The whole business ecosystem needs to communicate, negotiate, reciprocate, and cooperate with each other to harness transformative change.
To reach the high level of digital maturity, an organization of today or the future needs to create the new paradigm shift, be run in a digital way to unleash people’s potential.
From inner-directed to outer-directed: Inner-directed is about thinking and judgment, “in our heads.” Either individually or at the organizational level, thinking is the most powerful tool and that considered ideas and intuitive approaches are the best way to solve thorny problems today. Outer-directed is seeking information in the outer world. It assumes that we live in the “real world” and that is where we should look for quality information to make effective decisions. As each organization has a different level of information maturity, and reacts to environmental changes with behaviors that are strictly linked to the information they have and adapt to the ever-evolving digital dynamic. You need to think deeper and build in time for reflection which enables you to be conscious of your circumstances, captures data based business insight and allows you to perform in a strategic and informed manner.
As companies across industrial sectors transform themselves into the digital business that is based on information, their ability to explore intangible assets such as information and knowledge has become far more decisive to build competitive business advantages. Mismanaged information or outdated knowledge is what leads to a decrease in true understanding. So information savvy business leaders with strong “digital awareness,” can sense emergent opportunities, predict potential risks, always have an in-depth understanding of what the business does, how it does it, and how it could be better. To keep information flow and catalyze business innovation, more attention needs to be placed on the conditions that allow information or knowledge to move around and generate business value.
From hierarchy to hyperconnectivity: Although in a static business environment, hierarchy performs well, to keep things under control, give business system stability and resilience, reduce the amount of information that any part of the system has to keep track of. In the digital era with the nature of hyperconnectivity, nonlinearity, and interdependence, the overly rigid organizational hierarchy becomes the very obstacle to stop the business flow and stifle innovation. If the organization is composed of system and subsystem, balance is key. The hierarchy must balance the welfare, freedoms, and responsibilities of the subsystems and total system, There must be enough central control to achieve coordination toward the large-system goals, and enough autonomy to keep all subsystems flourishing, and functioning for achieving high-performance results.
Silo or bureaucracy caused by rigid hierarchy fail organizations to achieve the next level of business maturity, or make the solution less optimal and sometimes a burden. The hyper-connectivity of the digital organization enables the business to approach the flow zone for improving accountability. A hyperconnected organization can approach the flow zone when the positions in its hierarchy have clear and accountable tasks. Traditional hierarchical lines will phase out and a collective of business partners will emerge working collaboratively to achieve organizational goals and co-create ideas collaboratively. the hierarchy can be viewed as onion-like layers rather than the command and control hierarchy, though this is not to say they must be mutually exclusive. "Keep an open mind" to enable exploration of new possibilities, because the best system solution is one that responds perfectly to its environmental circumstances.
From analysis to integration: Every system is like three sides of a con, this side, that side, and the integrative relationship between them. Data based analytics is an important tool to capture business context and reveal inconvenient or unpalatable "truths" to the business side of the organization. However, in the environment with bureaucratic culture, analytics is often used as the proverbial lamppost to support the corporate status quo, rather than being a searchlight to illuminate the way forward. There's a need for a change management component in each and every business analytics initiative.
Analytics breaks down the large thing into pieces; but through quality integrations, business capabilities, and assets inside the enterprise are easily combined with assets and capabilities outside the enterprise to build core competency. Integration is the key to ensure that the application ecosystem offers real value. For integration practices, open up cross-disciplined dialogs and optimize the whole process in ways that perhaps were not possible before. The successful integration will depend on the underlying business relationships between all of the crucial points and how they influence each other in building solid and differentiated business competency. Integration has to be done with a “big picture,” having the business architecture in mind that supports the strategic goals of the organization such as revenue growth, margin improvement or customer satisfaction, etc.
From “one-size-fits-all” to personalization: Traditional organizations like the mechanical system which were operated through linear logic and reductionistic management practices, tried to provide “one size fits all” solutions. However, with the u precedented convenience brought by digital technology, either for running the business or living the personal life, we expect that great personalization leads to a better understanding by designing tailored applications or solutions. The "dosage" of standardization and customization in the new product is the key, meeting target costs in the product design phase engineering is the path worth following.
That said, providing the personalized services or solutions to its customers becomes the new normal to run a customer-centric organization. Engaging customers by providing simplified and intuitive products or services on an ongoing basis to see how their goals are achieved is a good way to improve customer centricity. The intention is to delight customers by presenting the differentiated solutions to make sure that the end user is getting maximum benefit from the content and application, with the ultimate goal to build a people-centric organization.
From sequence to synchronization: Running a business with progressive change is fundamentally about how to apply logic to solve problems, implement ideas, and guild teams to make things happen timely. In the organizational environment, often management needs to handle sequence & consequence, or strategic initiatives, boost the energy and excitement to achieve the ultimate business results. The real challenge is to understand the priorities of your company, and know where and how you can and should improve to amplify its effect.
In the nonlinear business environment, the strategy is becoming more a living entity of strategy and execution, moving from the conventional approach of sequential strategy execution to synchronized management of iterative approach. In fact, synchronization occurs on multiple levels, but it presupposes the ability of each 'link' to articulate their 'strategic intent.' It means to translate strategy into operational terms aligning the organization to create synergies in making strategy for everyone's everyday job and a continual process mobilizing change through digital synchronization.
To improve the organizational maturity, what can be unifying is looking at each function in the enterprise as a subsystem and then finding a unified means of looking at the essence. The whole business ecosystem needs to communicate, negotiate, reciprocate, and cooperate with each other to harness transformative change. It requires accelerated digital mindsets and takes a multidisciplinary management approach to improve the change capacity of the business, intensify enterprise growth orchestration and unlock business performance.
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