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Agile Organization

This article covers meaning, importance & example of Agile Organization from IT perspective.

Published by MBA Skool Team in Information Technology & Systems Last Updated: September 04, 2024Read time:

What is Agile Organization?

Agile organization is a company that is quick in responding to changes in the marketplace or environment depending of customer needs. Agile organization focuses on the customer which calls for customized rather than standardized offerings. An agile organization is also known as an entrepreneurial organization and resilient organization.

 

Importance of Agile Organization

Certain companies create products which are standardized in terms of its offering. A food production company or a beverage company creates products which are standardized for all types of customers. However, certain companies make products which need to be customized based on customer needs & requirements. Consumer electronic products like laptops are products which need to customized as per the configurations needed by customers.

Hence, to cater to such a target audience, a company must have flexible processes so as the deliver according to customer requirements. Such a company is often referred as an agile organization.

 

Features of Agile Organizations

The key characteristics of agile organizations are:

1. Agile organizations are made up of self-aware individuals whose actions affect the organization as a whole.

2. They adapt a catalyst style of leadership by inspiring others without losing the cohesion within the entire system.

3. The organization is based on continuous learning from experiments.

4. They foster an open communication style facilitating collaboration and sharing.

5. Governance is based upon long-term business value and adaptation.

6. Agile members seek mastery in their respective skills.

 

Advantages of Agile Organization

A few benefits of an agile organization are:

1. A highly agile organization reacts successfully to the emergence of new competitors, rapid advancements in technology and sudden shifts in overall market conditions.

2. Agile enterprises thrive in non-hierarchical organizations without a single point of control.

3. These companies have more flexibility and have a higher efficiency.

4. It instills higher coordination, motivation and collaboration between the team members.

 

Example of Agile Organization

A few examples of agile organizations can be explained below:

1. Dell is an agile software development corporation that embraces the concept of customized agile response. The production line adapts according to the customer’s needs. The entire team & processes are created keeping in mind customized customer needs & delivers products accordingly.

Hence, this concludes the definition of Agile Organization along with its overview.

This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.

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