In the VUCA (volatility, uncertainty, complexity, ambiguity) era, the digital economy has not only revolutionized the social life, but has also profoundly changed the organizational structure.
Professor Li Xuhong from Fudan University School of Management pointed out that the digital economy and platform economy are breaking the various boundaries of the organization, creating more agility and coordination among the organizational units.
"Disintermediation, decentralization, the removal of boundaries as well as the deconstruction of authority are becoming common features of new organizational structures, while agility and platform are their two core characteristics." Professor Li summed up.
According to her opinion, two new organizational structures have been proven the most efficient at present. One is the “iron triangle” that promotes collaboration between links within the existing organizational boundary; the other is the borderless platform, which is often realized by completely breaking the original organizational boundary. Both of these new structures are empowered through the digital transformation of the organization.
