R. R. Donnelly & Sons: The Digital Division
R. R. Donnelley & Sons was suffering with an ad-hoc technology development process. Once this process had to be changed and new technology development process had to be brought in. R.R. Donnelley & Sons with 6% share of the $80 billion print market is certainly the market leader. But the level of competition was rising rapidly as well.
The printing market was going online and electronic with the online service providers and software packages were making four color images available electronically. Smaller printing companies were also building alliances with firms that had high-capacity networks for transmitting files. Despite digital division being a good idea, it was essentially outside their core business. All divisions knew the potential of digital technology but did not know enough about the markets and were scared of unproven technology.
The biggest issue faced by the Digital Division was whether they would be accepted or not by other divisions in the organization itself. The company knew that digital technology was the future. And that the company needs to improve on demand printing and delivery on time as well. But the problem was convincing the other divisions. They could not do it with their arguments or with the incentives they gave.
The solution would be to accept the advantages of the digital technology by the CEO, john Walter not as a different division. This is done so that the profitability and the existence of other divisions are not affected. It should benefit the organization not as a separate division. All the divisions in the organization must work together as one to contribute to the organizational goals and growth.
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