Preview

Digital Sourcing Case Study

Good Essays
Open Document
Open Document
856 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Digital Sourcing Case Study
As SMEs core business model is not digital, it is not self-evident for them to develop digital innovations in an agile surrounding on their own. If a company does not have the capacities or resources available, they need to integrate new forms of knowledge into their company through extern forms of innovation, e.g. Digital Labs, Factories, Company Building, Accelerator or Incubator programs, Corporate Venture or cooperations. Since there is a lack of financial and human resources, SMEs have to create a balanced innovation portfolio and to invest in more than only one innovation activity (Dömötör, 2014, p.12). Digital sourcing is a model, which is built to help companies facing this problem (Hutchins & Campanini, 2014, p.189). It ensures the …show more content…
The person in the role of a Chief Digital Officer has the ultimate responsibility for the coordination of the digital transformation process. He or she has to carry out a digital strategy, to instigate new trends and to bring the change forward (Summa (Ed.), 2016, p.101). Summa claims that new job titles (C-x-O) are introduced inflationary. However, a key problem with Summa’s statement, is that when new responsibilities come, new job titles are needed, because this is an intrinsic motivation for the employees and it indicates the new digital responsibility. According to Eckert, a Chief Innovation Officer has to develop further to a Chief Digital Innovation Officer, who can handle incremental as well as disruptive improvements. Eckert also introduces the Chief Business Innovation Officer, who is responsible for the development and design of an independent business unit such as a Digital Lab or Factory, who primarily drives DI ahead (II Eckert, 2017, …show more content…
The main responsibility of a Factory is to scale ideas and business models from the Digital Lab. The factory is staffed with young experienced talents, coming from inside and outside the organization. This creates the USP of a factory – the competence (Kaplan, 2012, p.134). Therefore, factories are seen as a competence center for the inflow of DI. Factories can be built in cooperation with external partners, which is known as Company Building. This model is explicitly responsible for the implementation of a new digital business model as a spin-off or subsidiary (Velten, Michel & Özdem, 2016, p.16). Figure 11 shows how both models complement each other in the context of the S-curve

You May Also Find These Documents Helpful

  • Powerful Essays

    Best Buy Analysis

    • 12713 Words
    • 51 Pages

    25. Labus, Peter. “The Supply Chain of Best Buy” google, 31 Mar. 2008. Web. 22 Oct. 2013.…

    • 12713 Words
    • 51 Pages
    Powerful Essays
  • Better Essays

    The successful organizations combine technological change and the change of business model to create innovation. Furthermore, to effectively incorporate a strong model of innovation in business mentality, the leadership team and the Chief Executive Officer (CEO) need to balance both elements of business and technology innovation. There are six sifters, three in the business model and three in technology innovation. The company needs to include modifications in one or more of these components (Gitman & McDaniel,…

    • 1104 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    It Case Study

    • 449 Words
    • 2 Pages

    The Widget Wonders distribution center is the worldwide leader in widgets. Which they're in the process of building a state of art facility to manufacture new generation of widgets. The SNHUConsulting group leads the way of consulting in information technology. SNHUConsulting has been hired to consult on new hardware that will last for at least the next three years for the different apartments.…

    • 449 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Mat 540 Quiz

    • 759 Words
    • 4 Pages

    Information technology (IT) consists of all the hardware that a firm needs to use in order to…

    • 759 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    1. What drove the sourcing decisions on the part of all three business organizations described in the case studies for this session?…

    • 402 Words
    • 3 Pages
    Good Essays
  • Better Essays

    DSW Balanced Scorecard

    • 1478 Words
    • 6 Pages

    With the shift of business moving from the industrial age to the information/technology age, the importance of a company’s…

    • 1478 Words
    • 6 Pages
    Better Essays
  • Good Essays

    The Outsourced Case Study

    • 752 Words
    • 2 Pages

    The case study was very interesting it was based on ethics of the contract agreement entered into by RMC and 17 project labor agreement. The purpose of this case was to see where liabilities fell when certain parties were not abiding by the original agreement that was entered into by RMC and 17 local building trade unions. In the case such questions surrounding these liability factors. After reading the case study Is BE (Bolton Engineering) bound by the terms of the project labor agreement, which it did not directly sign, including the duty to submit this labor dispute final and binding arbitration for resolution? BE is bound by the terms of project labor agreement only when they are working onsite because they did not sign the agreement with labor union directly. BE’s (Bolton Engineering) contract obligations only relies on the contractual agreement made with Rocket Motor Corporation (RMC). The Project labor agreement only meant to apply to work performed on the job site s Bolton Engineering contend, or could the terms the project labor agreement also be applied to offsite work as well as the Union contends? However, the case study does not state the specifics of the labor union agreement that was included in the agreement between Bolton Engineering and Rocket Motor Corporation it did state that a pledge to adhere to project labor agreement previously signed by RMC and the 17 unions was included. But a pledge does not necessarily mean that there was a written signed agreement. Another twist to this case in regards as to where the liabilities fall is Bolton Engineering subcontracted out the work and the work was performed offsite and not on site. The only way I could see that Bolton Engineering would be liable in this case if the agreement states conditions applies to onsite and off-site projects and it was also included in the contract agreement between RMC and BE. In my opinion, I would think that if the pledge was…

    • 752 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Strategic Innovation

    • 1253 Words
    • 6 Pages

    Chesbrough, H. (2010) Business Model Innovation: Opportunities and Barriers. Long Range Planning, 43 (2–3), 354–363. Retrieved 6/01/2013…

    • 1253 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Porter, Michael E. (1998). Clusters and the New Economics of Competition. Harvard Business Review. 77 – 90 Robinson, Jacquelyn P. (2000). What Is The New Economy?. The Workplace, 1 (4): 1 – 3 Smith,Keith. (2000). What is the 'knowledge economy '? Knowledge-intensive industries and distributed knowledge bases. STEP Groups. Oslo. Soete, Luc. (1999). Towards the digital economy: scenarios for business.Telematics and Informatics. 17 (2000): 199 – 212 Stiglitz, Joseph E. (1999). Public Policy for a Knowledge Economy. Center for Economic Policy Research. Sulin Ba, Andrew B. Whinston and Han Zhang. (1999). Small Business in the Digital Economy: Digital Company of the Future. Working paper, Center for Research in Electronic Commerce. University of Texas at Austin Zimmermann, H.D and Veith Koerner. (1999). Emerging Industrial Structures in the Digital Economy - the Case of the Financial Industry. Americas Conference on Information Systems. 115 – 117 Zimmerman,H.D. (2000). Understanding the Digital Economy: Challengers for New Business Models. Americas Conference on Information Systems. 729 – 732…

    • 6810 Words
    • 28 Pages
    Good Essays
  • Good Essays

    The editor of “Wired” warns against assuming the future will resemble the present and describes a dozen factors that will shape the next thirty years. Becoming, cognifying, flowing, screening… are the first few forces Kelly describes, ending with Beginning, which is almost a paradox. Becoming relates to an improvement of performance of products, which is what is happening even today. Says Kelly, in regards to this, “Even a very tiny amount of useful intelligence embedded into an existing process boosts its effectiveness to a whole other level.” He writes of remixing, where he alludes that nothing is new, only an improved version of a previously existing one that was reassembled into something new for the moment until it happens all over again. Ownership will not be a priority as technology will allow people to own virtually, as is already happening with companies like Uber and Alibaba. This book…

    • 636 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    DigitalThink - Case Study

    • 797 Words
    • 3 Pages

    DigitalThink is breaking the mold of traditional classroom-based training by offering technology-based instruction to Global 2000 companies for their employees, managers, and customers. Trainees learn the material they need through interactive programs deployed to them by CD, company intranet, or Internet browser instead of in a centralized classroom with a live instructor. DigitalThink’s methods have been shown to compress training time by as much as 50%, and reduce the cost of development, maintenance, and delivery by 64%.…

    • 797 Words
    • 3 Pages
    Powerful Essays
  • Satisfactory Essays

    I had an interview of "Assistant Sourcing Specialist" with Sourcing Manger, Mr. Luo, on Aug.17, Monday 9:30 a.m in Kerry Center, Walmart Global Sourcing office.…

    • 183 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Develop an argument for or against single sourcing and close supplier relationships in public sector procurement. Argue for single sourcing, or argue against single sourcing. State your claim, your reasoning, your evidence and any anticipated objections or rebuttals, and draw a conclusion.…

    • 773 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Question 3:What is the nature of digital innovation and how can fast-paced digital innovation practices be most effectively handled in traditionally conservative business contexts and industries?…

    • 1149 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Shouldidce

    • 821 Words
    • 4 Pages

    “A factory that focuses on a narrow product mix for a particular market niche will outperform the conventional plant, which attempts a broader mission. Because its equipment, supporting systems, and procedures can concentrate on a limited task for one set of customers, its costs ... are likely to be lower than a conventional plant. But, more important, such a plant can become a competitive weapon because its entire apparatus is focused to accomplish the ... task demanded by the company’s overall strategy. [Despite] their advantages, my research indicates that focused manufacturing plants are surprisingly rare. Instead, the conventional factory produces many products for numerous customers in a variety of markets, thereby demanding the performance of a multiplicity of manufacturing tasks all at once from one set of assets and people. Its rationale is “economy of scale” and lower capital investment. However, the result, more often than not, is a hodge-podge of compromises, a high overhead, a[n] ... organization that is constantly in hot water with ... customers.” – Wickham Skinner in “The Focused Factory,” Harvard Business Review, May-June 1974, 113– 22.…

    • 821 Words
    • 4 Pages
    Good Essays