2019
DOI: 10.1177/2394964319885520
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Application of Organizational Agility to Enhance the Predictability of Costs and Increase the Probability of Creating Value

Abstract: In order to create any value, an organization needs to incur costs. This article builds on the original concept of the ‘Cone of Uncertainty’ for costs. However, the focus of an organization should mainly be on value. To visualize value, the concept of a ‘Double Cone of Uncertainty’ is introduced. Organizations often focus on reducing costs instead of enhancing the creation of value because costs are easier to measure and in control of the organization. Value is harder to measure, and here the customer is in ch… Show more

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Cited by 3 publications
(1 citation statement)
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“…The fact shows that creativity in creating value is one of the drivers of organizational agility (Nemkova, 2017), and organizations that have the capability to respond to environmental changes quickly indicate having agility (Ravichandran, 2018). Organizational agility cannot predict value creation because it was determined by customers (Heisterkamp, 2019). Organizational agility will affect the company's performance since it can make decisions quickly to respond to market changes (Cegarra-Navarro et al, 2016).…”
Section: Introductionmentioning
confidence: 99%
“…The fact shows that creativity in creating value is one of the drivers of organizational agility (Nemkova, 2017), and organizations that have the capability to respond to environmental changes quickly indicate having agility (Ravichandran, 2018). Organizational agility cannot predict value creation because it was determined by customers (Heisterkamp, 2019). Organizational agility will affect the company's performance since it can make decisions quickly to respond to market changes (Cegarra-Navarro et al, 2016).…”
Section: Introductionmentioning
confidence: 99%