Building a New Information Technology Operating Model to Support Digital Transformation: A Case Study in Oil and Gas Sector

Abstract

Multinational corporations are facing increasing demands on their IT function due to digital innovation and transformation. However, a traditional IT function often lacks capabilities required for successful digital transformation. This necessitates a comprehensive change in its IT operating model (ITOM), encompassing people, processes, technology, governance, agility, outsourcing, and more. This article presents a case study of a large European oil and gas company's IT function, exploring the design and implementation process of a new ITOM. Qualitative interviews with IT executives and digital leads, along with data analysis, shed light on the involvement of external consulting firms during the design phase, while the implementation phase is driven by internal IT teams. The process is labor-intensive and spans several years, highlighting the complexity of ITOM implementation within a multimodal IT function structure. Key findings stress the need for close alignment among strategic IT leaders and strong business executive ownership. Scaling an agile approach requires an agile mindset achieved through continuous training and clearly defining the role of the product owner. The study has significant implications for IT function transformation through the adoption of a new ITOM, making it relevant for practitioners, researchers, and CIOs alike.