Concept and definition
IT consulting is defined in the Gabler Business Dictionary as: "IT consulting, consulting for companies in the design of processes that are supported by information technology (IT), as well as in the introduction of new IT systems and applications. In addition, many IT consultants also support companies in the areas of system development and integration." [1]
The term "IT consultant" or "IT consultant" is not a protected job title and is therefore broadly defined.
On the basis of the federal legal ordinance of May 3, 2002 (Federal Law Gazette I p. 1547), there is the possibility of further training to become a certified IT consultant. They are qualified to advise companies on the analysis, target definition, concept development and implementation of IT solutions in order to strengthen the development potential and competitiveness of these companies and to enable them to take advantage of new or expanded business opportunities. They adapt flexibly to new technologies, to changing local and global market conditions, to methods of self- and process management and shape technical and organizational change while taking social acceptance into account. They perform employee management tasks. [2]
Classification of IT consulting in the area of management consulting
Information technology consulting is a sub-sector of management consulting. The term "management consulting" or the Anglicism "consulting" refers to services that specialized consulting firms provide for another company. The form of consulting can relate to a wide variety of business areas. The focus can be on classic management consulting with a focus on strategy, organization, management and marketing of a company or specialized consulting services are offered, for example, for the IT structure or human resources. [3] The field of activity of management consultants has constantly adapted and expanded in line with economic and technical changes. The Federal Association of German Management Consultants distinguishes between the following consulting fields, including consulting-related services: HR consulting, organizational and process consulting, strategy consulting, outsourcing/managed service, software development and system integration as well as IT consulting. [4]
However, the boundaries between traditional management consulting and other consulting services are becoming increasingly blurred, as strategy and management consulting are no longer conceivable without a connection to IT consulting in times of digitalization. [5]
Figure: Consulting fields including consulting-related services and their approximate market shares [4]
IT consulting tasks
Due to its position and the overlap with management and engineering tasks, the area of responsibility of an IT consultant is very diverse. Due to the rapid pace of technical change in the age of digitalization, an IT consultant must be familiar with current market developments and be prepared to break new, innovative ground. [6]
IT consulting involves evaluating the existing IT systems of an external company from a technical and economic point of view and identifying optimization options and IT business solutions for them. [7] As part of the project, the IT business consultant first develops an information strategy for the company. In the next step, he carries out feasibility studies for this and calculates the costs for the IT business solutions on this basis. [6] During the realization of the project, the IT Business Consultant is responsible for IT strategy consulting, on-time implementation and monitoring of his concept. [7] He acts as a technical interface to the individual manufacturers and is responsible for process support during the implementation of new hardware or software, its installation, configuration and administration. Their tasks also include quality checks by carrying out tests and documenting them. At the end of a project, the IT consultant creates a presentation and takes care of the handover to the customer. To ensure that the customer's employees can work successfully with a new IT infrastructure, for example, the IT consultant provides in-depth training.
In order to fulfill their broad range of tasks, IT consultants need in-depth computer know-how, technical and business understanding as well as public speaking and presentation skills. Furthermore, they are characterized by their ability to make contacts and work in a team and have an independent and structured way of working. [6]
When looking at IT management consultancy, it is worth noting that this was not always so extensive and varied. The range of tasks performed by IT consultants has continuously broadened over the years. This is due to the fact that software solutions have mapped more and more business management tasks and ever more comprehensive company processes. In the 1980s, IT consulting was limited to the technical side in the form of a mostly limited requirements analysis before an IT project was planned. In the following decade, operating systems became more complex and companies already had various isolated solutions for specific problem areas. IT consulting had to assess how a new software solution could be integrated into the IT landscape. But here, too, it was mainly about technical consulting.
Then software providers increasingly began to offer their services via application service providing, and the degree of standardization increased. In the course of application service providing, IT consulting companies took on more and more tasks in addition to the pure software offering. Multi-level support was the order of the day, but entire processes were also increasingly outsourced to IT consulting companies. This increased complexity and IT consultants expanded their area of activity more and more into the field of business management. IT consulting gradually shifted from the more downstream steps in the value chain to the upstream steps. This development illustrates why, in the age of digitalization, IT consultants are already in demand when designing the value chain, i.e. in the strategy phase. Digital transformation has become a high and top priority for most companies. It is now widely accepted in the market that IT consulting companies have the right answer to the requirements of digitalization.
Digitalization: The key role of IT consulting
Digitalization and the associated digital networking have fundamentally changed the way companies and organizations create value. Digitalization therefore has an impact on the future of every company. As a result, many companies are having to make serious changes that affect business processes with individual workflows and even the entire organizational structure. In many cases, entire business models are also being put to the test. Management consultants and, above all, IT consultants must support their clients in making the necessary adjustments and recognizing and exploiting the resulting possibilities and opportunities. [8] In the context of digitalization, IT departments have a key function in companies. In order to act as a future-proof company, IT managers must drive processes forward and establish innovative business models within the company.
But how do companies manage the necessary digital transformation? IT consultants are increasingly confronted with this question these days. [9] This means that IT consultants are also facing new challenges. According to the Lünendonk study 2017: "Business Innovation & Transformation - Where do companies stand today?", it is becoming increasingly important for consulting and IT service providers to understand the customer journey of their clients' end customers in order to implement technological innovations and develop business models based on this understanding. IT consultants are therefore increasingly required to take an end-to-end consulting and transformation approach with skills in the areas of digital customer experience, process automation, data analytics and design thinking. [10]
The changed customer requirements have also changed the competitive environment for many consulting and IT service providers. Traditional agencies and newly founded digital agencies are occupying the field of front-end implementation, apps and data analytics, while the Big Four business and tax consulting firms have also successfully positioned themselves in IT consulting with services for digitalization. [11] Due to changing customer requirements to be able to offer end-to-end consulting, development and implementation, consulting and IT service providers such as Accenture, Deloitte and Wipro have acquired digital and creative agencies in order to integrate their expertise into their portfolio. In order to overcome the challenges and successfully survive in the IT consulting market, consulting companies must invest in IT technologies, recruit data scientists and IT specialists and enter into partnerships with technology companies. [10]
Future IT architecture: The current challenges facing IT consultants
How do you make the system architecture of client companies fit to keep up with the speed of digital transformation? This is the big question that IT consulting has to deal with now and in the near future. Under the heading of "future IT architecture", IT consultants are initially creating the conditions required to keep pace with the speed of change currently demanded by consumers. Ever shorter roll-out cycles are overtaxing traditional IT landscapes. These monoliths are very cumbersome and maintenance-intensive. One option is the use of modern Fast Integration Business Services. The art lies in the rapid integration of these "lightweight" IT constructs and the successive replacement of classically programmed IT solutions.
Sources
1 Prof. Dr. Reineke, Bock, Friedrich, Gabler Lexikon Unternehmensberatung (2007): IT-Consulting, wirtschaftslexikon.gabler.de/definition/it-consulting-51721
2 Walther, Antje, WIS: Weiterbildungsprofil für den IHK-Abschluss: Geprüfter IT-Berater/Geprüfte IT-Beraterin (Certified IT Business Consultant), wis.ihk.de/weiterbildungsprofil/gepruefter-it-beratergepruefte-it-beraterin-certified-it-business-consultant.html
3 Staigl, Alfons, SIjournal: Was ist Consulting?, www.sijournal.com/was-ist-consulting
4 Univ.-Prof. Dr. Nissen, Volker, Füßl, Anne, Dr. Werth, Dirk, Gugler, Kristina, Neu, Christian, BDU (May 2018): Zum aktuellen Stand der digitalen Transformation im deutschen Markt für Unternehmensberatung, www.bdu.de/media/352407/zum-aktuellen-stand-der-digitalen-transformation-im-deutschen-markt-fuer-unternehmensberatung.pdf
5 Manger-Wiemann, Eva-Maria, Dr. Treichler, Christoph, Consultingsearcher: Was ist Unternehmens-Beratung, www.consultingsearcher.com/Cardea-Kompetenzcenter/Der-Beratungsmarkt/Was-ist-Unternehmens-Beratung
6 Dirk, Jan, IT-Talents (28.10.2016): Was macht ein IT-Berater/IT-Consultant?, www.it-talents.de/blog/it-talents/was-macht-eigentlich-ein-it-berater-it-consultant
7 BERUFENET (http://arbeitsagentur.de) (01.08.2018): IT consultant, berufenet.arbeitsagentur.de/berufenet/bkb/14040.pdf
8 Wurzel, Hans-Werner, BDU (March 21/22, 2015): Digitalization is visibly driving management consultant business, bdu.de/media/99363/wurzel.pdf
9 Scheelen, Frank M., BDU (12.05.2017): How to future-proof your IT department, www.bdu.de/fachthemenportal/digitales-und-it-beratung/so-wird-die-it-abteilung-zukunftsfaehig/
10 Zillmann, Mario, Lünendonk, Jonas, Rauch, Christina, Lünendonk & Hossenfelder GmbH (2017): Lünendonk Study 2017, Business Innovation & Transformation - Where do companies stand today? Importance of the "Business Innovation/Transformation Partner" service concept for sustainable digital change, uploads-ssl.webflow.com/570f5b7716e5ea0033c58d4e/5b0eb822c0ec47e2f847052a_Luenendonk_Studie_2017_BITP_f180530.pdf
11 Zillmann, Mario, Computerwoche (23.05.2017): Digital disruption also applies to the consulting industry, www.computerwoche.de/a/digitale-disruption-gilt-auch-fuer-die-beraterbranche,3330789