Digital Transformation and Organization Design – A Complex Relationship

As companies adapt to the digital era, fundamental changes happen to their internal processes, and consequently to their structure. In this piece, we build an integrated and unified picture on how digital transformation affects organization design, by classifying and analyzing the effect on the sequence of output creation in firms. Moreover, we briefly discuss how these effects impact firm boundaries and scale up to shape competition among industry players. Finally, we list potential opportunities and challenges for companies in the digital transformation period.