The modern business world is complex and unpredictable, all thanks to technology. The scale, speed, and volume of change have such a large impact that its disruptive and can derail the strategy of an organization resulting in a lot of confusion on the next course of action. Many companies are left struggling to find an answer to the question of how to progress and be able to remain competitive in a fast-paced world.
More often than not, companies that understand market dynamics adopt an approach referred to as enterprise agility. The concept of enterprise agility is pretty new in the business world, and if is implement astutely, it can get your business out of the hole you are currently stuck in. But what really is enterprise agility? How does it work? Well, keep reading to find out and learn more about what agility means at an enterprise level and why you need it to remain competitive.
What Is Enterprise Agility?
Agile has become a household name in IT since its inception not so many years ago. Companies that hitherto operated in a very traditional way have made huge strides towards the achievement of an agile working environment. Initially, this journey started at the grassroots software development but has been scaled up; teams can now use Agile to run large programs.
Agile is a way of working that helps organizations in definition, planning, and execution against outcomes. It allows them to see the bigger picture and make conclusive decisions. Agile has been quite successful and has led to smarter, cheaper, and faster customer outcomes prompting large corporations to adopt these ‘ways of working’ across the entire organization. The companywide adoption is what has led to the coining of the term ‘enterprise agility.’
VUCA Market Dynamics
Volatile, uncertain, complex, and ambiguous (VUCA) market dynamics have greatly contributed to the need for enterprise agility and the subsequent emergence. Disruption from global innovators — start-ups in particular — is contributing to the pressure and changes in market dynamics. These pressures are mostly felt by large organizations across various industries owing to the start-up’s ability to compete in new, innovative ways.
These start-ups can pinpoint niche/lucrative segments and combine that with their new technologies and customer first approach leading to massive success. This lowers the entry barriers which allows more start-ups to enter the market and pose a lot of competition to traditional large organizations. By deploying agility enterprise-wide, large corporations can compete at scale with global innovators.
The Purpose of Enterprise Agility
Technology and competitive landscape aren’t the only things that are changing; the customers are also changing. Today’s customers demand high-quality, more personalized services. Organizations need to change their approach towards how they deal with the customer and enterprise agility and help them do that too.
Fundamentally, enterprise agility allows organizations to adapt to, respond to, and possibly lead the market when it comes to technological innovation and advancement, internal changes, and industry changes. More importantly, enterprise agility helps a company deal with external markets and competitor movements. Customer centricity, too, is a critical aspect of enterprise agility.