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Managing Cloud Solutions Means Managing Change


Managing Cloud Solutions Means Managing Change

Michael Jolton | Mar 30, 2019

The Proactive IT Model

As cloud software takes hold, business users do not have to wait on overtaxed and understaffed IT departments to deliver needed features and functions at the pace of business. With cloud solutions and software, new releases are being delivered 4x a year and this dream come true for the business has the potential to lead to drawbacks if not managed correctly.

In this blog, we will address the new model of application maintenance – a model no longer focused on enhancements to meet business requirements, but on a proactive, disciplined approach to change enablement that drives business adoption of the rapid innovation of cloud applications, like Success Factors and S/4HANA Cloud.

Cloud technology has removed development obstacles like hardware costs and limited development teams. The removal of such impediments has led to a prevailing feeling of informed optimism and the belief that, “With Cloud technology, our IT systems will be able to keep pace with the business at a reasonable cost". In other words, business has finally gotten what it has been waiting for from IT. Or has it?

Careful what you wish for

While cloud solutions do eliminate IT speed bumps, they also demand certain, necessary approaches that IT managers must take note of and adapt to, or run the risk of losing user confidence. For example, cloud solutions must have broad appeal to create a large enough user base to make the solution economically viable. To generate that appeal, cloud applications must be designed for a cross-functional/cross-industry user base. The good news about this extensive user base is that it can generate new ways of looking at how business can be done – challenging industrial or long standing corporate paradigms. On the other hand, not every function or change will be needed by every company – potentially creating displeasure with the solution or concern that the cloud vendor is not paying attention to the needs of a particular company or industry.

Another example is the use of extensive development teams. Such teams provide the benefit of an increased pace of innovation with rapid (e.g. quarterly) releases. The end result is more change in less time – the pace of innovation asked for by the business. Change, however, whether desired or not, is difficult. With discrete change comes discrete change cycles. Each change cycle presents risk of the change not being fully accepted.

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With proper training and communication as part of change initiatives (e.g., new functional releases), the change cycle can be managed to achieve acceptance and, thus, increased productivity.

As change increases at an increasing rate, as is happening with IT innovation through cloud technology, the volume of change can overwhelm the company’s ability to process through the change cycle and, thus, ultimately stifle change (with the business wanting the IT improvements to stop). Furthermore, when combined with cross-functional requirements, not all of which are asked for by a specific company, the business may completely flip its attitude and say IT is moving too fast or not in the right direction. This seemingly unfair emotional state of the business users is the Cloud Paradox – a state where the informed optimism of the business is now at risk of reverting to pessimism about IT.

The key is communication

Understanding and accepting the risk of the Cloud Paradox will help IT departments manage it, keeping business users engaged and enthused about their new cloud applications. The key to managing the cloud paradox is communication. The business wants IT improvements (i.e., change). To overcome this challenge, the CIO for a company using cloud applications needs to become the “Chief Transformation Officer” – a champion for improving the change process.

Change Enablement has become a staple within IT development projects, leading to improvements in communication planning, user involvement and training. With Cloud functional releases, there is no project for IT to manage – just change, creating the potential gap of not associating change enablement with new cloud releases. The business still needs communication to relevant stakeholders of what will be changing. And, while users can provide input through user groups and vendor feedback loops, they are not directly involved in changes – so they need surrogate communications to at least feel informed of what is changing and why. And lastly, training will still be required as cloud applications add and adjust new features.

Maintaining change enablement as a discipline employed for cloud releases, and employing vendor provided communication and training tools, will help companies manage through the cloud paradox, keeping business users productive and engaged. For more information, contact one of our Cloud Solution experts. 


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Written by Michael Jolton

Michael is Vice President of S/4HANA Presales for NIMBL. Throughout his career, Michael has assisted dozens of clients in developing and implementing ERP strategies and he is now applying those... READ MORE