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Yuri van Geest, Exponential Organizations - DMX Dublin 2016


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Exponential Organizations - The Organisation Model for the 21st Century. Yuri van Geest, Co-Author of Exponential Organizations.

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Yuri van Geest, Exponential Organizations - DMX Dublin 2016

  1. 1. Yuri van Geest
  2. 2. The best vision on the future is peripheral vision
  3. 3. Accelerating Technologies Al Robotics Biotech Nanotech Medicine Neuroscience Energy Computing
  4. 4. Exponential Technologies Declining Costs Increasing Capabilities
  5. 5. Audi RS 7 - Autonomous Car
  6. 6. Reconstruction of brain activity and dreams
  7. 7. Google & NASA - Quantum Computing The D-Wave 2X quantum computer is 100 million times faster than a conventional computer with a proof-of-concept optimization problem. Leaps in Big Data and AI.
  8. 8. NANO-MEMS (chips)& PAYMENTS GATX
  9. 9. Platforms e.g.: Graphene-based semiconductor MEMS, NEMS, GPU’s LEDTechnologies Body Scan Plant-based technologies from WiFi to LiFi, wireless comm. by light HydrogenTechnology Energy Storage Quantum Computing LiFi Platform-of-platform light-based technologies
  10. 10. “Light, the essence of communication in the Universe” Female of Lampyris noctiluca, the Common Glowworm beetle The fungus Panellus stipticus Bobtail squid, Euprymna berryi Firefly Antarctic krill, Euphausia superba Every organism emits light ( bioluminescence) , which is unique in wavelength, duration, timing and rhythms (information & communication)
  11. 11. “The human body literally glimmers” The light intensity emitted by the body is 1000 times lower than the sensitivity of our naked eyes.
  12. 12. “The average half life of a business competency has dropped from 30 years in 1984 to 5 years today”
  13. 13. “89% of the Fortune 500 companies from 1955 are not on the list today”
  14. 14. “The average lifespan of an S&P 500 company has decreased from: 67 years (1920’s) to 15 years (today)”
  15. 15. “In the next 10 years 40% of all S&P 500 companies will disappear from this list”
  16. 16. Market Cap to a Billion
  17. 17. Why are there ExOs?
  18. 18. Linear > Exponential
  19. 19. Scarcity > Abundance
  20. 20. Time to scale the organization Source: McKinsey 7S model
  21. 21. What are ExOs?
  22. 22. An Exponential Organization (ExO) is one whose impact (or output) is disproportionally large — at least 10x larger — compared to its peers because of the use of new organizational techniques that leverage exponential technologies. Definition
  23. 23. Software is eating the world, in all sectors In the future every company will become a software company Marc Andreessen founder of Netscape, renowned Venture Capitalist Andreessen-Horowitz
  24. 24. Estimated Share of Capex by Industry Source: Goldman Sachs Global Investment Research
  25. 25. Attributes
  26. 26. MTP Attributes The Massive Transformative Purpose (MTP) is the higher, aspirational purpose of the organization, capturing the hearts and minds of those both inside and (especially) outside of the organization.
  27. 27. Selecting an MTP “Organize the world’s information” “Ideas worth spreading”
  28. 28. Attributes Most ExOs are attracting and leveraging their community or the general public to scale. The crowd can be leveraged by harnessing creativity, innovation, validation and even funding. Community & Crowd
  29. 29. Community & Crowd Attributes
  30. 30. Attributes As the world turns into data and information, ExOs are leveraging Algorithms, including Machine Learning and Deep Learning to get new insights about their customers and products. Algorithms
  31. 31. Attributes ExOs use the Lean Startup & Design Thinking methodology and other techniques inside different organizational departments to constantly experiment with new ideas and processes, culturally enabling risk-taking and failure. Processes are constantly being tweaked with fast feedback loops. Experimentation
  32. 32. Linear vs Exponential Strategy based on extrapolation from past (5-year plans) Strategy based on MTP and customer insights
  33. 33. Linear vs Exponential Linear, sequential thinking Experimentation and feedback loops
  34. 34. Linear vs Exponential Process inflexibility and risk intolerance Flexibility and smart failure celebration
  35. 35. MTP Staff on Demand Interfaces Community & Crowd Dashboards Algorithms Experimentation Leveraged Assets Autonomy Engagement Social GitHub - GitHub is an open source code and collaboration community with 6.5 million members, 14.2 million repositories and market cap of $7B. Key differentiator: technical infrastructure of the internet as organizational design Best ExOs
  36. 36. MTP Staff on Demand Interfaces Community & Crowd Dashboards Algorithms Experimentation Leveraged Assets Autonomy Engagement Social Haier - Chinese appliance maker with 80,000 employees organized in 2005 in 2,000 self-managed units with decision-making authority (Autonomy). Market cap grew from $20B to $60B today in the last 3 years. Corporate Example
  37. 37. How to create ExOs?
  38. 38. Strategies for Corporates
  39. 39. Yuri van Geest Co-Author Exponential Organizations +31 6 113 19 290 @vangeest