Ambidexterity

A lot of research has been done regarding organizational ambidexterity. The word ambidexterity originally means the ability to use both the left and right hand equally well. In organizational research it refers to organizations that are equally good at managing their existing business, as well as taking advantage of new opportunities that come their way. Put differently, this means that it is an organization that is able to operate the business over both the short and long term. Developing ambidexterity is essential for traditional companies who want to complete a digital transformation in order to optimize the business of today and combine it with that of tomorrow. There are two kinds of ambidexterity:

Structural ambidexterity (not to be confused with structural innovation), in which certain structures that are responsible for a longer perspective are created (in this case, digitalization) and in this kind of structure the employees will be focused on innovation and the future. The benefit of structural ambidexterity is that it is much easier to focus on one thing at a time and it is also easier to build up a culture and competence directly intended for the purpose. The disadvantage could be that developments within the separate part of the organization are not implemented by the existing operation, possibly due to competition between different parts of the organization.
Contextual ambidexterity is when employees in their work roles consider both long and short term plans. Advantages and disadvantages are the opposite of structural ambidexterity. It is much easier to implement new ideas and opportunities in the existing operation since it consists of the same people, but demands on the employees are higher as they have to be able to handle both administration and a short term perspective, as well as innovation and a long term perspective.

Both types of ambidexterity can also be combined, and this has been done successfully and is currently taking place at companies such as Google (Alphabet), Schibsted and IBM.