Innovation and Its Role in Management

The chapter presents the concept of innovation and the evolution of this term in the sciences of organization and management. Innovation is a particularly important element of modern management as it contributes to creating value for the company and strengthening its market position. Regardless of the industry, every modern organization should be open to new developments; it is an expectation expressed by the recipients of products and services. The market needs to improve existing solutions and develop new products on an annual basis. Innovation is defined as the process of translating an idea or invention into a good or service that creates value for which customers will pay. By observing the actions of the most powerful organizations, it can be observed that novelties form an integral part of their business activity models. Every two years, Microsoft presents to its customers an updated version of their popular operating system, fashion houses design new clothing collections for specific dates, and Disney regularly introduces new blockbusters for the next generations of viewers. Regardless of whether an organization is global or local, the need for innovation is becoming increasingly commonplace.

The Network Organization as the Development Path for Modern Organizations

The first chapter addresses the phenomenon and concept of a network organization. It is a form that is more and more present in today's digital world. It does not solely concern typical network, virtual organizations that are established and operate only on the internet. We ever more frequently see organizations that go beyond their own traditional organizational structures. They are often interdisciplinary and cover a wide range of seemingly different areas of life and economy. Network organizations are particularly common where knowledge and innovation are created; therefore, they are extremely popular when research and development (R&D) and scientific projects are implemented. How widespread network structures are in the life of today's organizations will be established by means of the survey results that will be described in this chapter and in the further part of this monograph.

Decision-Making Systems in Traditional and Network Organizations

Decision-making processes taking place in increasingly complex traditional and network organizations require the use of modern decision support systems. As a result of these solutions, decisions are made to support the development of the organization, its modernization, and thereby lead to increased competitiveness. The subject of the analysis of decision-making systems in organizations has been explored in a number of publications. This chapter addresses selected problems concerning the design and functioning of the decision-making system in traditional and network organizations. Particular attention was paid to the analysis of the decision-making process and the tools used to support this process. The results of research on evaluation of available solutions, especially in the field of information technology, in decision-making processes in network organizations were also presented.

Network Organization as a Result of the Strategy of Forming Global Organizations

In this chapter, the authors assume that if an organization implements a development strategy supported by the information communication technology (ICT) progress, its organizational structures are transformed. The implementation of such a strategy leads to the transformation of local organizations into global ones. Organizational structures, forming part of the infrastructure for the implemented strategy, change. As a consequence, the transition from hierarchical structures to network structures takes place. The transformation results in the rise of global organizations.

Communication in Traditional and Network Organizations

In this chapter, the authors compare communication systems of network and traditional (hierarchical) organizations. They will also examine the factors that affect smooth functioning of modern communication systems. They are particularly interested in the role of ICT as a determinant of the operation of such systems. Communication systems of organizations depend on many factors. The crucial ones are the purposes that these systems are to serve and the resources allocated to them. Communication systems are analyzed in numerous works of literature on organization and management sciences. Those interested in these issues can be recommended to read the multi-volume Encyclopedia of Information Technology and Communication edited by M. Khosrow-Pour (2017). In order to present communication in organization management, the authors will employ a model approach that outlines managerial communication in a simplified way. The selection of analyzed sources is anchored in the study of literature and research reports as well as in their own experience as designers and researchers. The authors also point out that the issues highlighted in this chapter are elaborated on in other parts of this monograph.

Technical Infrastructure of Network Organizations

IT management infrastructure is developing hand in hand with modern information communication technologies (ICT). As with every revolution in the history of mankind, what we call the digital revolution is reflected in virtually every aspect of human life. The digital revolution has covered management to a large extent. This influence is evident both in the take-over of certain areas of organization management by IT systems (e.g., production automation) and through changes in organizations themselves and their organizational structures. Classical organizations, structured in a hierarchical fashion, follow a unique path of evolution. It began in the mid-twentieth century. What could be observed in the 1960s was the transformation of classical linear organizational relationships into matrix structures intended to streamline management and facilitate project management. The matrix structure was a breach of the classical Fayolian principle of unity of command, yet it was more flexible and conducive to cooperation compared to a traditional linear organization, thus marking the first step towards crossing borders. Nowadays, in a world where crossing organizational boundaries is becoming a management paradigm, we can more and more often see organizations of a typically network nature.