What Governance Approach Did John Deere Appear To Have Adopt

1 What Governance Approach Did John Deere Appear To Have Adopted Did

What governance approach did John Deere appear to have adopted? Did it fit the profile of an “old” heavy industry player? What difficulties do you think an “old” heavy industry player such as John Deere encountered internally when proposing to develop the MyJohnDeere platform? What difficulties do you believe John Deere faced externally among the proposed users? How do you think John Deere might have overcome those internal and external difficulties?

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John Deere, founded in 1837, has long been emblematic of traditional heavy industry, primarily manufacturing agricultural machinery. In recent years, the company transitioned towards a more digitally integrated governance approach to remain competitive within the rapidly evolving agri-tech landscape. The governance model adopted by John Deere was characterized by a strategic shift towards a platform-based, open innovation framework, emphasizing digital transformation and data-centric decision-making. This approach aligns with what is often referred to as a "digital ecosystem governance" model, which facilitates stakeholder collaboration, fosters innovation, and allows for agile responses to technological advancements (Koskinen & Vanharanta, 2020). Compared to its historical governance strategy—focused on hierarchical control and engineering-centric operations—this represents a significant paradigm shift, positioning John Deere closer to modern digitally driven corporations that embrace collaborative and participative governance structures.

As an established heavy industry corporation, John Deere's traditional governance profile was based on centralized decision-making, a focus on manufacturing efficiency, and control over proprietary processes and technologies. Transitioning to a digital platform like MyJohnDeere posed considerable internal challenges. First, there was likely resistance from within the organization rooted in entrenched hierarchical structures and risk-averse mindsets. Employees and managers accustomed to engineering-centric processes and control over data might have viewed the openness and data-sharing aspects of the platform with skepticism or concern over security and intellectual property (Burgess & Nembhard, 2021). Additionally, integrating new digital governance models required significant organizational change management efforts, including training, redefining roles, and shifting corporate culture towards innovation and openness.

Externally, John Deere faced several difficulties among its proposed users—farmers and other stakeholders. Farmers, traditionally wary of adopting new technologies, might have been hesitant to trust the digital platform due to concerns about data privacy, security, and ownership. The complexity of integrating the platform into existing farm management practices could have hampered user adoption. Furthermore, there was likely resistance from competitors and partners who might have viewed Deere's move into open digital governance as threatening to their own market share or proprietary innovations (Jensen & Spicer, 2014). Trust issues, perceived loss of control over farm data, and fears of becoming overly dependent on Deere's ecosystem could have also impeded customer acceptance.

To overcome these internal and external difficulties, John Deere could have adopted several strategies. Internally, fostering a culture that embraces innovation and data sharing through leadership commitment, transparent communication, and incentivization would be vital. Implementing comprehensive change management processes, including training programs and pilot projects, could smooth organizational transitions. Externally, building trust with users by establishing transparent data policies, offering robust data security measures, and demonstrating tangible benefits of platform adoption would help alleviate user concerns. Co-creating features with end-users to ensure the platform aligns with their needs could also enhance user acceptance. Moreover, strategic partnerships with technology providers and advocacy for open standards could help integrate Deere's platform within broader industry ecosystems, making adoption more seamless and trustworthy.

In conclusion, John Deere’s adoption of a digital, platform-based governance model marks a significant departure from its traditional hierarchical control strategies typical of old heavy industry firms. Despite internal resistance stemming from organizational culture and structural inertia, and external user hesitations related to trust and usability, the company could successfully navigate these challenges by fostering innovation-friendly culture internally and building user trust externally. Such a transition exemplifies how legacy industrial giants can evolve their governance approaches to thrive in the digital age, leveraging collaboration, transparency, and strategic change management.

References

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