Change for success: the IT transformation

An IT transformation (ITT) is a company-wide initiative, designed to secure a substantial and sustainable increase in value for a firm. An ITT is usually initiated in response to a fundamental change in a company’s operating environment, and it will be implemented and driven by management and executives.

The key role of the CIO is to sell the ITT to the company’s executives as a necessary element of a broader transformation, spelling out the benefits it will bring to the company’s strategy.

Other changes in IT departments often get called transformations, but they are not true ITTs. An ITT is not a standard improvement initiative or a process of incremental development. It is also not an initiative that is designed only to reduce costs or increase revenue. Furthermore, an ITT does not originate from and is not limited to a single area of the business, and it does not focus exclusively on short-term results.

ITTs are complex and demanding projects. However, with careful planning, they can run smoothly and be delivered on time and to budget. But it is important that organizations ensure that they focus on a number of priorities, which are crucial to success. These include aspects such as business case, customer focus and leadership responsibility. Read the full article to learn more plus an example of a successful ITT in the life sciences sector.

The article also considers the role of the CIO, recommending that they should assume overall responsibility for an ITT. The CIO should oversee the facilitation and implementation of all key elements, the production of a business case and project road map, and the establishment of a steering committee. Beyond this, the key role of the CIO is to sell the ITT to the company’s executives as a necessary element of a broader transformation, spelling out the benefits it will bring to the company’s strategy.

Facing limited resources, the CIO will have to make tough decisions about which IT services to prioritize during the ITT – to do this effectively, the CIO must consult other departments. In turn, this can be part of the ongoing process of designing the ITT so that it is aligned with and complements the whole business.

The complete article was written by:

  • Jens Körner
    Partner, Advisory Services, EY, Germany
  • Holger Wilkens
    Senior Manager, Advisory Services,

EY, Germany

Read the full articlepdf372.25 kB

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