Here’s to building a great big tower!
The traditional organizational structure is a trap.
Vertical silos are necessary for
effective execution of horizontal processes that
flow across organizational structures.
But, breaking down the silos is impossible.
So, what can we do?
Companies must look to digital technologies to
foster intelligent “digital collaboration” among the silos.
We’ve been viewing the supply chain as a sequential chain of links,
causing the infamous bullwhip effect.
As demand variations are communicated through the supply chain,
errors propagate the network.
This leads to million-dollar working capital decisions
based on
custom spreadsheets and
tribal knowledge.
It’s time for a change.
When we plan things in a company,
sometimes different groups of people work separately and
don’t talk to each other.
This can make things harder and cause mistakes.
But now we can use computer tools to
help these groups work together and
Share information.
It’s like having a big map where
everyone can see what others are doing and work together.
Imagine you and your friends are building
a big tower out of blocks.
If everyone builds their part separately without talking,
it might be hard to put all the parts together and
make a good tower.
But if you use a big plan or blueprint and
everyone works together,
it will be much easier to build a great tower!