L. R. Donnelly & Sons: The Digital Division
L. R. Donnelley & Sons was battling with an ad-hoc technology development process. When this process needed to be changed and new technology development process needed to be brought in. Ur. R. Donnelley & Daughters with 6% share with the $80 billion print companies are certainly industry leader. But the level of competition was growing rapidly as well.
The printing market was going online and electronic while using online companies and software applications were producing four color images available electronically. Small printing firms were also building alliances with firms that had high-capacity networks pertaining to transmitting data files. Despite digital division becoming a good idea, it had been essentially outside their main business. Every divisions realized the potential of technology but would not know enough about the financial markets and had been scared of unproven technology.
The most important issue experienced by the Digital Division was whether they will be accepted or not by other divisions in the corporation itself. The business knew that digital technology was the future. And the company has to improve on require printing and delivery promptly as well. But the problem was convincing the other categories. They could hardly do it with the arguments or with the bonuses they offered.
The solution would be to accept the advantages of the technology by the CEO, john Walt not as another type of division. This can be done so the fact that profitability as well as the existence of other sections are not affected. It should benefit the organization quite a bit less a separate split. All the divisions in the business must communicate as one to contribute to the company goals and growth.