Philosophy of Digital Man and Digital Society - 2024
A New Paradigm of Agile Management as a Condition for Organizational Survival Amidst Instability and Digitalization
The Creative-Innovative Potential of the Digital Individual as a Factor in the Development of a Digitalized Society
The new paradigm of Agile management, as a direction in management for the 21st century, embodies the formation of conditions for the survival of organizations in unstable environments, uniting the most contemporary ideas in the realm of complex adaptive systems and flexible management, while offering a practical mechanism for organizational functioning in the face of significant uncertainty.
This new paradigm encompasses components of a comprehensive body of knowledge regarding systems, which integrates flexible approaches to software development and innovative programming techniques with directive management strategies grounded in scientific methodology and complex systems theory. In today’s tumultuous world, organizations must adapt to survive amidst uncertainty, information stochasticity, and instability.
The primary aim of Agile management is to demonstrate how teams can autonomously address their challenges, a vital understanding for managers in the 21st century to effectively lead their organizations out of a pervasive crisis. At the core of this new paradigm is the practical application of complex systems theory, which introduces new concepts of complexity that form the foundation of flexible management capable of enhancing productivity. As analysis reveals, over recent decades, we have witnessed the emergence and evolution of complexity theory, initially applied in mathematics and biology, and subsequently in economics and sociology.
Today, there is a heightened emphasis on formulating a concept of sustainable organizational development and seeking attractors for recovery from crises in the post-coronavirus era, conditions that encompass the survival of organizations in an environment characterized by uncertainty, informational stochasticity, and the need for adaptation to ongoing changes that necessitate modernization. In contemporary circumstances, the complexity of organizations increases as they seek new attractors for emerging from crises, self-regulating management systems whose quality will determine the outcomes of their activities and the conceptual framework for overcoming organizational crises.
According to complex systems theory, the implementation of specific processes pertains to the entire management system, whose inherent uncertainty will always exist. Hence, adaptation must not only address changes but also optimize the entire management system. The intricate challenges of organizational survival are typically associated with unpredictability and the presence of information stochasticity, with their resolution lying in a critical analysis of the entire management system and the alterations in the dynamics of various attractors.
The research is based on a combination of the following theoretical approaches employed in the investigation. The first is referred to as the informational method (developed by M. Castells in 2000, but further elaborated by the authors), which has facilitated the analysis of an information society evolving into a digital society.
We seek to substantiate that the formation of a digital society entails the development of technical and technological innovations that drive the quest for universal models of digital society development in the new millennium. Given the unfavorable global trends impacting Ukraine and the lack of state influence, the trend of systemic degradation will continue. The country risks failing to harness the wave of epochal and foundational innovations within the digital society, resulting from breakthroughs in the digital economy and digital governance, which may lead to its transformation into a raw materials appendage and a market for finished products, ultimately becoming an object of exploitation by more vigorous advanced civilizations.
The methodological components of the project can be analyzed through a novel and underexplored approach—the informational method, which we argue is genuinely new. Following M. Castells, it has undergone further development, enabling the digital society to be viewed as innovative and high-tech. This perspective extends to emerging phenomena—artificial intelligence, robotics, implanted technologies, new digital realities, pervasive computerization, the Internet of Things, big data, and artificial intelligence in decision-making, as well as 3D manufacturing.
In socio-philosophical thought, there is a notable deficit in the reflection of methodological approaches to non-linear thinking, which would elucidate the challenges of the axiological and anthropological discourses of the digital society and enhance understanding of the formation of spiritual and cultural demands in contemporary Ukraine at this stage of civilization's development and its global transformation.
By employing complexity methodology, we will delineate the conditions for organizational survival in the post-coronavirus era. The conditions for survival in this context involve overcoming uncertainty, information stochasticity, and adapting to changes that lead to an increase in entropy both in management and society. As the environment becomes more complex, the management system evolves towards complexity, necessitating adherence to principles of flexible managerial management, leadership, and team management.
Complex management systems adapt both to external environments and to each other, co-evolving in the new conditions of informatization, digitalization, and globalization. This adaptation is rooted in the fact that the internal structure of each organization possesses its own cultural and informational code, which must be enriched with new informational and digital content. Managers succeed only when they operate in conjunction with specific information-computer technologies, advanced information infrastructure, and cutting-edge software. Therefore, the survival strategy of organizations must undergo reevaluation, reconfiguring the components of the management system towards digitalization and creating an optimal concept for post-coronavirus survival.
Each organization must independently investigate its role within the broader societal context of Agile management, as changes in the surrounding environment must correspondingly provoke modifications in the content of the Agile management concept. Digitalization is rapidly "capturing" the entire management sphere, prompting the state to undertake meaningful reforms that include cultivating the essential competencies of "skills for working with digital media."
The Formation of a Sustainable State in the Contemporary Organizational Management System
A stable state within the modern management system serves as the attractor (a point of gravitational pull) that mobilizes all subsystems of the organization, infusing the management paradigm with new meaning. Thus, it is crucial for each organization to identify its own attractor as a point of stable attraction, which will allow for the development of a sustainable management concept. The forced implementation of information and digital "enhancements" within organizational systems rarely yields the desired results; therefore, solutions must be sought not only within the system but also in the external environment, grounded in the national mentality to foster economic growth.
Since the attractors of organizations are contingent upon the environment in which the management system operates, any alteration in the surrounding environment will necessitate changes in the management system and its subsystems. When altering the management paradigm of Agile management, efforts should not be made to push systems off their established paths, as this would demand immense effort and yield results below average. Given that civilization is evolving, the management system must also evolve and cannot remain static. It is far more effective to adjust the parameters of the management environment amidst informational uncertainty and stochasticity, within which organizations function, before its current state loses stability and ultimately becomes untenable.
To cultivate an adaptive landscape of Agile management, organizations must exist effectively, surpassing the limits of their adaptability. This necessitates the formulation of a concept for noospheric, informational, and innovative development in management to overcome crises. A system of noospheric, informational, and innovative management development is capable of reaching the highest peaks within the adaptive landscape and has the greatest chances of survival. Systems that possess the ability to continuously recalibrate their internal organization engage in an adaptive “walk” through the relevant landscape.
The models for managing organizations within the context of Agile management are centered on adaptation to change. This model entails the organization’s adaptive “walk,” a process whereby the system transitions from one configuration to another to maintain its suitability to circumstances. This encompasses changes and requirements related to functionality, personnel, and tools, along with the revision of schedules and modifications to processes. The form of the adaptive management landscape is determined by both the management system and the surrounding environment. Consequently, survival strategies from one system should not be indiscriminately transferred to others, as the adaptive landscapes of different management systems vary significantly within the context of global modernities.
It is essential to possess models of organizational management in the context of Agile management, grounded in useful managerial tools applicable for solving problems, conducting analyses, supporting, and facilitating decision-making, as well as enhancing the efficiency and effectiveness of organizations. The models for managing organizations in Agile management represent adaptations to change, serving as instruments for addressing challenges that arise in organizational management. They can provide a robust foundation for making effective choices and development trajectories, incorporating self-reflection, self-organization, knowledge in the realm of big data, and the creative potential of managers, thus adapting to new changes.
The new paradigm of Agile management and the search for an attractor leading out of crisis in the post-coronavirus era are still in the nascent stages of their revolutionary transition and will impact the future formation of global society. This shift will dismantle the old boundaries established by previous management paradigms and modes of thinking.
In this context, the work of Frédéric Laloux, Reinventing Organizations, is particularly insightful. He describes organizations across a spectrum of colors—from red, brown, and orange to green and teal—based on the synthesis of levels of Spiral Dynamics, Ken Wilber’s integral approach, and others. In the work of Don Beck and Chris Cowan, Spiral Dynamics, the concept of Spiral Dynamics is developed, grounded in the types of values characteristic of digital society. These represent frameworks or ways of thinking that necessitate the development of a sustainable value meme (vMem), discovered through experimental research in Clare Graves' Spiral Dynamics.
According to this framework, value types have formed into stable, interrelated constructs as society has evolved, becoming embedded in culture, which transmits these constructs, with each subsequent level encompassing the previous one. These levels are encoded by colors, creating a dichotomy of “I-We.” The authors term their theory “spiral,” as it allows for returns to previous levels, albeit at a higher tier.
Graves emphasized the importance of organizational colors, positing that the spiral dynamics of levels correspond to the developmental stages of society, which are enshrined in culture: I—yellow; orange; red; beige; We—teal; green; blue; purple. It concludes that an organization is a force for changing the world, one that can be transformed collectively for better outcomes. The green type of organization embodies the ethos of “we together change the world,” founded on principles of justice, equality, and consensus. The “green type” of personality reflects a world of ideals characterized by harmony and interdependence, consensus and humanism, care and spirituality. The teal type of organization (holistic) is conceptualized as a singular organism (with scholars noting that true teal organizations are nearly nonexistent). This teal type of organization is characterized by self-management as an evolving entity, underpinned by integrity and well-articulated goals; an active use of self-governance beyond multilevel hierarchy; trust in employees and a rejection of complex control systems; a high level of personal responsibility; and the formation of the organization as a unified whole.
In the context of flexible management, organizational culture values are distinguished according to levels—creativity, success, strength, development, harmony, rules, belonging. Cowan and Beck classify the dominant types (paradigms) of individual thinking. For these theories, the term “dynamics,” rooted in the idea of development, is crucial. Movement occurs continually as a transformation and complication of life conditions, propagating in accordance with the waves articulated by Alvin Toffler.
Both paradigms and types of thinking, as well as organizations, exhibit a spectrum of colors. The color of organizations at various stages of their life cycle will differ, just as different divisions within a single organization may embody varied color schemes, reflective of their leaders and executors within those divisions. Only an experienced leader will consciously select individuals of various colors to create a harmonious and flexible organizational system. Each color (paradigm) corresponds to specific organizational forms, principles, methods of communication, and decision-making processes, encompassing the organization’s structure and corporate culture.
Charles Handy described four types of corporate culture as early as 1978, naming them after deities of management: Athena, Apollo, Dionysus, and Zeus, each associated with its color scheme. In Handy’s classification, the red culture aligns with Zeus, blue with Apollo, orange with Athena, and Dionysus designates those cultures that remain obscure and undisclosed. The color of an organization is significant because each color entails distinct methods of communication and decision-making, leadership styles, management techniques, values, and modes of thinking.
Green organizations are characteristic of commercial structures, business clubs, professional associations, and creative collectives in the arts, as well as tourist groups. Green individuals within green organizations, according to European management concepts, are personally developed; nearly every member of a green organization can assume a leadership role, as such individuals feel a need for harmony and compromise.
For a green organization, a critical mass of green individuals is necessary. The pinnacle of the management team, within the framework of flexible management, lies in the ability to conduct events of various colors within a single organization, depending on the tasks at hand. The green color symbolizes mutual understanding and open, friendly relations within the micro-collectives of organizations. Every leader must master a spectrum of Agile management (Management 3.0) as the foundation of governance and administration in a digital society.
Managing Information and Innovative Activity in Organizations Amid Digitalization
The management of information and innovative activity within organizations in the context of digitalization assumes paramount importance, as the most successful organizations regard their digital strategy as central and strive to update their infrastructure while launching innovative products, studying and implementing best practices from other organizations. This endeavor will facilitate the establishment of a bespoke digital strategy and guide the organization through processes of transformation and the formation of an appropriate management culture.
To mitigate the repercussions of digital setbacks and to explore new opportunities, organizations typically adhere to a combination of strategies: 1) the creation of small, independent divisions or startups within the organization; 2) conducting a series of digital experiments; 3) employing information technologies to reduce costs and enhance efficiency. However, in most cases, these initiatives yield modest successes. It is vital to think in digital terms and ensure that their digital strategy encompasses all aspects of their organizations, necessitating simultaneous reinforcement of the core and the development of the organization’s capacity to forge a unique management strategy.
The establishment of an independent division resembles the launching of a speedboat to maneuver a large ship. Organizations attempt to conduct experiments, yet this strategy typically begins with a series of tactical experiments, often within marketing departments, where employees swiftly test new tools in social media or explore novel mobile platforms. As the excitement surrounding digital technologies permeates organizations, new initiatives begin to emerge across the company, leading to a proliferation of information technologies. Recognizing that this spread alone does not yield synergy, organizations often begin to consolidate disparate initiatives.
A team of leaders takes inventory of various digital projects across functions, brands, business units, and regions, seeking ways to streamline and unify them. Frequently, a separate governance body is established to approve future digital projects, allowing initiatives tied to a single brand to expand to encompass multiple brands. The dissemination of ideas within divisions signals entrepreneurship and enthusiasm, while consolidation becomes a necessary and effective means of streamlining processes and allocating resources. However, such experiments, lacking a strategic plan or clear direction, may create the illusion of short-term success without any lasting impact, and ideas that proliferate without scaling may devolve into mere wastes of time and resources.
Even more crucially, the strategy of "bottom-up contracts" possesses a tactical nature and fails to address the fundamental strategic challenges confronting organizational leaders. One of the primary strategies for information-driven innovation within organizations in the context of digitalization involves employing technologies to reduce costs and enhance operational efficiency. Processes are digitized and simplified to minimize redundancies and boost productivity. Many internal tasks are restructured to provide customers with self-service options, thereby reducing labor costs.
To extend a systemic approach to strategy, one must view the organization not merely as part of a single industry but as an integral component of a business ecosystem that spans multiple sectors. In this business ecosystem, organizations develop capabilities around new innovations, collaborating and competing to create new products that fulfill customer needs, ultimately sparking the next wave of innovation. Today, business ecosystems have gained even greater significance as cutting-edge technologies increasingly blur traditional industry boundaries, as noted by D. Patrick in his work "The (Almost) Future of Everything: How the World Will Change Over the Next Century."
While the markets of the nineteenth and twentieth centuries focused on efficiency and economies of scale, the new era demands the coordination of various methods to provide customers with comprehensive and dynamic solutions. A business ecosystem is defined as a dynamic community of diverse entities that co-evolve to create and disseminate new added value through both collaboration and competition. It is this unique interplay of cooperation and competition among firms that renders ecosystems distinctive and challenging to manage. To govern an ecosystem within such a complex environment, a company must possess a keen understanding of its partners' motivations to effectively collaborate with merchants, banks, and payment networks.
In this collaboration, the primary battle is waged for consumer control, a contention that, for instance, is brewing in the automotive industry. To avoid failures in the market, platform owners require a thoughtful management system and a set of rules that facilitate the operation of diverse players within their ecosystem. To successfully manage ecosystems as cohesive wholes, it is imperative to orchestrate the effective functioning of all departments—from corporate financial governance and accounting to the laws regulating relationships between nation-states and the proper exchange of information.
The emerging field of "market design" acknowledges that the effective functioning of markets relies on detailed rules. It encompasses several principles: 1) markets or platforms must ensure density by uniting a significant number of buyers and sellers; 2) they must guarantee safety for participants, allowing them to disclose confidential information without fear; 3) they need to manage congestion and competition, as well as the complexity arising from density.
Above all, in the context of digitalization, platforms provide a new way of conducting business that guarantees an external perspective, necessitating that firms open their systems for collaboration and partnerships—even with competitors. This demand for collaboration requires new skills and capabilities for managing and leading the platform. Retaining talented employees poses a constant challenge for every organization. Decisions regarding human resources, ranging from recruitment and training to evaluation and retention, are increasingly driven by data algorithms and machine learning.
Thus, the formation of a new paradigm of Agile management and the search for an attractor to navigate the crisis of the post-coronavirus era will foster the emergence of a new generation of managers equipped with systemic and creative thinking, as well as digital education, which can enhance their adaptability to rapid social and cultural changes, cultivate a robust foundation of social responsibility, innovative capabilities, and creative thinking.
A new system of Agile management paradigms is required to meet the new demands of sustainability, which is unattainable without a "comprehensive rethinking of the project of humanity" in the post-coronavirus era. Technologies are generating new forms of work, new jobs, and new professions. All these diverse influences compel organizational leaders to rethink operational models.
Data-empowered business models create new sources of revenue through access to valuable information, necessitating a continuous commitment to maintaining innovative capabilities and ongoing development.