CE development depends critically on network and teamwork 5 CE market success

Ce development depends critically on network and

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CE development depends critically on network and teamwork 5. CE market success (especially for those very risky ones) depends critically on trial-and-error experiment and action speed Information flow (informal, unplanned, intensive) is important Effective and efficient support is essential The corporate structure should facilitate effective lateral and vertical communication
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© Copyright National University of Singapore. All Rights Reserved.
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© Copyright National University of Singapore. All Rights Reserved. When is mechanistic structure vs. organic structure more suitable? More benign or controllable external environment Efficiency is the primary goal; Innovation is less important Conservative management style
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© Copyright National University of Singapore. All Rights Reserved. art-1 /
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© Copyright National University of Singapore. All Rights Reserved. Structuring Relationships between CE Initiatives and the Corporation: Some Organization Design Alternatives Two important dimensions to consider: operational relatedness & strategic importance. o Operational relatedness: How operationally related it is to the core technology and capabilities of the firm. o Strategic importance: How strategically important the development is for corporate development. If very important, the organization may wants to retains control of the development. Generally, the more important the development and the more operationally related, the more it is likely to be kept ‘in-house’.
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© Copyright National University of Singapore. All Rights Reserved. Some combinations 1 High strategic importance & high operational relatedness: direct integration o For example, when a new product development is directly integrated into a product range. o Reason: high strategic importance means firms want to retain control and close monitoring. o Reason: high operational relatedness means it can be integrated into existing business, taking advantage of corporate resources and realizing economies of scale.
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© Copyright National University of Singapore. All Rights Reserved. Some combinations 2 High strategic importance & low operational relatedness: special business unit o Reason: high strategic importance means firms want to retain control and close monitoring until decisions are made about its future. o Reason: low operational relatedness means it cannot be integrated into existing business. New staff with different skills may have to be recruited and the unit given greater independence and operational freedom.
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© Copyright National University of Singapore. All Rights Reserved. Some combinations 3 low strategic importance & high operational relatedness: nurturing and contracting (also called nurtured divestment) o Reason: low strategic importance means firms do not need to retain full control and monitoring, and the commercial value is not critical to the firm.
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