Thursday, October 4, 2018

Three Critical Underpinning for Running a Digital Organization

The purpose of the radical digital transformation is to make a significant difference in the overall levels of business performance and organizational maturity.

Organizations today are hyperconnected with their business ecosystem because today, the geographical, functional, business or even industrial borders are blurring. Digitalization is not just about the single dimensional technology upgrading, it has to expands to almost every dimension of the business. At the high maturity level, companies need to embed digital into the very fabric of the business and explore digital transformation in a structural way. Here are three critical underpinnings for running a digital organization.

Tuning the organizational structure:
Digital is about information flow, idea flow, and therefore business flow. The goal of digital organizational structure tuning is to strike the delicate balance between solid and flow. Organizational structure underpins business capability and capacity. Limited hierarchy works best in a creative environment where the free flow of ideas and their prompt implementation is a key element of success. With the increasing pace of changes, flatter structure will help to speed up organizational response to changing markets. Hyperconnectivity is the nature of the digital organization. The goal for the optimized organizational design is to get the mass collaboration and collective innovation through less hierarchy. It further helps to improve business quality, reliability, and productivity. The organizations also build institutional platforms across the digital ecosystem for evolving customers, partners and building business relationships. Sustaining long-term collaboration allows participants to co-develop subject knowledge over time and focuses more directly on implementing strategic business goals and enable innovation and transformation.

Information Technology management: An evolving digital IT is a lever to move the business forward. Information & Technology and its associated methodologies and practices are parts of that leverage mechanism to implement digital strategies. Information Mangement underpins the decision-making capability of the organization. Information comes from the analysis of fast-growing data, technology allows for the capture, manipulation, and presentation of information. Information Systems are the backbone and provide invaluable information for key decision-making and catching business insight. IT is in a unique position to oversee the underlying processes and functions, Information Technology underpins digital capability; it helps to integrate all important business elements into business competency. Thus, IT leaders need to rise above the status quo, gain the leadership visibility and take on a new set of activities that have them involved in the strategy development process and become the strategic partner of the business.

Systems Thinking provides insight into emergent issues and interconnectivity of the business: And organizations arise when the scale of the interrelations, interactions, or interrelational interactions surpasses our brain's capacity to be able to do whatever it does with smaller scales. Systems Thinking is to understand how the “part” is interconnected with the”whole”; as well as provides an insight into the emergent inherent properties - both the positive emergent issues required and the negative emergent issues that come about. Systems Thinking helps to frame the right problems and provides a structured process and takes consideration of the range of options. Systems Thinking provides much more than the "scope" of the problem, although that is a large part of it. The application of systemic methods which are applied in a structured and systematic process allows a more complete and holistic approach to be taken. The main emphasis is on doing better pre-work, such as defining the situation and the "success criteria," take consideration of the range of options, rather than the traditional "jump to solution" problem-solving method. Thus, Systems Thinking underpins the business’s problem-solving capability.

Digital transformation isn’t just an extension of continuous improvement of the current business, but a quantum leap with radical change. Practicing these critical underpinning will continue improving business competency and amplifying the digital effect. The purpose of the radical digitalization is to make a significant difference in the overall levels of business performance and organizational maturity.


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