Yuri van Geest at WebTomorrow talking about Why new organizations are 10 times better, faster, cheaper than yours and What You can Learn From Them

Yuri van Geest- Co-Author Exponential Organizations

- Dutch Ambassador of SU

- Initiator of SU in NL for EU

Exponential Technologies

Declining Costs

IncreasingCapabilities

“The average half life of a business competency has dropped from 30 years in

1984 to 5 years today.”

“89% of the Fortune 500 companies from 1955 are

not on the list today.”

“In the next 10 years 40% of all S&P 500

companies will disappear from this list”

Market Cap to a Billion

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

Why are there ExOs?

Linear vs. Exponential

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

What are ExOs?

Attributes

Attributes

I-D-E-A-S Promote

Non-Political, More Human Organizations

How to create ExOs?

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

Strategies for Corporates

Examples of ExOs

Best ExOs

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

Impact of ExOs

ExO performance improvement

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 Outlook

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

In 2015: Translations in 12 languages

Yuri van GeestCo-Author Exponential Organizations

+31 6 113 19 290 @vangeest

[email protected]

www.exponentialorgs.com