IT Operating Model Renewal Challenges and Solutions: A Multiple Case Study of Oil and Gas Firms

Abstract

Information technology operating model (ITOM) enables firms to undertake digital transformation and helps them to fulfil their business objectives. However, renewing the ITOM is a complex process where the way the organizations address various challenges determines whether they succeed. In this paper, we conduct a multiple case study of 4 firms in the oil and gas industry and interview key executives to understand their challenges related to the alignment, motivation, and ownership during the ITOM renewal. Our findings reveal that firms that successfully address these challenges learn by leading and have digitally savvy leadership seeking understanding about the firm and its environment and are able to adaptively engage to the change. We propose that firms should enhance digital literacy capabilities by externally hiring a C-level executive and creating a transformation office to manage the change. Simultaneously, they must empower their employees and invest in human capital development.