Organization Transformation & Information Systems (SIG ORSA)

Presenter Information

Sara Schiffer, WWU MünsterFollow

Paper Type

Complete

Paper Number

1327

Description

Digital technologies are penetrating all areas of social and economic life - to a much greater extent than traditional information technologies. By doing so, they challenge incumbents to maintain the exploration of existing revenue sources while simultaneously exploring new paths for a digital future. While firms have always faced the challenge of pursuing exploitative and explorative activities, the change that comes with the adaption of digital technologies seems so fundamental that many companies find themselves unable to implement both within the existing organization. In practice, this leads many incumbents to separate the exploration of digital business into dedicated units. However, there is a lack of research on how this separation can contribute to digitally transform the overall organization. In the following, we use the example of an established German insurer to investigate concrete mechanisms to manage the exploration-exploitation-tension against the backdrop of digital transformation.

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Aug 9th, 12:00 AM

Structural Ambidexterity as an Approach for an Incumbents Digital Transformation

Digital technologies are penetrating all areas of social and economic life - to a much greater extent than traditional information technologies. By doing so, they challenge incumbents to maintain the exploration of existing revenue sources while simultaneously exploring new paths for a digital future. While firms have always faced the challenge of pursuing exploitative and explorative activities, the change that comes with the adaption of digital technologies seems so fundamental that many companies find themselves unable to implement both within the existing organization. In practice, this leads many incumbents to separate the exploration of digital business into dedicated units. However, there is a lack of research on how this separation can contribute to digitally transform the overall organization. In the following, we use the example of an established German insurer to investigate concrete mechanisms to manage the exploration-exploitation-tension against the backdrop of digital transformation.