Towards a Change Management Framework for Cloud Transitions:

Findings from a Case Study at a German Machine Manufacturer

Gloria Bondel

, Sophie Buchelt

, Natascha Ulrich

, Horst Urlberger

, Christian Kabelin

and Florian Matthes

Chair for Software Engineering for Business Information Systems, Faculty of Informatics, Technical University of Munich,

Boltzmannstrasse 3, Garching, Germany

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

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.

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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

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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

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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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