Organizational leaders and managers need to have a contextual understanding of the interconnectivity of the business elements underlying the surface.
To build future-oriented organizations, vision and agility are essential in the face of rapid technological and economic shifts.
Key Strategies & Practices
Embrace Change: Organizations must be agile and able to adjust to the rapid and exceedingly high degrees of technological change to maintain their effectiveness.
Promote Innovation: Encouraging innovation and improvement is crucial for long-term economic growth. New products and methods inevitably disrupt existing markets, a process termed "creative destruction."
Foster Collaboration: Cooperation between organizations and institutions can facilitate innovation. The academic-industrial complex model, where resources flow among universities, corporations, and venture capital firms, exemplifies this.
Develop Strong Culture: Organizations with strong cultures can empower members to make decisions and act consistently with the mission, even amidst uncertainty. However, these cultures must also be flexible enough to adapt to external changes.
Adopt Network-Based Systems: Network-based industrial systems with dense social networks and open labor markets promote experimentation and collective learning, enabling better adaptation to change compared to hierarchical firms with restricted information sharing. Organizations can identify the need for change through strategic planning, awareness of cultural dynamics, and benchmarking.
Understand Disruptive Innovation: Be aware of disruptive innovations that may initially appeal to a niche market but can eventually overtake existing products. Recognizing and adapting to these innovations is vital for survival.
Identifying the Need for Change
-Strategic Planning: Formal strategic-planning approaches help organizations determine their vision, mission, and goals. Strategic management offers a means of systematically reviewing an organization’s direction and environment.
-Cultural Awareness: Recognizing and understanding the basic assumptions that guide behavior within an organization is essential. Strong cultures can inhibit transformation if flexibility and adaptation are needed to respond to external environmental changes.
-Benchmarking: Benchmarking involves comparing specific aspects of a public problem with an ideal form of public action to improve quality and efficiency. This process encourages learning and emulation within organizations.
Organizations are indeed becoming more complex. Some organizations are too complex and need to be more flexible and reorganized in a simple way, using a clear measure of complexity. Today’s business is hyper-complex and interdependent; business leaders and managers need to have a contextual understanding of the interconnectivity of the business elements underlying the surface, get to understand the whole meaning of functional dialects, and perceive the business insight in a cohesive way. That means contextual thinking, interdisciplinary knowledge, efficient technological platforms and tools, and structural management practices, etc, are all important factors in managing a dynamic digital business.
0 comments:
Post a Comment