| Title | Organizational model and value creation in enterprise project management under digital transformation: A case study of Huawei |
| Author | GAO Shang; LAI Yuanyuan; ZHOU Jing; NING Yan |
| Abstract | In the era of the digital economy, manufacturing enterprises in China proactively charting a course for transformation and upgrading. Their focus is on developing products with increased sophistication and added value, with the ultimate goal of evolving from conventional product manufacturers to comprehensive integrated system providers. Throughout this process, the operational approach of enterprises is increasingly exhibiting characteristics of “projectification”, placing greater emphasis on being “customer-centric” and possessing the ability to adapt flexibly. Meanwhile, in the wave of digital transformation, enterprise project management is encountering new opportunities. Seizing the opportunity of digital transformation, Huawei has developed the organizational structure for project management that consists of “Elite individuals + Skilled teams + Digital platforms + Ecological partners”. This approach has proven instrumental in driving value creation in enterprise project management, making it necessarily important to delve into the organizational changes within enterprise project management under the context of digital transformation holds significant practical significance.The general principles of organizational change of enterprise management in the context of digital transformation have been frequently explored, but there still lacks a more detailed exploration of the specific type of organizational change characterized by enterprise project management. Meanwhile, the logic of value creation has shifted from the traditional “value extraction” led by core enterprises to an ecosystem-centered “value-sharing” approach. However, current research on organizational change has yet to delve into the core mechanistic issue, namely, how the organizational model of enterprise project management should adapt to the new value propositions and drive the transition from value creation towards value sharing. Consequently, elucidating the relationship between organizational model and value creation under digital transformation is of great significance to the development of enterprise project management.Taking Huawei′s digital project management practices as a case study, the change process of the “project-enterprise-ecosystem” organizational system based on capability reconstruction is hereby analyzed by starting from the complexity challenges in enterprise project management. This change process is primarily characterized by a shift in project management from adhering to standardized processes to achieving autonomously orchestrated modular processes. Organizational project governance transitions from overseeing and controlling to providing services and empowerment through digital platforms. Organizational relationships evolve from contract-based collaborations to ecosystem-based symbiotic relationships. The emphasis is placed on the significant role of digital, platform-based, and ecosystem-based organizational capabilities in enterprise project management. Building upon this foundation, the impact of value creation on the formation of the ecological organizational model is also further analyzed, and the “value proposition - value creation - value sharing” mechanism that aligns with the change of the “project-enterprise-ecosystem” organizational system is outlined.Through a systematic exploration of the organizational model′s capability reconstruction mechanisms and value creation mechanisms in enterprise project management under digital transformation, the research findings are as follows: 1) Fueled by the challenges of complexity and digital technology, enterprise project management is undergoing a capability reconstruction towards a “project-enterprise-ecosystem” organizational system. Its organizational model is evolving into the ecological organizational model based on digital platform. 2) The enterprise project management, motivated by the value propositions of incremental project benefits, intensified organizational service, and ecological partnership cultivation, achieves value sharing through profound transformations in process reengineering, platform-based governance, and cross-boundary collaboration. Specifically, at the project level, organizational changes are manifested in the digitalization of task processes, the modeling of project decision-making, and the modularization of project functions. At the enterprise level, these mechanisms are exemplified through the establishment of cross-level collaboration mechanisms, cross-functional empowerment mechanisms, and networked service mechanisms, while at the ecosystem level, they feature the establishment of technologically-based trust relationships, open-based collaborative relationships and ecologically-based symbiotic relationships.Herein, aiming to fill the research gap caused by the insufficient consideration of organizational model in existing literature on enterprise project management, organizational system change of “project-enterprise-ecosystem” under digital transformation is explored. Furthermore, the value creation mechanism of organizational model in enterprise project management is extracted under digital transformation, bridging the research gap regarding the mechanistic relationship among digital transformation, organizational change for enterprise project management, and value creation. Attempts are also made to provides valuable insights for the practical implementation of organizational model of enterprise project management under digital transformation. |
| Keywords | Digital transformation; Enterprise project management; Organizational model; Value creation |
| Issue | Vol. 39, No. 3, 2025 |
Title
Organizational model and value creation in enterprise project management under digital transformation: A case study of Huawei
Author
GAO Shang; LAI Yuanyuan; ZHOU Jing; NING Yan
Abstract
In the era of the digital economy, manufacturing enterprises in China proactively charting a course for transformation and upgrading. Their focus is on developing products with increased sophistication and added value, with the ultimate goal of evolving from conventional product manufacturers to comprehensive integrated system providers. Throughout this process, the operational approach of enterprises is increasingly exhibiting characteristics of “projectification”, placing greater emphasis on being “customer-centric” and possessing the ability to adapt flexibly. Meanwhile, in the wave of digital transformation, enterprise project management is encountering new opportunities. Seizing the opportunity of digital transformation, Huawei has developed the organizational structure for project management that consists of “Elite individuals + Skilled teams + Digital platforms + Ecological partners”. This approach has proven instrumental in driving value creation in enterprise project management, making it necessarily important to delve into the organizational changes within enterprise project management under the context of digital transformation holds significant practical significance.The general principles of organizational change of enterprise management in the context of digital transformation have been frequently explored, but there still lacks a more detailed exploration of the specific type of organizational change characterized by enterprise project management. Meanwhile, the logic of value creation has shifted from the traditional “value extraction” led by core enterprises to an ecosystem-centered “value-sharing” approach. However, current research on organizational change has yet to delve into the core mechanistic issue, namely, how the organizational model of enterprise project management should adapt to the new value propositions and drive the transition from value creation towards value sharing. Consequently, elucidating the relationship between organizational model and value creation under digital transformation is of great significance to the development of enterprise project management.Taking Huawei′s digital project management practices as a case study, the change process of the “project-enterprise-ecosystem” organizational system based on capability reconstruction is hereby analyzed by starting from the complexity challenges in enterprise project management. This change process is primarily characterized by a shift in project management from adhering to standardized processes to achieving autonomously orchestrated modular processes. Organizational project governance transitions from overseeing and controlling to providing services and empowerment through digital platforms. Organizational relationships evolve from contract-based collaborations to ecosystem-based symbiotic relationships. The emphasis is placed on the significant role of digital, platform-based, and ecosystem-based organizational capabilities in enterprise project management. Building upon this foundation, the impact of value creation on the formation of the ecological organizational model is also further analyzed, and the “value proposition - value creation - value sharing” mechanism that aligns with the change of the “project-enterprise-ecosystem” organizational system is outlined.Through a systematic exploration of the organizational model′s capability reconstruction mechanisms and value creation mechanisms in enterprise project management under digital transformation, the research findings are as follows: 1) Fueled by the challenges of complexity and digital technology, enterprise project management is undergoing a capability reconstruction towards a “project-enterprise-ecosystem” organizational system. Its organizational model is evolving into the ecological organizational model based on digital platform. 2) The enterprise project management, motivated by the value propositions of incremental project benefits, intensified organizational service, and ecological partnership cultivation, achieves value sharing through profound transformations in process reengineering, platform-based governance, and cross-boundary collaboration. Specifically, at the project level, organizational changes are manifested in the digitalization of task processes, the modeling of project decision-making, and the modularization of project functions. At the enterprise level, these mechanisms are exemplified through the establishment of cross-level collaboration mechanisms, cross-functional empowerment mechanisms, and networked service mechanisms, while at the ecosystem level, they feature the establishment of technologically-based trust relationships, open-based collaborative relationships and ecologically-based symbiotic relationships.Herein, aiming to fill the research gap caused by the insufficient consideration of organizational model in existing literature on enterprise project management, organizational system change of “project-enterprise-ecosystem” under digital transformation is explored. Furthermore, the value creation mechanism of organizational model in enterprise project management is extracted under digital transformation, bridging the research gap regarding the mechanistic relationship among digital transformation, organizational change for enterprise project management, and value creation. Attempts are also made to provides valuable insights for the practical implementation of organizational model of enterprise project management under digital transformation.
Keywords
Digital transformation; Enterprise project management; Organizational model; Value creation
Issue
Vol. 39, No. 3, 2025
References