Submitted by: Farwa Syed (SP25-RMS-004)

This paper looks at how companies need to change the way they are structured in order to succeed in the
digital world. As technology continues to grow and change quickly, old ways of organizing companies
often don’t work well anymore. It tells about what kind of company structures can help businesses keep
up with digital changes. As dramatically changed environment means that organizations should adopt
new patterns of functioning and embrace innovative culture (Mirković & Lukić, 2015), They point out
common problems like poor planning, leaders not fully understanding digital tools, and people resisting
change. Then they offer ideas on how to fix these problems. Overall, this paper helps companies learn
how to set up their teams and systems in ways that make it easier to adapt and grow in a digital future by
positioning customer’s needs at the center of digital transformation organizations intend to achieve new
business success in the long run (Ruzsa, 2018, p. 371)

Digital technologies are fundamentally reshaping how established organizations create and deliver
services. As industries face increasing digital disruption, companies are shifting from product-centric to
service-centric business models enabled by digital technologies—a transformation managed through
carefully designed digital transformation (DT) strategies. Service innovation plays a pivotal role in
modern society, driving significant advancements across individuals, organizations, and broader societal
systems (Miles 2005). The proliferation of digital technologies—ranging from in-memory databases and
cloud computing to distributed ledger systems—has redefined how organizations conceive and deliver
value. These technologies facilitate enhanced accuracy, efficiency, and adaptability, empowering firms to
address both economic demands and pressing global challenges while fostering sustainable societal
development (Pappas et al. 2018). While much attention has been given to the formulation and execution
of these strategies, limited research has examined which configurations of DT strategies actually lead to
successful digital service innovation (DSI). This gap is especially significant for established firms striving
to remain competitive in increasingly volatile digital markets.

New product development (NPD) is a critical driver of enterprise competitiveness, enabling firms to
transform market opportunities and technologies into commercially viable products. In the context of
rapid technological advancement and a shifting digital landscape, traditional business models face
increasing disruption, requiring enterprises to adapt swiftly. The digital revolution, marked by the rise of
big data and advanced technologies, has intensified competition by reducing information asymmetry and
compressing product life cycles. Consequently, enterprises must continually innovate and enhance NPD
performance to sustain their market position. New product development (NPD) is the process where
companies turn market opportunities and new technologies into products and bring them to the market
through technical steps [1]. According to Schumpeter’s theory of innovation, NPD is essential for
businesses to adapt to changing markets and technologies [2]. It is a key part of how manufacturing
companies stay competitive [3], and the success or failure of NPD can determine whether a company can
survive in today’s tough business environment [2].

In the digital age, rapid advancements like big data have disrupted traditional business models. These
changes have made the market more competitive and reduced the gap in resources available to
companies. As a result, companies must now focus more on improving internal systems, integrating
resources, and increasing long-term competitiveness. At the same time, faster changes in technology are
shortening product life cycles, putting more pressure on companies to innovate constantly and improve
their NPD performance.
Existing research on NPD performance has explored various dimensions, including environmental
factors, organizational learning, project-level knowledge management, and external stakeholder
involvement. However, the impact of digital transformation—especially from a resource orchestration
perspective—on NPD performance remains underexplored. As digital capabilities become essential for
operational efficiency and innovation, it is imperative to understand how they interact with R&D
investments and firm-specific characteristics.

In the age of digital transformation, organizations are experiencing profound changes driven by the rapid
advancements in technology. Digital technologies, including advanced algorithms, robotics, analytics, and
big data, are reshaping the workforce dynamics, transforming how organizations operate and interact with
both their employees and leadership. These technologies not only alter business processes but also
influence organizational behavior, creating new challenges and opportunities for leaders and employees
alike It’s also important to look at how people’s behavior connects with other elements like technology,
which together shape the organization (Mullins, 1990). According to Richards (2017), three main factors
influence Organizational Behavior: people, structure, and technology. These elements always interact
with both the internal and external environments of a company.

While much of the existing literature has focused on the technological aspects of digitalization, fewer
studies have adopted a holistic perspective to explore how these technologies affect organizational
behavior. This gap underscores the importance of understanding the full scope of digitalization's impact,
considering both technological and human factors. As digitalization continues to redefine the modern
workplace, understanding the interplay between technology and people is crucial for organizations
striving to maintain a competitive edge, foster a healthy work environment, and ensure long-term
sustainability. Through this study, we aim to contribute to the ongoing conversation about how
organizations can proactively manage these changes and align their technological strategies with the
needs of their workforce.

As digital technologies continue to evolve at an unprecedented pace, executives in industries across the
globe are reevaluating their business models and organizational structures to remain competitive. In
particular, large manufacturing companies face a unique set of challenges as they attempt to integrate two
distinct and often conflicting realms: the physical world, which involves the design, production, and
maintenance of complex hardware products, and the digital world, which encompasses software, data
analytics, and digital services. This merging of the physical and digital worlds, often referred to as the
Internet of Things (IoT), is reshaping the manufacturing sector and requiring companies to rethink how
they organize their business units and align their technological capabilities. Executives in many industries
are being pushed to rethink their business models and how their companies are organized. New
technologies like sensors and data analytics are changing the way business works (Ross et al., 2016). This
shift goes beyond just using the internet to boost sales or cut costs — it's about moving from selling
physical products to offering digital services that are powered by data (Davenport, 2013).

For example, General Electric (GE), which has been known for making industrial equipment for over 100
years, is now competing with companies like IBM and SAP. These companies focus more on software
and digital services. As a result, GE is shifting its focus to digital services, using data from its machines to
improve performance and create new value (Iansiti & Lakhani, 2014).
This combination of physical products and digital technology is known as the Internet of Things (IoT). It
allows physical objects to connect to the internet and offer new services (Atzori et al., 2010). Big
manufacturing companies like GE and Royal Philips, which have a long history of making quality
products, are now trying to figure out how to succeed with IoT (Mocker et al., 2014). Even though many
companies have been talking about adding services to their products for years, only recently have they
started offering combined hardware and digital service solutions (Fischer et al., 2012; Fitzgerald et al.,
2013; Grubic & Peppard, 2016).

One big challenge holding companies back is their internal structure — many aren’t set up to support
digital strategies or IoT products (Porter & Heppelmann, 2015; Bilger & Wortmann, 2017).

For large manufacturers, such as General Electric (GE) or Royal Philips, the push towards digital services
represents a significant shift from their traditional models of selling physical products to offering hybrid
solutions that combine hardware with digital services. This shift is not without its obstacles, as many
manufacturers struggle to adapt their organizational structures and IT landscapes to accommodate the
requirements of IoT solutions. The integration of traditional IT, embedded IT, and digital IT systems
presents a complex challenge that has yet to be fully addressed in existing research.