I often read or hear that today we live in a VUCA world: a world without fixed rules, where basically anything is possible. But what does that actually mean – for us, the economy and our processes? And what does the agility proclaimed by many companies have to do with this? We shed light on the darkness.
Let’s start with the term itself: the acronym VUCA was created back in the 1990s and stands for volatility, uncertainty, complexity and ambiguity. At first glance, it may seem difficult to put these elements into context, especially since they are difficult to grasp even when they are separately. And basically, this is also the core of the whole thing: in the VUCA world nothing is predictable and yet at the same time everything is possible; everything is interrelated. Let us take a closer look at the individual components:
If you look at the individual components, a commonality quickly becomes apparent: VUCA is determined by a lack of clarity about what needs to be done in our networked world and in terms of concrete decisions. No wonder that it is often mentioned in connection with the challenges of digitalization and the digital transformation of entire business processes.
But that does not mean that VUCA is merely a pessimistic description of the difficult framework conditions and our loss of control. On the contrary: a VUCA strategy can even provide helpful recommendations for action – in this case, the abbreviation stands for vision, understanding, clarity and agility. Perhaps one thing in advance: without investment in the development of digital skills, the implementation of the following points is hardly realistic.
The VUCA world is often synonymous with the dynamics of the economy, often driven by digitalization. It is an attempt to describe our networked world with all its challenges. However, companies must individually determine which challenges, but also opportunities, really arise. Then they recognize the opportunities to develop their own company in a targeted and strategic way. Digital platforms as well as business models, automated processes and good networking with business partners – all of this can help companies in the VUCA world to hold their own in the dynamic digital markets in the best possible way.