Abstract
Digital transformation is rapidly causing major, even disruptive changes in many industries. Moreover, global developments like digital platforms (cloud) and IoT create fundamentally new connections at many levels between objects, organizations and people (systems-of-systems). These are by nature dynamic and often work in real time – further increasing the complexity. These systemic changes bring up new profound questions: What are those new software-intensive systems like? How are they created and developed? Which principles should guide such organizational design? Agile enterprises are by definition proficient with such capabilities. What solutions are the current scaled agile frameworks such as SAFe and LeSS proposing, and why? In this paper, we aim to recognize the design principles of future software organizations, and discuss existing experiences from various different organizations under transformations, and the insights gained. The purpose is to systematize this by proposing a competence development impact-mapping grid for new digitalization drivers and goals with potential solutions based on our agile software enterprise transformation experiences. Our research approach is based on the resource-based and competence-based views (RBV, CBV) of organizations. We point out how most decision-making in companies will be more and more software-related when companies focus on software. This has profound impacts on organizational designs, roles and competencies. Moreover, increasing data-intensification poses new demands for more efficient organizational data processing and effective knowledge utilization capabilities. However, decisive systematic transformations of companies bring new powerful tools for steering successfully under such new business conditions. We demonstrate this via real-life examples.
Highlights
Digital transformations are a cause of rapid and even disruptive change in a majority of companies and future competitive environments
The case is about extreme speed and service quality needs of the Yle Graphics Team, which reflects many future software organizational aspects of our present research
The example organization impacted by digitalization is Yle Graphics design
Summary
Digital transformations are a cause of rapid and even disruptive change in a majority of companies and future competitive environments. Novel models for organizations and businesses (like Uber-type) are emerging, and traditional companies as well must consider their structure and their roles in achieving new business goals. Both the software producer organization and the customer viewpoints should be understood via comprehensive sense making. Companies begin to focus on software – either following strategy, or ad hoc, We view future competitive companies as agile and sustainable, as well as more fundamentally software-based with respect to both their outcomes (products and services) and operations. Systemic changes (digital transformation) are complex to achieve, but can be steered through by employing holistic resource- and competence-based views
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