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Implications of exponential organizations, SUSANA GONZÁLEZ SARMIENTO -…
Implications of exponential organizations
Information speeds everything up
In 1995, 710 million film reels were developed in
thousands of processing centers.
By 2005, almost 200 thousand
million digital photos, which would equal eight billion rolls.
Today, web users upload nearly 1 billion
photographs a day to sites.
In 2011, software is eating the
world
Getting Started: As We Add Trillions of Sensors to
every device, process and person, the process accelerates even more until it reaches an unimaginable pace (Big Data).
Finally, and according to Ericsson Research, in the next eight years we will see the new generation of telephone networks mobile (5G) speeds of up to five gigabits per second.
Today, product development cycles are measured, not in months or quarters, but in hours or days.
The evolution from analog to digital is happening in multiple nuclear technologies
This process of "virtualizing" one industry after another is often even multiplied
Example
Wercker, a Dutch-based software development platform.
The open source movement has further accelerated this trend.
This information acceleration is not exclusive
confined to the realm of software development.
The cost of having three generations of technology in stock or under development was enormous for everyone involved.
In this chapter we will take an in-depth look at some of the characteristics of an ExO ecosystem.
The result was the study system. This strategy quickly built one of the industries
with the most value on the planet. In its place, a system emerged almost the opposite of the previous one.
Orientation towards demonetization
One of the most important and least celebrated achievements of the Internet over the last decade is that it reduces the cost marginal marketing and sales down to almost zero.
The virtual advantage of these companies proved devastating to their competitors
As a result, in 2012, newspaper revenues fell to $ 18.9 billion.
This revolution is still in the works.
In a 2003 article, Fred Reichheld introduced the concept of the Net Promoter Score (NPS), which measures the loyalty that exists between provider and consumer.
If you have a high NPS, then your sales function is free. If you are using peer-to-peer models, your service can also be essentially free.
Example
Airbnb, the marginal cost of a new room to rent is essentially zero. Not so much for Hyatt or Hilton
Today there is a whole category in the industry of
media, is made up of information businesses that have been digitized.
Disruption is the new norm
In his influential bestseller The Innovators' Dilemma, Clayton Christensen points out that disruptive innovation rarely
It comes from the status quo.
Today, the external ones have all the advantages.
Today, the pace of transformation is so high on all grounds you have to assume that someone will disrupt you and that often that disruption will come from where you least expect.
A century ago, the competition was mainly directed towards production.
Marketing has increasingly become product innovation.
This pattern will take longer to impact more traditional, capital-intensive industries, such as oil.
and gas, mining and construction.
We distinguish a set of steps that appear consistently around disruptive innovation:
The domain (or technology) gets access to the information.
Costs fall exponentially and access is democratized.
Fans come together to form a community of
Open Source.
New combinations of technologies and
convergences.
New products and services appear that are better and
cheaper by orders of magnitude.
The status quo is disrupted (and the countryside gains access to the
information).
Watch out for the "expert"
History has shown us that the best inventions or
solutions rarely come from the hands of experts.
Of the 155 competing teams, three
they received a total of $ 100,000 prize money.
Death to the five-year plan
Five-year plans used to be secret internal documents.
More than 12,000 TEDx events have been held in the last five years, a number that would have been inconceivable at first.
The five-year plan is a suicidal practice for
an ExO.
Ertel and Solomon reduce it to five different phases
Define your purpose
Commit to Multiple Perspectives
Frame the Issues
Set the scene
Make it an Experience
elements to replace the five-year plans:
PTM as a general guide and emotional involvement.
Dashboards provide real-time information on how your business is progressing.
Take advantage of "moments of impact" to make decisions in a clean and productive way.
A one-year operational plan (maximum) that connects to the Scorecard.
Better small than big
For decades, scale and size have been desirable traits
in a company.
The era of hierarchical and traditional market domination by
part of the dinosaur companies is coming to an end.
Richard Branson's Virgin Group is organized to
maximize the benefits of small structures.
Most importantly, the platform must be symbiotic
and serve providers as well.
In the field of health, there is currently no solution
for new antibiotic resistant superbugs strains.
Rent, don't buy
A very important mechanism for empowering individuals and small teams in all parts of the world is the
low-cost access to technology and tools.
The emblem of this new reality is computing in the
cloud, which offers the ability to store and manage massive amounts of information with unlimited processing.
A comparable transformation is taking place with the
biotechnology equipment.
Computers first, then tools and manufacturing.
Organizations can hire on-demand staff from Gigwalk and other companies when a large amount of work needs to be done quickly.
ExO is a deepening of the trend towards specialization
that started 10,000 years ago.
Airline operators used to build their own engines, an intricate and high-risk operation.
Rolls Royce has even taken this process one step further.
Trust is better than control and better
open than closed
Millennials are naturally independent, digital natives, and resistant to control and hierarchies
descending.
There are five key precepts for Zappos that guide the culture of the organization:
Vision: what are you doing.
Purpose: why you do it.
Business model: what energizes you while you're doing it.
Wow and uniqueness factors: what makes you different from others.
Values: what matters to you.
The control frameworks used by the most organizations
Traditional were devised considering that the feedback loops between management and teams were long.
It is important to understand that open trust frameworks cannot be implemented in isolation or simply by
mandate.
One of the reasons Facebook has been so successful
it is the inherent trust the company has in its people.
Everything is measurable and nothing is known
The first accelerometers were the size of
a shoe box and weighed two pounds.
This revolution also impacts our bodies.
ExOs are capitalizing on this accelerating trend
in one of two ways:
Creating new business models in existing data flows or adding new data flows to old paradigms.
Numerous new devices have emerged from this movement.
One of them is Spire, a QS device that measures respiration.
Keywords
Information speeds everything up.
He marginal cost of supply is falling exponentially for the first time. Everything is being disrupted.
In a disrupted world, it is better to be small.
The "experts" tell you how something cannot be done.
Rent, do not own your assets.
Everything is becoming information and is, therefore,
measurable and knowable.
An ExO Diagnostic can help you classify and analyze
your organization.
Implementing four or more ExO attributes can result in
10 times higher performance.
SUSANA GONZÁLEZ SARMIENTO