What is dependency?
Dependency in a business context refers to a reliance on certain elements that are crucial for operations. This can be in the form of dependency on key suppliers, technologies, or even specific personnel. While some dependencies are necessary, over-reliance can pose a significant risk if those elements falter.
What does dependency look like in an enterprise?
In an enterprise, dependency may be seen as a heavy reliance on a single supplier for critical materials, the use of legacy systems that only a few employees know how to operate, or a particular market that drives the majority of sales. It's a precarious balance, much like rocks depending on each other to stay aloft.
Why is mitigating the dependency risk important?
Ensuring Business Continuity
Reducing dependencies secures the business against disruptions if a relied-upon element fails.
Flexibility and Adaptability
Lowering reliance on certain factors allows a business more freedom to adapt to changes and pivot when necessary.
Risk Distribution
Spreading out dependencies among various elements can mitigate the risk and impact of any single point of failure.
What are strategic approaches to dependency in the enterprise?
Gaining a comprehensive view of all dependencies within the enterprise to better manage and mitigate associated risks.
Creating an interconnected ecosystem that reduces reliance on any single component by distributing functions and roles across a network.
Creating agile practices that reduce the dependency on rigid structures, allowing for more fluid adaptation to changes.
What solutions are applicable to dependency?
Designing systems that are not overly reliant on any single technology or platform.
Implementing automation to reduce dependence on manual processes and human error.
Planning for the reduction of dependencies and creating strategic alternatives for critical business areas.