Yesterday I looked at the differing ways in which social business can benefit you, depending upon the kind of organisation you are. Broadly speaking, I believe organisations fit somewhere along an axis that has make and sell at one end, and sense and respond at the other. As this distinction is pretty important, I thought it would be worthwhile spending some time helping to clarify the differences between the two so that you can gauge where you fit on the axis.
The following are a few key issues, and the distinction between the two organisation types for each issue.
Where profit comes fromMake and sell organisations usually earn their money by having large economies of scale, coupled with low costs from a standardised manufacture
Sense and respond organisations keep costs manageable by developing re-usable modules for their processes, but can charge higher prices for custom solutions
Information managementIn make and sell organisations, information tends to revolve around functional silos, with each then having specific processes unique to them
Sense and respond organisations by contrast support more decentralized decision making, with information flowing across and throughout the enterprise in order for the best decision to be made
There are no doubt other differences that define and identify the two types of organisations, but these should enable you to have a reasonable idea of the kind of organisation you belong to.Original post