changing corporate culture
TRANSCRIPT
Principles of Technological Change and Disruption
Will Jayroe
1image source: https://kylebean.co.uk/portfolio/mobileevolution
Topics...• Exponential Growth•Miniaturization•Dematerialization
Exponential Growth in Biology
Dumped Aquarium GoldfishMultiply in Teller LakeBolder, CO
image source: http://www.time.com/time/interactive/0,31813,2048601,00.html
Exponential Growth Strategy
5
In technology strategy, “the second half of the chessboard” is a phrase, coined by Ray Kurzweil, in reference to the point where an exponentially growing factor begins to have a significant economic impact on an organization's overall business strategy.
18,446,744,073,709,551,615
If a chessboard were to have rice placed upon each square such that one grain were placed on the first square, two on the second, four on the third, and so on (doubling the number of grains on each subsequent square), how many grains of wheat would be on the chessboard at the finish?
eighteen quintillion,four hundred forty-six quadrillion, seven hundred forty-four trillion,
seventy-three billion,seven hundred nine million,
five hundred fifty-one thousand,six hundred fifteen
Exponential Organizations (ExOs)“[Exponential Organizations] are the catalysts forcing us to completely reevaluate the way we run our companies. They use lean methodologies and have dynamic organizational structures to grow both rapidly and sustainably. Coupled with their use of scalable strategies, exponential technologies, and crowdsourced solutions, ExOs achieve an output that is at least 10 times greater than their traditionally run peers.
It’s not just new companies that have achieved outstanding results with this approach; on the contrary, two enormously successful legacy enterprises, Coca Cola and GE, have looked to ExOs for inspiration and applied their principles to great effect.”
source: http://thenextweb.com/insider/2015/08/31/the-rise-of-the-exponential-organization/
Exponential Organizations (ExOs)GE has responded to this drive for speed and need to align more closely with customers / needs by using a new technique called “FastWorks”... a framework for entrepreneurs, building on “The Lean Startup” by Eric Ries... quick deliverables and fast learning.
It’s now being tried in manufacturing since GE and others believe that rapid learning cycles with customers will reduce the risk that you build something you can’t sell.
As a result, GE have sold twice the number of units as normal under FastWorks, at twice the speed, and at half the cost.
source: https://hbr.org/2014/04/how-ge-applies-lean-startup-practices/
Exponential Organizations (ExOs)“21st century corporate survival requires companies to continually create a new set of businesses by inventing new business models. What is sometimes missed is the opportunity for big companies to leverage their enormous assets (brands, relationships, routes-to-market, etc.) in developing these new models. Most startups can only dream of the kinds of assets most big companies have.We believe that using the customer development process to monetize these assets through new business models can create huge competitive advantage and more speed to market for us and other big companies.”
source: http://steveblank.com/2013/11/07/lean-goes-better-with-coke-the-future-of-corporate-innovation/
Change fast or else...
Distribution
“The future is already here......it's just not very evenly
distributed.”
William Gibson
Uneven Distribution
“There are physical limitations to technology.”“Moore’s Law will
not go on forever.”
“Why don’t I see this exponential growth?”
Some doubt or resist the pace of change...
Change Requires Re-distribution
North Korea
South Korea
Miniaturizationimage source: https://kylebean.co.uk/portfolio/mobileevolution
image source: https://kylebean.co.uk/portfolio/mobileevolution
image source: https://kylebean.co.uk/portfolio/mobileevolution
image source: https://kylebean.co.uk/portfolio/mobileevolution
image source: https://kylebean.co.uk/portfolio/mobileevolution
image source: https://kylebean.co.uk/portfolio/mobileevolution
Exponential Miniaturization
Miniaturized OrganizationsJeff Bezos stood up and announced, “No, communication is terrible!”
This stance explains his famous two-pizza team rule, that teams shouldn’t be larger than what two pizzas can feed. More communication isn’t necessarily the solution to communication problems — it’s how it is carried out. Compare the interactions at a small dinner — or pizza — party with a larger gathering like a wedding. As group size grows, you simply can’t have as meaningful of a conversation with every person, which is why people start clumping off into smaller clusters to chat.
...small teams make it easier to communicate more effectively rather than more, to stay decentralized and moving fast, and encourage high autonomy and innovation.
source: http://blog.idonethis.com/two-pizza-team/
DematerializationBill Joy, cofounder of Sun Microsystems turned venture capitalist, feels that one of the advantages of contemporary technology is “dematerialization,” which he describes as one of the benefits of miniaturization: a radical decrease in footprint size for a great many of the items we use in our lives.
“Right now we’re fixated on having too much of everything: thousands of friends, vacation homes, cars, all this crazy stuff. But we’re also seeing the tip of the dematerialization wave, like when a phone dematerializes a camera. It just disappears.”
Abundance: The Future Is Better Than You ThinkBy Peter H. Diamandis, Steven Kotler
Dematerialization
DematerializationJust think of all the consumer goods and services that are now available with the average smart phone: cameras, radios, televisions, web browsers, recording studios, editing suites, movie theaters, GPS navigators, word processors, spreadsheets, stereos, flashlights, board games, card games, video games, a whole range of medical devices, maps, atlases, encyclopedias, dictionaries, translators, textbooks, world class educations, and the ever-growing smorgasbord known as the app store. Ten years ago, most of these goods and services were available only in the developed world; now just about anyone anywhere can have them.
Abundance: The Future Is Better Than You Think
By Peter H. Diamandis, Steven Kotler
Org Opposition to Change"It’s not that managers in big companies can’t see disruptive changes coming. Usually they can. Nor do they lack resources to confront them. Most big companies have talented managers and specialists, strong product portfolios, first-rate technological knowhow, and deep pockets. What managers lack is a habit of thinking about their organization’s capabilities as carefully as they think about individual people’s capabilities."
"One of the hallmarks of a great manager is the ability to identify the right person for the right job and to train employees to succeed at the jobs they’re given. But unfortunately, most managers assume that if each person working on a project is well matched to the job, then the organization in which they work will be, too. Often that is not the case. One could put two sets of identically capable people to work in different organizations, and what they accomplished would be significantly different.That’s because organizations themselves—independent of the people and other resources in them—have capabilities. To succeed consistently, good managers need to be skilled not just in assessing people but also in assessing the abilities and disabilities of their organization as a whole.”
Meeting the Challenge of Disruptive Change by Clayton M. Christensen and Michael Overdorf
Found in HBR'S 10 Must Reads: The Essentials
Or put more succinctly, “Logic clearly dictates that the needs of the many outweigh the needs of the few.” ~ Mr. Spock
