Monday, March 25, 2019

The Monthly Organizational Structure Tuning: Designing Digital Organization with Changeability Mar. 2019

Digital makes a significant impact on every aspect of the business from people, process to technology, both horizontally and vertically. Digital becomes the very fabric of high performing business, being outside-in and customer-centric is the new mantra for forward-looking and high mature digital organizations today. From an organizational structure perspective, how can you fine-tune the digital dimensions of your organizational development to harness innovation?


Designing Digital Organization with Changeability


Digital Organizational Design vs. Business Changeability The very characteristics of digital are the increasing speed of change and hyper-connectivity. Digital makes a significant impact on every aspect of the business both horizontally and vertically. Forward-looking organizations leverage the latest technologies to fine tune the organizational structure and improve the business changeability. Organization design is the vehicle through which the business strategy is executed and defines the business environment in which the digital organization can reduce the organizational culture friction, improve the business changeability, maturity, and unleash its full potential.

Heralding an Ecological Digital Organization Digitalization makes a profound impact from a specific function to the business as a whole, building an organization of the future is not too far away. Digital organizations are hyperconnected and interdependent. They need to have an in-depth understanding of gains and pains of organizational design and development. They should also renew themselves periodically to cope with the change effectively to the best of their ability. Heralding an ecological digital organization need to emphasize participation, relationships, communication, and collaboration and unlock business performance and potential continually.

Tuning Organizational Structure to Improve Digital Ready-ness? Organizations across the vertical sectors and geographical boundaries are on the journey of digital transformation. New generations of digital technologies such as digital collaboration platforms and tools are enabling not only the structured processes of the past but also the unstructured processes of the digital enterprise. The future of digital organizations would be complex enough to act intelligently and nimble enough to adapt to the change promptly.

Tuning Organizational Structure from Hierarchy to Circular for Achieving Fluidity, Flexibility, and Fit With the increasing pace of changes, hyper-connectivity, and interdependence, organizations across vertical sectors are at the turning point, take the multidimensional approach to make the digital paradigm shift. From the organizational structure perspective, the overly rigid pyramidical organizational structure forms communication gaps, encourages silo mentality, creates the performance bottleneck, also decelerate business speed. Therefore, fine-tuning underlying business structure and processes is a critical step for improving digital business fluidity, flexibility, and overall digital fit.

Fine-Tune Organization Structure to Get Digital Ready Due to the “VUCA” nature of digitalization, the business complexity is unavoidable. Organizations that are skilled at managing complexity can gain advantages by pushing the boundaries of a more complicated business mix that provides opportunities to create inter-business value. From an organizational structure perspective, how to fine tune the digital dimensions of your organizational structure development to get digital ready?

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