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Organizational Structure

In: Managing Industrial Services

Author

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  • Philipp Osterrieder

    (University of St.Gallen)

Abstract

“Structure follows strategy” imposes that it is important to arrange the organization in a way that supports the effective execution of the defined strategy. Against this background, an inappropriate organizational structure is often found to hinder the success of the service business. While there is no general right or wrong concerning specific organizational structures, many manufacturers tend to overcome associated barriers by separating the service business. With regard to the introduction of smart services however, a purely separate structure has to be questioned. In this light, finding the right organizational structure is imperative but highly challenging. Therefore, this chapter introduces not only common barriers and approaches to structuring the service business for physical services but also eight different types of organizational configurations companies might adapt when venturing into smart service provision.

Suggested Citation

  • Philipp Osterrieder, 2021. "Organizational Structure," Management for Professionals, in: Thomas Friedli & Philipp Osterrieder & Moritz Classen (ed.), Managing Industrial Services, edition 1, pages 53-66, Springer.
    • Handle: RePEc:spr:mgmchp:978-3-030-72728-4_5
    DOI: 10.1007/978-3-030-72728-4_5
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