The Monthly “100 Digital Pitfalls” Book Tuning: The Organizational Fragility and Vulnerability Oct. 2019

0 Posted by - 8th October 2019 - Technology

Digital makes a significant impact on how we think, live, and work. There is a mix of old and new, physical and virtual, order and chaos. We are in a time of tremendous change, the dawn of the digital age, the path to the next level of digital maturity, also in the era of confusion and information overload. Therefore, it’s critical to identify, understand, and avoid pitfalls, discover strategic and predictive pathways to change, increase confidence, position a brand and leverage resources to make the digital paradigm shift effortlessly.

The purpose of “100 Digital Pitfalls: How to Overcome Pitfalls on the Path of Going Digital” is to throw some light on how to identify, understand, and overcome common pitfalls on the digital journey, dig underneath the surface, and take a holistic approach to integrate both hard and soft elements for improving the long-term organizational competency and reaching the high-level of business maturity.Slideshare Presentation

            The Organizational Fragility and Vulnerability  

The Organizational Fragility Caused by Imbalance The black and white boundaries continue to diminish in the 21st century due to the occurrence of increased economic integration, hyperconnected and interdependent nature of digital organization. Ad hoc business change is doomed to fail. The digital transformation is radical change, with all sorts of ups and downs, bumps and curves. It brings both opportunities for business growth and risks as pitfalls. From a business management perspective, the imbalance of any sort will cause change fatigue, decision ineffectiveness or business fragility, To lead change smoothly, how to identify problems and fix them smoothly?

Three Causes to Organizational Fragile The world is constantly changing, and digital is all about flow- information flow, idea flow, and business flow. The organization has different functions, structures, layers, and systems. When the company seems to get stalled, workplace is stale, and the organization turns to be fragile, business management must ask the big "WHY" question, dig into the root causes, and ponder how to fix critical issues to run a dynamic digital organization with the steadfast speed.

Three Causes of Business Vulnerability Digital organizations are organic, complex, informative and hyperconnected. Closer to reality is that change is continuously happening in such a dynamic environment of a company. The inevitable range, breadth, depth, and pace of uncontrollable factors acting on any organizations mean identifying business vulnerability and constant fine-tuning is essential to improve business adaptability, performance, and maturity.

Bureaucracy as a Business Management Pitfall The root of the word "bureaucracy" is: bureau(fr) = desk and kratos(gr) = rules/ power. Generally speaking, bureaucracy is a system based on a hierarchy of authority and division of workforce functioning in a routine manner. Though organizational bureaucracy inherited from the traditional management discipline brings a certain level of business efficiency. It is criticized by the lack of system perspective, with characteristics such as inflexibility, inefficiency, silo, stagnation, unresponsiveness, or lack of creativity, etc. Bureaucracy is correlated with a mechanistic view of the organization and reductionistic management discipline. It is the opposite of systems thinking and one of the big digital management pitfalls.

Three Misguidance Stifles Digitalization Digital means flow and high velocity, closer to reality is that ‘change’ is continuously happening in such a dynamic environment of a company, with accelerated speed. It indicates that business leaders must learn how to strike a right balance between managing complex issues today and forecasting the uncertain issues of tomorrow, commit to transform themselves into a highly innovative digital business powerhouse. Misguidance will cause business failing and stifle digitalization. To stay competitive, companies must be steered in the right direction, move from “Doing Digital” – experimenting with digital technological tools to “Being Digital” – running a full-fledged digital organization.

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