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Biz-Agile® is the future of enterprise management

Date：2024.04.15 13:49Views：

Biz-Agile® is the future of enterprise management

（The research findings by Celedog Research Institute were first published in Hong Kong in February 2021, with an updated version in April 2024 by Dianchi Lake.）

【2024002】Biz-Agile® is the future of enterprise management.pdf

Driven by the complex global political and business environment and technological innovation, enterprise management is facing unprecedented challenges and opportunities. The rapid development of emerging technologies such as Artificial Intelligence (AI), cloud computing, and the Internet of Things (IoT), especially the rise of generative AI and the advancement of Artificial General Intelligence (AGI), is reshaping the operational models and competitive landscape of businesses. The diversification and continuous evolution of customer needs, along with the intensifying market competition, have led business leaders to realize that enterprises must adopt more efficient and flexible management strategies to adapt to market changes and maintain and enhance their competitiveness. Against this backdrop, traditional business models can no longer meet the new demands of the market. Enterprises urgently need a new management system—Biz-Agile®—to adapt to the constantly changing market environment and maintain competitiveness and innovation.

The concept and rise of the Composable Enterprise

The "Composable Enterprise" concept proposed by Gartner emphasizes that enterprises should possess the flexibility akin to Lego bricks, being able to quickly combine and recombine their business components in response to market demands. This philosophy complements the core principles of Biz-Agile™, both aiming to achieve rapid response and continuous innovation through modularization and composability. As the Composable Enterprise concept evolves, businesses worldwide are undergoing profound transformations, guided from traditional hierarchical and hard-wired structures to flexible and open assembly models, adapting to the new requirements of the digital-intelligence era.

The Proposal of Biz-Agile®

The Biz-Agile® management system was developed by Celedog Research Institute based on an in-depth study of the successful practices of over 1000+ high-performance enterprises globally and the "Composable Enterprise" concept proposed by Gartner. It penetrates the essence of business (namely, efficient transaction) and integrates agile thinking with business management practices. Oriented towards customer value and driven by operational scenarios, it adopts a flexible orchestration approach with capabilities as service units, providing enterprises with optimal business management combinations and digital solutions.

The Objective of Biz-Agile®

Biz-Agile® is committed to helping enterprises achieve the management objectives of "high-entropy value creation and low-entropy orderly operations." By utilizing open and agile business architectures, it enables enterprises to break down large-scale overall processes, products and services, organizational resources, and applications into discrete components. Each component can then be independently built, scaled, and maintained, and quickly combined into new transaction flows, products, and services based on business scenarios, ensuring that the entire enterprise remains responsive to market changes.

In the era of digital intelligence and with the advent of AGI, high-entropy value creation means that enterprises can continuously introduce products and services with high added value through frequent innovation activities, meeting the evolving market demands and customer expectations. Meanwhile, low-entropy orderly operations focus on ensuring efficiency, low cost, and low risk within the enterprise. This includes optimizing business processes, improving organizational efficiency, reducing resource waste, and achieving orderliness and stability in operations through intelligent technologies and refined management practices.

By integrating strategies of high-entropy creation and low-entropy orderly operations, Biz-Agile® assists enterprises in maintaining their innovative vitality in a competitive business environment while ensuring the continuous improvement of operational efficiency and quality. It achieves the Biz-Agile® goals of "accelerating innovation, enhancing productivity, speeding up time-to-market, and reducing costs," thus realizing the sustainable development of long-term business success.

The Core Philosophy of Biz-Agile®

The essence of the Biz-Agile® management system lies in the rapid response to market changes, continuous innovation, and optimization of business processes. It achieves the objectives of "high-entropy value creation and low-entropy orderly operations" through modular business components, dynamic business architecture, customer value orientation, data-driven decision-making, cross-departmental collaboration mechanisms, and continuous learning and improvement. This system is dedicated to enhancing the operational efficiency and innovation capabilities of organizations and realizes the goals of rapid response and sustained innovation through the following core philosophies:

1.Unique Business Operating Brain Elements (BOBE) Language

BOBE is an innovative language designed for enterprise management, aiming to explore and apply the concept of 94 fundamental elements that constitute everything in the universe, abstracting various elements of enterprise operations into 68 basic building blocks (i.e., BOBE). These elements include, but are not limited to, business processes, products and services, organizational structure and capabilities, information technology, etc. Through the standardization and atomization of BOBE, enterprises can more effectively combine and manage these elements, thereby enhancing flexibility and adaptability to market changes, creating new value and opportunities. The introduction of BOBE enables more scientific and systematic enterprise management and is expected to promote management practices towards a more intelligent and efficient direction, which is key to achieving the concept of "everything as a service, services flowing like water."

2.Composable Thinking, Business Architecture, Organizational Capabilities, and Technology

Biz-Agile® adopts a composable methodology, enabling enterprises to flexibly combine BOBE in thinking patterns, business architecture, business processes, organizational capabilities, and technology applications. This allows them to quickly and effectively meet challenges in various business combat scenarios. This methodology endows enterprises with the flexibility to formulate strategies, design products and services, adjust organizational structures, and apply technology, enabling them to adapt more agilely to market changes and customer demands. Through the composable way of thinking, Biz-Agile® allows enterprises to innovate and evolve more rapidly, maintaining a competitive edge in a fiercely competitive business environment.

- Composability of Thinking Patterns: Biz-Agile® encourages and fosters innovative and flexible thinking patterns. Enterprises can combine different thinking patterns, such as design thinking, systems thinking, and entrepreneurial thinking, to solve complex problems, discover new opportunities, and continuously optimize business processes and strategic planning.

- Composability of Business Processes: Biz-Agile® advocates for the modularization and atomization of business processes, allowing enterprises to quickly combine and adjust them as needed. This means that enterprises can assemble different business process units to adapt to varying market demands, customer feedback, or internal optimization goals. For example, enterprises can flexibly combine various business processes like sales, production, and supply chain management to meet the requirements of specific projects, thereby improving efficiency, reducing costs, and optimizing resource utilization.

- Composability of Business Architecture: Biz-Agile® permits enterprises to dynamically adjust their business architecture based on specific needs and market trends. This includes the combination of aspects such as product and service design, pricing models, distribution channels, and partnership relationships, ensuring that enterprises can flexibly meet customer needs and maintain a competitive edge.

- Composability of Organizational Capabilities: Enterprises can flexibly adjust their organizational structure, talent allocation, and workflow according to different market demands and strategic objectives. This means that in various business contexts, enterprises can assemble different teams, skills, and resources to execute tasks more efficiently and respond swiftly to market changes.

- Composability of Technology Applications: Biz-Agile® encourages enterprises to adopt modular and scalable technology architectures for rapid deployment, integration, and customization of technology solutions. This includes utilizing advanced technologies such as microservices architecture, cloud computing, artificial intelligence, etc., and by combining different technology modules, achieving rapid innovation and business growth.

3.End-to-End Workflows Always Oriented Towards Customer Value

Biz-Agile® consistently prioritizes customer value, continuously optimizing and adjusting business components through ongoing customer research and feedback. With the flexible orchestration of BOBE, it efficiently, at low cost and risk, and with high quality, realizes personalized services and product customization to meet customer expectations and needs.

lBiz-Agile® is a methodology that is driven by job scenarios and utilizes BOBE's flexible orchestration to build an end-to-end efficient workflow from customers, to customers. This approach ensures seamless integration of the entire business process, allowing each stage to be customer-centric and achieve the best operating efficiency and service quality.

lBiz-Agile® obtains user feedback and data intelligent analysis in real-time through an integrated operations platform, continuously identifying customer pain points and value points, and converting them into business opportunities to achieve business growth. This customer-driven approach allows businesses to accurately grasp market demands, make timely adjustments to strategies, and achieve continuous innovation and competitive advantage.

4.Integrated Combat Formation of Business-Technology Integration

Biz-Agile® adopts an integrated combat formation that is business-technology integrated, streamlined, and highly autonomous, with a fluid organizational form. It breaks through traditional organizational boundaries (i.e., both horizontal and vertical boundaries are eliminated), achieving dual-driven development of innovation and efficiency. Its core value lies in:

- Goal-oriented Consistency: Based on the principles of co-construction and co-governance, with transparent rules, teams focus on creating high-entropy, valuable services around combat scenarios. Members always orient towards common goals, ensuring all actions are closely aligned and efforts are concentrated.

- Multi-skilled Team Building: Team members are not only equipped with professional capabilities but also emphasize the cultivation of "jack-of-all-trades" skills to ensure efficient collaboration and optimal personnel effectiveness.

- Cross-domain Professional Integration: Combining professional expertise from different fields (such as information technology, data analysis, marketing, etc.) with modern technical and professional capabilities to meet business needs, forming a synergistic and efficient working team. This integration not only enhances the team's innovation and efficiency but also better satisfies diverse business demands.

- Rapid Response to Market Demands: By quickly responding to market demands, teams can flexibly adjust strategies and business directions to provide products and services that align with market needs.

- Resource Optimization and Trading Mechanism: Through the mechanism of resource shelving and trading, the interaction between combat teams and resource construction teams is simplified, achieving optimized resource allocation and maximized utilization.

- Boundaryless Business Entity Organizational Capability: The current and future development of business forms requires enterprises to be both creators (as the leaders of their ecosystem, building and driving the development of their own ecosystem) and participants (as members, deeply involved in the ecosystems of other enterprises) of ecosystems, making enterprises boundaryless business entities. This demands that the organizational form of enterprises be able to efficiently, effectively, at low cost, and with low risk meet the operational needs of boundaryless business. The integrated combat team of business-technology integration is the most adaptable, flexible, and high personnel-effective organization form under the operation model of a boundaryless business entity.

5.A highly collaborative and data intelligence-driven integrated combat platform

The integrated combat system advocated by Biz-Agile® is a highly collaborative and data intelligence-driven real-time operation platform (namely, the enterprise-level integrated combat platform X-One). X-One, through open communication and collaboration, achieves seamless integration of business activity flow and information flow, enabling different departments, teams, and ecosystems within the enterprise to quickly and effectively exchange information, process business, and share resources in a shared environment, thereby significantly enhancing work efficiency and innovation capabilities. The core features of the enterprise-level integrated combat platform are:

lX-One is a SuperApp (Super Application) that supports digital enterprise operations: A digital enterprise will build an enterprise-level integrated operations system (X-One) that horizontally integrates isolated services and vertical functions, seamlessly integrates the physical world and the digital world, is fully connected and fully online, highly automated, and seamlessly connects to the business ecosystem. It provides a Living Service and an ultimate experience of future job scenarios for various objects, serving as the digital workspace for both the enterprise and the ecosystem.

lX-One fundamentally changes the operating model of enterprise IT: X-One transforms from traditional information recording or digital application mode to a real-time operational mode that seamlessly integrates business activities and information flows. Enterprise IT is no longer just an information tool, but a borderless workspace system between the digital and physical worlds. At the same time, X-One targets user battlefields, achieving "people find applications" to "services find people, on-demand enjoyment" through platform-level capabilities and orchestration, providing diverse and flexible job support.

Data intelligence plays a core role in Biz-Agile®. Enterprises obtain and analyze various business data in real-time through an integrated operations platform, enabling them to better understand market trends, customer behavior, and enterprise operating status, thereby making more accurate and intelligent real-time business decisions, and quickly responding and adjusting business strategies. Data-driven decision-making processes help enterprises optimize resource allocation and improve operational efficiency.

lAll-round Intelligent Real-time Command System: It is an end-to-end solution for business, platform, data resources, and cloud basic infrastructure, achieving full-stack micro-vessel-level digitalized operations, realizing comprehensive perception of the operating status of the entire organization, unified scheduling of resources, and handling of emergency events in a panoramic manner, significantly improving enterprise operational efficiency and the speed of the business value cycle.

6.Continuous Learning and Improvement

Enterprises should continuously learn and improve their business components and combination strategies. Through continuous iteration and optimization, enterprises can maintain their competitiveness and adapt to the ever-changing market and technology environment.

Challenges and Opportunities in Implementing Biz-Agile®

While Biz-Agile® brings many advantages to enterprises, there are also a series of challenges in the implementation process:

1.Cultural Transformation

Enterprises need to cultivate a corporate culture that supports agility, innovation, and composability, encouraging innovation, experimentation, and fast learning. This may require time and effort, including changing employees' mindset, work habits, and organizational structure.

2.Technical Challenges

Implementing the modularization and composability of business components requires advanced technical support, such as microservice architecture, atomic service management, and AGI. Enterprises need to invest in new technologies and ensure that the technical team has the relevant skills and knowledge.

3.Talent and Skills

Enterprises need to have talents and skills that can adapt to a rapidly changing environment. They need to cultivate talents with cross-disciplinary knowledge and skills to support the strategy implementation of composable enterprises. This means that enterprises need continuous training and development plans to ensure that employees can keep up with the pace of Biz-Agile® transformation.

4.Risk Management and Compliance

While pursuing agility and flexibility, enterprises also need to ensure that risks are properly managed. This includes risks in data security, compliance, ethics, and business continuity.

5.Measurement and Evaluation

Enterprises need to establish an effective measurement and evaluation system to monitor the progress and results of Biz-Agile® transformation. This helps enterprises adjust strategies in a timely manner and ensure the success of the transformation.

Conclusion

Biz-Agile® is a key strategy and systematic engineering revolution for enterprises to cope with the fast-changing market, providing a new business model. By implementing this system, focusing on modularization, dynamism, and customer value orientation, through data-driven decision-making and cross-departmental collaboration, enterprises can improve operational efficiency, enhance innovation capabilities, and occupy a favorable position in fierce market competition. Although there will be challenges such as culture, technology, talent, and risk management in the implementation process, through continuous efforts and improvements, enterprises can overcome these obstacles and achieve the transformation goals of Biz-Agile®. As enterprises deepen their understanding and widely apply the Biz-Agile® concept, it will become the main melody of future enterprise operations, leading enterprises towards a more prosperous and sustainable future.

Note: Biz-Agile®, Business Agile® are registered trademarks of Shenzhen Huahui Times Management Consulting Co., Ltd.

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