Saturday, April 25, 2020

The Monthly Organizational Structure Tuning: Reinvent Digital Organizational Structure Apr. 2020

 To keep the digital fit, the organization has to keep optimizing its functional or structural design and management pyramid to achieve a high level of autonomy and the state of digital equilibrium.

Digital makes a significant impact on every aspect of the business from people, processes 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?


  Reinvent Digital Organizational Structure


Fair Reasons to Fine-Tune the Organizational Structure The digital organization is an integral business system with policies, cultures, work climates, people (employees, customers, partners, etc.) and processes. To keep the digital fit, the organization has to keep optimizing its functional or structural design and management pyramid to achieve a high level of autonomy and the state of digital equilibrium. The whole business ecosystem needs to communicate, negotiate, and cooperate with each other for catalyzing changes and harnessing innovation. Here are some fair reasons to fine-tune the organizational structure for streamlining the digital flow and improving organizational maturity.

Three Considerations in Reinventing IT Organizational Structure Many IT organizations or enterprises as a whole intend to reinvent their “stale” working environment with 20th culture such as bureaucracy, the inertia to change, reward mediocrity, homogeneous leadership & talent team, over-complex business processes, inefficient communication pipelines, etc. However, reinventing organizational structure is not an easy task, it takes both strategic planning and operational alignment to make it work and improve organizational maturity. Below is some collective insight on how to reinvent the IT organizational structure and build a highly creative and productive working environment.

Three “DE” Effort in Digitizing the Organization Digital makes a significant impact on every aspect of the business from people, process to technology, both horizontally and vertically. Businesses become hyperconnected and interdependent and get involved in the dynamic digital ecosystem all the time. Given the power of the cloud, social, mobile and analytics digital technologies to fuel business innovation, capability orchestration, and employee collaboration, digital becomes the very fabric of high performing business. However, the journey of digital transformation is a thorny journey, not a flat street. You have to remove the roadblocks and eliminate the barriers all the time. Here are three “DE” efforts to shift from “doing Digital” -applying digital technologies to “Being Digital” - Running a highly mature digital organization.

Key Design Characteristics of Digital Organizational Structure As we are going forward towards radical digital transformation, business management is responsible for enabling a collaborative, innovative, and productive working environment. Design thinking does need more recognition as a “mainstream” thinking in business management disciplines and problem-solving processes and practice.

Three Aspects of Designing a Viable Digital Organization? Digital organizations are the complex ecosystem with the blurring line between functions and geographic locations. Going digital is a long journey with all sorts of barriers and pitfalls on the way. You have to strike the right balance between order and chaos, change and stability, innovation, and standardization. Viability is one of the very characteristics of the digital organization. You may leverage design thinking to reinvent an organization that can enforce collaboration and harness innovation by creating business synergy, maintaining viability, and making strategic effects.

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