What do Big Data and social networking have in common? They’re driving the digital transformation of your business. Like it or not, more than your corporate strategy could change. According to Eric Clemmons, a Wharton professor at the University of Pennsylvania, the “digital transformation of the firm” could alter your organization itself. Are you ready for changes in decision rights, incentive systems, and information flows?
Decision rights, Clemmons explains, determine who gets to make critical organizational decisions. Knowledge is power, but things aren’t so simple in the Information Age. Ultimately, leaders don’t just need the right information. They need information that supports rapid decision-making. Leaders also need what Clemmons calls “the ability to rapidly implement a decision.”
Incentive systems could transform your organization, too. Historically, owners have rewarded managers for smart decision-making. Managers are mainly interested in their own departments, however, and can make decisions that fail to benefit the organization as a whole. Company-wide profit sharing plans encourage leaders to broaden their perspective, but measuring performance still means analyzing the right metrics.
Finally, information flows could make the difference between organizational success and failure. As Clemmons explains, it’s not just about what employees know. It’s also about when employees receive the information in the first place. Yet timely information is still not enough. If Clemmons is correct, the successful companies of the future will be the ones that share information across the organization.
Are you ready for a digital transformation that will re-shape your organization?
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