Digital Agility

Paper Type

Complete

Paper Number

1433

Description

The availability of digital technology allows for the development of new digital services and products, requiring companies to adjust their structure, strategy, and product offering. This phenomenon has been termed digital transformation. As part of this process, companies have set up Digital Innovation Units (DIUs) intending to serve as a fast lane for developing new ideas and products. To date, however, there is little evidence on how DIUs are ensuring that they achieve their objectives. Adopting the lens of management control systems, we investigate a single case study of a DIU. Our findings reveal how different management control systems are implemented in this DIU and we identify two main challenges that the DIU experienced. We discuss these and develop two implications on the use of management control systems in DIUs. Thereby, we contribute to the DIU literature as we provide evidence on management control in DIUs and we extend current discussions on the relationship of management control systems and exploratory early innovation activities.

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Aug 9th, 12:00 AM

A Management Control Systems Perspective on Digital Innovation Units

The availability of digital technology allows for the development of new digital services and products, requiring companies to adjust their structure, strategy, and product offering. This phenomenon has been termed digital transformation. As part of this process, companies have set up Digital Innovation Units (DIUs) intending to serve as a fast lane for developing new ideas and products. To date, however, there is little evidence on how DIUs are ensuring that they achieve their objectives. Adopting the lens of management control systems, we investigate a single case study of a DIU. Our findings reveal how different management control systems are implemented in this DIU and we identify two main challenges that the DIU experienced. We discuss these and develop two implications on the use of management control systems in DIUs. Thereby, we contribute to the DIU literature as we provide evidence on management control in DIUs and we extend current discussions on the relationship of management control systems and exploratory early innovation activities.

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