Times are changing no doubt, technology is evolving at an exponential rate. Corporate organizations all around the world are trying to catch up with the fast pace civilization. This civilization however has not really solved the core component of organization challenge which is the governance structure, but thanks to blockchain technology for proving to be the solution to most of humanity sickening organizational challenges. As @originalworks rightly put

There is a need to adjust and update with the times

Organizations all over the world are facing several challenges in the pursuit of profit and goal fulfillment. This lead to the management of these organizations adopting several methods of governance to help steer the organization from bankruptcy and sycophancy. Every decision taken is geared towards strengthening cooperate governance to ensure transparency, fairness, timely and decisive decisions-making to meet goals enshrined in the management philosophy, promote sustainable goal attainment and increase corporate value over time.

Management of these organizations which may vary from sector to sector source for effective method by which decision-making can be streamlined to birth sustainable growth. This however has not been out-rightly achieved as gross ineffectiveness,undue Red-tapism, clogging and gross misconduct are still found in organizational structure... So what's the way forward?

THE SOLUTION

About a decade ago before the introduction of blockchain technology to mankind,there was no economic means to put to rest the challenges of providing a reliable open programmable system. Ergo, the Decentralized Autonomous Organizations(DAOs) was brought to limelight.
In activating a pattern of governance without intermediaries that create defienciencies in the system,DAOs - which are open,self organized networks became a necessity. DAOs are self-executing codes which operates around shared goals. They provide an income model for the production of open resources. They are unique in scalability,transparency, adaptability and coherency which are the keys to efficient and incorruptible organizations.

DAO is built on operating system called DAOstack. With DAOstack, developers can apply blockchain governance to centralized traditionally organised organizations.

Core Functions of DAOstacks

1. Decentralized Applications (DApps) can be created by open-source developers while simultaneously distributing individual ownership.

2. Users can put their protocols into the blockchain and use smart contracts to vote on decisions that will impact continued operation of said DAO

3. Curators can corporatively own and manage multi-valued ranking system that will outsmart them existing one in the market.

DAOstack are designed with tools and layers that enable easy DAO implementation, creation easy and seamless
DAO integration.

These tools are;

Arc: This is the basic operating system for general governance framework for interacting internet of blockchain agencies. Similar to wordpress, this framework allows the application of DAO to companies and organizations

Arc.js is a javascript library built on top of web3.js (Ethereum's Java script API) with which any functionality of the Arc framework can be called directly from within the JavaScript environment, without knowledge of the solidity monogramming language.

Arc. Hives:These are communication channels between individual components of the DAOstack economy. They are shared curated records which are very powerful, providing a central locus for data integrity and data quality.

Alchemy: This is an app that's serves as a platform where developers and users can interact, it is used for crowd management of resources and effective distribution of capital to communities.

DAO Solution Module (Use Case Scenarios)

1. Effective Decision making Module:Traditional organizations set up several hierarchical system to check and balance decisions made by each unit. This system is so redundant, rigid and less effective with so much is invested to maintain the system. This however produces little reward which is quite undesirable. DAOs has come with a tool to reduce management cost be setting up primary system where decisions taken can be check and balanced by itself.

2.COST EFFECTIVENESS:Considering the lacuna in the several systems put in place by organizations, the positions of DAOs are unlimited, one aspect of which DAOs proves to be very advantageous is cost-effectiveness. It is no new occurrence for firms to shut down or go out of business for lack of continuous funding. With DAOs, such can be eliminated.
For instance, most specialty products manufacturing companies invest a lot of money in setting up process monitoring group, quality control unit, research team, supervisory councils etc. These units although essential drain a larger chunk of the company's budgets leaving only a little percentage for the actual production process. Management board members are aware of this irregularity in the system but since there is no platform or system to solve this irregularity,they end up making trade-off between high quality products with higher manufacturing cost and low quality products with lower manufacturing cost. This trade-off occur when they reduce the staff strength and general operational cost of vital unit like the quality control unit to increase the manufacturing cost.
With DAO, these different unit can be merged together with their roles being uniformed and tailored to meet specific demands of the final consumers of their products. These units can work as small inter-related independent unit that respond to real-time challenges faced in the production process. Unnecessary cost will also be eliminated by reducing the ensuring smooth and real-time communication channels between these units

3. FLEXIBILITY IN OPERATIONS: Most centralized organization operate a rigid management system whereby decision making is a role tied and reserved only for the board of directors and this has proved to be very ineffective in cases where variations in laid down rules are to be made.
For instance, let's use as a case study, "DANGOTE GROUP". A renowned company based in Nigeria for the production and distribution of cement and other products. In the usual arrangement, no matter the location,the price of a bag of cement is constant not minding prevailling environmental condition. Because the company is centralized, it is be very hard and costly to effect an acute change in price cause by prevailing environmental factor. This is so because the price is determined by the centralized board and any change can only be effected in the next meeting.
But with DAOstack, protocols can be initiated to cause price variation in different locations to suit the prevailing environmental conditions.

4. EFFICIENCY : It is also necessary to note that efficiency in a hierarchical system can be undulating. A system with decentralized governance tends to be more effective as vital and crucial decisions are made by the majority in the shortest possible time eradicating time constraints, inconvenience in setting up a meeting and unnecessary cost.

5. SUPERB ORGANIZATIONAL STRUCTURE : No organization can make progress without proper organizational structure which is usually made up of Board of directors, auditors etc. The workload on the structure makes DAOs a necessity. With it's governance embedded in the smart contract of the agency, this could take a better shape.

6. TACKLING CORRUPTION :Sadly, certain vices have found solace in our daring Africa,most notably is corruption scandals which rock different sectors both private and public, with DAOs, this virus that has eaten deep into our system can be totally eradicated.

Taking a microscopic analysis of scholarships boards in Nigeria for instance, these organizations are meant to provide aids for Nigerian students who are duly qualified for it. In the centralized system, there are persons in the board with undue influence who can cart away the award to anyone that they choose instead of getting the award to the eligible candidates. To put an end to this mayhem, a DAO system can be created using daostack which would make sure that those scholarships only go to eligible candidates. DAOs method of vote power distribution can be used in this case.

How DAOs Method of Voting Power is used In the above Use Case:

This involves allocating a uniform unit of influence /voting power to every single member of the scholarship board thus getting rid of every form of dictatorship, veto power and undue influence from any unscrupulous member of the board. The voting power works on individual reputation not financial standing and are non-transferable assets. This goes a long way in eradicating any form of corruption, favoritism and undue influence of any individual in the system.

The advantages of DAO over the traditional organizations as explained above can be summarized into the following points:

1. Reducing management cost
2. Increasing efficiency
3. Promoting sustainable growth
4. Eradicating Corruption
5. Utilizing the creative potentials of the employees
6. Smooth operation of the organization
7. Preventing Bankruptcy
8. Dislodging unnecessary Red-tapism
9. Ensuring smooth channel of communication

DAO had come to streamline technology into timeline asset for the greater good of humanity. It's the solution to everyday problem-sammynathaniels

Learn more about DAOstack here

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