In light of emerging digital technologies, executives across industries are challenged to rethink current business models, including their companies’ organizational structures. To meet future customer expectations, in particular large manufacturing companies aim to integrate two so far distinct worlds: the physical world (i.e. the design, production, and maintenance of complex hardware products) and the digital world (i.e. software enabling data analytics and digital services). Large manufacturing companies often possess various business units, a diversified business model portfolio, and complex IT landscapes including traditional, embedded, and digital IT types. Hence, they face specific organizational issues, which so far only received limited attention among professionals. Based on 16 in-depth expert interviews with companies across the IoT ecosystem we identified seven main issues how digital transformation will affect large manufacturing companies’ overall organizational structure.
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