Digital makes a significant impact on every aspect of the business from people, process 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 change and innovation?
Tuning Organizational Structure for Change
Digital Organizational Design vs. Business Changeability The very characteristics of digital are the increasing speed of change and hyper-connectivity. Digital makes a significant impact on every aspect of the business both horizontally and vertically. Forward-looking organizations leverage the latest technologies to fine tune the organizational structure and improve the business changeability. Organization design is the vehicle through which the business strategy is executed and defines the business environment in which the digital organization can reduce the organizational culture friction, improve the business changeability, maturity, and unleash its full potential.
Tuning Organizational Structure to Improve Digital Ready-ness Organizations across the vertical sectors and geographical boundaries are on the journey of digital transformation. New generations of digital technologies such as digital collaboration platforms and tools are enabling not only the structured processes of the past but also the unstructured processes of the digital enterprise. The future of digital organizations would be complex enough to act intelligently and nimble enough to adapt to the change promptly.
Design for Adaptability Digital means fast-paced changes, continuous disruptions, overwhelming growth of information, and shortened business life cycle. Companies need to have an in-depth understanding of organizational design and development to improve business maturity. Compared to the traditional organizations with an overly rigid hierarchy or strictly pyramidal structure, digital organizations today are flatter, hybrid and more responsive to changes. Organizational adaptation is the ability to be highly responsive to the fast-changing business environment. High mature companies are designed for change and designed for innovating.
Tuning Organizational Structure from Hierarchy to Circular for Achieving Fluidity, Flexibility, and Fit With the increasing pace of changes, hyper-connectivity, and interdependence, organizations across vertical sectors are at the turning point, take the multidimensional approach to make the digital paradigm shift. From the organizational structure perspective, the overly rigid pyramidical organizational structure forms communication gaps, encourages silo mentality, creates the performance bottleneck, also decelerate business speed. Therefore, fine-tuning underlying business structure and processes is a critical step for improving digital business fluidity, flexibility, and overall digital fit.
Fine-Tune Organization Structure to Get Digital Ready Due to the “VUCA” nature of digitalization, the business complexity is unavoidable. Organizations that are skilled at managing complexity can gain advantages by pushing the boundaries of a more complicated business mix that provides opportunities to create inter-business value. From an organizational structure perspective, how to fine tune the digital dimensions of your organizational structure development to get digital ready?
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