"Open" Means "More Competitive"
Well, even technological giants are opening up to Enterprise 2.0, having realized that it will drive corporate innovation and facilitate communication from the boardroom to employees and back. Previously closed corporations turn open with the help of new-generation software. But what are the advantages of being open? To answer this question it would be useful to examine the key differences of open and closed organizations.
How Do Enterprise 2.0 Technologies Make Companies More Agile?
To start with, why is the word “agility” so popular in management nowadays? Every year, new technologies, markets and competitors emerge at a rapidly ascending pace. Future threats and opportunities become harder to predict, and emerging challenges include increasingly novel elements. Today’s businesses are affected by globalization processes, and enterprises often become bigger, therefore more inflexible and bureaucratic. As organizations grow into huge corporations, it gets more difficult for them to react to constant market changes fast enough. This results in an ongoing agility gap.
Changing Hierarchy into Network?
One of the most important impacts of Enterprise 2.0, as I mentioned in my previous post is changing the management pattern inside an organization.
Professor Andrew MacAfee of the Harvard Business School, who coined the term “Enterprise 2.0” in 2006, believes that new generation technologies, while penetrating into companies, will be able to empower employees and decentralize decisions, thus liberalizing management. This means hierarchical structures, employed in many organizations, will eventually be modified into flatter management patterns.