Restructuring Digital Infrastructures: Architectural Transformation through Sociotechnical Interplay in large-scale incumbent organizations

Abstract

Large incumbent organizations are increasingly compelled to modularize their IT architecture to stay competitive. This architectural transformation entails navigating technical, organizational, and managerial dimensions, warranting a socio-technical perspective. Although extensive research has been conducted on this topic, a deeper understanding of how incumbent organizations manage this complex process, and its outcomes remains necessary. Our research question thus explores how Digital Infrastructures can be restructured to support architectural transformation in large-scale incumbent organizations. We conceptualize digital infrastructures as multilayered sociotechnical entities, characterized by greater complexity than standalone IT systems and more diversity than digital platforms. Our study focuses on a prominent Norwegian bank undergoing architectural transformation. We identify three restructuring activities integral to the architectural transformation of incumbent organizations: bundling business and IT, modularizing the operational foundation, and fostering a learning culture. Restructuring activities constitute a multidimensional framework that encapsulates the sociotechnical interplay essential for performing architectural transformation.