Innovation often fails on the management level. Why?

Digital transformations sometimes fail on the management level due to knowledge gaps, leading to flawed implementation. This can really jeopardize the success of a company.

Digitalization, Business Model Innovation, and Platforms.

  • Digitalization: Make sure your management fully understands or recognizes the importance and chances of digitalization, e.g. if or why to connect your products.
  • Business Model Innovation: Make sure your management is reconsidering, reviewing or developing innovative business models (e.g., Christensen, Johnson, & Kagerman, 2009; Gassmann, Frankenberger, & Csik, 2014): Who are your customers? What are you offering? How do you generate value? How do you generate profit? And how do you brand your innovation (e.g. Fetscherin & Heilmann, 2015)?
  • Digital Platforms: Make sure your management is reconsidering, reviewing or developing the best platform (e.g., Van Alstyne, Parker, & Choudary, 2016) for your business model.

Poor strategy leads to poor leadership processes.

If the above mentioned three key factors are existing, and your company is on its way to digital transformation, your company potentially has to adjust leadership processes. Research suggests that old school leadership is not appropriate in order to lead digital transformation successfully (e.g., Barba-Sánchez, Martínez-Ruiz, & Jiménez-Zarco, 2017). Specifically, transformational leadership (e.g., Jonas, Meier, Boss, Heilmann, & Seiler, 2010; Judge & Piccolo, 2004) facilitates digital transformation (e.g. Alos-Simo, Verdu-Jover, & Gomez-Gras, 2017). It inspires people to achieve unexpected or remarkable results. It fosters new ideas, new ways, such as new business models, or potential digital platforms.

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