Embedding the Innovativeness Process into the OrganizationalStructure of Small Service Software Enterprisses

The success of a small IT service oriented enterprise originating advanced software products/services often depends on innovations it brings to market. To continuously offer new services with added value, it is essential that employees put forward innovation proposals and work on innovation components on their tasks. Therefore, it is necessary to set an organizational structure and internal processes in such a way that the enterprise provides a creative and stimulating environment for generating inventions. This paper presents the network-hierarchical organizational structure together with its mathematical model as a dynamic approach for embedding innovativeness into an organization. The network-hierarchical structure combines a hierarchy of work breakdown structure together with team members' network. It is changing through time according to given context. The network-hierarchical structure is supported by five process criteria as follows: free access to tasks, leader is the most appropriate in given context, sharing information, learning ability, and evaluation of contribution. The approach is based on a case study of an SME, a spin-off of Masaryk University in Czech Republic with such structure implemented.