Portfolio management of Internet of Things (IoT) digital transformation initiatives requires technical diversity of product and services. Diversification of top management teams (TMT) supporting capabilities is critical to driving project success with the innovation complexities of emerging digital outcomes. Recent findings suggests family members TMT involvement can have constraining impact on performance, particularly to exploratory IoT innovation (Ceipek. et al., 2020). The benefits of family management are found more with exploitation of IoT opportunities. Ceipek (2020) suggests firms mitigate with incentives and find controlling mechanism such as the appointment of a Chief Digital Officer (CDO) to help with offsetting the limiting traits "focus on family‐centered noneconomic goals, long tenure, emotional ties to existing assets, and rigid mental models", are contrary to an innovative exploratory mindset and strategic approach. The TMT diversity with CDO leadership can help guide both the exploratory and exploitative strategy of the firm's current technology base. Driving digital transformation that strikes the right portfolio management measured balance amidst IoT innovative technical disruptive complexities (Anderson, et. al, 2020).
Anderson, A., Jurgens-Kowal, T., Atherton, S., Verhaeghe, J.J., Rodriguez, C., & Fix, J. (2020). Product Development and Management Body of Knowledge: A Guidebook for Training and Certification, Second Edition. Product Development & Management Association. https://www.amazon.com/Product-Development-Management-Body-Knowledge/dp/0578713713
Ceipek, R., Hautz, J., De Massis, A., Matzler, K., & Ardito, L. (2020). Digital Transformation Through Exploratory and Exploitative Internet of Things Innovations: The Impact of Family Management and Technological Diversification. Journal of Product Innovation Management. DOI:10.1111/jpim.12551
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