Organizational Change at Cincom Systems Essay

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The senior executives who are for the most part from engineering, are taking a wait-and-see approach to how effective the use of a 3rd party is for porting the Cincom applications to the cloud-based platforms from Salesforce.com. The group of leaders who are in charge of the transition of specific piloted applications are concentrating on creating a dashboard of metrics to show how effectively the move to a more scalable and cost-effective platform is. Resistance to change is being dealt with through testing, which is consistent with the change transition curve.

Conclusion

The search aspects of the change transition curve have led to the decision to standardize on the Salesforce.com platform, specifically Force.com given its use of technologies compatible with legacy Cincom applications. The integration aspects of the change transition curve however have been more difficult as the culture within Cincom is very slow to change.

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The reliance on the legacy applications is so great nearly 70% of all revenue is attributable to them. Further, the metrics associated with SaaS application performance point to their ability to scale further, support more global customers and be more profitable over time as well. The re-aligning of the political landscape in Cincom however is what is holding the company back. The engineering senior management sees their power base, and potentially their jobs, going away. This is forcing them to be very suspect of the metrics associated with the SaaS pilots, often creating reasons and factors not originally defined in the first project goal set to further force greater analysis. From the outside it looks like they are prolonging the inevitable, which is the erosion of their 70% revenue base as SaaS becomes more mainstream......

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