By Michael Snow on Jul 20, 2012
Todays guest post by:
Michael Fauscette, GVP, Software Business Solutions, IDC
The CXO in the Next-Generation Enterprise
Less than six years ago, no company had a Facebook page or Tweeted about its brand on Twitter. In fact, just a little more than 12 years ago, most companies treated Websites like a billboard — a destination where people went to “learn” about the company’s products. Brands controlled their messages and presented those messages to customers and prospects.
Today, prospects and customers look for information about a brand online everywhere but the company-controlled Website. Social networks offer trust-filtered advice and information that’s perceived as much more accurate. The social Web, with its communities and user-generated content, has helped fuel a change in attitudes and expectations across a broad population.
Another key trend, consumerization of IT, has created a different path of innovation in business, where the most innovative ideas and technologies are formed in the consumer space and pulled into the enterprise, again creating different expectations and empowered action.
Business is under pressure from customers, employees, stockholders, stakeholders and partners to do things differently, as the economy shifts away from the old industrial models into an age driven by information and the Internet’s ability to create different business models, communication channels, and open systems. Nowhere in business are these pressures felt more than in the executive suites across all industries, and spreading to all geographies.
Traditional management and leadership models, just like business models, were created for a different time, and are starting to fall short in helping businesses adapt to change. As the pace of change accelerates, executives are finding that strategy isn’t something that can be static, but instead must be flexible and adaptable to real-time inputs ranging from customer feedback to changing market conditions. Old command-and-control, hierarchical organizational structures are too siloed and inhibit knowledge-sharing and a collaborative culture.
Management models, just like business models, must adapt to the next-generation enterprise that is mobile, social, collaborative, data-driven, and has an adaptable and flexible business strategy. Next-generation executives will:
“Coach” instead of “manage”
Value and reward personal responsibility and accountability
Foster an open and transparent culture that leads to higher ethical standards
Build a culture that rewards knowledge-sharing and breaks down old knowledge-hoarding tendencies; information is the life blood of a next-generation enterprise
Operate in an empowering environment where employees have the power to and feel the obligation to speak up and take action when things are not working correctly
Power and communication are networked (not hierarchical) with people-centric nodes connecting the enterprise together, people to people, people to data, people to information, and people to system
All stakeholders have a voice and can influence the community that is now the essence of the business
Managers exist to serve, not be served
Business is changing, and management and business models must change to stay competitive. The changes are mostly about culture, and culture often does not change quickly. People fall back to habits that are comfortable, and resist change that seems uncomfortable. While a lot of the changes that businesses are experiencing are coming bottom-up, it is critical that executives understand these changes and adapt to create an environment of empowerment and collaboration.
To hear more with featured guest speaker, Michael Fauscette, GVP, Software Business Solutions, IDC - Watch the On-Demand webcast of the Oracle Social Business Thought Leader Webcast Series - “Organic Business Networks: Doing Business in a Hyper-Connected World”