The ultramodern digital organization is open to changes, informative to act, creative to design, flexible to take alternative paths, nimble to adapt, intelligent to decide, elastic to scale, and resilient to recover.
Digital transformation is inevitable. It’s worth its weight not because of its high cost, but because of its high impact on the business’s long-term prosperity. It represents the next stage of organizational maturity which will improve how the enterprise works and interacts with its ecosystem, achieve high performance and unlock business potential. Digital organizations are hyperconnected, interdependent, always-on and people-centric. Here are some characteristics of the ultra-modern digital organization.
Dynamism: If traditional organizations in the industrial age are like the closed mechanic system with an overly rigid hierarchy and considerably static relationships; then, digital organizations are more like the dynamic organic systems which spontaneously self-organize and self-renew, generate patterns, structures, business activities, and above all, create novelty over time. The business management style also shifts from command and control, “hard force” driven to more fluid and responsive network forms with some “soft touch.” In fact, the digital dynamism consists in being able to break away from static or stale, and being able to keep information and idea flow across the functional and even organizational boundaries for catalyzing changes and sparking innovation. More precisely, dynamic digital organizations have to be solid enough to keep business spinning and fluid enough to keep things flow and make proactive changes within the expanded digital ecosystem. In order to run a real-time and dynamic digital organization, strategy management needs to be dynamic, planning-implementation are no longer linear steps, but an iterative business continuum; keep iterating, evolving, learning, and working on a rhythm of sustained products or services deliveries.
Premium: Achieving digital premium of the business means different characteristics such as effectiveness, innovativeness, agility, intelligence, and people-centricity, etc. A digital organization starts with a transcendent purpose that leads to a unique natural design, a design most fits to achieve the purpose of businesses and reach the premium state of organizational maturity. Business needs to understand stakeholders’ expectations and propose a balanced service & solution portfolio that corresponds to both demand and cost drivers with a focus on business priority and deliver premium solutions to tailor customers' need. To reach a high level of business maturity, the challenge of any company across the industrial sector is to design a successful organizational structure that helps to empower people, enforce iterative communication, foster cross-functional collaboration, prepare people for adapting to the digital new normal, improving increasingly collective consciousness, building changeability, and achieving premium business performance.
Holism: Digital organization is like the switch connected to the dynamic, nonlinear, and interdependent business ecosystem. To function smoothly, the business has to be linked to many and varying touch points between itself and the marketplace environment. However, the traditional management approach based on linear logic and inside out approach with static processes are outdated to embrace the emergent properties and solve problems holistically. Digital management discipline is about leveraging nonlinear processes and interconnectivity between problems in a managerial context to improve the overall business maturity. Behind every problem is a relationship dynamic out of alignment, the digital ecosystem is complex and volatile, it's important to leverage holistic and systems thinking to understand the variety of business relationship, identify the real problems and solve them holistically. It’s also important to involve putting all important pieces of information together as well as blending them in such a way that the emergent whole is more than the sum of its parts. From the business design perspective, you have to look at the problem domain holistically to architect and design an adaptive organization to address business and system dynamics and drive digital transformation seamlessly.
Egalitarianism: Digital is the age of people-centricity. Going digital is an evolutionary path of pursuing the next level of organizational maturity and collective human progress via empowerment and democratic meritocracy. While meritocracy is a system in which the talented people are chosen and moved ahead on the basis of their talent or achievement, not based on the class of privilege. High-innovative organizations should understand their talent via the digital lens, encourage creativity, discourage unhealthy competitions, develop an inspiring and engaging culture based on egalitarianism so that employees believe that the organization operates on a real meritocracy basis and everyone has an opportunity to work hard, strengthen their own strength and unleash their potential. Individually, being who you are is the prerequisite for stepping into the right game to fit your strength. From a talent development perspective, identify the multitude of potentialities, such as change potential (learning agility, seeing opportunity in uncertainty), Intellectual potential (thinking thoroughly and making sound judgments) and Motivational potential (adapting personal drive and focus on performing well in new and changing context), and develop a unique set of competencies to get digital ready.
We are on the advancing journey when we move from an industrial economy to a knowledge economy to a creative digital economy. Transformation is a radical change. It’s about "the company or the society reinvented itself." The ultramodern digital organization is not a mirage but built on these solid pillars, be open to changes, informative to act, creative to design, flexible to take alternative paths, nimble to adapt, intelligent to decide, elastic to scale, resilient to recover, with the ultimate goal to accelerate performance and unlock the digital potential.
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