Not at all Ambidextrous: Industrialized Business/IT Transformation at UPM
نویسندگان
چکیده
Despite the undoubted importance of IT-enabled transformations for sustaining firm competitiveness, we are only at the beginning of understanding the conflicts and resolution strategies in IT transformation program planning and execution. Given the well-known global versus local tensions, practitioners might be tempted to balance the different extremes by remaining ‘ambidextrous’ throughout these multi-year initiatives. The case of the transformation of manufacturing processes at UPM demonstrates vividly that this is not always advisable: After an initial ambidextrous approach had failed painfully, UPM took an ‘industrialized’ strategy guided by five principles described in this paper. While UPM applied different balancing mechanisms on the program execution level, the industrialized principles demanded extreme resolution strategies on the planning level to manage the turnaround and achieve the desired benefits. Besides providing insights on each principle’s key mechanisms, UPM’s learnings emphasize the important, but undertheorized fit to business strategy in leading IT-enabled change.
منابع مشابه
Balancing Exploitation and Exploration for Strategic Flexibility in IT-enabled Business Model Transformation of Traditional Enterprises: An Ambidextrous Perspective
There is growing recognition that information technology (IT)-enabled business model transformation is a distinctive source of sustainable competitive success for traditional enterprises. In this context, strategic flexibility is an important catalyst for IT-enabled business model transformation. During the process of strategic flexibility, a key challenge for traditional enterprises is to bala...
متن کاملInnovation through Ambidexterity: How to Achieve the Ambidextrous Organization
It has long been recognized in the literature that the pursuit of radical or disruptive innovation by established firms poses an organizational challenge for the firm. This is because the skills, structures, processes and mindsets required for exploiting the existing business are fundamentally different and often conflict with those required for radical innovation (i.e. exploration). This has l...
متن کاملChallenges of the Iranian E-Banking Business Model in Digital Transformation
With advanced information and communication technology, the organizations’ business model has undergone fundamental changes. These changes are also observed in the banking industry. This research aims at explaining the Iranian electronic banking business model and recognizing its challenges in the transformation to digital banking, which is considered as the research innovation. In terms of met...
متن کاملAddressing the Causes and Failure for Financial Transformation while Achieving Business Alignment
The financial transformation journey is often addressed through trying to avoid the pitfalls associated with the causes of failure while leveraging the critical success factors. At best, Chief Financial Officers adopting this approach are likely to improve the degree of customer service experienced by Finance department. This is unlikely to lead to sustainable financial transformation being ach...
متن کاملIt Ambidexterity - Conceptualization at the Business Process Level
In todays digitized and globalized economy, companies face increasing competitive pressures and unprecedented speed of change in business conditions. Considering limited IT budgets, process owners and IT departments need to decide how to divide their spending on efficiency-enhancing and flexibility-enhancing IT capabilities to optimally support their business processes. Turning from thinking of...
متن کامل