VDV has distinct innovation processes to increase speed and flexibility

Kloeckner.i has adopted distinct, agile processes focusing on design thinking and a lean start-up-approach

Blended in-class and online learning processes through introduction of own online learning platform

Integrated into the existing hierarchies of Voith

Own leadership but connected to Klöckner & Co

Global Online MBA is fully integrated into Imperial College London’s lead

Separate reward system encouraging digital capabilities

Separate control mechanisms and incentives aligned with innovative approaches

Updated common incentives that allow students to track their progress digitally through an online learning platform

Shared resources and competencies by bundling automation and IT expertise with the deep know-how of traditional divisions

As part of an exchange program, Klöckner & Co shares HR resources with kloeckner.i

Kloeckner.i benefits from the group’s knowledge, experience, and access to clients and suppliers

Shared HR and IT resources across programs

VDV is a structurally separated division

Klöckner & Co set up the structurally independent unit kloeckner.i

Kloeckner.i operates autonomously with offices outside the headquarters

Global Online MBA is fully integrated into existing faculty and program structure

Shared values to drive digital collaboration across the group

Kloeckner.i established separate values promoting innovation

Updated common values to leverage strengths in technology and entrepreneurship

VDV acts as an in-house incubator to foster an entrepreneurial culture and embrace digital capabilities

Kloeckner.i operates as an internal start-up with its own failure culture

Updated culture toward “embracing online” to keep pace with digital innovations

Temporarily separated processes adapted to phases of exploitation and exploration

Initially separated processes for the online unit to ensure a certain degree of autonomy and independence

Global Digital Factory (GDF) has adapted distinct agile, fast, and lean processes to adapt quickly to changing customer requirements

Integrated into corporate hierarchies

Online unit is supported by central functions, including a group leadership

GDF is integrated into senior management at Allianz but with decentralized decision-making

Temporary distinct incentive structures to avoid pressure to achieve financial targets

Established a new benefits program to eliminate different incentives between the parent and the online business

Separate control mechanisms supporting innovation

GDF explores innovative ways of working

Shared access to resources from across Ericsson to exploit synergies

Shared marketing and IT resources across all operating divisions

Shared resources and competencies across all units

Structural flexibility characterized by repeated restructuring from decentralized to centralized structures

Initially dual structure by separating the online unit

Later, restructured by reintegrating online unit

GDF is independent from traditional business units to adapt quickly to changing customer requirements

Updated values geared to innovation and agility

Embedded new common set of values to prepare the online business for eventual reintegration

GDF incorporates unique values fostering customer-centricity

Company-wide cultural transformation program to embrace innovation

Online unit reinforced a start-up culture of flexibility, empowerment, innovation, and quick decision-making

GDF established a unique culture, which embraces the spirit of change and innovation

Updated processes to enable employees to balance exploitation and exploration individually

Micro-enterprises (MEs) are integrated into top management, but have independent decision-making authority and are largely self-managed

Distinct incentive structure

Each ME is compensated based on the team’s performance

MEs allocate resources independently but are integrated into global sourcing to achieve economies of scale

Replaced linear structure and set up platforms of incubated entrepreneurs (MEs) that enable employees to balance exploitation and exploration

Ensures MEs’ growth is consistent with common corporate values

Updated common culture encouraging employees to become entrepreneurs