Define Enterprise Agility
To be able to operate and be strategic, there are tons of factors to consider. Hyper-competition, higher demands from customers, advances in tech and changes in regulations have to be considered when upgrading. There’s something called enterprise agility. It’s comprised of two things. Being able to sense what is going on and respond to it. The timelier the response, the more likely the company will succeed in difficult times. Dynamic capabilities are included here. One has to consider how to build the new system that will respond to the new environment. In order to keep up with competition capabilities have to be able to adapt to new changes.
Market orientation deals with market intelligence focusing on new and current customer needs. The information gathered will be spread across all departments so there can be company-wide responsiveness to changes. Absorptive capacity deals with how well the company assimilates, transforms and uses the knowledge gathered. Strategic flexibility is how well the agency manages both economic and political risks to market threats. It also looks for future opportunities. The flexibility has to include both reactive and proactive approaches to problems. Organizations need to be watchful for and respond to competitors’ actions. They need to look at consumer preferences. There has to be a focus on economic shifts. The agency needs to look out for changes in regulations and advances in technology too.
The Role of IT
The role information technology (IT) plays in this is very important. Responses are completed through direct and indirect means of digital options. Through direct means IT can anticipate and sense changes dealing with businesses. IT systems help as sheer volume of information processed goes further than can be handled otherwise. Indirect means are more pronounced though. This is where product development, manufacturing and supply chains add to performance of the organization.
Digital options can be considered indirect too due to them being work processes and knowledge systems. Knowledge reach is the comprehension and accessibility of codified knowledge available. If the system is built correctly it can help companies to gather and use the knowledge gained. Knowledge richness is when IT gives out high-quality information in a timely manner. IT also reviews real-time pattern recognition and monitors data. It helps create strategic scenarios assisting strategic decision making. Process reach is when IT integrates customers, suppliers and partners internally. The richness of these processes are improved by quicker timeliness of delivery. They become more accurate and relevant.
Depending on how the new systems are deployed and managed, IT could hurt as well as help businesses. The older the technology being used means responses could be limited by the range available. Everything would have to be updated, not just programming. Systems might restrict the ability to retrieve and interpret data being gathered for analyzing. Or processes could be incompatible with new systems. This would mean that they would have to be upgraded. It’s up to the firm as to how well IT is going to work for them if at all. Agility is the ability to respond quickly to change that comes up. The company has to understand the updates in order to create and implement them correctly. If not, they could fall behind from their competition even more.