yuri van geest at webtomorrow talking about why new organizations are 10 times better, faster,...
TRANSCRIPT
Yuri van Geest- Co-Author Exponential Organizations
- Dutch Ambassador of SU
- Initiator of SU in NL for EU
“The average half life of a business competency has dropped from 30 years in
1984 to 5 years today.”
An Exponential Organization (ExO) is one whose impact (or output) is disproportionally large — at least 10x better (speed, efficiency, productivity and/or effectiveness) — compared to its peers because of the use of new organizational techniques that leverage exponential technologies.
Definition
Software is eating the world, in all sectors
In the future everycompany will become a software company
Mark Andreessenfounder of Netscape, renowned Venture Capitalist Andreessen-Horowitz
ExOs: Everything will become digital
• social, mobile & online for front-end functions
• nanotech, robotics, 3D printing, sensors, AI
• crowdsourcing (leveraging the crowd), DIY*, P2P**, crowd companies, AI, Nanofactories
•
*Do-It-Yourself: Movement of people who create things without the help of experts or professionals
•**:Peer-to-Peer: a decentralized network leveraging direct interactions between people
While the information-based world is now moving exponentially, our organizational structures are still very linear (especially larger and older ones)
Reason 1
We’ve learned how to scale technology (mainly cloud computing since 2006)
Now it’s time to scale the organization (strategy, structure, processes, culture, KPIs, people & systems)
Reason 2
Our organizational structures have evolved mainly to manage scarcity of people, money and assets / resources.
The concept of ownership works well for scarcity
Accessing or sharing works better in an abundant, information-based world.
Reason 3
1. Select an MTP2. Join or create relevant MTP Communities3. Compose a Team4. Breakthrough Idea5. Build a Business Model Canvas6. Find a Business Model7. Build the MVP8. Validate Marketing & Sales9. Implement SCALE & IDEAS10. Establish the Culture11. Ask Key Questions periodically12. Build and maintain a Platform
Strategy for Startups
TED: “Ideas worth spreading.”Google: “Organize the world’s information.”Quirky: “Make invention accessible.”SU: “Impact a billion people positively.”
Key Question:What is the biggest problem I’d like to see solved?
Selecting an MTP
1. Gather data through sensors, people and datasets2. Organize data (ETL: extract, transform & load)3. Apply machine learning & deep learning algorithms4. Expose data via an open platform (open APIs)
Building a Platform
MTP
Staff on Demand Interfaces
Community & Crowd Dashboards
Algorithms Experimentation
Leveraged Assets Autonomy
Engagement Social
Xiaomi - Chinese smartphone company, focusing on performance, quality and customer experience. Has a flat organization consisting of 5.000 employees and leverages a Community of 100 million fans for product ideation & iteration.
Best ExOs
Rent, don’t own assets, people & resources
Marginal cost of supply is dropping exponentially for the first time ever (besides marginal costs of demand) >>> double viral loops or network effects
Takeaways
ExO Market Cap improvement
Age(years)
2011valuation
Currentvaluation
Increase
Haier 30 $19billion $60billion 3x
Valve 18 $1.5billion $4.5billion 3x
Google 17 $150billion $400billion 2.5x
Airbnb 7 $2billion $20billion 10x
Uber 6 $2billion $41.2billion 20.5x
Github 6$500million
(est.)$7billion 14x
Waze 6 $25million$1billion(in
2013)50x
Quirky 5 $50million $2billion 40x
Xiaomi 4 $1billion $46billion 46x
Snapchat 3 0 $19billion 19,000x+
Future Organizations
• Leverage Blockchain• Distributed Autonomous Organizations (DAOs/DACs)• Algorithmic Corporations• RoboCorps
Final Takeaway
You will experience many failures and hit a lot of walls, but in the end it’s worth it if you’re passionateenough and want to achieve a 10x improvement.
“Exponential Organizations is the most pivotal book in its class.” - John Hagel
“The most transformational business book I’ve ever read” - Ken Losch
“Exponential Organizations should be required reading for anyone interested in the ways exponential technologies are reinventing best practices in business.” - Ray Kurzweil
“Exponential Organizations is a must read business book this fall” – Om Malik
Yuri van GeestCo-Author Exponential Organizations
+31 6 113 19 290 @vangeest
www.exponentialorgs.com