Thursday, September 5, 2019

The Characteristics of “Digital Fit” Organization

To keep digital fit, the digital transformation efforts need to be undertaken as a means of getting to develop differentiated business competency to accomplish defined change management goals. 

The digital organization has the very characteristics of velocity, complexity, hyperconnectivity, interdependence,and diversification, etc. It’s a living thing which needs to keep evolving and strike the delicate balance of growth and stability. Different organizations perhaps set varying criteria to evaluate “digital fit.” Here are five characteristics of digital fit organization.

Viability: The emergence of opportunities and risks for exploring the path of going digital is like to follow the nonlinear pattern with high velocity and variability. Thus, to keep digital fit, the organization needs to understand itself in relation to its context, appreciate the business attributes such as openness, readiness, integration, diversification, customization, coorpetition (corporation + competition), and make a self-assessment to determine whether it requires designing and optimizing organizational structure or function to become viable. The digital organization as a complex and dynamic system needs to be elaborated in a well-organized effort, take a structural approach to develop differentiated business competencies for adapting to changes and accomplishing defined change management goals. They should also develop a creative workforce to maintain viability.

Balance: Organizations today need to constantly improve the business and seeing change as an opportunity while striking the delicate balance between solid and flow, innovation and standardization, collaboration and competition, and strike the balance of “keeping things simple,” and optimizing complexity to achieve digital equilibrium. The pervasive digital transformation also requires the balance of “old experience” and “new ways to do things,” Thus, digital organizations and their people must learn through their interactions with the business environment, and then, they apply their learning, act, observe the consequences of their actions, make inferences about those consequences, and draw implications for future actions.

IT Savvy: To effectively respond to new digital dynamic and keep digital fit, organizations will be organically and adaptively developed and empowered by digital technologies and abundant information. An IT savvy organization means hyperconnectivity with less wire; hyper-competition with higher capabilities; high-efficiency via automation, hyper-integration via optimization; it can create the information savvy environment that encourages the utilization and flow of information. Thus, an IT savvy organization can rise above the learning curve, capture business insight and improve the organizational responsiveness to keep digital fit.

Innovativeness: Digital is the era of innovation. Organizational innovativeness is the innovation competency of the business. Businesses today have to make the strategic choices all the time of where and when and how they innovate. To keep digital fit, organizations should build a smart system that can “smell” the great ideas at the right time and place, deploy a range of different management technologies and methodologies, and develop the fitting innovation models and portfolios to tailor their own circumstances. Digital fitting organization is like the self-organized but interlaced and hyper-connected ecosystem, there is a paradigm shift that is taking place in generating innovation and building a scalable innovation environment or innovation ecosystem.

Accountability: Digital organizations inspire learning and encourage autonomy. From the business management perspective, digital fit means putting the right people with the fitting mindset and capabilities in the right position to solve the right problems. It’s about how to close the accountability gap and inspire an “every individual as a stakeholder” culture. It is important to run a digital fit business with shared accountability or collective accountability that involves shared ownership, empathetic communication, and continuous improvement. The three pillars of accountability are autonomy, consistency, and resilience. Everyone makes mistakes, and the organization could fail in certain way, the measure of accountability is also on how quickly they can recover and the business as a whole aren’t negatively affected by the breakdown.

To keep digital fit, the digital transformation efforts need to be undertaken as a means of getting to develop differentiated business competency to accomplish defined change management goals. Digital organizations need to emphasize participation, communication, collaboration and realize that organizations will need to renew themselves periodically to cope effectively with change and keep digital fit.


Post a Comment