Friday, June 21, 2019

The Monthly Organizational Structure Tuning: Design Digital Organization from System Perspective June 2019

Running a digital organization is to connect the old and new, mix the solid and fluid to enforce digital confluence, foster innovation, and achieve people-centricity. 

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?

Design Digital Organization from System Perspective

Design a Digital Organization from Multiple System Perspectives Running a digital organization is to connect the old and new, mix the solid and fluid to enforce digital confluence, foster innovation, and achieve people-centricity. Organizations generally consist of varying intersecting and interacting systems. But the strictly mechanic business architecture framework perhaps do not know how to address the business and people system dynamic. How to leverage flexibility as a guiding principle to design a highly responsive, self-adaptive and high-performance digital organization from multiple systems perspectives?

Heralding an Ecological Digital Organization Digitalization makes a profound impact from a specific function to the business as a whole, building an organization of the future is not too far away. Digital organizations are hyperconnected and interdependent. They need to have an in-depth understanding of gains and pains of organizational design and development. They should also renew themselves periodically to cope with the change effectively to the best of their ability. Heralding an ecological digital organization need to emphasize participation, relationships, communication, and collaboration and unlock business performance and potential continually.

Is Hierarchy Good or Bad for Systems? As complexity is pushing the boundaries of the thinking and traditional systems, what we do know is "those larger and more complicated systems" do not have the requisite agility to adapt to more complex and adaptive environments. The more nonlinear, interconnected, and interdependent the environment, where uncertainty and emergence become more prevalent, hence accelerated rates of change, the less likely ordered hierarchical systems are to be the answer due to the rigidity. Hence, we need to adapt to the Systems Thinking and reimagine the digital organizational structure. Systems Thinking is the ability to think the "whole," and understand the interconnectivity of its parts as well.

Digital Shift: From a Mechanical to Sociological System From a philosophical perspective, all things serve a purpose. We may not understand the purpose, but all things serve one. Modern organization has a transcendent business purpose. Humans demand to be served, so they create mechanistic and sociological systems to serve them. Enterprises demand to be served, so they create positions of employment and mechanistic systems to serve them. These systems have a purpose for which they act to fill the purpose. The digital paradigm that is emerging is the sociological organization, which is alive, holistic, vibrant, energetic, responsive, fluid, innovative and resilient.

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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