Organization Design and its Impact on the Digital Innovation Process and the Digital Innovation Outcome by Robert Eirich

Author:Robert Eirich
Language: eng
Format: epub
ISBN: 9783658308056
Publisher: Springer Fachmedien Wiesbaden

Case company 4 follows a mixed approach to external and internal staffing. This decision is also the result of a lack of capabilities in the core organization. That gap requires external hires in the spin-offs. Classic project know-how and some related digital capabilities are available, but the often-applied learning by doing approach is not applicable for all innovation tasks. The decisions related to the two parameters further underline the conflict of case company 4 in attempting to separate the digital initiatives but keep them connected to the traditional business.

Legacy

Case company 4 must address a strong legacy that results from the dependence on the existing business model as well as several organizational factors. One key organizational challenge for the company has been a rapid growth in sales, which led to greater complexity. This complexity has been reinforced by establishing processes for implicit topics that in earlier stages of the company could have been solved immediately. These processes clearly contradict the objective of increasing agility in the development process for digital innovation. Although the company’s previous positive credentials, such as the hands-on mentality and speed, have been neglected in recent years, these legacy advantages could be leveraged if uncovered properly.“We just doubled in size in the last five years and with it we became very corporate, structure, processes, bureaucracy, etc. And I believe that the original company with being relatively small and fast has already been agile. Now we have the paradoxical situation that we have been agile in the past and have to uncover those abilities for digital innovation.” (Case company 4, Interviewee 6)

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