Olli Hyyppä – Time for transformation
Is there a relationship between the current chip shortage and an organizational transformation? During CIO Inspire, Olli Hyyppä zooms in on both phenomena, apparently unrelated.
Organizational transformation is increasingly high on the agenda of the NXP-CIO. According to Hyyppä, a shift is needed from a business that was based on functional lines to a process organization, where data flows end-to-end through the value chains. This likely requires a fundamentally different structure and may also place different demands on leadership.
In addition, Olli Hyyppä questions the way of working. The question is to what extent elements of a more iterative working method can be applied within this process? Could MVP thinking be taken to another level? With traditional semiconductors this type of iterative process is not possible, but with more and more important software and services already in use.
Moreover, according to Hyyppä, the two transformational issues are related: the first is about the organizational model, the second is the way of working within it. In his view, these revolutions may become more important than, for example, the application or implementation of technological gadgets. That usually follows naturally.
The NXP-CIO focuses on both core digitization and digital growth. But that does not mean that the core of NXP is already optimally digital. This mainly depends on a challenge related to competences and human resources. The factory is running, but is not yet fully smart, connected and optimally user-friendly. In addition, NXP has to deal with a changed business playing field. Before corona, the supply chain in the automotive industry was mainly based on ‘lean inventories’. Due to the current chip shortage, car brands now want to have sufficient stock to avoid this type of situations. This could results in big supply chain changes in ecosystem level with financial, logistics, production technology and organization impacts.