research projects show the
importance of a shared understanding of the change
project’s outcome and the value of a clear vision in the
change management process. Also, (Whelan-Berry
and Somerville, 2010) confirms that indicating a vi-
sion at the beginning of the change process is crucial.
A vision typically describes the desired state of the
organization after the change. Moreover, a shared vi-
sion changes the relationship between employees and
an organization by creating a shared identity (Senge,
1990).
Since cloud systems are usually a new concept for
companies, it is crucial to define a clear vision to act
as a guideline throughout the change when design-
ing a change strategy. Thus, we include the devel-
opment of a vision statement as the first component
of our framework for change management for cloud
transitions. Essential components of a vision within
the change management process for cloud transition
are a clearly defined long term goal that describes the
outcome of the change process for the whole organi-
zation as well as its implementation.
4.2 Management
Along with Kotter’s eight steps of change manage-
ment (Kotter, 1996), we identified a strong focus
towards new team formats in organizational change
management literature (Appelbaum et al., 2012). In-
volving all employees in the change process reduces
resistance, and active involvement of employees in
change is argued to be a success factor for change
(Cameron and Green, 2000). However, for success-
ful change, employees have to be trained accord-
ingly (Keutzer, 2018). Further insights into real-life
projects show that the formation of a steering com-
mittee can act as a step to break old structures and
enable new thinking (Heck et al., 2012).
Creating teams or bolstering individuals who exert
influence in the organization to lead change strength-
ens the implementation of new technologies or struc-
tures (Kotter, 1996). This is especially relevant dur-
ing a change management process for cloud transition
(Wegner et al., 2002; Langenberg, 2011; Miyachi,
2018) since it can help affected employees to get to
know new technologies. Thus, we identify the forma-
tion of a change management team, cultural integra-
tion, and an opportunity for all employees to partici-
Towards a Change Management Framework for Cloud Transitions: Findings from a Case Study at a German Machine Manufacturer
549
pate and learn within the setting of a new technology
as an essential component of our change management
framework. More precisely, we chose communities
of practice (CoP). CoP approaches unify crucial com-
munication and collaboration possibilities with new
technological possibilities arising from cloud tech-
nologies (Wegner et al., 2002).
4.3 Communication
Communication is concerned with activities of infor-
mation exchange to achieve change in behavior and
attitudes (Elving, 2005). It plays a central role in
change management (Kotter, 1995; Helpap, 2015;
Judson, 1991; Schweiger and Denisi, 1991).
In terms of communication strategies, the two
main streams of research are programmatic and par-
ticipatory communication. Both strategies aim at
changing behavior and attitudes. However, program-
matic approaches denote top-down communication,
i.e., the management informing employees, while par-
ticipatory strategies focus on dialog and exchange be-
tween all levels of an organization. In the context of
change, the participatory strategies are more success-
ful (Bordia et al., 2004), and the recipient’s sensemak-
ing and participation in the change initiative is an es-
sential factor for successful change (Bartunek et al.,
2006). Thus, (Bartunek et al., 2006) recommends ad-
dressing the recipient’s understanding of the change
initiative actively.
Communication plays a vital role in change man-
agement models. In Judson’s five-step model (Judson,
1991), communication is used for bargaining and per-
suasion to minimize resistance. Furthermore, (Kot-
ter, 1995) dedicates two steps of his eight-step model
to communication. These steps are the establishment
of a sense of urgency and the communication of the
vision. Both apply a programmatic communication
strategy since the management informs the employees
top-down. However, there are also tendencies towards
a more participatory strategy involving the employees
with Q&A sessions or discussions in quarterly meet-
ings.
Summarizing, change communication needs
strategies to be successful at different points in
the change process. At first, a more programmatic
top-down approach is applicable to get the right sense
of urgency and move the people out of their comfort
zones. In the course of the change process, the change
management team should use more participatory
approaches to involve the employees, thus fostering
the success of the change management initiative.
Thus, communication is one of the components of
our change management framework.
4.4 Collaboration
The involvement of employees in the change process
is central. Collaboration establishes trust, which is
one of the most critical factors influencing coopera-
tive behavior and collaboration (Holton, 2001; Hattori
and Lapidus, 2004; Jones and George, 1998; Stoller
et al., 2010). Collaborative working should be a core
competency of learning organizations (Holton, 2001).
Research on CoP shows the importance of col-
laboration in change initiatives. Collaboration fos-
ters innovative change (Hattori and Lapidus, 2004)
and learning (Teague and Anfara, 2012). Besides,
collaboration is of increasing importance in cloud
transformations, as described by (Hill, 2013): ”In
making a decision about what will best support a
particular requirement [. . . ] organizational leaders
should seek out the tools that foster team communi-
cation, collaboration, and information sharing.“. IT
project and portfolio management of cloud services
include the identification and planning of project ac-
tivities, minimizing risk, managing the project, re-
sources, and team members, and, more importantly,
checking for interdependencies with other cloud or IT
projects (Joha and Janssen, 2012). Therefore, collab-
oration between actors is necessary for a successful
cloud transition and represents the last component of
the proposed framework for change management.
5 MEASURES
Based on the components of the change management
framework, we analyzed eight expert interviews and
derived specific change management measures for the
machine manufacturer in our case study.
5.1 Vision
The analysis of the interviews shows that a clear vi-
sion statement is a desired and important step for
change. Setting a clear goal for a desired outcome
of the cloud transition process helps the employees to
unite their efforts.
Several interview partners mentioned goals they
want to achieve with a cloud operating model. First,
cloud technology should not be implemented merely
for its own sake but to enable new business opportu-
nities and possibilities for future development. Thus,
the cloud should enable meeting changing customer
expectations due to quicker deployment and more
efficient internal use of resources. Also, intervie-
wees considered the necessity to maintain a secure
ICEIS 2020 - 22nd International Conference on Enterprise Information Systems
550
data management enabled through cloud comput-
ing, i.e., ”In many cases, cloud technologies provide
higher security standards than storing data on our
self-managed servers. (I2). Finally, along with the
machine manufacturer’s new one brand strategy and
global business allocation, employees value stronger
collaboration across business units and countries as
I7 expressed: ”The only way this process can work is
through using the same tools globally so employees
can communicate cross-company, [...]”.
Concluding, the interviewees value the implemen-
tation of a cloud transition project. The new technol-
ogy should enable the company to realize new possi-
bilities for their business. Internally, the cloud transi-
tion aims at data security and improved efficiency for
collaboration across the whole organization. There-
fore, our proposal for a vision statement for the ma-
chine manufacturer’s change management for a cloud
transition is the following:
”We implement the cloud transition jointly to es-
tablish secure and efficient work for our organization
and our customers as well as to advance digital busi-
ness models while keeping an open mind to the possi-
bilities of what comes next.
5.2 Management
We identified several requirements for the manage-
ment and implementation of the change process, in-
cluding that ”the change has to be led by the team”
(I7). Furthermore, forming small teams can be bene-
ficial for projects (I1, I4, I7) and ”projects should not
contain too many top management people” (I1). Ad-
ditionally, employees ”have to learn how to deal with
the cloud” (I1). Therefore, we propose a management
structure based on CoP as well as a learning journey
for employees.
CoP provide a team approach focusing on involve-
ment, small teams, and a learning objective for the
management of change for the company. (Wegner
et al., 2002) defines CoP as: ”Communities of prac-
tice are groups of people who share a concern, a set
of problems, or a passion about a topic, and who
deepen their knowledge and expertise in this area by
interacting on an ongoing basis”. The relationships
between team members are based on mutual engage-
ment due to shared norms and cooperation. Mem-
bers develop a shared knowledge pool ”as a common
professional language, familiar routines, sensibilities,
artifacts, tools, and stories” (Kietzmann et al., 2013).
Thus, regarding the cloud transition at the ma-
chine manufacturer, we developed a CoP approach il-
lustrated in Fig. 1. First, to address the need for data
security at the machine manufacturer (I5), a security
CoP is created. Also, a global organizational structure
requires safe cross-border data exchange possibilities
(I7). Second, significant changes in the architecture
due to the cloud transition require the reevaluation of
current IT structures. A small group of people, i.e., an
architecture CoP, should investigate this because fast
decisions are necessary. Third, to analyze cloud oper-
ations on an ongoing basis, a cloud operations CoP is
formed. Lastly, the DevOps CoP focuses on process
improvements in order to enable faster (I1, I6, I7, I8)
and more agile work (I6, I7).
Figure 1: Management structure including communities of
practice.
In our proposed structure, the IT top management
connects the CoP. The IT top management ensures
that the outcomes within a CoP are shared across
communities to enable knowledge sharing between
communities.
The leaders of CoP have a central role as they are
representing the community and represent the change
as change leaders. They represent the community ex-
ternally. Furthermore, the CoP should meet regularly.
Furthermore, a cloud transition confronts employ-
ees with new technologies and concepts, resulting in
the need to develop a skillset. Knowledge and capa-
bilities regarding cloud computing are different across
the organization (I7), making it necessary to address
each employee individually to avoid leaving anyone
behind (I4). Hence, we recommend a learning jour-
ney that enables the participation of all employees in
four learning stages:
Cloud Striver: Employees participate in web-
based trainings and events to develop basic knowl-
edge.
Cloud Participant: Employees actively submit
cloud use case ideas and understand cloud capa-
bilities for their work.
Cloud Adventurer: Employees are active mem-
bers of a collaboration tool for change manage-
ment, as described below.
Cloud Professional: Employees can train others
and are change agents for the community.
Towards a Change Management Framework for Cloud Transitions: Findings from a Case Study at a German Machine Manufacturer
551
The developed learning journey helps employees
to understand new processes and build-up knowledge
as they move through the stages. In the CoP, employ-
ees are encouraged to learn and share their knowl-
edge. The produced results will improve the pro-
cesses of the organization and the daily work of all
members.
5.3 Communication
Through the analysis of our interviews we established
that communication is a central component through-
out the change process for cloud transition (I4). As a
communication tool, story telling is used.
Our analysis shows that communication is a cen-
tral component throughout the change process for
cloud transition (I4). As a communication strategy,
we propose story telling. Story telling is useful in
change processes because it enables a deeper, more
personal engagement with employees since employ-
ees align stories with their experiences and their un-
derstanding of the organization (Gill, 2011). Fur-
thermore, story telling helps employees to understand
management decisions. Thus, change stories are a
popular tool in consulting agencies (Keenan et al.,
2012; Basford and Schaninger, 2016), and also find
increasing attention in research.
We structure change stories into three aspects.
First, the management uses past success stories in-
volving the employees to get their attention. After-
ward, the story creates a sense of urgency. Finally,
the story management provides a solution as well as
the thought process, which leads to the solution.
5.4 Collaboration
Collaboration is central in a change management pro-
cess, especially in organizations that are divided and
practice silo thinking (Stoller et al., 2010). Silo think-
ing also happens in the case study partner’s IT divi-
sion. To foster collaboration in the case study set-
ting, we propose a communication tool rolled out
across the organization to enable frequent exchange
for change management related and general ques-
tions. This gets also clear through the following in-
terview insight: ”In the future there will be one uni-
fied [company name] which is also part of this change
process. There are no more silos like in the past,
rather everything is connected. The only way this pro-
cess can work is through using the same tools glob-
ally so employees can communicate cross-company,
which was not always the case in the past.(I7)
In the course of the interviews, we identified sev-
eral requirements for a communication tool. First,
the tool should enable an exchange with colleagues
from different locations and functions to enable col-
laboration. Also, it should be possible to ask ques-
tions about the change management and to have them
answered. Smaller groups without management par-
ticipation make sure that employees are comfortable
to ask questions. Question-asking with threads en-
ables easy follow-ups on questions. Additionally, the
tool should enable participation in events and meet-
ings at different locations, meaning that broadcasting
and call functions are available. It should be possi-
ble to share documents in the tool. Lastly, different
groups should be created for different types of com-
munication, e.g., groups for different divisions, CoP,
or 1:1 chatting.
6 ROADMAP
The presented roadmap is based on the proposed
change management framework for cloud transitions
and measures derived through the interviews. The
measures are put in sequential order and establish
steps in the change management process. The
roadmap consists of five steps as illustrated in Fig. 2.
In the following, the five steps are detailed:
Envision. This step aims at creating a clear picture
of the change management process by formulating a
vision statement for the cloud transition. The step is
also concerned with establishing a change story.
Communicate. Communication is central to change
management and thus is prioritized. A kickoff event
initiates the change management process. During the
kickoff, the management uses a change story to com-
municate the changes. The change story provides the
employees with a feeling of involvement and a sense
of what will happen in the change process. Further-
more, the employees are assured that everyone can
participate. Also, the management should select a tool
for the change communication.
Empower. This step aims at setting up CoP. The IT
leadership decides on the structure, i.e., the structure
presented in Fig. 1, and initial participants of the CoP.
However, the employees later also have the option to
leave or enter CoP. Furthermore, the communication
tool is implemented for all IT employees, and the CoP
structures are mirrored in the tool.
Train. The kickoff for the CoP takes place, where
the management introduces the learning journey to
the employees. Aftward, the learning journeys for the
employees start depending on their knowledge level.
Iterate and Evaluate. The employees move through
the learning journey using individual continuous
ICEIS 2020 - 22nd International Conference on Enterprise Information Systems
552
Figure 2: Roadmap for implementing the change management framework for a cloud transition in the case study setting.
learning schedules. The top management is involved
to keep in touch with the employees’ beliefs, prob-
lems, and concerns regarding the changes, e.g., during
informal meetings. Furthermore, to develop a sense
of the employees’ current status within the learning
journey, it is recommended to organize a hackathon
event where employees and CoP can test their knowl-
edge. However, these recommendations for imple-
menting the described measures need to be adapted
to organizational context and culture.
7 CONCLUSION
In this research paper, we provide a change manage-
ment framework for could transitions, identify mea-
sures to implement the change management frame-
work in a case study setting, and provide a roadmap
to implement these measures.
Although the results and concrete measures
emerged from the specific context of one company,
we believe the findings can be generalized within the
bounds of a similar setting. Especially the derived
change management framework for cloud transitions
provides a starting point for designing other change
management processes in different organizations.
This work provides a step towards understanding
how change management for cloud transition can be
implemented in an organization. However, this work
holds limitations, which can open up exciting oppor-
tunities for future research. Most of all, the study is
limited to one organization. Thus, future work should
investigate the applicability of the developed change
management framework for cloud transitions in fur-
ther organizations. Furthermore, the data analyzed in
this paper was collected over a short period. An in-
vestigation over a more extended time could provide
new insights based on longitudinal data.
This work provides implications to theory and
practice. On a theoretical level the primary contribu-
tion is the investigation of a developing field of study
and the derived change management framework for
cloud transition as well as the identification of mea-
sures to implement the framework. Additionally, con-
clusions for practice can be drawn from the results of
this paper. Companies interested in starting a cloud
transition initiative can use our findings as guidance
for implementing their own change management dur-
ing a cloud transition.
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