Monday, February 17, 2020

The Systematic Perspectives of Digital Organization

Heralding a dynamic digital organization needs to leverage the system perspective to emphasize communication, participation, relationships, collaboration and unlock business performance and potential continually.

The digital organizations are like the organic systems keep evolving with the blurring lines between functions and geographic locations. The systematic perspective brings greater awareness of the intricacies and the systemic value of digital organizational systems, processes, people dynamics, technology, resource allocation, marketing and supply-side variables, economies of scale, etc. Here is a set of digital characteristics of the business system that can create synergy and maintain viability.

The purposes of the system: Every business as a system has a purpose. A system is only a system in relation to a purpose and that purpose is not inherent in the objects and processes you build and create. As the management guru Drucker well put: The purpose of the business is to create customers." The purpose itself is a multidimensional system. Forward-looking companies thrive to become people-centric businesses.

A system by its very nature moves through a range of stability. The purposes of designed business systems are to provide processes that enable specific outputs and that will meet specific needs with the goals to either engage employees or delight customers. This is accomplished by developing high-level requirements with main purposes or business system requirements. The digital business as a system has to be outcome-focused, define a clear vision and make a good strategy to reach the desired end state.

The processes and structures of the system: Systems are defined by components and their compositions. The business systems have underlying structures and functions. The business management should focus on managing a portfolio of relevant cross-border strategic synergies and business interdependence with the appropriate mix of business elements and maintaining the right level of digital balance.

Digital organizations act as complex and unpredictable systems, amplify or ameliorate the effects of others and shape business structures and systems. They are dynamic systems that would perhaps be disturbed by nonlinear events. Thus, it’s important to understand interfaces and interactions associated with complex systems and engenders new perspectives or actions as part of the process of creating a cross-disciplined understanding and build dynamic business competency.

The behavior of systems: A system can be seen to have a purpose of its own when it produces behavior. It involves inputs, energy, information or data, and outputs of material, etc. The key point is to make sure the system-of-interest is defined to establish the boundary and the properties that interact with the environment. Then, to understand the elements that interact with each other and the environment and produce good behavior.

From business management perspectives, some complex systems produce behavior that is hard to fathom and sometimes impossible to understand. Thus, the designer must not only consider the purpose of the enterprise; the considerations of the purposes and behavior of the employees must also be met because the enterprise cannot fulfill its purpose without the employees.

The interconnectivity of the system: In the industrial business reality, functional silos are generally constant barriers to business advancement, stifle changes, and lock collective performance. The various parts of a system have functional as well as structural relationships between each other. To run a holistic business, it’s the importance of understanding how relationships, ecosystems, market dynamics, and the connections between business units, search for meaningful business relationships both within these subsystems and between them; monitor and observe links and feedback systems to achieve business purposes.

Systems Thinking helps to create common rational ground between different perspectives, understand the interconnectivity between parts and the whole. Ideally, the physical organizational structures, relationships, digital platforms, and social connections wrap around each other to ensure clear responsibility, smooth information flow, and engaged workforces who can set the right priority to accelerate business performance.

The functions or groups of functions of systems: Modern digital organizations are not just the sum of functional pieces, but an integral whole to maximize their performance. Having a systematic understanding of the business enables the management to avoid tunnel vision, keeps an open mind to explore new possibilities because the best business solution based on the systems thinking is the one that responds perfectly to its dynamic business environment and ensures the organization as a whole achieving the better business results.

It is a waste of resources to leave any invaluable human potential left unrecognized, untapped and unused. By leveraging system understanding of fine-tuning the digital organization, business management can become more effective to monitor the overall health of the business and enforce cross-functional relationships and collaboration.

The black and white boundaries continue to diminish in the 21st century due to the occurrence of increased economic integration among nations, as well as people movement across cultures. Heralding a dynamic digital organization needs to leverage the system perspective to emphasize communication, participation, relationships, collaboration and unlock business performance and potential continually.


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