Stand-Alone Business Unit
A separate new unit, with profit-and-loss responsibility, is put in charge of supporting the company’s smart, connected products strategy. The unit aggregates the talent and mobilizes the technology and assets needed to bring such new offerings to market, working with all affected business units. The Bosch Group is one company that has formed such a dedicated unit, Bosch Software Innovations. It enables the company’s product-based business units and external customers to build services for smart, connected products. A new stand-alone unit is free from the constraints of legacy business processes and organizational structures. In some companies, as expertise, infrastructure, and experience grow, leadership may start shifting back to the business units over time. In other cases, stand-alone units may deter, rather than enable, initiatives in the individual business units. Also, knowledge acquired by a stand-alone unit may disseminate more slowly across the firm.