Section 12.1: EXPONENTIAL FUNCTIONS Evaluate exponential ...
Hogyan építsünk exponenciális szervezeteket? · 2019. 10. 22. · Exercise: Linear vs....
Transcript of Hogyan építsünk exponenciális szervezeteket? · 2019. 10. 22. · Exercise: Linear vs....
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Hogyan építsünk exponenciális szervezeteket?Dr. Kristóf Péter
ExO coach, trainer & CEE ambassador – ExO Works
Vendégoktató – Budapesti Corvinus Egyetem
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About me• Dual-MSc in economics & accounting, BSc in IT engineering• After 2 year turned freelancer / digital nomad• Was managing large-scle IT development projects with $10M+ budget and 150+
ppl; advisor to the government• Currently: mentor at VC funds, evaluator at EIT, consultant at National Basketball
Academy and Centre for Agricultural Research, chief innovation officer atYourAnastomosis
• „Standing on the shoulders of giants”• Demanding clients• Practice + Theory• PhD at Corvinus• Joined OpenExO and ExO Works: delivering transformation projects to
Fortune500 companies
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Biotech
Neurotech & Medtech
Nanotech
New energy & sustainability
Sensoring
IoT
3D printing
Artificial intelligence, machine/deep learning
Robotics & drones
Blockchain
Many disruptive technologies going mainstream all at once
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Why to talk about exponentials?
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„Any company designed for success in
the 20th century is doomed to failure in
the 21st”
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Old profit driver: selling scarcity
New profit driver: leveraging abundance
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Accessing and managing abundance
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How does it look like?The 6 Ds of Exponential Organizations
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Annual photovoltaic production
Source: GTM Research
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Plummeting cost of solar modules ($/W)
Source: DOE NREL Solar Market Report, 2012
TOP Solar Expertin 2003:
cost of all components
(polycrystalline silicon
ingots, protective glass & silver in
wiring) will neverdrop below
$1/watt
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Solar capacity
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Cost of starting an internet business fell by 1000x
source: Mark Suster
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By 2020: 1 billion entrepreneurs
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Time to reach $1 billion market cap
source: Ismail, 2014
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Big bang innovations
source: Downes – Nunes, 2014
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In 10 years 40% of companies in the S&P index will be gone
source: Innosight, 2018
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Our brains prefer linear thinking…
… so exponential change is deceptive
Chaos/ Amazement
Too late to react!
Disappointment
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Gartner prediction (2009) vs. actual (2012) mobile shares
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• 2012 forecast: 50 billion
• 2016 forecast: 500 billion!
IoT devices by 2020
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Car wash in Buenos Aires
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Cost of LIDAR
• 2012: $75,000
• 2017: $50
• 2022: $10 (+1000x faster, 40 Gb/s)
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What would you do after signing a five-year,$148 million contract?
“I don’t drive, I don’t have a license, so no cars, no houses. All I need is video games and basketball, that’s
what makes me happy.”
Joel Embiid
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Intersecting technologies – Parallel Gutenberg moments
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Newspapers
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Music
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Widening adaptability gap
source: DeloitteUniversity Press, 2017
The gaps between technology, individuals, businesses and public
policy should be closed
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Q&A
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Create teams of 4-6
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Exponential thinking exercise
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Example organization
• Industry: Food & Beverage
• Founded: 1962
• Business Model: Retail stores
• Locations: 6,200 stores in the world
• Number of Employees: 2,200,000
• Revenue: $485.651B USD
• Profit: $26.6B USD
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SCIO
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Exercise: Linear vs. Exponential thinking
1. Pick 3 technologies or startups that could significantly impact your
organization
2. Think both about the opportunities and threats that represent these
technologies, and on what time horizon (20 minutes)
3. Share your results! (1 minutes / team)
Exponential technologyor startup
Opportunity Threat Timing
1.
2.
3.
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ExO =
MTP + SCALE + IDEAS[ ]The ExO formula
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ExO Canvas explainedOUTSIDE OF THE ORGANIZATION INSIDE OF THE ORGANIZATION
ExOCanvas
MASSIVETRANSFORMATIVEPURPOSE(MTP)
INFORMATION
IMPLEMENTATIONSTAFFONDEMAND
COMMUNITY
ALGORITHIMS
LEVERAGEDASSETS
ENGAGEMENT
INTERFACES
DASHBOARDS
EXPERIMENTS
AUTONOMY
SOCIAL
How to reach ABUNDANCE? How to manage ABUNDANCE?
ABUNDANCE ExO
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Massive Transformative Purpose (MTP)The higher, aspirational purpose of the organization.
The MTP serves as a guiding principle when key decisions need to be made.
an MTP is:
• Emotional: reaches hearts and minds
• Credible: stakeholders need to be confident in their daily work
• Simple: clear and easy to understand
• Guide people: from the inside and outside
• Guide scale: when needed
• About passion
An MTP is NOT:
• Just about the organization: not a vision statement
• Only about the „How To”: not a mission statement
• A marketing slogan for customers
• A sentence for us („we”): not about business
• The value proposition: not the literal promise
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Massive Transformative Purpose (MTP)“If the dreams of your company don’t scare you, they are
too small.” – Richard Branson
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MTP examples“Organize the World’s Information.”
“Make the world healthier.”
PHILIPS
“Create a better everyday life for people.”
IKEA
“Changing business for good.”
VIRGIN GROUP
”Ideas worth spreading.”
TED
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ExO =
MTP + SCALE + IDEAS[ ]The ExO formula
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ExO Canvas
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Rather than ‘owning’ employees, ExOs leverage external people for simple
to complex work – even for mission critical processes
Staff on Demand
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Staff on Demand
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Communities are groups of people passionate about a cause and devoted
to collaborate on solving the grand challenges surrounding that cause.
ExOs are leveraging their community or the general public to scale.
Community & Crowd
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As the world turns into data and information, ExOs are leveraging Algorithms – including
Machine Learning and Deep Learning – to get new insights about their customers and
products. Self learning software recognizing patterns in text, images, videos, languages
etc.
Algorithms
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Algorithms
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Rather than trying to own assets, ExOs access, rent or share assets to stay
nimble – outsourcing even mission critical assets. Leveraged assets are
comprised of Cloud computing, Hackerspaces and assets from customers as
input for business.
Leveraged Assets
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Leveraged Assets
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Engagement is comprised of digital reputation systems, games and incentive
prizes, and provides the opportunity for virtuous, positive feedback loops,
which in turn allows for faster growth due to more innovative ideas and
customer and community loyalty.
Engagement
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Matching and filtering processes that allows an organization to select, filter and
manage the outputs of all external attributes of ExOs (SCALE) as inputs into the
internal organization in an effective, targeted and seamless manner.
Interfaces
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Matching and filtering processes that allows an organization to select, filter and
manage the outputs of all external attributes of ExOs (SCALE) as inputs into the
internal organization in an effective, targeted and seamless manner.
Interfaces
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Matching and filtering processes that allows an organization to select, filter and
manage the outputs of all external attributes of ExOs (SCALE) as inputs into the
internal organization in an effective, targeted and seamless manner.
Dashboards
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Matching and filtering processes that allows an organization to select, filter and
manage the outputs of all external attributes of ExOs (SCALE) as inputs into the
internal organization in an effective, targeted and seamless manner.
Experimentation
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Matching and filtering processes that allows an organization to select, filter and
manage the outputs of all external attributes of ExOs (SCALE) as inputs into the
internal organization in an effective, targeted and seamless manner.
Experimentation
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ExOs have a flat organization, allowing self-organizing, multidisciplinary teams
and / or individual employees to operate with decentralized authority.
Autonomy
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ExOs leverage collaborative tools to manage real time, zero latency
conversations. When implemented these tools create transparency and
connectedness and lower an organization’s information latency.
Social
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Social
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+
Connection
Clarity
Learning
Ownership
Collaboration
Expertise
Momentum
Value
Flexibility
Participation
Interfaces
Dashboards
Experiments
Autonomy
Social
Managing Abundance
AccessingAbundance
Staff on
Demand
Community
Algorithms
Leveraged
Assets
Engagement
SCALE IDEAS
UBER Mobile App
Google Analytics, HubSpot, NPS
Lean startup, agiledevelopment
OKR’s, Holacracy
Slack, Zoom, Trello
99designs, TaskRabbit
TED Community
Netflix recommendations
AirBnB’s rooms
X Prize’s competitions
The ExO attributes
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Global impact – stock market effectIn a partnership with Hult School of Business, we tracked and scored the Fortune 100, from 2014 to 2016 on how exponential the organization, and paired that against their returns.
Fortune 100 Company ExQ
Google 72.9
Amazon 66.2
Apple 62.6
International Business Machines (IBM) 61.0
Verizon Communications 58.8
General Electric 56.6
Microsoft 55.9
Cisco Systems, Inc. 55.8
The Walt Disney Company 54.8
Oracle Corporation 54.0
Fortune 100 Company ExQ
Costco Wholesale 32.0
Phillip Morris International Inc. 31.6
Hess Corporation 31.3
HCA Holdings, Inc. 31.0
Phillips 66 30.7
Tesoro Corporation 30.0
Valero Energy 29.8
Plains GP Holdings, L.P. 27.5
Energy Transfer Equity, L.P. 26.5
Enterprise Products Partners L.P. 23.0
S&P +9.9%+26.7% -1.7%
Top 10 Bottom 10
*ExQ is an automated scoring algorithm based on ExO attributes.https://exqsurvey.com
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Implement 4 out of 10 attributes to become an ExO
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ExO CanvasMTP + SCALE + IDEAS
Create a world where you
can belong anywhere
Owners
Travelers
Private places
Reputation system
Recommendations
Search engine
Real-time metrics
Lean Startup
Freedom for owners
Owners-traveler com.
Available places
Demand for renting
Agile development
Startup culture
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Q&A
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Example organization
• Industry: Food & Beverage
• Founded: 1962
• Business Model: Retail stores
• Locations: 6,200 stores in the world
• Number of Employees: 2,200,000
• Revenue: $485.651B USD
• Profit: $26.6B USD
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Exercise: ExO Attributes1. Fill in the ExO Canvas for your organization
2. At least, pick/define the MTP and 4 more ExO Attributes (30 minutes)3. Share your results! (2 minutes / team)
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How to become an ExO? The ExO Sprint
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Exponential transformation
CurrentOrganization
Disruptive innovation• New business model• No legacy constraints
Incremental innovation• Same business model• Leveraging existing assets
AdaptedOrganization
ExO
ExO
ExO
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Cross-functional teams Coach-based approach
Handling the immune system Align innovation
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Transforming Marriott?
$45 billion $165 billion
+370%
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The future of edge initatives in 5-8 years
AdaptedOrganization
ExO
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Ingredients Recipe Kitchen
ExOCanvas
ExOSprint
ExOEcosystem
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The ExO master business course
https://info.growthinstitute.com/exponential-organizations-master-business-course
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“Today, if you’re not disrupting yourself someone else is; your fate is to be either the disrupter or
the disrupted. There is no middle ground.”Salim Ismail (co-founder of ExO Works)
Peter Kristof [email protected]+36.20.4916.607