Organisational structures have evolved from functional to matrix to platform models, reflecting shifts in the business environment. Traditional functional models, with separate departments for each key business function, were efficient but lacked flexibility. Matrix models emerged as a response, combining functional and project-based structures to improve collaboration and resource allocation. However, matrix models can lead to confusion and power struggles.
The latest evolution is the platform model, which focuses on creating value through interaction and collaboration. Platforms are designed to facilitate exchanges between users, leveraging network effects to increase value. They are less concerned with controlling resources and more focused on orchestrating interactions. This model is particularly effective in today’s digital, networked economy.
However, transitioning to a platform model requires a radical rethink of traditional business practices. Companies need to focus on facilitating interactions, creating an attractive environment for users, and continuously learning and adapting. It’s a challenging shift, but one that can deliver significant benefits in terms of agility, innovation, and customer engagement.
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