Monday, June 21, 2021


Organizations need to take a systematic approach, investigate different paths, decompose core capabilities, shape solid forms, and improve overall business maturity.

Digital implies the always on and hyper-connected business nature with "VUCA" characteristics. Business leaders should realize that to orchestrate a breakthrough transformation of the business requires both scaling up and digging deeper, break away from static, stale, and slow patterns, and be able to make continuous adjustment, improve organizational responsiveness and manageability.

 Digital management is responsible for designing, enabling, and enforcing information flow, strategic business growth, holistic problem-solving and running a high-performance digital organization.

An open information system with different levels of information granularity, can incorporate both ends and means to streamline strategy management: Effective information management continuously open to new information from the dynamic business environment and is able to circulate information within the system seamlessly by splitting of strategic goals into layers with different levels of information granularity, where upper layers are holistic - covering all concepts, such as enterprise ontology and vocabulary) and lower layers are comprehensive - covering all attributes needed but for selected concepts only. However, in many companies, although the strategy looks shiny or pretty, there’s no sufficient information and solid action to achieve it. In many organizations that get stuck at the low level of maturity, their data environment is often fraught with inconsistency, redundancy, multiple, sometimes overlapping knowledge platforms,

Without reliable information, strategy is misleading. Without a good strategy, information is trivial. Those strategy related information are varying, it could be utilitarian, extrinsic, intrinsic, social, practical epistemic etc. The paradox of Strategy Management is that there is on one side pressure to strategy to be holistic and comprehensive. On the other side, there are requirements for strategy to be simple and easy as the world becomes more dynamic and disruptions happen so frequently. To balance such paradoxes, it is resulting in the necessity to use many reference models and other accelerators, information fluidity could significantly lubricate the process of strategy execution. Quite often, information is not tangible enough to feel any need to worry about strategy management. Not finding the info needed to clinch a deal is a good wake up call to diagnose the potential defects in strategy management. Depending on the level of information granularity and aggregation, you can use it for thresholding a digital strategy which is agiler, outside-in and bottom-up, so feedback and inclusiveness become crucial for handling the paradox of digital strategy management. Thus, outdated information leads to static planning. Real-time information is in-demand to come up with the “right level” of planning, keep iterating, adjusting, evolving, and working on a rhythm of sustained products or services deliveries.

A capability can be decomposed to finer grain capabilities with different layers of granularity, with information as the glue to integrate them into dynamic competencies: In the rapidly evolving businesses and complex digital economic systems, to stay competitive, companies must explore the emerging digital horizon, leverage updated information to discover growth opportunities and risks. Information allows you to glue a dynamic capability and build an actionable insight as to how to move from one level to the other for deepening understanding. Unfortunately, the business capabilities in those traditional organizations are often static, linear, built to last, and are difficult to tune up for improving its maturity. The digital capability is modular, dynamic and nonlinear, having many visible and invisible business elements. To build capabilities on the fly, loose coupling makes it possible to change the components without affecting the system, as long as the interface is kept stable; updated information makes sense to accelerate the performance.

Information support capability development is a logical and continuous improvement cycle. There are many elements of digital capabilities that are foundational to enable foreseeable digital strategy, and information is the very clue to streamline strategy management. It provides coherence between actual capability and the strategic goals that have been defined, and addresses in outline how the strategic objectives will be achieved, which includes exploiting your center of gravity. Dynamic business capabilities are more complex in design, requiring frictionless information flow, cross-functional collaboration, embedding agility into processes for adapting to changes, and shortening the delivery cycles. You design the capability, then model, execute, monitor, optimize then again back to design; to manage large volumes of information, activities and run simulation events to identify areas in a capability portfolio that can be changed and optimized to improve coherence.

The deliverables of business solutions by which the scope and granularity of the solution models are created and information keeps updated: Always remember that problems exist not in isolation, but as an interacting system of problems. And running a complex digital business is an iterative problem-solving continuum. In today’s information-based, hyper connected and interdependent business world, solving problems really matters could also mean that there is the opportunity you can take care of a chain of problems, not just an isolated problem or a couple of random efforts. Great problem-solvers decontaminate conventional thinking, decompose large problems into smaller ones, understand the scope and granularity of solution models, collect all relevant information, harness interaction, have a sense of urgency, set the right priority, seek additional resources for building a strong reputation as consistent business solutionists.

Businesses are organized by hierarchical structures, function, and permeated with abundant information. Usually, a large-scale strategic problem could be broken down into smaller tactical issues, but pay more attention to the digital characteristics of hyperconnectivity and interdependence by using information as the very clue. Practically, think big picture done very quickly at a logical level; and then, push down towards solution specifics at the physical level, and driven by local needs. To solve problems systematically, it’s important to decompose large problems into smaller ones which further decompose into tasks and assign them out, hold people accountable by having them report status updates on tasks to ensure that the problems can be solved by the right people timely. A mature solution architecture is the set of principles, guidelines, processes, etc, that describe how the components and standards of the business work cohesively to solve complex problems, and focus on the solution deliverables by which the scope and granularity of solution models are created. Highly effective business solutionists walk through the scenario from generalization to specification by clarifying: Where do we need framework and guidance? What are optimized processes, practical methodologies and best practices to solve problems? Do we have trustful resources to get quality information? And how to handle different stages of problem-solving with attention and proficiency to ensure success? With updated information, solid solution models, and high-competent teams, businesses can achieve higher-than-expected performance consistently.

Diversification, hyper-connectivity, nonlinearity, and interdependence, etc, are the very characteristics of the digital era. Organizations need to take a systematic approach, investigate different paths, decompose critical business factors, shape solid forms, integrate capabilities, and drive changes at steadfast paces, be able to make the continuous adjustment, improve organizational responsiveness and manageability.


Post a Comment