Organizational innovation will be as important as technological innovation to capture the benefits of digital investments

To become fully digital businesses, companies will have to overhaul ways of working to become simpler, more adaptive, and empower front-line decision-making, says Didier Bonnet.

Companies need to think more about organizational innovation than technological prowess if they are to capture all of the benefits offered by digital technologies, according to Didier Bonnet, Professor of Strategy and Digital Transformation at IMD. 

“Technological progress is brilliant, but we ought to focus just as much, if not more, on adapting our organizations to really take advantage of these technological advances, because otherwise we are not going to see the benefits,” he said in his webinar “The future shape of the digital business”.  

Economic history shows that technological innovations alone do not generate productivity increases in the workplace, because productivity gains require investment not just in physical and human capital, but also in the many aspects of organizational…