Abstract:

The implementation of digital transformation is a complex process that often fails due to organizational issues. This paper aims to address the challenges faced by a leading technology company during the implementation of information technologies and how managers can assist with organization and system design to improve performance. The theories used in this study are the Socio-Economic Approach to Management (SEAM) and the Socio-Technical Approach (STA), which provide a comprehensive framework to analyze the organizational issues that arise during digital transformation.

The research method is a case study of OMRON Corporation, which revealed several dysfunctions and the impact of IT and digital technologies on the organization. The study found that the work of the teammates in the department was too fragmented, and there was very little communication and coordination between them. This resulted in delays in new product development and quality problems later. Moreover, problems often occur among the R&D department, materials procurement department, and quality department when introducing new materials. The social factors of these dysfunctions are the vertical division of the organization and strong sectionalism. The paper suggests managers should lead the transformation with an entrepreneurial spirit to ensure success. The technical factors of the dysfunctions are the company's tremendous success in past technological development, which led to a lack of objectivity towards product development that emphasized too much on technology and function.

The contribution of this paper to theory is the application of SEAM and STA theory to clarify organizational problems during digital transformation. The contribution of practice is to design systems and structures that promote communication, collaboration, and coordination among teams, leading to successful digital transformation in the technology company.

Please choose your submission type: Full Paper

Primary Track: Entrepreneurship

Keywords: International Entrepreneurship

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Mr. Soen Hayashi