Sunday, July 28, 2019

Three Aspects of Building a Digital Savvy Organization

Going digital and running an intensive, effective, and cohesive organization takes dynamic planning, dedicated execution, and holistic digital management disciplines.

Digital reality is a flexible blend of the physical and virtual world. Many organizations are moving from doing digital by experimenting with some emerging technologies to going digital by expanding to all dimensions of the business transformation. Organizations have to keep evolving, improving, collaborating, and innovating for becoming digital savvy and reaching the next level of organizational maturity.

IT savvy: Given how applying IT is becoming so intrinsically critical to all sorts of different enterprises across industrial sectors due to abundant information and continuous disruptions, organizations need to break down silos, create information savvy environment that encourages information flow and data utilization. Digital IT is not only faster and lighter but also smarter and influential. IT enables a business to access, consume and generate information necessary to perform a range of business tasks/functions, to make sure the right people getting the right information at the right time to make the right decisions. To become IT savvy, companies need to honestly assess their company’s IT driven business performance and potential, as technological capabilities have little value without the market insight that determine their application. Market insight left unexploited by IT will create vulnerability and decrease the speed of business for adapting to the ever-changing business dynamic. An information savvy organization can capture business insight or customer foresight to rise above the waves of the emergent digital trends and improve business responsiveness and effectiveness. Therefore, senior management team should understand the critical role of IT in the future of business, make wise IT investment which is often costly and risky, and improve digital maturity via the harmonization of strategy, information technology, structure, and business performance.

Innovation savvy: The digital era upon us is about innovation with accelerated speed. Without innovation, companies will become irrelevant sooner or later because of fierce competitions and unprecedented level of risks facing businesses today. Innovation happens at the intersection of people and technology; customers and business. Innovation today is increasingly technology-dependent. Thus, to build an innovation-savvy organization, creativity should be embedded into every aspect of the organization, including strategy. Innovation simply benefits from being developed in and subsequently commercialized in an open ecosystem. Highly innovative organizations can build a smart system that can “smell” the right ideas at the right time and place, deploy a range of different management methodologies and technologies, and tailored their own circumstances for developing the fitting innovation models and portfolios. There are many components such as leadership, culture, capability, practices, tools, recognition system, measurements, risk control, etc, for shaping innovation competency. Each component by itself may not cause a good environment to innovate, but collectively they can build an innovation-savvy organization.

Culture savvy: Culture is collective mindset, attitude, and behavior. Culture and brand are the most important "soft" element that a company will make since they will define how the company interacts with its various stakeholders and build the differentiated business advantage. Culture eats strategy for breakfast! It means the way things are done and allowed to be done every day. Culture shouldn’t be seen as some superficial phenomenon such as business slogan or holiday celebration, but rather, more profoundly, what are the ideas within the walls that create fresh ideas, keep creative energy flow, derive profitable actions, make positive influence, and build collective confidence. Culture is reflected and influenced by policies, practices, rewards and incentives. Building a culture-savvy organization is important for the long term success of the business. Because if the corporate culture is toxic, expect high employee turnover, an organization faced with ethical issues that detract from a positive public image, and a total disregard of stakeholders. In a culture savvy digital organization, self-motivated leaders, teams, and employees have a passion for challenging themselves, advancing their thinking ability, making amazing things happen. People have to be given the opportunity to be creative, they have to become empowered and discover the innovative way to do things. The right culture is the invisible but critical success factor and the very fabric to keep the system running smoothly, with the goal to build a digital-savvy organization.

Organizations today across the industrial sectors aim to become digital savvy, move into a more advanced stage of digital deployment by tailoring their own unique strength and business competency. Going digital and running an intensive, effective, and cohesive organization takes dynamic planning, dedicated execution, and holistic digital management disciplines.


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