The effects of IT infrastructure transformation on organizational structure and capability in the cloud computing era: Beyond IT productivity paradox: A case study in an Indonesian telecommunication company

Abstract

This paper presents a case study that is aimed to analyse the effects of Information Technology (IT) infrastructure transformation on the changes in organizational structure and capability, in a major telecommunication company in Indonesia. Before elaborating the results of the case study, relevant models related to the impact of IT on the organization were studied. Based on the literature review, it was decided to use a process approach in explaining the IT transformation process. Using a process approach, several transformation stages, important influencing factors, the resulted benefits were identified in the longitudinal case study. Analysing the results of the case study, we found that the transformation of IT Infrastructure and the implementation of cloud computing infrastructure significantly change the organization structure and the capability.