Wednesday, March 6, 2019

Digital Interconnectivity - Focusing on Relationships between Things rather than Characteristics of Things

Digital transformation is not a stand-alone initiative, but a continuous journey of adapting to the digital new normal in the dynamic and hyperconnected business world.

With rapid change, continuous disruptions, hyperconnected and always on business new normal, the emergence of potential opportunities for exploring digital transformation is likely to follow a nonlinear pattern as the pervasiveness of an organization's digital journey increases. Everything nowadays is interconnected and the business ecosystem becomes more interdependent and dynamic than ever. It means businesses today have a better chance for dots connection across the geographical, functional, organizational, industrial, or generational boundaries. Therefore, it’s important to leverage Systems Thinking, focusing on relationships between things rather than characteristics of things, in order to catalyze innovation and solve problems effectively.

Taking a holistic look at the variety of business relationships and interconnectivity: The digital era upon us is full of uncertainty, velocity, complexity, and ambiguity. It becomes complex if things do interact, particularly in the case of "non-linear" interaction and interdependent relationship. The business system is complex and the organization is contextual. Without the contextual understanding of people, process, and technology, the blind spots and gaps are inevitable. Today’s organizations are at a crossroads where the segregation or silo of business functions are at a need to reach across the aisles and respectively work with each other to achieve common goals. Modern digital organizations are not just the sum of functional pieces, but an integral whole. Thus, organizational leaders need to take a holistic look at the variety of business relationships and interconnectivity, enforce cross-functional communication and collaboration, in order to maximize the company's performance and achieve customers’ expectation.

The digital business ecosystem is holistic and interdependent:
The hyper-connected business ecosystem can create insight and take advantage of all sources of creativity in a more open way. To keep the hyper connectivity nature of the business, the challenge for today’s organizations is to manage its portfolio of relevant cross-border strategic synergies and organizational interdependence with the appropriate mix of enabling organizational elements and maintain the right level of digital balance. The beauty of digital is its freshness as the hyperconnected digital organizations always seek fresh ideas and explore the new opportunities beyond their own company, treat customers, channel partners, suppliers, and varying industry ecosystem participants as active digital agents who can brainstorm and share thoughts and ideas regardless of their physical location. Instead of being rigidly grouped around a specific function or business, digital ecosystems draw together mutually supportive companies from multiple industries that collectively seek to create differentiated ideas and capture value they could not reach alone, enforce collaboration and communities over competitions. The aspect which matters is ensuring that the enterprise is connected to all the appropriate eco-system, lattice or otherwise, touch points, for improving idea flows, knowledge flow, and catalyzing digital innovation as well as digital transformation.


Digital management is holistic and nonlinear: It means that there is a radical shift from a silo and linear classic management style to a holistic and nonlinear digital management discipline. Applying interdisciplinary management to gain an understanding of nonlinearity as the very characteristic of the digital organization and business ecosystem could be at the tipping point for the digital paradigm shift. The collaborative inter-dependent organizations can reach a higher state of business maturity by an in-depth understanding of a few important things that will be important in interdisciplinary management. First, it is gaining the knowledge necessary to understand and manage holistic digital ecosystems. Secondly, focusing on relationships between things rather than the characteristics of things. Thirdly, it is to understand how the people factor affects the business system, and then, manage the complex system and the people of the complex system as the organic living thing. The digital organization as a whole has to function more holistically and coherently in order to achieve high-performance business results.

Digital transformation is not a stand-alone initiative, but a continuous journey of adapting to the digital new normal in the dynamic and hyperconnected business world. Digital organizations are complex because of hyperconnectivity, velocity, and interdependence, you can’t separate things properly and you can’t predict the actual effect of interactions straightforwardly. To gain an in-depth understanding of digital transformation, it is important to apply System Thinking to view the digital organization as an interconnected and interdependent whole; focus on relationships between things rather than characteristics of things, and follow systems principles for solving problems in a structural way and lead changes systematically.

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