Technology has become a fundamental part of today’s work life. It is helping people to automate some parts of the work and release time to those tasks the machines cannot do. First, people must set the rules and find the ways to make the human-technology teamwork effective. Different kind of networking platforms are used to bring the stakeholders together and to build business ecosystems that create value and innovative solutions. In organization’s internal business ecosystem, the technology can be used to share information and manage data among the stakeholders. The idea of an internal business ecosystem is to build a group of stakeholders that share the same targets, around a value proposition. In a complex matrix organization, this approach provides a good opportunity to exploit the links between the stakeholders and share knowledge among all the involved stakeholders worldwide.
Authors: Jenni Hannikainen, Brett Fifield & Kristiina Brusila-Melkovaara
Solution focused value networks lead to effectiveness
The action research in an international matrix organization, which target is to appear as one company worldwide, evidenced the fact that the company must operate internally as one company over boarders. There must be same systems, technologies and processes in use in all the business units worldwide to provide the desired message to external stakeholders. Creating internal business ecosystems with a help of a technology for this purpose lead to better communication and facilitate the data management and understanding of the processes when they are same for all. It is crucial for the ecosystem that all the stakeholders in that value network participate in value creation and are committed to it. (Hannikainen 2022).
In a complex matrix organization, an effective information flow and sharing information may be challenging, but when it is well arranged, it provides a competitive advantage and efficiency to work. The study indicates that the different tools must facilitate the work and be intuitive and simple enough to use to engage the users. (Hannikainen 2022). Taking the time to improve the operations may bring it back multiple. Creating an internal business ecosystem is a functional and innovative approach to revise the faults in the operations and work on the links between the different stakeholders to optimize the work together. There are multiple managers and leaders with different interests of operations in matrix organizations, different individuals or groups want to advance their own targets and that may cause power struggles and challenges if a common agreement cannot be reached. (Davis & Lawrence 2021). Solving large-scale problems by using an internal value network is a key to constructive and effective solutions that engages the members. In the best cases, it leads to innovative results and success.
A business ecosystem is a good way to create new value and make a change in the organization by involving the stakeholders to the change along the process. This facilitates communication and engages the stakeholders better at the beginning of the change, which is important, because people use to maintain the same opinion of the change during the process. All the parties may influence on the outcomes. James F. Moore, who first presented the idea of a business ecosystem, states that it is a co-operational network, which bases on creating complementary capabilities. The leaders that understand the results and challenge to the renewal are more likely succeed than those who fear the change. (Moore 1993).
Well-designed human-technology teamwork is the key to success
Technology, machines and automation help people to be more effective and capable at work, but not everything is good to be automated. The dirty, dull and dangerous tasks can be replaced by technology and the creative, exciting and clean tasks should be left to human to reinforce the skills and knowledge of human beings. Technology is not a replacement, it is one of the team members that can complete human’s weaknesses and work around the clock. (Norman 2017). For that reason, it is beneficial to customize the used systems so that they provide the best possible benefits for people to work efficiently. The study of internal business ecosystem design in an international matrix organization presents a value network that focuses on optimizing a used tool so that it creates an effective data management and information-sharing tool for salespeople. The same can be used as a base for further development in the organization. (Hannikainen 2022).
The same study demonstrates that building a business ecosystem around an improvement of a technology, also helps bringing the people together in a new way and strengthens internal relationships in the organization. (Hannikainen 2022). This may be a huge benefit in a global organization that wants to be seen as one company worldwide. Well-structured and effortless information flow helps the whole organization and unifies the business units worldwide.
Davis, S. M. & Lawrence, P. R. 2021. Organizational structure. Problems of Matrix organizations. Harvard Business Review. Cited 2 June 2022. Available at https://hbr.org/1978/05/problems-of-matrix-organizations
Hannikainen, J. 2022. Internal Business Ecosystem Design in an International Matrix Organization. Master Thesis. LAB University of Applies Sciences. Cited 2 June 2022. Available at https://urn.fi/URN:NBN:fi:amk-2022060315293
Moore, J. F. 1993. Predators and pray: a new ecology of competition. Harvard Business review. Cited 2 June 2022. Available at http://blogs.harvard.edu/jim/files/2010/04/Predators-and-Prey.pdf
Norman, D. 2017. Design, Business models and Human-Technology Teamwork. Research Technology Management. E-book.
Jenni Hannikainen studied in LAB University of Applied Sciences Master’s Degree Programme in International Business Management
Brett Fifield is a Senior Lecturer in the faculty of International Business Management, LAB University of Applied Sciences
Kristiina Brusila-Meltovaara is a Principal Lecturer at LAB University of Applied Sciences.
Illustration: https://www.pexels.com/fi-fi/kuva/ihmiset-tyopoyta-toimisto-toissa-7437489/ (cottonbro, Pexels-licence)
Reference to this article
Hannikainen J., Fifield, B. & Brusila-Meltovaara, K. 2022. Internal business ecosystem design– a new approach for an international matrix organization to create value and optimize the work. LAB Pro. Cited and date of citation. Available at https://www.labopen.fi/lab-pro/strategical-company-ecosystem-a-new-approach-for-an-international-matrix-organization-to-create-value-and-optimize-work/