How To Move Away from the Industrial Age Company Model - Forbes
If Social Business is really transforming the way we do business why are most of the stories and cases out there focused on changes to a single business function like marketing, human resources, or customer service? Shouldn’t it act as a change across several of these functions, or for that matter will these functions go away or change so fundamentally that we can no longer tell them apart?
It may appear to be a fine distinction but yet a very important one. Transforming a business process may involve one or two functional silos like sales and customer service. Transforming how a company is organized on the other hand asks use to review basic question of how a firm should operate. It asks if we need separate business functions to do production, distribution, marketing, or sales.
I read author, thought leader and the ‘female James Bond for Innovation’ Nilofer Merchant’s great five part series on Harvard Business Review, Rules for the Social Era, that asks the fundamental questions of why organizations are designed the way they are. In particular, she refers to how organizations still operate according to Harvard University professor Michael Porter’s Value Chain model, a classic business strategy definition of of how companies should be organized to determine their market competitiveness.