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WRFY Exponential Organizations

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In any business, performance is key. In performance, organization is key to growth. In the past five years,
the business world has seen the birth of the Exponential Organization (ExO). An ExO is able to eliminate
the incremental, linear way traditional companies get bigger. It leverages assets like community, big data,
algorithms, and new technology into achieving performance benchmarks ten times better than its peers.
This new breed of company has revolutionised how an organisation can accelerate its growth by using
technology.
After researching this phenomenon and the future of organisations, the authors documented ten characteristics of ExOs. In their book, Exponential Organizations, they offer guidance to startups and multinationals alike on how any company can streamline its performance and grow to the next level. This pivotal work was chosen by Benjamin Netanyahu, Prime Minister of Israel, to be one of Bloomberg’s Best Books of 2015.
It was also selected as Frost & Sullivan͛s 2014 Growth, Innovation, and Leadership Book of the Year. According to Ray Kurzwell, Director of Engineering at Google, the book is required reading for anyone interested in ways exponential technologies are reinventing best practice in business.

Published in: Business

WRFY Exponential Organizations

  1. 1. Exponential Organizations By Salim Ismail with Micheal S. Malone and Yuri van Geest #WRFY Presented by Dr Morne Mostert morne@ifr.sun.ac.za 8 April 2016: Cape Town 15 April 2016: Johannesburg
  2. 2. Singularity University
  3. 3. Combatting the organisational immune system
  4. 4. Definition
  5. 5. Peter H. Diamandis is a Greek-American engineer, physician, and entrepreneur best known for being the founder and chairman of the X Prize Foundation, the co-founder and executive chairman of Singularity
  6. 6. Here today, … “in the next 10 years, 40% of the S&P 500 companies will be gone.” “20 years ago it took 20 years to become a $bn company; now it is less than 9 months”
  7. 7. “the number of transistors in a dense integrated circuit doubles approximately every two years” Gordon E. Moore, co-founder of Intel and Fairchild Semiconductor, 1965
  8. 8. ExO growth
  9. 9. The internet has dropped the cost of demand ExO’s use technology to reduce the cost of supply (approaching 0)
  10. 10. The ExO formula ExO = MTP + SCALE + IDEAS
  11. 11. 4/10 ain’t bad Stabilising forces Forces of growth
  12. 12. The shift From Securing assets, create boundaries, sell access to scarcity To Tap into external abundance using technology
  13. 13. Shift in problem space • Ownership works for scarcity – Linear, cost driven • Openness, access & sharing work for abundance – exponential as domains explode We have scaled technology - Now let’s scale the whole organisation • Open Access vs Control • Rent vs Own • Share vs protect • Including the customer’s assets
  14. 14. Characteristics: Staff on demand
  15. 15. Example
  16. 16. Congratulations! You have failed! Heroic failure award Dare to try award
  17. 17. New strategy
  18. 18. Use the crowd for scale
  19. 19. Reduce information latency through collaborative tools Example
  20. 20. Look outside
  21. 21. Engagement – network effects & positive feedback loops Digital reputation systems Gamification Incentive prizes
  22. 22. Example - gamification
  23. 23. Case studies: Black Ops (GE)
  24. 24. Functionality : Price ratio How to get rich in the past ExO Functionality Price
  25. 25. Aha! Waste is opportunity? Time of usage Time of ownership
  26. 26. The evolution 1. Digitise 2. Disrupt 3. Demonetize 4. Democratise
  27. 27. The difference…
  28. 28. Threats & opportunities are external
  29. 29. redefining the bottom line to account for true long–term costs throughout supply chains
  30. 30. • Lean value & growth metrics, incl. Lean start- up methodology • Experiment, risk, fail • Learning metrics – fast feedback loops • Self-organising • Multidisciplinary • Decentralised • Holacracy (Brian Robertson) • OKR
  31. 31. Sociocracy is a system of governance using consent decision making and an organizational structure based on cybernetic principles (a closed loop system with a feedback mechanism).1981 standard definition of consensus used since the 1960s and 1970s, and probably before. It was published in 1981 in United Judgement: The Handbook of Consensus Decision Making by the Center for Conflict Resolution. The goal of consensus is a decision that is consented to by all members.
  32. 32. Inherent contradiction 20th century business was an externalisation machine Vs Externalise risk of ownership to customers?
  33. 33. Inherent contradiction “The future is not what it used to be” Vs “At this same rate…”
  34. 34. Inherent contradiction “We are not ready” Vs “We are already doing it.”
  35. 35. Inherent contradiction “We are in trouble” Vs “We are solving problems more easily now”
  36. 36. Potential lingering questions Are we becoming algorithms? Will Big Brother grow bigger?
  37. 37. http://www.exponentialorgs.com/page/survey
  38. 38. If it is free… Perhaps YOU Are the ProductTelevision delivers people, 1973
  39. 39. Better decisions To secure Your African Future Join the Institute for Futures Research morne@ifr.sun.ac.za

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