What should be the the Next-Generation Enterprise?

1. Next-Generation Enterprise
Tania Boyajieva, TAB 1

2. What is the business environment for
the Next-Generation Enterprisе?
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3. Changes happen faster than
managers can predict
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4. It took 9 months for Facebook
to reach 50 million people
It took radio 38
years to reach 50
million people
It took TV 13 years to
reach 50 million people
It took computers 4
years to reach 50
million people
Unprecedented speed of change
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5. Fast development of technology
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6. Explosion of information and
practically unlimited access to it
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7. Total connectedness – of clients,
employees, everybody
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8. Of Internet users say that client referrals are the
most reliable advertising
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9. Almost full transparency
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10. World globalisation
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11. Distributed and diverse work force
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12. What is Next-Generation
Enterprisе (Enterprise 2.0)?
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13. First – what is Previous-Generation
Enterprisе (Enterprise 1.0)?
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14. Enterprise 1.0 is designed rather
like machine*
Characteristics of a machine:
• Is designed to be driven by driver or operator
• Does predetermined movements
• Needs maintenance and repairs
• It is difficult to change it
• It becomes obsolete with time
*Ideas on this and next slides are inspired by the book “The connected
company”
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15. Enterprise 1.0 is usually very
hierarchical
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16. Problems with Enterprise 1.0
• Value is created far from management where
important decisions are taken
• Does well in stable environment but does not
adapt well to fast changing environment
• It is based on standard processes, rules, KPIs
• It assumes that main knowledge is explicit – in
manuals, handbooks, etc.
• People are mostly extrinsically motivated by
“carrots” and “sticks” methods
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17. Some things do not change
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18. What should be 2.0
• Requires new business model, better suited for fast changes and
hyper-competition
• It should rather resemble a live organism then a machine
• It should have “sensors” for changes
in environment and to adapt
• Decisions should be fast and closer to clients
• True knowledge in companies is mostly tacit –
it is difficult to describe it in a formalized way
• Needs initiative, creativity, collaboration and knowledge sharing of
people - “carrots” and “sticks” methods are not satisfactoy
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19. ПОВЕРИТЕЛНО
Most important – the focus is where value is created!
- 19 -
Value is created at
the interaction with
client Profit is consequence
of maximizing value
for client
shareholders

20. Enterprise 2.0 – The connected company
It has decentralized (podular) structure , with many autonomous, self-managing
units (pods), to which objectives are set via Service Level Agreements. They are
related and communicate in real time. They have common platform (backbone),
providing internal services, innovations, consulting.
Hierarchical, non-adaptive organization Adaptive organization
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21. Enterprise 2.0
• Communicates closely with clients and experiments with new
ideas – innovation is “build in the DNA” of the company
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22. Enterprise 2.0
Companies should be:
Close to
clients and
predicting and
answering to
their needs
Internal
processes
provide
information
about clients
in real time
Voice of the
client needs to
be heard in
the whole
company, not
only in
Marketing
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23. Enterprise 2.0
• Has strong mission and healthy organizational culture and main
goals, but without rigid, cascaded down tasks and KPIs
• Leaders work on clarifying visions, mission and main goals and
on strengthening the culture
• Managers are part of a support platform
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24. Enterprise 2.0
Main goals of leaders:
Removing
tight control,
establishing
direction and
support
instead
Creating of
“play-grounds”
– places for
experimenting
and
innovations
Creating
sharing culture
where people
belong and
with which
they identify
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25. Enterprise 2.0
How the new model looks like:
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26. Enterprise 2.0 uses WEB 2.0
• Mobile devices - BYOD
• Cloud technologies
• Corporate social networks
• Real-time feedback
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27. Enterprise 2.0 uses WEB 2.0
in order to achieve
Openness
Sharing
Diversity
Collaboration
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28. Enterprise 2.0 uses Marketing 2.0
• „The voice of the customer“ is listened by everybody in the
organization
• Every employee is trained to use a “tool-box” for studying the
thinking of the client and for innovations (like gamestorming) and
uses them all the time
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29. 29

30. Enterprise 2.0 uses R&D 2.0
• Everybody in the company is R&D, all are innovators
• There are autonomous units where innovations are
experimenting and risks are accepted
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31. Enterprise 2.0 uses HR 2.0
• Self-organizing and self-managing teams
• 360 degree feedback in real time
• Gamification – playful elements in work
• Stimulation of intrinsic motivation by
 Strong mission, purpose
 Autonomy
 Learning and development
• Knowledge exchange, mutual couching and
mentoring
• Everybody in the company is considered as a talent
• Reward is fair, no more
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32. New paradigm for management -
Мanagement 2.0
• Management is mostly consultative and support
function
• Encourages innovations, tolerates reasonable
risks, accepts pilot trials
• Promotes openness,
transparency
• Communicates closely with
clients and front-line
employees
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33. Change is accelerating
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34. END
Tania Boyajieva
ТАB Neo-Management
www.tab-bg.com/gb
tania@tab-bg.com
+359888450813
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