XL … Exponential Organisations
The best new organisations are 10x better, 10x faster, 10x cheaper than yours …
- The new world of the Exponential Organization or ExO is a place where neither age nor size nor reputation nor even current sales guarantee that you will be around tomorrow. On the other hand, it is also a place where if you can build an organization that is sufficiently scalable, fast moving and smart, you may enjoy success— exponential success— to a degree never before possible. And all with a minimum of resources and time.
- The lifespan of a company is going to get even shorter in the years to come as giant corporations aren’t just forced to compete with, but are annihilated— seemingly overnight— by a new breed of companies that harnesses the power of exponential technologies, from groupware and data mining to synthetic biology and robotics. And as the rise of Google portents, the founders of those new companies will become the leaders of the world’s economy for the foreseeable future.
- We’ve learned how to scale technology; now it’s time we learned how to scale organizations. This new age calls for a different solution to building new business, to improving rates of success and to solving the challenges that lie ahead. That solution is the Exponential Organization.
- 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 accelerating technologies. Rather than using armies of people or large physical plants, Exponential Organizations are built upon information technologies that take what was once physical in nature and dematerialize it into the digital, on-demand world
- The sixty-year history of Moore’s Law – basically, that the price/performance of computation will double every eighteen months, has been well documented.
- Futurist Ray Kurzweil made four signature observations:First, the doubling pattern identified by Gordon Moore in integrated circuits applies to any
information technology. Kurzweil calls this the Law of Accelerating Returns (LOAR) and shows that doubling patterns in computation extend all the way back to 1900, far earlier than Moore’s original pronouncement.
Second, the driver fueling this phenomenon is information. Once any domain, discipline, technology or industry becomes information-enabled and powered by information flows, its price/ performance begins doubling approximately annually.
Third, once that doubling pattern starts, it doesn’t stop.
Finally, several key technologies today are now information-enabled and following the same trajectory. Those technologies include artificial intelligence (AI), robotics, biotech and bioinformatics, medicine, neuroscience, data science, 3D printing, nanotechnology and even aspects of energy.
- As these technologies intersect, the pace of innovation accelerates even further. Each intersection adds yet another multiplier to the equation.
- Exponential Organizations, the latest embodiment of acceleration in human culture and enterprise, are overhauling commerce and other aspects of modern life, and at a scorching pace that will quickly leave the old world of “linear organizations” far behind.
- Those enterprises that don’t jump aboard soon will be left on the ash heap of history, joining Iridium, Kodak, Polaroid, Philco, Blockbuster, Nokia and a host of other once-great, industry-dominant corporations unable to adapt to rapid technological change.