Results of Applying Principles of Organic Business Design

It demonstrates the results of applying Principles of Organic Business Design to the organisation of business. A few of Organic Business Organisation theory definition elements require a new understanding and reinterpretation. A real-world example for one of the retail giants is analysed.

Agile Business Capability

An enterprise behaviour is expressed via two types of business capabilities – managerial and actionable. The businesses need an additional mechanism of keeping them agile to the economic environment. Such a mechanism has to be self-adjusting to the market dynamics. This is not about new competitive capabilities and technologies (Web 3.0, Web 4.0…), but about a new model of the business capability itself that can naturally link with the market where the pace of external changes attains or even exceeds the pace of their adoption inside the company.

The Major Principles of the Organic Business Design

Dynamics of market changes as well as internal transformation in the organisations are quite high and accelerating. They have reached the degree where the traditional hierarchical business structure (mechanical model) steadily and speedily loses its efficiency and effectiveness. Though known for a long time, the organic business model proves that it is the most adequate for dynamic business transformations.

Five Characteristics of an Organic Business

Little doubt exists that there ought to be a direct connection between the external environment in which a company (or any organisation) operates and its internal makeup. Every optimal organisation is dependent on prevailing dynamics in its external (and to some extent internal) environment. Organically organised business is the most adequate for management in highly dynamic economic and technical environments.