IMPLICATIONS OF EXPONENTIAL ORGANIZATIONS
Orientation towards demonetization
Disruption is the new norm
Rent, don't buy
Information accelerates everything
Death to the five-year plan
Beware of the expert
Better small than big
The evolution from analog to digital is occurring in multiple nuclear technologies, the effects of which are multiplying at their intersections.
The new information paradigm, created as a result of Moore's law and other fundamental forces influencing the digital world, is accelerating the metabolism of products, companies and industries.
fundamental forces influencing the digital world, are accelerating the metabolism of products, companies and industries.
This acceleration of information is not exclusively confined to the realm of software development. It is also happening in the hardware world.
Thanks to the viral referral loop, customer acquisition costs can also be reduced until they are what seemed impossible before: zero.
What is important to understand is that, in the age of exponential organizations, new information-enabling technologies will drive costs down, in addition to sales and marketing, across all business functions.
Well-established industries rarely structure or prepare for counter-disruption when it happens.
The ability to enjoy low costs and the advantages of the democratization of information and more importantly of technology, the newcomer can move quickly and at minimal expense.
The pace of transformation is so high in all areas that you have to assume that someone will disrupt you and that, often, that disruption will come from where you least expect it.
will disrupt you and that, often, that disruption will come from where you least expect it.
Disruption is the New Normal is based on the idea that democratized, accelerating technologies combined with the power of the community can extend the innovators' dilemma.
History has shown us that the best inventions or solutions rarely come from experts; rather, they almost always come from outsiders.
We believe that, when it comes to ExO, both groups coexist, but with one condition: the role of the HiPPOs (or experts) will change. They will continue to be the ideal people to answer questions and identify key challenges, but it will be the geeks who will extract the data and provide the solutions to those challenges.
One of the hallmarks of large companies is the presence of corporate strategy departments that formulate and publish five-year plans. These are multi-year strategies that are supposed to outline a company's long-term vision and objectives.
Five-year plans used to be secret internal documents. In recent years, however, after recognizing the need to involve suppliers and customers in their particular crusades, a trend has emerged among even old-school corporations
In short, the five-year plan is a suicidal practice for an ExO. If it doesn't send the company running in the wrong direction, it can present an inaccurate picture of what it expects down the road, even in the right direction.
For decades, scale and size have been desirable traits in a company. A larger company could do more, the theory went, because it could take advantage of economies of scale and negotiate with strength.
Wall Street has also become rich by trading shares of giant companies, which often merged to create even larger organizations.
Now that the digitalized information asteroid has reached us, the global economy has been transformed forever. The era of traditional, hierarchical market domination by dinosaur companies is coming to an end.
Trust is better than control and better open than closed.
A very important mechanism for empowering individuals and small teams in all parts of the world is low-cost access to technology and tools.
The emblem of this new reality is cloud computing, which offers the possibility of storing and managing massive amounts of information with unlimited processing, all on a cost-per-use basis that requires no upfront expenses or capital investment.
Another key reason why ExOs are implementing trust frameworks is that in this incredibly volatile world, predictable processes and stable, continuous environments are becoming extinct.
As a result, the very nature of work is changing and requires more initiative and creativity from any team member.
Everything is measurable and nothing is known
ExOs are taking advantage of this acceleration trend in one of two ways: by creating new business models on existing data streams or by adding new data streams to old paradigms.
We are heading towards a world in which everything will be measured and everything can be known, both in the world around us and in our bodies. Only companies that are organizing themselves for this new reality will have a chance of long-term success..
MOISES DAVID GONZALEZ ORTIZ