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Consulting, Innovation, Strategy, Vision, Education, & Ideation

Social Architecture in the ICT Innovation Architecture

I thought this was very interesting in relation to a firms social requirments in the innovative enterprise.

-DF

The ICT architecture as articulated by C.K. Prahalad and M.S. Krishnan in their book The New Age of Innovation, identified
three specifications/requirements of the social architecture within the ICT Innovation Architecture. With these requirements in place, companies can
act in real time to reconfigure their resources on the fly, establish a culture of transparency, or make any other changes they need to be competitive.

The first criterion is to expand the company’s engagement with customers.
It demands of the firm a capacity to engage customers in a wide variety of activities, such as product development, pricing, and logistics.
This co-creation nature of engagement can help firms to learn about customers as part of the value creation process. Internal
decision-making processes and the supporting technical architecture need to reflect this need.

The second requirement is to cope with complexity.
As we discussed earlier, this brings about enormous complexity as systems are integrated and
resources are reconfigured in real time. The social architecture needs to build capabilities to manage risks that arise from this complexity.
Imagine a firm operating in 150 countries with 10 large product groups. The company will be addressing a staggering array of business
models, competitors, cultures, and channels.

The third criterion is to build consensus rapidly. While there are likely to be a wide assort-
ment of microcultures throughout the global span of the firm, all of them must embrace a com-
mon way of looking at the world, at customers, and at competitors. The emerging information
technologies, such as wikis and social networking tools, allow firms to build a capacity for
rapid consensus building across the organization.

For more info on this excellent book, check it out on Amazon!

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Written by David Frederick

April 9, 2009 at 7:47 PM

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