Embed Size (px)
Citation preview
Exponential
OrganizationsBy Salim Ismail with Micheal S. Malone and Yuri
van Geest
#WRFY
Presented by Dr Morne Mostert
8 April 2016: Cape Town
15 April 2016: Johannesburg
Singularity University
Combatting the organisational immune system
Definition
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
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”
“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
ExO growth
The internet has dropped the cost of demand
ExO’s use technology to reduce
the cost of supply (approaching 0)
The ExO formula
ExO
=
MTP + SCALE + IDEAS
4/10 ain’t bad
Stabilising forces Forces of growth
The shift
From
Securing assets, create boundaries, sell access to scarcity
To
Tap into external abundance
using technology
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
Characteristics: Staff on demand
Example
Congratulations!You have failed!
Heroic failure award
Dare to try award
New strategy
Use the crowd for scale
Reduce information latencythrough collaborative tools
Example
Look outside
Engagement –network effects &
positive feedback loops
Digital reputation systems
Gamification
Incentive prizes
Example - gamification
Case studies: Black Ops
(GE)
Functionality : Price ratio
How to get richin the past
ExOFunctionality
Price
Aha! Waste is opportunity?
Time of usage
Time of ownership
The evolution
1. Digitise
2. Disrupt
3. Demonetize
4. Democratise
The difference…
Threats & opportunities are external
redefining the bottom line to account for true long–term costs throughout supply chains
• 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
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.
Inherent contradiction
20th century business was an
externalisation machine
Vs
Externalise risk of ownership to customers?
Inherent contradiction
“The future is not
what it used to be”
Vs
“At this same rate…”
Inherent contradiction
“We are not ready”
Vs
“We are already doing it.”
Inherent contradiction
“We are in trouble”
Vs
“We are solving problems
more easily now”
Potential lingering questions
Are we becoming algorithms?
Will Big Brother grow bigger?
If it is free…
Perhaps YOU
Are the
ProductTelevision delivers people, 1973
