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    Structure: Chapter 9 - Power-Control Chapter 10 - Finding An Appropriate Structure

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    Daan Andriesse
    Organisations are increasingly specializing in specific areas, emphasizing teamwork and coordination. They operate as part of supplier and distributor networks. Virtual organisations comprise smaller entities controlled by market and legal forces, allowing more flexible production. Trends include greater international focus, external orientation, and knowledge sharing over hierarchy and internal focus. Responding to different environments can cause structural difficulties, like choosing between product development and market demands. Case studies show firms innovating structure to accelerate innovation by delegating decisions, integrating R&D, co-locating teams, using central innovation teams and funds, and involving customers. Key results are faster communication, quicker idea launches, and swifter responses to changes.

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    Structure: Chapter 9 - Power-Control Chapter 10 - Finding An Appropriate Structure

    Uploaded by

    Daan Andriesse
    43 views13 pages
    Organisations are increasingly specializing in specific areas, emphasizing teamwork and coordination. They operate as part of supplier and distributor networks. Virtual organisations comprise smaller entities controlled by market and legal forces, allowing more flexible production. Trends include greater international focus, external orientation, and knowledge sharing over hierarchy and internal focus. Responding to different environments can cause structural difficulties, like choosing between product development and market demands. Case studies show firms innovating structure to accelerate innovation by delegating decisions, integrating R&D, co-locating teams, using central innovation teams and funds, and involving customers. Key results are faster communication, quicker idea launches, and swifter responses to changes.

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    Structure

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    Organisations are increasingly specializing in specific areas, emphasizing teamwork and coordination. They operate as part of supplier and distributor networks. Virtual organisations comprise smaller entities controlled by market and legal forces, allowing more flexible production. Trends include greater international focus, external orientation, and knowledge sharing over hierarchy and internal focus. Responding to different environments can cause structural difficulties, like choosing between product development and market demands. Case studies show firms innovating structure to accelerate innovation by delegating decisions, integrating R&D, co-locating teams, using central innovation teams and funds, and involving customers. Key results are faster communication, quicker idea launches, and swifter responses to changes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    43 views13 pages

    Structure: Chapter 9 - Power-Control Chapter 10 - Finding An Appropriate Structure

    Uploaded by

    Daan Andriesse
    Organisations are increasingly specializing in specific areas, emphasizing teamwork and coordination. They operate as part of supplier and distributor networks. Virtual organisations comprise smaller entities controlled by market and legal forces, allowing more flexible production. Trends include greater international focus, external orientation, and knowledge sharing over hierarchy and internal focus. Responding to different environments can cause structural difficulties, like choosing between product development and market demands. Case studies show firms innovating structure to accelerate innovation by delegating decisions, integrating R&D, co-locating teams, using central innovation teams and funds, and involving customers. Key results are faster communication, quicker idea launches, and swifter responses to changes.

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    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 13

    Structure

    Chapter 9 – Power-control
    Chapter 10 – Finding an
    appropriate structure
    Contents
    • Finding an appropriate structure
    Organisational Innovations
    Characteristics of modern organisations:
    • Specialised in a small number of things
    • Emphasis upon teamwork
    • Promotion of coordination
    • Part of a network of suppliers and
    distributors
    Network of suppliers and distributors

    Subcontracted Manufacturer

    Subcontracted Manufacturer Subcontracted Manufacturer

    Headquarters:
    R&D
    Marketing

    Subcontracted Distribution Channel Subcontracted Distribution Channel

    Subcontracted Distribution Channel


    Virtual Organisation
    • Comprised of a network of smaller
    organisations
    • Controlled by market forces and legal
    forces
    • More elasticity of production in times of
    economic downturn
    Trends in Organisational
    Orientation
    Decreased: Increased:
    • National focus • International focus
    • Internal orientation • External orientation
    • Customers & • Vertical integration
    suppliers nearby
    • Hierarchy • Functional teams
    • Hoarding knowledge • Spreading knowledge
    • Lifetime employment • Lifetime employability
    Responding to the Environments
    • Responding to two different environmental
    segments at once often leads to structure
    related difficulties

    • Choice between focus on product


    development or on market demands
    E.g. Two possibilities for Shell
    Management

    Gas Diesel Petrol Bio Fuels Ren. Energy

    UK & DE & NL & UK & NL &


    US BE FR DE DE &
    US

    Management

    UK US NL DE FR
    Gas Diesel Diesel
    Diesel Bio Fuels
    Petrol Gas Ren. Energy
    Ren. Energy Petrol
    Petrol
    Bio Fuels
    Practical examples of structural
    innovations
    • A number of firms have adopted a new structure
    in order to accelerate innovation and respond to
    market changes
    • These include: Toyota, Procter & Gamble , GE,
    3M, IBM, Google, Microsoft, Sony, Hewlett-
    Packard, DuPont, Honeywell, Whirlpool
    • All of these firms supply a product directly to the
    customer, they therefore try to involve the
    customer in the process
    Key actions for structural change
    • 1. Delegation of Decisions to Innovation Teams
    • 2. Integration of R&D into the Business Units
    • 3. Co-Location of Teams and Departments
    • 4. Central Innovation Teams
    • 5. Central Innovation Funds
    • 6. External Interface for Open Innovation
    • 7. Merger & Acquisition Department

    Source: http://www.the-innovation-machine.com/?p=83
    Results of changes
    • These 7 changes clearly show a centralisation of
    all parties involved in innovation and R&D
    • Co-Location of Teams and Departments results
    in more informal communication as well
    • An external interface allows the firm to channel
    realise its innovation potential and facilitates
    introduction to the market much faster
    • A clear M&A department allows the firm to
    acquire innovations and directly introduce them
    to the market-place
    Conclusion
    • Centralised innovation teams reporting to
    heads of divisions lead to an increase of
    communication speed
    • Centralised innovation funds results in
    ideas being able to be launched much
    faster
    • Including the customer in the process
    leads to quicker responses to market
    changes
    Sources
    • Organisation Theory – Robbins and
    Barnwell (2006)

    • http://www.the-innovation-machine.com/?p
    =83
    – The organizational structure of
    innovation - Dr. Rolf-Christian Wentz
    (2010)

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