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Structuring Companies for Innovation and Operations

Abstract from: Structuring Companies for Innovation and Operations
By: Heinz Essmann

1. “The appropriate structuring of companies is becoming more and more
relevant as a mechanism for managing and enhancing their innovation
capability. This article explores the concept of the Viable Systems
Model (VSM) of Stafford Beer as a tool to better structure organisations
for effective innovation and efficient operation.”

2. “Innovation, inevitably, requires an organisation to change. Whether
minor and incremental adjustments to the status quo, or a major and
radical deviation from the norm, companies are required to change their
modus operandi more and more often and in larger and larger increments
to remain competitive.”

These two observations are “resolved” into the concept of ambidextrous organisation: one in which operations and innovation can coexist.

opposed to traditional organization structures that can be highly bureaucratic, slow to react… and lacking in connectedness between business units. Sound familiar?

A mechanism that can describe how these conflicting activities can coexist, or rather flourish, is presented in the Viable Systems Model of Stafford Beer.

See all the article at Structuring Companies for Innovation and Operations .

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