Organizational Design for Distributed Innovation

by Carliss Baldwin 

In this paper, Carliss says that business ecosystems have become increasingly prevalent in many industries. These ecosystems encompass numerous corporations, individuals, and communities that are autonomous but related through their connection with an underlying, evolving technical system. In the future, Carliss believes the key problem for organization design will be the management of distributed innovation. Organization designers must think about how to distribute property rights, people, and activities across numerous self-governing enterprises in ways that are advantageous for the group as well as each player.  Software architecture design (i.e. the use of modular components, web services, abstraction layers, platforms, and APIs) will play a key role.

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