Headquarters of the Future

The Impact of Digitalization on Headquarters Structures and Value Added

Phillip C. Nell, Jan Schmitt, Vladimir Preveden, Leo Hauska

Research output: Book/ReportReportResearch

Abstract

In this report, we investigate how the digital transformation impacts headquarters (HQs). Drawing on 85 survey responses from corporate and divisional HQ managers in Austria, we find that the digital transformation is expected to fundamentally change the HQ of the future in terms of how the HQ will derive decisions, how it will interact with its subunits, and how the HQ will add value to the firm. The majority of firms see the digital transformation primarily as an opportunity to increase the value-added that the HQ generates for its subunits as opposed to increased cost efficiency. Additionally, the responding HQ managers foresee a much more influential role of HQs vis-à-vis its subunits, based on better and more timely information, as well as more room for strategic thinking. Finally, our results suggest that many firms need to put more effort into digitalizing their HQ. Only 26% of the responding firms seem to have developed a clear idea what the digital transformation means for their HQ. These advanced firms see the highest potential in digitalizing the HQ. To this end, the biggest barrier to stepping up the digital transformation of the HQ seems to be the lack of digital talent.
Original languageEnglish
Place of PublicationVienna
PublisherWirtschafts Universität Wien (WU)
Number of pages14
Publication statusPublished - 2019
Externally publishedYes
SeriesStudy Report. Institute for International Business. Vienna University of Economics and Business (WU)

Cite this

Nell, P. C., Schmitt, J., Preveden, V., & Hauska, L. (2019). Headquarters of the Future: The Impact of Digitalization on Headquarters Structures and Value Added. Vienna: Wirtschafts Universität Wien (WU). Study Report. Institute for International Business. Vienna University of Economics and Business (WU)
Nell, Phillip C. ; Schmitt, Jan ; Preveden, Vladimir ; Hauska, Leo. / Headquarters of the Future : The Impact of Digitalization on Headquarters Structures and Value Added. Vienna : Wirtschafts Universität Wien (WU), 2019. 14 p. (Study Report. Institute for International Business. Vienna University of Economics and Business (WU)).
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Nell, PC, Schmitt, J, Preveden, V & Hauska, L 2019, Headquarters of the Future: The Impact of Digitalization on Headquarters Structures and Value Added. Study Report. Institute for International Business. Vienna University of Economics and Business (WU), Wirtschafts Universität Wien (WU), Vienna.

Headquarters of the Future : The Impact of Digitalization on Headquarters Structures and Value Added. / Nell, Phillip C.; Schmitt, Jan; Preveden, Vladimir; Hauska, Leo.

Vienna : Wirtschafts Universität Wien (WU), 2019. 14 p. (Study Report. Institute for International Business. Vienna University of Economics and Business (WU)).

Research output: Book/ReportReportResearch

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Nell PC, Schmitt J, Preveden V, Hauska L. Headquarters of the Future: The Impact of Digitalization on Headquarters Structures and Value Added. Vienna: Wirtschafts Universität Wien (WU), 2019. 14 p. (Study Report. Institute for International Business. Vienna University of Economics and Business (WU)).