XT … The Elastic Enterprise by Nicholas Vitalari
Since around 2007 a small group of companies began enjoying exceptional sales and profit growth, companies like Apple, Alibaba and Google to name just three. They didn’t just grow. Nor were they simply enjoying their best ever years. Airbnb, Tencent and Uber soon joined them.
These companies are elastic enterprises. They take a platform and ecosystem approach to business. The platform and ecosystem provides a new kind of elasticity. Enabled by the platform they have an ability to scale like no enterprise before them.
Now, two of those companies have shared top billing as the most valuable tech companies ever. Between them they hold over $300 billion in cash. They control the global phone operating system platforms, have moved into financial services, health, autos, chip design infrastructure, retail and more.
The Elastic Enterprise: The New Manifesto for Business Revolution tells that story, the story of today’s extraordinary successes in an age of turbulence and change.
What are the top observations, actions, options, strategies etc that people can make or take when thinking about the platform economy? More fundamentally what is the future of the enterprise?
In the book authors Vitalari and Shaughnessy explore that question by introducing the concept of a modern platform and ecosystem operating model and what it means for you.
But they don’t stop there. They dig deeper and introduce the concept of elastic scale and its economics. They also outline the platform operating model, new leadership requirements, market strategies, and the move to an active strategy playbook that supercharges the new operating model.
For over two hundred years enterprises worked off an operating model described by Adam Smith in the 18th century. It was based on the division of labor and the gradual elimination of individual creativity. Today’s high performing platforms have moved beyond Smith’s craft-inspired model of scale. They grow in new ways.
“While other companies were laying staff off, these platforms were hiring and creating opportunity for vast ecosystems of creative people. We noticed these companies were not just good for employment opportunities; they were creating new markets as well. We are talking here about real change, along many dimensions, baked into one coherent model for how business should be done,” explain the authors.
The book describes the key dynamics of the elastic enterprise and the platform and ecosystem model at their heart. They also describe what it means to work in the new, high invention environment. And how Elastic Enterprises are transforming how we create wealth.
Read more in my blog 100 ways in which platforms change the game of business