Thursday, May 9, 2019

Three Aspects of Designing a Viable Digital Organization

If the organization understands itself in relation to its context, it should be able to determine whether it requires designing and changing organizational structure to become viable.

Digital organizations are the complex ecosystem with the blurring line between functions and geographic locations. Going digital is a long journey with all sorts of barriers and pitfalls on the way. You have to strike the right balance between order and chaos, change and stability, innovation and standardization. Viability is one of the very characteristics of the digital organization. You may leverage design thinking to reinvent an organization that can enforce collaboration and harness innovation by creating business synergy, maintaining viability, and making strategic effects.

Design a viable digital organization for adapting to spiral changes facing the organization: The digital transformation is now spreading rapidly to enable organizations of all shapes and sizes to reinvent themselves. The emergence of potential opportunities and risks for exploring digital is likely to follow a nonlinear pattern with exponential speed. There is a pendulum swinging between people and process, engagement and efficiency; organizational process, technology, structure, individual behavior, and collective team activities - all these factors interact in a dynamic. From an organizational structural perspective, the overly rigid organizational hierarchy will stifle changes and decelerate business flow. It’s a worthwhile effort to reimagine the future of business and consider designing the structure model to embrace high business velocity and enable business growth. The highly complex and dynamic organizational system needs to be elaborated in a well-organized effort for adapting to emergent business changes in its own structures, functions, and behaviors. Whether it’s organic or whether there should be a corporate function of organizational design all depends on the nature and culture of the organization, the stage of its business maturity, and the extent of rapid changes around the organization. It is in their own benefit to collaborate and build the horizontal organizational interdependencies to achieve better time to market for business exploration and expansion, accelerate the business speed and achieve high-performance business results.

Design a viable digital organization for enjoying a powerful tailwind to improve business performance and speed: The radical digital brings organizations dynamically into the full spectrum of transforming an organizational mixture of systemic-intensity related matters, business maturity challenges, strategic alignment concerns, organizational structure pathologies across individuals, teams, looser groups, functions, enterprises, and holistic digital ecosystems. Therefore, to effectively respond to the new dynamics, it’s important to ponder about ways for broadening the ecosystems and revenue streams. Companies should leverage design thinking to fine-tune the organizational structure for achieving high-level business responsiveness and innovativeness. New generations of digital technologies such as the social platform or other collaboration tools are enabling not only the structured processes of the past but also the unstructured processes of the digital normality, with the goal to improve business performance and speed. In practice, to incorporate design inside an organization successfully, you should work at different levels, the management has to understand the value to become supportive, digital professionals need to be able to work effectively for improving the organizational maturity from functioning to delight.



Leverage design thinking, strategic planning, and structural methodology to steer the digital transformation: The viable digital businesses are solid enough to give some sort of forms and meaning and open enough to its environment allowing the movement of information, ideas, and people in and out. Due to the “VUCA” digital new normal, today’s business is often operational in crisis and conflict environments. Thus, the organizational structure should be designed to couple with them, influence the emergent properties of the environment and enable emergent changes in its own behavior, function, and structure toward strategic stability preferred by the legitimate processes. Digital favors hybrid solutions. Ideally, the physical organizational structures, relationships, and virtual platforms, and social connections wrap around each other to ensure responsibility, system integration, smooth information flow. employee empowerment, and business responsiveness. A viable digital organization can deliver impressive business outcomes and improve its performance by taking continuous digital practices to improve manageability and develop business competencies.

If the organization understands itself in relation to its context, it should be able to determine whether it requires designing and changing organizational structure to become viable. The highly complex and dynamic business system needs to be elaborated in the design-led management effort. The purpose of organizational design is to intelligently create business systems optimally suited to exploit the environment, improve the business maturity from functioning to firm to delight and ultimately achieve the high-performance business results.

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