We help successful companies excel at disruptive innovation

February 2019

Mike LingleChief Growth Officer // Crypto Leadmike@exo.works

Digital-First Companies

Digital Transformations

Disruptive Innovation

Apple announced the iPhone on January 9,

2007

“All Apple had was a glitzy demo of a product that, in reality, barely existed. There were still hundreds of problems—from tiny software bugs to seemingly insurmountable hardware hurdles—to be solved. Faced with a hard shipping deadline of June 29, Apple's employees scrambled as managers bickered and executives locked horns.”

—Wired Magazine

Apple

In 2012, 80% of their revenue came from products less than 4 years old

Apple

900 million active devices

Services is their fastest-growing line of business

“We’ll be fine.”

We help big companies learn to test and embrace new high-growth business models

Our HistoryFounded in 2016 by Salim Ismail

➔ Author of best-selling book, Exponential Organizations

➔ Founding Executive Director of Singularity University

➔ Board member of XPrize

Experts in 35 Countries

Technology is advancing more rapidly

Law of Accelerating Returns

Doubling Rates of Other Technologies➔ Moore’s Law—18 months

➔ Efficiency of solar panels—XXX

➔ Solar as % of new energy production—2 years

➔ Battery density—9 years

➔ Gene Sequencing—

➔ ?

https://docs.google.com/spreadsheets/d/1pq9KJvUGXk8My0NiyUkxG6vA5k

BAev3aMuVVDIeFC9M/edit?usp=sharing

We’ve never had so many technologies doubling so

quickly

Technologiesaren’t disruptive

on their own

These technologiesunlock disruptive business

models

These technologiesunlock digital business models

Uber didn’t have to invent a new kind of taxi

Netflix didn’t have to invent a new kind of dvd

The rate of business model creation is increasing

Successful companies need to innovate

We’re seeing well-established

innovation teams

But they tend to focus on incremental innovation

Big companies tend to move slowly

“We killed over half our innovation

projects because the parent

company wasn’t ready.”

What is disruptive innovation?

➔ New business models

➔ Adjacent markets

Disruptive innovation is a huge opportunity

Platforms & ecosytsems require a lot of cloud

computing power

We help successful companies excel at disruptive innovation

10x

Scarcity Abundance

What’s an MTP?

➔ Massive Transformative Purpose

➔ Organize all of the world’s information

Netflix was the king of DVD rentals

SCALE

IDEAS

ExO AttributesMTP

MASSIVE TRANSFORMATIVE PURPOSE

TAP INTO ABUNDANCE MANAGE ABUNDANCE

SCALE

IDEAS

Interfaces

Experimentation

Autonomy

Social Technologies

Dashboards

ExO Attributes

Staff on Demand

Algorithms

Leveraged Assets

Engagement

Community and Crowd

MTPMASSIVE TRANSFORMATIVE

PURPOSE

TAP INTO ABUNDANCE MANAGE ABUNDANCE

What is an ExO?

1. Some part of the business is digitized

2. Leverages accelerating technologies

3. Impact is at least 10x larger vs. peers

4. Decreases cost of demand

5. Decreases cost of supply

6. Is usually a platform

How do we build ExOs?

1. Make your mothership more ExO

2. Build new ExOs at the edge

2 Steps to 10X Performance

ExO

ExO

CurrentOrganization

Edge Stream

ExO

Core Stream

Current Organization(More ExO)

● New business models

● Leverage unfair

advantages

● Disruptive innovation

● Rapid growth

● Current business model

● More agile

● Incremental innovation

Balancing Innovation and Risk

Balancing Innovation and Risk

Balancing Innovation and Risk

“Any company designed for success in the 20th century...

...is doomed to failure in the 21st.”

—Investor David Rose

“When you’re a large enterprise, success isn’t all about what a small group of people is doing in isolation; success is about the transformation you bring back into the core.”

Tony Saldanha, VP Global Business Services, Procter & Gamble

Core● Prime Membership

● Prime Day

Edge● Alexa

● Amazon Web Services

AWS delivers 55% of the parent company's profits

and is still growing at almost 50% a quarter.

How do you lead markets while avoiding

being disrupted?

Morgan Stanley saysWaymo could be worth

$175B

Outcomes:

➔ Created new innovation division, learned to run their own Sprints

➔ Launched 25 initiatives to date

➔ 8 are on track to deliver $50M+ in value or 10x lift in customer satisfaction

➔ Turned several shared services into revenue generators

Procter & Gamble

A $35 billion financial services is able to save up to $1B in lost business by implementing a regulated single-click sign-up process.

A multinational corporation increased customer satisfaction by 10X and reduced wasted time by 83% at their call centers. They used artificial intelligence to understand each customer’s question and access the right answer from the right database in real time (including ingredients, sourcing, and supply chain information). This allows human agents to focus on building relationships and selling additional products.

A Fortune 100 company completely removed invoices from a major portion of their supply chain. This is a vastly more cost-effective solution than simply using technology to optimize the existing invoicing process.

A financial services firm identified a $300 million opportunity to win new customers in an adjacent market. Their approach eased the average 2.5 hour commute for locals in a major city by digitizing and unifying different transportation systems into a single mobile app.

“Amazon will fail one day.”

Not all big companies can transform

themselves into platforms

But they can learn how to build them.

Thank you Mike LingleChief Growth Officer // Crypto Leadmike@exo.works