Today, the term “digital management” is often a subject of research. There are many reasons for the popularity of this topic: the development of digital technologies in society, the support of digitization by the public sector, and the change in the technological structure of large international companies. All of this gives impetus to rethink the theoretical and methodological foundations of traditional management.
It has been researched that the new conditions – above all technical progress – for the functioning of a company lead to serious and fundamental changes in management. New opportunities cannot be used without appropriate adjustments to organizational processes, structure, staff and your corporate culture.
The Content Aspect Of Digital management
Digital transformation in a broader sense can be seen as one of the phases of the management revolution. The general trend for changing the management paradigm will be to refocus organizations that:
- focus on values
- Teamwork/new forms of work
- Faster response to changing market demands
But the basic principles of change have remained: nothing is more constant than change. Change is the main driver of the future. It’s impossible to manage change, but you can stay ahead of it. The new paradigm includes changes in organizational structures and the principles of how they operate. Namely in the administration of human resources, production technology and productivity and above all in information management. The focus is on the type, processing and application of information. Society and businesses produce and consume vast amounts of information. For an effective flow of information, it is therefore necessary to organize information systematically . This is a major management challenge in the digital age.
The Development Of New Management Approaches
The development of new management approaches is therefore a consequence of technological change. It is well known in society that digitization, or digital transformation, is the introduction of digital technologies into the activities of an organization or society – it includes artificial intelligence, cloud technologies, specialized software, etc. However, these terms are interpreted differently . You can find out more about this in our article: Digitization and digital transformation .
The digital transformation increases the economic benefit and improves the efficiency of the organization’s business processes. And not only through the introduction of new technologies, but also the global restructuring of the company as a whole. This includes its working methods and its structure in accordance with new informational realities. The digital transformation of companies takes place in stages, from the automation of business processes to the complete transformation of management. Top management just has to be ready for such a transformation, for fundamental changes in structure and working methods.
Digital Management – An Interpretation Of The Term
Digital management is an organizational management system based on new digital technologies with the aim of building a sustainable digital infrastructure. It ensures stable growth and development of companies in the context of digitization.
The labour market is therefore also adjusting to a new round of digital development by companies. The demand from employers for specialists such as “Digital Transformation Manager” is increasing enormously. Many modern companies, regardless of the industry, try to automate processes as much as possible. However, digital transformation projects often fail due to the lack of corporate culture and, last but not least, the unwillingness of employees to use new methods. Employees don’t always realize why this is necessary, how it works and what it does. A digital transformation manager therefore acts as a link between senior management who want to implement something new and employees who are supposed to use these technologies and methods.
The digital transformation is relevant in all areas of the economy, the public sector and the private sector. The effectiveness of introducing digital technologies into the process and project activities of companies has long become evident. The resulting agile project management questions roles, processes and project plans from the classic approach and includes a number of methods and approaches:
- Focus of the project team – including all stakeholders – on the needs and goals of the customers
- Empowering employees and freedom of creative search
- Simplification of the organizational structure and processes – in particular avoidance of detailed documentation and lengthy approvals
- the execution of work in short cycles (iterations)
- active use of feedback
Positive examples of the use of new tools provide impetus for broad practical application. As a management consultancy, we invite you to make such ground-breaking experiences yourself on an individual learning journey .
The development of a company’s digital strategy, the use of effective digital platforms and technologies, the adaptation of corporate culture, the acquisition of new knowledge, skills and experience, theoretical understanding and the formation of digital management methodology are the components and tasks of digital management of the future . Currently, every company should develop sustainable methodical approaches and tools for digital management as well as regulations for the gradual expansion of the presence in the direction of “digital”.