Digital organizations have to adapt to the continuous changes and business dynamic in striving as a digital master.
Digital makes a significant impact on every aspect of the business from people, process to technology, both horizontally and vertically. Digital becomes the very fabric of high performing business, being outside-in and customer-centric is the new mantra for forward-looking and high mature digital organizations today. From an organizational structure perspective, how can you fine-tune the digital dimensions of your organizational development to harness innovation?
Tuning an Adaptive Organization
Design for Adaptability Digital means fast-paced changes, continuous disruptions, overwhelming growth of information, and shortened business life cycle. Companies need to have an in-depth understanding of organizational design and development to improve business maturity. Compared to the traditional organizations with an overly rigid hierarchy or strictly pyramidal structure, digital organizations today are flatter, hybrid and more responsive to changes. Organizational adaptation is the ability to be highly responsive to the fast-changing business environment. High mature companies are designed for change and designed for innovating.
Three Perspectives of Debureaucratization The root of the word "bureaucracy" is: bureau(fr) = desk and kratos(gr) = rules/ power. The larger the organization and inputs, the larger the amount of 'rules' necessary for its function and to keep dependent variables and outputs delivery stable. However, too many rules will stifle innovation, outdated rules will stop the business from moving forward with accelerated speed. And the overly restricted hierarchy will cause silo, discourage cross-functional communication and collaboration. Hence, dismantling bureaucratization is inevitable because of the ever-increasing speed of changes and expanding interdependence.
Tuning a Flexible Digital Organization Compared to the traditional organizations with an overly rigid hierarchy or strictly pyramidal structure, digital organizations today are flatter, hybrid (the mix of the physical building and virtual team setting) and more adaptable to changes. These companies are becoming more flexible, able to navigate changes and the complexity of the present business world via creative problem-solving and innovative management practices.
Digital Organizational Design vs. Business Changeability The very characteristics of digital are the increasing speed of change and hyper-connectivity. Digital makes a significant impact on every aspect of the business both horizontally and vertically. Forward-looking organizations leverage the latest technologies to fine tune the organizational structure and improve the business changeability. Organization design is the vehicle through which the business strategy is executed and defines the business environment in which the digital organization can reduce the organizational culture friction, improve the business changeability, maturity, and unleash its full potential.
Building a Self-adaptive Digital Organization Digital means flow; digital organizations have to adapt to the continuous changes and business dynamic in striving as a digital master. Within system engineering, self-adaptive concepts are applied in order to control system risks that evolve due to dynamics and variation. The self-adaptive system is a system able to re-configure its own structure and change its own behavior during the execution of its adaptation to environmental changes.
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