Digital Transformation and Organization Design: An Integrated Approach

Abstract

The widespread implementation and adoption of digital technologies by organizations has given rise to a massive transformation with the potential to affect many organizations’ internal operations and processes. This transformation affects different levels and steps of output creation in companies, which eventually triggers changes in their organizational structures. This article develops an integrated picture on how digital transformation affects organization design by classifying and analyzing the effect on the process of output creation in firms. Based on this picture, it develops and elaborates on potential opportunities and challenges for companies resulting from digital transformation. Finally, it offers recommendations and decisions rules for dealing with these issues.