Smart organization

From CEOpedia | Management online

An intelligent organization is an organization based on knowledge management. It is often also called a learning or self-perfecting organization. It enables learning of all its members. At the same time, it consciously transforms both itself and the context in which it exists. An intelligent organization is a new concept, explaining the interrelationship between how to achieve goals, their understanding, teaching, methods of solving problems and communication between employees. All these activities should enable achieving high indicators of efficiency and economic growth, through the ability to adapt the company to changing conditions. Therefore, an intelligent organization is the basis for managing a modern enterprise management system.

In an intelligent organization, attention is paid to the parts that are responsible for the learning of employees. Such organizations should be characterized by the ability to recognize signals coming from the environment and the ability to respond to these signals and adapt to them. Variability of the environment causes that the organization must constantly monitor changes in customer behavior, competition, in the development of society and technology and draw conclusions for its own survival and development. Only the company that learns the fastest is able to stay on the market. Who learns too slowly or does not learn at all - loses, loses his position in favor of competition. An intelligent organization should be characterized by the ability to recognize and skilfully adapt to the environment and productivity in implementation. The learner organization acquires knowledge through contact with the environment as well as through interaction within itself.

The basis for transforming a traditional organization into an intelligent organization is to guarantee its employees the right conditions and to encourage them to expand their knowledge. Then the knowledge of this employee can, or even should, be used for the good of the company. It is the employees who develop and use knowledge in action. An intelligent organization is to influence employees so that they are ready to learn. This is what the company expects from them and should create conditions for such an attitude. As a result, all employees will support change processes aimed at increasing the efficiency of the company's operations. Often an intelligent organization is identified with a learning organization. However, some researchers suggest that the former is a higher form of learning organization. The main attributes of an intelligent organization are:

  • proficiency and flexibility of operation,
  • ability to generate knowledge thanks to own experience,
  • the ability to observe the experiences of others,
  • the ability to quickly and innovatively implement,
  • effective transformation of knowledge into new solutions,
  • ability to manage your knowledge.

The intelligent organization allows activating the existing categories of knowledge in order to increase the effectiveness and efficiency of operations in the company. In order to achieve the goal, an intelligent organization operating in a rapidly changing environment should take action with a price to adapt its knowledge about itself and the environment in which it operates. Therefore, an intellectual organization is a learning organization with the ability to create, acquire, organize and share knowledge. Four levels of intellectual resources of an intelligent organization can be distinguished: know what know how know why need knowledge why

The essence of an intelligent organization:

  • Well if it has the ability to achieve high performance indicators and economic growth.
  • It should be able to develop skills and abilities to skillfully recognize, adapt to the surrounding conditions, innovation and performance when it comes to implementation
  • It should be the basis for managing a modern management system of modern enterprises.
  • There are more and more companies that owe their market and stock success to priceless intangibles, in particular to the resources in the form of patents of accumulated knowledge or utility models. The number of companies, whose values ​​are determined by capital and material resources, decreases.

Areas of enterprise intelligence

The organization's intelligence can be seen not only in the internal aspect, but also in its relationship with the environment. The following ranges of the enterprise's intelligence can be distinguished:

  • information intelligence
  • marketing intelligence
  • social intelligence
  • organizational intelligence
  • financial intelligence
  • ecological intelligence
  • innovative intelligence
  • technological intelligence

Competencies of managers in an intelligent organization

The following competences can be distinguished, which should be characteristic for managers in intelligent organizations:

  • social
  • strategic
  • personal
  • specialist

Examples of Smart organization

  • Google: Google is an example of an intelligent organization. It has a culture of innovation and encourages its employees to push the boundaries of what is possible. Their organizational structure is designed to maximize efficiency and collaboration. They use data-driven decision making and analytics to inform their decisions. They also use artificial intelligence to automate manual processes and improve customer experience.
  • Amazon: Amazon is an example of an intelligent organization that uses data-driven decision making and analytics to inform their decisions. They also employ machine learning and artificial intelligence to automate manual processes and improve customer experience. Their organizational structure is designed to maximize efficiency and collaboration, and they have a culture of innovation and experimentation.
  • Microsoft: Microsoft is a great example of an intelligent organization. They use data-driven decision making and analytics to inform their decisions, and their organizational structure is designed to maximize efficiency and collaboration. They also use machine learning and artificial intelligence to automate manual processes and improve customer experience. Furthermore, they have a culture of innovation and experimentation, which encourages their employees to push the boundaries of what is possible.
  • Apple: Apple is another example of an intelligent organization. They have a culture of innovation and experimentation, and use data-driven decision making and analytics to inform their decisions. They also employ machine learning and artificial intelligence to automate manual processes and improve customer experience. Their organizational structure is designed to maximize efficiency and collaboration, and they have a strong focus on customer experience.

Advantages of Smart organization

An intelligent organization is an organization based on knowledge management that enables learning of all its members. It provides many advantages, such as:

  • Increased efficiency: Intelligent organizations are able to effectively manage their resources and maximize their efficiency through the use of data-driven decision-making. This helps the organization to achieve their goals in a more timely manner.
  • Improved communication: Intelligent organizations are able to use technology to facilitate communication between employees, which can lead to improved collaboration and problem-solving.
  • Improved customer service: Intelligent organizations are able to monitor customer feedback in order to improve customer service. This can lead to better customer satisfaction, which can result in increased sales and higher profits.
  • Flexibility: Intelligent organizations can quickly and easily adapt to changing market conditions to ensure their continued success. This helps them stay ahead of the competition and better serve their customers.
  • Improved innovation: Intelligent organizations can use data to identify new products and services that customers may be interested in. This can lead to increased profits and customer loyalty.

Limitations of Smart organization

The limitations of a smart organization include:

  • Lack of expertise in the area of knowledge management. It is important that the organization has knowledgeable staff who are able to implement the concepts of knowledge management.
  • High costs associated with technology and training. Implementing the necessary technology and training staff can be costly, and organizations must be prepared to invest in the necessary resources.
  • Risk of implementation failure. Even if organizations have the necessary resources, there is a risk that the implementation of the concept may not be successful.
  • Difficulty of getting all staff on board. Not all staff may be willing to embrace the new system, and this may create resistance and prevent successful implementation.
  • Difficulty of maintaining the system. Once the system is in place, it must be maintained and updated regularly in order to keep up with the ever-changing business environment.

Other approaches related to Smart organization

In addition to Knowledge Management, there are other approaches related to Smart Organizations:

  • Process Orientation: It is an approach that focuses on the processes of the organization and how they can be improved. It involves understanding the workflow and the tasks that need to be completed in order to achieve organizational goals. This can be done through streamlining processes, automation, and introducing new technologies.
  • Decision Support Systems: It is an approach that uses data analysis, artificial intelligence, and machine learning to help decision makers make better decisions. It enables the organization to identify trends and plan based on accurate predictions.
  • Employee Engagement: It is an approach that encourages employees to be more involved in the company and its processes. This includes providing opportunities for employees to provide feedback, participate in decision making, and offer new ideas.
  • Organizational Design: It is an approach that focuses on the internal structure of an organization and how it is designed to achieve maximum efficiency. It considers elements such as the number of teams, roles, and responsibilities, as well as how these elements interact.

In summary, Smart Organizations incorporate a variety of approaches, such as Knowledge Management, Process Orientation, Decision Support Systems, Employee Engagement, and Organizational Design, to enable better decision making, maximize efficiency, and create an environment that encourages innovation.


Smart organization — recommended articles
Importance of knowledge — Innovativeness — Organizational innovation — Learning organization — Change management model — Innovation management — Transformational change — Organizational progress — Development by restructurization

References

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