SAF2022: ACCOUNTING TEAMS

 

Living with Technologies in VUCA World

By Fa’izah Ghazi , Lecturer of Faculty of Accountancy, UiTM Perlis Branch

Today's technology advances at a far faster rate than in the past. When used in multiple fields, such as media, business, research, or education, emerging technology is defined as the continued evolution of existing technology with slightly altered meanings.

Emerging technology is a term that is often used to describe a new technology, but it can also refer to an established technology's continuous evolution. It takes on a slightly different connotation when used in other fields, such as journalism, business, research, or education. The word is usually reserved for inventions that have or will have substantial societal or economic implications. It is frequently used to describe technologies in development or will be available within the next five to 10 years.

Technology, communication, and mobility Start-ups and innovative businesses alter the market, forge alternative paths, and re-imagine old business structures. Volatility, uncertainty, complexity, and ambiguity are nearly expected. Some accounts say "VUCA" stands for "digital normalcy."

VUCA is a phrase used to characterize our current chaotic reality. It is based on the leadership ideas of Warren Bennis and Burt Nanus. The word was coined to describe how increasing leadership causes more complex decision-making to assure success. It's not dissimilar to the challenges that today's business leaders face. One reason the VUCA notion is gaining traction could be because of this.

The United States Army War College was one of the first organizations to use the VUCA acronym following the 9/11 terrorist attacks in 2001. Military planners were worried about the radically different and unfamiliar international security environment that had emerged, so they used VUCA to describe it. VUCA stands for:

• Volatile–change is rapid and unpredictable in its nature and extent. 
• Uncertain—the present is unclear, and the future is uncertain. 
• Complex—many interconnected factors come into play, with the potential to cause chaos and confusion. 
• Ambiguous—there is a lack of clarity or awareness about situations.

VUCA was adapted for the business sector by Bob Johansen of the Institute for the Future in his book, Leaders, published in 2009. He used it to represent the tumultuous and unpredictably changing factors that can damage businesses. New skills, techniques and behaviours were needed in order to manage in the face of the four VUCA dangers. Individuals, teams, supervisors, and organizations in affected industries face a variety of challenges, which are referred to as VUCA.

The letter "V" stands for "volatility." It represents the rapid pace at which our civilization develops. This can be seen in technology, job positions, and the expected move from global to local production. As a result, we are put under a lot of stress since everybody must be ready to respond to changes quickly, faster than ever before.

The letter "U" stands for future uncertainty. Predicting the next great idea or fad has always been difficult. Uncertainty has grown even more pervasive in today's world, where developments are occurring at a faster rate than ever before.

The letter "C" stands for complexity, which is defined by the way everything is intertwined. This can be seen in rising globalization, complex supply networks, and the blurring of personal and professional boundaries. Breaking things down into smaller, more palpable, easier-to-digest parts is the right answer to complexity. Less is more when it comes to intricacy.

The last scenario is ambiguity, which in VUCA is symbolized by the letter "A." It denotes a lack of clarity in evaluating something due to missing or inadequate data. When dealing with ambiguity, experimentation is the most successful method. You put a notion to the test, see how the market reacts, and make adjustments based on the results. Then you retest it and go through the process again.

So, are we allowed to fail? Fortunately, each of the VUCA scenarios comes with techniques to help us overcome the obstacles. We'll look at these scenarios and describe how a digital business might respond to them in the following article.

 

References:

Gogineni, C. (2021, November 2). Technology – enabling and thriving in a VUCA world. KPMG. Retrieved April 23, 2022, from https://home.kpmg/in/en/blogs/home/posts/2021/11/digital-transformation-iot-blockchain-mantra.html

Managing in a VUCA World: Thriving in Turbulent Times. (2020, October 1). Mind Tools. Retrieved January 23, 2022, from https://www.mindtools.com/pages/article/managing-vuca-world.htm

Norinder, J. (2020, October 18). What makes digital transformation particularly relevant in a VUCA world? | Ingenuity | Siemens. Https://Ingenuity.Siemens.Com. Retrieved November 28, 2021, from https://ingenuity.siemens.com/2020/10/what-makes-digital-transformation-particularly-relevant-in-a-vuca-world/

Pinker, A. (2018, October 4). Designing digitalization: The opportunities of the VUCA world. Medialist. Retrieved November 28, 2021, from https://medialist.info/en/2018/10/04/designing-digitalization-the-opportunities-of-the-vuca-world/

Robinson, R. (2018, April 2). Technology in the VUCA world - richard robinson. Medium. https://medium.com/@redronrich/technology-in-the-vuca-world-c71d6c8ee553

Rozzi, C. (2018, December 19). How is this VUCA World affecting you? Rozzi and Associates. Retrieved November 23, 2021, from https://www.rozziandassociates.com/blog/2018/12/18/how-is-this-vuca-world-affecting-you