Businesses to Enter a New Era of Decentralization

Businesses to Enter a New Era of Decentralization

Summary: New figures from a study sponsored by Ricoh show that, by 2020, the impact of new technology in the workplace will force businesses into a new era of decentralization.

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TOPICS: CXO
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Doc's been saying for a while that the highly centralized business model is waning and we're beginning to see many more large corporations take a decentralized approach to running their businesses.

Now new figures from a study sponsored by Ricoh show that, by 2020, the impact of new technology in the workplace will force businesses into a new era of decentralization.  The research, conducted by the Economist Intelligence unit, shows that 63 percent of business leaders predict a shift towards a more decentralized business model and that responsibility for business decision making will move from centralized management boards towards individual employees.

In the past, decentralized structures were generally criticized for their inefficiency, duplication, and lack of consistent strategic direction.  By 2020, effective business processes will empower workers to better meet the needs of the market place and enable organizations to be more agile.

At the heart of successful decentralization in 2020, lies a network of integrated processes to manage information, and ensure that it is accessible by key knowledge workers, wherever they are, to make business decisions. In the future, there will also be a need to consider how experts outside the organization can input and retrieve information to act on behalf of the business. Eighty-five percent of business leaders agree that project teams will typically include members from outside the organization (for example, customers, partners, and communities).

To download the Executive summary visit here.

Topic: CXO

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