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Purpose: The main objective of this paper was to identify and determine the potential of holacracy from the point of view of new product development in the IT industry. Design/methodology/approach: The article contains a literature review on the subject of holacracy and a detailed case study analysis conducted in two IT companies which concerned the new product development process. Also, the article presents research results of a quantitative survey and results of interviews with employees that revealed key attributes of teams working in holacracy. Findings: Research results indicate that companies tend to adapt and adjust holacracy in a unique way to meet their development needs, but such approach requires a specific organizational culture and high-tech resources. Holacracy can enhance NPD process and induce self-development among holacratic development teams, which have a dozen of unique attributes in comparison to traditional teams. Agile development with holacracy is faster and more effective than standard agile development or waterfall approach. Research limitations/implications: The research results presented in the paper were based only on two IT companies which use new approaches to new product development. Therefore, more scientific research should be carried out in the future to discuss this topic further. Practical implications: The author of the article recommends that every company should evaluate its capabilities, organizational culture and technical resources before implementing holacracy. Originality/value: This paper presents and discusses a brand new approach to new product development used by modern IT companies. Holacracy is still considered as a new and innovative approach to managing organizations.
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