Digital organization is dynamic and complex, the degree of business responsiveness depends on how business subsystems interact with each other, and those interactions can be nonlinear, technical, informational, or human.
Digital organizations generally consist of varying intersecting and interacting systems that can be perceived through different lenses. Systems Thinking can help to create common rationale ground between perspectives, engenders new perspectives or actions as part of the process of creating a cross-discipline, more accurate and structural understanding of the overall situations and problems, focus on things matter, and avoid falling into linear thought traps from time to time.
Focus on the emergence and emergent properties, rather than just static snapshot: Emergence is a characteristic of all complex systems which are not always predictable. The better you understand the interrelationships and interactions of the different parts of the whole, the better you can run a successful business. Digital organizations today are not the "closed system" but the dynamic digital ecosystem which is complex, interrelated, and interconnected, full of opportunities and risks.
To accelerate performance and unlock business potentiality, focus on the emergence and emergent property which means a property that emerges after a system change to create business synergy. It is the worthy investment and hidden dimension to explore a set of emergent properties and then, model the digital system that does or could produce them, make sure the system-of-interest is defined to establish the boundary and the properties that interact with the environment enables the business to achieve the defined goals cohesively. It’s important to take a system approach, light up the digital growth cycles and emerging properties (trends, opportunities) for ensuring that the business as a whole is superior to the sum of pieces.
Focus on the nature of interconnectivity rather than just on isolated entities: A digital enterprise has to be linked to the many and varying touchpoints between itself and its ecosystem environment in which networks or clusters are all about business interactions and relationships. To improve adaptability, organizations today cannot be organized using the outdated or mechanistic paradigm that resulted in bureaucracies. Fore-thoughtful organizations apply systems principles to introduce different concepts of hierarchy, in which systems evolve and interlink to create larger systems, within even larger systems, and so on. These systems of systems can forge or alter a myriad of relationships or alliances and make a seamless ecosystem expansion.
To harness the business interconnectivity and improve business changeability, it will be effective to examine, challenge, and perhaps, even shift the underlying paradigms, breaking down silos, flattening organizational hierarchical layers, and increasing horizontal linkages. They have to correspondingly work with multi-sided forms of demand supported by multi-sided platforms, enable cross-functional communication and collaboration, integrate the critical business components to adopt a more modular, multi-layered, and expanded organization.
Focus on nonlinear rather than just linear cause-effect: Digital organization is complex. It becomes complex if things do interact, particularly in the case of nonlinear processes and interactions. You can't separate things properly or you cannot predict the actual effect of interactions straightforwardly. Because of interconnectivity and the many potential options in a complex system, a small effect in one place can cause a cascade of events that produce a nonlinear big impact. Thus, systematic approaches to problem-solving should be made from a much broader and encompassing view that is not possible with linear thinking.
Digital organization is dynamic and complex, the degree of business responsiveness depends on how business subsystems interact with each other, and those interactions can be nonlinear, technical, informational, or human. It’s not so effective to use linear logic to understand highly complex, nonlinear cause-effect relationship scenarios to solve complex business problems. The predictive “cause and effect” in system dynamics can include nonlinear cause and effect models, and develop nonlinear business problem-solving scenarios.
A new paradigm arises out of new mindsets, updated knowledge, and structural approaches. It is transformational to “step outside” of the business system for having different perspectives to gain an in-depth understanding of the business dynamics, break down silos and be intentional about growth and balance, to improve business performance and maturity.
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