The Impact of Digitalization on the IT Department

Excerpt

In the digital age, innovative technologies such as social media, mobile computing, data analytics, cloud computing, internet of things (SMACIT), and more recently blockchain, artificial intelligence, and virtual reality significantly influence work processes, products, services, and business models. They connect individuals, organizations, machines, and other ‘things’ in new ways, and they enable novel working, collaboration, and automation models (Urbach and Röglinger 2018). The intensity as well as the speed of the resulting change are remarkable. Most of these digital technologies are not revolutionary on their own, but develop their innovative strength through increased efficiency, significantly better network possibilities, as well as their widespread dissemination and use. By combining the transformational power of these technologies, their business impact is even greater (Urbach and Ahlemann 2018). For companies, this development often poses a significant challenge. To succeed in this changing competitive environment, companies must unfold the potential of digital technologies in their business strategies, transform their work routines, processes and structures, rethink their business models as well as manage and govern IT infrastructures that are central to their value proposition (Legner et al. 2017). …