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Emergence of the Agile Enterprise - Building Organizations for the Global, Digital Economy (Business & Investing)
1 chapters
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updated Mar 29, 2010 04:34pm
Description:
The emerging global, digital economy is forcing businesses to devise new strategies, develop new capabilities, design new organizational structures and deploy new business models. The disruptive effect of fast technological innovations and adoptions redefine the essence of today’s competitiveness. The traditional form of organization can no longer respond effectively to the new marketplace dynamic. Manuel Castells,
the eminent social scientist, observed this era as the “crisis of the traditional corporate
model of organization based on vertical integration, and hierarchical, functional
management.” Organizations need to transform from make-and-sell to sense-and-respond. Businesses can no longer operate with inflexible infrastructures, outmoded business models, and fixed products and services. Successful organizations must design a flexible operating model to cater to the changes in their environment and to changes in their customers’ wants and needs. Businesses need to adopt new visions & values, embrace breakthrough culture, cultivate entrepreneurial team and construct
adaptive infrastructure. We term the emerging organizational form the Agile Enterprise to accentuate the imperativeness of adapting and responding to the new industry dynamics. The growing interests on web services, outsourcing, innovation, and open source indicate the importance of agility. Agile enterprise is the organizing formula in the global, digital age. The key design characteristics are flexibility to
changes and sensitivity to “what’s going on out there?” It encapsulates the movement towards the development of new organizational paradigm for the 21st Century economy. This article elaborates on the concept of the Agile Enterprise and its key characteristics.
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