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Appendix H – Decentralized Organizations

Today’s business model is typically based upon a centralized hiearchy. This conflicts with the value of digital platforms. Team members become burdened with having to assist manual processes.

transformation - centralized-to-decentralized Figure 1: transformation - centralized-to-decentralized - expand

By shifting to a decentralized organization, the most important asset – people – are freed from timely manual operations, and can be re-purposed to value-add activities.

let technology do the routine work Figure 2: let technology do the routine work - expand

Even when an organization is physically structured in a decentralized format, it can still be operating in the older model. In this example, ‘Trust’ of enforcing rules automatically does not exist.

transformation - decentralized-to-decentralized Figure 3: transformation - decentralized-to-decentralized - expand