Agile as an enabler towards innovation-based organisational transformations

Background: Organisations must respond quickly and consistently to ongoing global shifts. This streak separates remaining competitive from losing market share. Globalisation has accounted for the majority of this transformation, which has been reinforced by rapid digital transformation. Industry experts and researchers are continually studying effective remedies to this worldwide transition as part of their response to this drive. This is required because the world is changing unavoidably, and effective responses to the change should be investigated. Objectives: To study the relationship between Agile and innovation, and how this relationship might facilitate organisations’ reaction to global changes, in response to the battle of how to adapt to global transformations successfully. Method: A systematic literature review analysing 1645 peer-reviewed journals through the use of social network analysis. Results: The terms ‘Agile,’ ‘digital transformation’, ‘design thinking’, ‘agility’, ‘innovation management’, ‘lean’, ‘Industry 4.0’, ‘Agile development’ and ‘digital innovation’ have the strongest links to ‘innovation’. This demonstrates how innovation is reliant on Agile and its characteristics. Furthermore, the computed data clusters from the analysed dataset led to five propositions: (1) Agility sustains innovation strategies (P1). (2) Collaborating Agile methodology with digital innovation leads to competitive advantage (P2). (3) Agile development accelerates or facilitates new business models, such as Industry 4.0 (P3). (4) Design thinking creates value in innovation management or development of new product (P4). Lastly, (5) the concept or theory of lean Agile management (P5). Conclusion: The correlation between Agile and innovation is critical for effective responses to global digital transformations that are ongoing.