yuri van geest: exponential organizations - the new normal
TRANSCRIPT
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Yuri van Geest- Author of Exponential Organizations- Dutch Ambassador of SU- Initiator of SingularityU Netherlands
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109+How will you positively impact 1 billion people in the next decade?
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Made in Space
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AcceleratingTechnologies
AlRoboticsBiotechNanotechMedicineNeuroscienceEnergyComputing
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Hyperspectral Imaging
Apple & Foxconn - Apple plans to bring hyperspectral imaging to the new Apple Watch. Enables: cancer detection, retinal imaging, blood flow & oxygen levels, food composition insights (to enable food safety)
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Psychoneuroimmunology (PNI) + Technology
PNI is the study of the interaction between psychological processes and the nervous and immune systems of the human body
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Da Vinci Surgical Robot
Stitching the skin back onto a grape inside a bottle, with the FDA-approved Single-Site Wristed Needle Driver
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MIT's Mediated Matter Group - Glass 3D Printing
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Facebook’s internet.org - Internet Access Globally
Others:- Google’s Project Loon
(with Titan Aerospace) - Drones & Balloons
- Virgin Galactic's LauncherOne - Satellites
- SpaceX - Satellites
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Exponential Technologies
Declining Costs
IncreasingCapabilities
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“The average half life of a business competency has dropped from 30 years in
1984 to 5 years today.”
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“89% of the Fortune 500 companies from 1955 are
not on the list today.”
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“In the next 10 years 40% of all S&P 500
companies will disappear from this list”
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Market Cap to a Billion
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Why are there ExOs?
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Linear > Exponential
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Scarcity > Abundance
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Time to scale the organization
Source: McKinsey 7S model
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What are ExOs?
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An Exponential Organization (ExO) is one whose impact (or output) is disproportionally large — at least 10x larger — compared to its peers because of the use of new organizational techniques that leverage exponential technologies.
Definition
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Software is eating the world, in all sectors
In the future every company will become a software companyMarc Andreessen
founder of Netscape, renowned Venture Capitalist Andreessen-Horowitz
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ExOs: Everything will become digital
• social, mobile & online for front-end functions
Marketing, sales & service
• nanotech, robotics, 3D printing, sensors, AI
Production & Manufacturing
• crowdsourcing (leveraging the crowd), DIY*, P2P**, crowd companies, AI, Nanofactories
Innovation & Supply
Past Present Future
•*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
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Attributes
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Linear vs Exponential
Strategy based on extrapolation from past
(5-year operational plans)
Strategy based on MTP, pivots and 1 year operational plan
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Linear vs Exponential
Process inflexibility and risk intolerance
Flexibility and smart failure celebration
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Linear vs Exponential
Innovation from inside, large number of FTEs
Innovation at the edges and from outside sources
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Examples of ExOs
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ExO Score ExO Score1 GitHub 76 11 Shapeways 722 Airbnb 74 12 Kiva.org 723 Uber 73 13 Etsy 724 Indiegogo 73 14 Cloudera 715 Google 73 15 Waze 716 Slack 72 16 Kickstarter 717 Kaggle 72 17 BlaBlaCar 718 Pinterest 72 18 Medium 719 Reddit 72 19 Valve 7010 Tumblr 72 20 Wikimedia 70
Best ExOs
See the complete Top 100 at:http://top100.exponentialorgs.com
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MTP
Staff on Demand Interfaces
Community & Crowd Dashboards
Algorithms Experimentation
Leveraged Assets Autonomy
Engagement Social
GitHub - GitHub is an open source code and collaboration community with 10 million members, 21 million repositories and market cap of $10B. Key differentiator: technical infrastructure of the internet as organizational design
Best ExOs
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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
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Performance Improvement
Local Motors Traditional Car Manufacturers
100x cheaper & 5-22x faster production
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MTP
Staff on Demand Interfaces
Community & Crowd Dashboards
Algorithms Experimentation
Leveraged Assets Autonomy
Engagement Social
Haier - Chinese appliance maker with 80,000 employees organized in 2005 in 2,000 self-managed units with decision-making authority (Autonomy). Market cap grew from $20B to $60B today in the last 3 years.
Corporate Example
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How to create ExOs?
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Strategies for Corporates
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Best Business Book of 2014 Award by Frost & Sullivan
One of the all-time highest rated business books on Amazon(4,8 out of 5)
(Soon) available in 15 languages, including all top 8 languages incl. Chinese
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Nominated for the Oscars of Management Books: Thinkers50 Breakthrough Idea Award
Other nominees:
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Yuri van GeestCo-Author Exponential Organizations+31 6 113 19 290 @vangeest [email protected] www.exponentialorgs.com