This study examines the impact of the Internet on the organizational innovation. With the introduction of digital technology, the entire organizational process and structure is now being restructured. The purpose of this study is to develop a framework to help classify the organizational innovations and understand organizational innovation processes. This study suggests that the wide diffusion of digital technology has affected the modularization of the organizational routines and processes. The modularization of knowledge and organization give rise to a new organizational architecture, a modular architecture. In the Fordist regime, the characteristics of organizations were depicted as vertically integrated and tightly coupled system. The organizational processes and routines were tightly linked and integrated. However, the diffusion of Internet, which has a tendency to disassemble this tightly coupled system, has resulted in the emergence of loosely coupled and vertically disintegrated system. Eventually the modular architectures are emerging as a new organizational paradigm in the post-Fordist regime. In this study, the modes of organizational innovation is classified as follows. If the organizational innovation enhances both existing organizational components and tile tightly coupled architecture, it is incremental innovation (Mode 1): if it destroys both existing components and the tightly coupled architecture, it is radical innovation (Mode 4): however if only the tightly coupled architecture is transformed into the modular architecture and the codification of organizational component is enhanced, the innovation is architectural (Mode 3). The last one is component innovation (Mode 2), in which existing organizational components are destroyed but tightly coupled architecture is enhanced. It is argued that the organizational innovation process follows Mode I$longrightarrow$ Mode II $longrightarrow$ Mode III $longrightarrow$ Mode IV in order.