Sunday, April 8, 2018

How to Create Digital Synergy for Running a High Mature Digital Organization

The Digital Masters understand what drives cost and what drives value, they have both vision and passion, capability and capacity entering into the new world of the change and innovation.

Digital organizations are like the living systems that can self-renew in thriving as high-performance businesses. it means to have a thought-out planning, but also take calculated risks and adapt to the emergent changes with speed. Digital businesses and their people learn through their interactions with the environment, to keep knowledge flow as well as business flow. But more specifically, how to create synergy and run a highly responsive and high mature digital organization?

Understand digital cycles and emerging trends: The impact of digital technology is right on- make an impact on how we think, live, and run the business today. This is the dynamic digital world where change is significantly speeding up and business leaders couldn’t predict the future with a high degree of accuracy. Still, for adapting to changes and accelerating speed, it is important to understand digital cycles and emerging trends; by focusing forward, you are able to more accurately judge the coming opportunities and obstacles on the path of digitalization. When jumping into the digital future of “VUCA” new normal –Volatility, Uncertainty, Complexity, and Ambiguity, you need to identify core competencies and critical capabilities as well as where the future will be for the business. Although you can’t predict every turns or curve the business will face, to envision is the focus coming in contact with the natural deployment, grown from the whole envisioning atmosphere, lighting up the context of future trends and the business cycle. The forward-looking view of the organization is to determine what the future needs to look like, what the transformation must look like, how to overcome the roadblocks, close the blind spots, deal with change inertia, valuing employees, seeing them as the human capital instead of head counts or qualified labor force, exploring a vision/mantra reflecting the objectives and soul of the company, and create the digital synergy for running the high-performance business.

Develop the cross-ecosystem innovation clusters: The future of the organization will become more ‘virtual.’ Digital platforms enabled by efficient apps and tools break down functional silos, business silos, and geographical silos, allow people across the business ecosystem to share knowledge and work more collaboratively for solving problems, overcoming common challenges, and emphasize on participation, relationships, communication. The challenge to innovate (both open or closed way) is a problem when the business entities transform into bureaucratic corporations! Therefore, developing the cross-ecosystem innovation clusters enables idea flow, and creates synergy for idea management. There is more flow of creative ideas, the more is happening, the pie gets bigger. Digital hyper-connectivity can foster innovation through broader scope collaboration and create synergy for achieving innovation success. It's important to digitally connect key resources/assets in their vicinity/context to the resource-rich innovation hubs/clusters across the business ecosystem. The smaller players can gain economies of scale through collaboration. The paradigm shifts when these clusters morph into larger entities that have sufficiently large internal resources to develop innovation. Innovations simply benefit from being developed in and subsequently commercialized in a more open ecosystem.

Fine-tune the business structures, processes, and systems: An organization of today or the future needs to be organized in such a way that it is a part of the modern world. To create synergy, unlock performance and unleash digital potential, businesses need to fine-tune their business structure and organizational system concentrated on the cultural system, moral system, social system, material system, functional system and the holistic digital ecosystem, in achieving the next level of agility and maturity. Traditional hierarchical lines will phase out, the straight line business boundary will blur up, a collective of business partners will emerge working collaboratively to set strategy and achieve organizational goals. The ultimate goal of the optimized organizational design is to get the mass collaboration and create business synergy through less hierarchy, cross-functional insight and adopt a highly integrated process designed for the hyperconnected world. Organizations have limited resources, many businesses took a big bite of resource to keep the lights on, only left very little for doing innovation or digitalization. Thus, resource management becomes a bottleneck for running a high-performance business. An effective resource allocation scenario helps to take advantage of resources, optimize cost, set priority, keep the process transparent, and manage a well-rounded digital portfolio effectively and efficiently.

Digitalization stipulates companies work together in a hyper-connected and continuously converging environment that provides structural analysis, and strikes the right balance of collaboration and competition to create synergy for making the paradigm shift. The Digital Masters understand what drives cost and what drives value, and they have both vision and passion, capability and capacity entering into the new world of the change and innovation.


Post a Comment