Case Study on Organizational challenges faced by the information technology industry

Summary of the case facts #

The case explains the organizational challenges faced by the information technology industry. The case is not considering a specific information technology company but it explaining the leadership or managerial challenges and the transformation issues in the entire information technology industry.

Service focusing business

Most of the information technology companies are moving towards service focusing business strategies and these companies are applying these strategies to fulfil customer needs and demands. The information technology companies and the entire information technology industry is under transformation and these companies are incorporating latest business models and technologies (Sofi W. Elfvinga, 2014).

Organizational setup

All the information technology companies are moving towards strong organizational setup and their primary intention is to develop robust organizational management.

Transition models for the servitization of production

A Product Service System (PSS) system helps organizations to become more customer centered and the customer oriented. The major intention of the model is to ensure that organizational processes are completed by considering the customer needs and demands.

Issues in transformation

The article locates a transformation information technology company to determine the issues and challenges in the organization. Most of the challenges are organizational challenges. However, some of these challenges are the financial challenges as well (Sofi W. Elfvinga, 2014).

Issues #

Primary issue

The primary issue in the case is that the company faced numerous challenges during the transformation process

Secondary issues

  1. The first issue is poor role of workforce
  2. Inability of the workforce to handle transformation

Causes of the issues

Cause of primary issue

The major cause of primary issues is that company did not have idea about transformation challenges and it was not prepared to handle these limitations (Sofi W. Elfvinga, 2014)

Causes of secondary issues

  1. The workforce was not trained
  2. Lack of training and lack and of employee skills to handle transformation.

Actors #


The primary stakeholders include

  • ICT Company
  • Employees
  • Shareholders
  • Suppliers
  • Vendors
  • Customers

Authority to solve problem

The primary authority to resolve the problem in this case is line manager, production manager, and team manager.

Application of core concept #

Literature references

  1. Negative employee attitude
  2. Inefficient communication
  3. Lack of management support(Cahn, 2017)

Alternatives #

  1. Cultural changes
  2. Improving communication
  • Employee training

Cultural changes

The first alternative is the cultural changes within an organization. Every organization has its own unique culture. However, transformation is the core need of every business organization and no organization can flourish and remain competitive without incorporating these changes. On the other hand, every organization has such characters or the elements who are not in the favor of change and they are resistant to change (Cahn, 2017).

There are several reasons in this regard. For instance, some people do not want to improve their skills and they are reluctant to learning. They think that sitting at one place is sufficient to them. Such people always oppose transformation and change, as they know they have to work in case of a change.

The best solution of the ICT companies in this regard is to identify such individuals in the companies and talk to them. It is the responsibility of the management to talk to these people and inspire them by telling them about the advantages of transformation

Improving communication

Effective and efficient communication is the backbone of every business organization. Poor communication is the biggest hurdle in the way of transformation as it limits the flow of information from the upper end of the organization to the lower end of the organization. It is the case in the current study (, 2019).

Most of the ICT companies are unable to manage and incorporate change because they are not having effective and efficient communication systems and these companies are not able to convey their ideas and thoughts to their employees through company management.

Employee Training

Employee training is another best alternative for organizations facing transformation management challenges. Employee training would help ICT companies to improve and enhance the skills of their employees, they would easily understand the importance of the transformation, and they would easily incorporate these skills to achieve organizational goals.

Decision #

Best alternative

I think employee training is the best alternative from the above-mentioned three alternatives. The major reason for this selection is that it is people not the machines that incorporate innovation. Therefore, it is essential to train the employees to manage the change (, 2019).

Untrained employees cannot work with new system and the value of new system reduces to zero. Therefore, the most significant thing is to improve the employee skills to accommodate change. All other things come after the employee skills

Implementation and implementation obstacles #

Implementation strategy

My implementation strategy is simple. I would arrange training sessions and training seminars for the employees to improve their skills. Likewise, I would inspire the employee using various media channels and tell them the importance of transformation to incorporate cultural changes as well


The primary obstacles in implementing these strategies include lack of funds, organizational politics, lack of resources, and other such issues.



Cahn, D. (2017, August 22). Retrieved from

Sofi W. Elfvinga, N. W. (2014). At a crossroads: case study analysis of the organizational challenges within the transformation path to an IPS. ScienceDirect, 326 – 331. Retrieved from (2019). Retrieved from (2019). Retrieved from



Powered by BetterDocs

Leave a Reply