EXPONENTIAL ORGANIZATIONS SALIM ISMAIL PDF
EXPONENTIAL. ORGANIZATIONS. Why new organizations are ten times better, faster, and cheaper than yours. (and what to do about it). SALIM ISMAIL. Exponential Organizations. Why new organizations are ten times better, faster, and cheaper than yours (and what to do about it). Author: Salim Ismail w/ Michael . by Salim Ismail, Michael S Malone, Yuri van Geest. In the past five years, the business world has seen the birth of a new breed of company—the Exponential Organization—that has revolutionized how a company can accelerate its growth by using technology. An ExO can eliminate the.
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Editorial Reviews. Review. "EXPONENTIAL ORGANIZATIONS should be required reading for faster, and cheaper than yours (and what to do about it) - Kindle edition by Salim Ismail, Michael S. Malone, Yuri van Geest, Peter H. Diamandis. by [ Salim Ismail ] PDF online Exponential Organizations: Why new organizations are ten times better, faster, and cheaper than yours (and what. Mar 25, Download [PDF] Books Exponential Organizations (PDF, ePub, Mobi) by Salim Ismail Read Full Online.
They evolved one hundred years ago for an era of economies of scale and relative stability and predictability. Our environment is changing exponentially, mainly driven by exponential technologies and globalization. As a result, the world is becoming increasingly open and transparent and we are slowly moving from a world of scarcity to a world of abundance. Exponential Organizations lays the framework for organizations to adapt and thrive in a world of abundance by diving into new organizational structures that leverage exponential technologies and a shifting global business mindset.
Salim Ismail is the lead author of Exponential Organizations.
He has spent many years researching and developing insights about this new paradigm in organizational design. Since writing Exponential Organizations he founded ExO Works — a leading-edge consulting company that supports organizations in their transformation journey.
He has since founded Singularity University Netherlands. He contributed to many of the ideas and his team extensively researched, validated and ratified all concepts in the book. Which is why, over the last few years, a new organizational scheme congruent with these changes has begun to emerge.
The authors call it the Exponential Organization precisely because it represents the structure best suited to address the accelerated, non-linear, web-driven pace of modern life. And while even cutting- edge traditional companies can only achieve arithmetic outputs per input, an ExO achieves geometric outputs per input by riding the doubling-exponential pattern of information-based technologies. Rather than owning assets or workforces and incrementally seeing a return on those assets, ExOs leverage external resources to achieve their objectives.
For example, they maintain a very small core of employees and facilities, allowing enormous flexibility as margins soar. They enlist their customers and leverage offline and online communities in everything from product design to application development.
Information is your greatest asset. More reliably than any other asset, information has the potential to double regularly. Rather than simply assembling assets, the key to success is accessing valuable caches of existing information. Founded in , Airbnb currently has 1, employees and operates , listings in 33, cities. At its current pace, Airbnb will be the biggest hotelier in the world by late The second is that, thanks to the fact that information is essentially liquid, major business functions can be transferred outside of the organization— to users, fans, partners or the general public.
Not every ExO has all ten attributes but the more it has, the more scalable it tends to be. Even if the company somehow manages to achieve an impressive level of growth, the scale of its business will quickly outpace its business model and leave the company lost and directionless.
Thus, ExOs must aim high. Every ExO has one. Some aim to transform the planet, others just an industry. But radical transformation is the name of the game. For one thing, it moves the focal point of a team from internal politics to external impact.
Why does the organization exist? The MTP is not only an effective attractor and retainer for customers and employees but also for the company ecosystem at large DrFrumi Scaling4Growth.
As a result, it lowers the acquisition, transaction and retention costs of these stakeholders. It is important to note that an Exponential Organization interacting with its community is not simply a transaction.
True community occurs when peer-to-peer engagement occurs. The more open the community, though, the more traditional and best-practice-oriented the leadership model has to be. Use the MTP to attract and engage early members. The MTP serves as a gravitational force that attracts constituents into its orbit.
Nurture the community. Elements of nurturing include listening and giving back. Create a platform to automate peer-to-peer engagement. You open up an idea, funding opportunity or incentive prize… and let people find you. Machine Learning is the ability to accurately perform new, unseen tasks, built on known properties learned from training or historic data, and based on prediction.
It allows a machine to discover new patterns without being exposed to any historical or training data. Gather: The algorithmic process starts with harnessing data, which is gathered via sensors or humans, or imported from public datasets.
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Organize: The next step is to organize the data, a process known as ETL extract, transform and load. Apply: Once the data is accessible, machine learning tools such as Hadoop and Pivotal, or even open source deep learning algorithms like DeepMind, Vicarious and SkyMind, extract insights, identify trends and tune new algorithms.
Expose: The final step is exposing the data, as if it were an open platform. This practice optimizes flexibility and allows the enterprise to scale incredibly quickly as it obviates the need for staff to manage those assets.
For example, Tesla owns its own factories and Amazon its own warehouses. When the asset in question is rare or extremely scarce, then ownership is a better option. But if your asset is information-based or commoditized at all, then accessing is better than possessing.
The biggest impact of engagement techniques is on customers and the entire external ecosystem. However, these techniques can also be used internally with employees to boost collaboration, innovation and loyalty. They are algorithms and automated workflows that route the output of SCALE externalities to the right people at the right time internally.
In many cases, these processes start out manual and gradually become automated around the edges. Eventually, however, they became self-provisioning platforms that enable the ExO to scale. While most processes are optimized around scarcity and efficiency, SCALE elements generate large result sets, meaning Interfaces are geared towards filtering and matching.
Performance evaluations— which are entirely about evaluating how an employee performed in a given period— are independent of OKRs. Objectives are ambitious and should feel uncomfortable.
Many are now implementing high- frequency OKRs— that is, a target per week, month or quarter for each individual or team within a company. By integrating experimentation as a core value and adopting approaches like Lean Startup, enterprise failures— while still accepted as an inevitable part of risk— can be quick, relatively painless and insightful.
Large organizations, such as Zappos, have also adopted this structure across much bigger operations.
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Also in the mix are location, physical objects, ideas and knowledge— including updates to pricing data, inventory levels, meeting room occupancy and even DrFrumi Scaling4Growth. All are now being broadcast company-wide and are the basis of activity streams to which anyone in the organization can subscribe.
In the past, it was mostly used as a to-do list, but it is now shifting towards a more Agile approach. Teams are continuously measuring themselves by pushing codes and closing tickets, living by the metrics that task management software provides.
While Telepresence lets people interact in a real environment, virtual reality allows interaction, collaboration, coordination and even prototyping in a virtual world. Employees will be able to measure everything about themselves and their work, preventing illness, burnout and irritation, and also improving team flow, collaboration and performance. Organizational intimacy is increased, decision latency is reduced, knowledge improves and is more widely spread, and serendipity increases.
In short, social technologies enable the real-time enterprise. In industry after industry, the development cycle for products and services grows ever shorter. As we add trillions of sensors on every device, process and person, the process will accelerate even faster to an almost unimaginable pace Big Data.
Drive To Demonetization o One of the most important— and least celebrated— achievements of the Internet during the last decade was that it cut the marginal cost of marketing and sales to nearly zero. And, in concert with a viral referral loop, customer acquisition costs can also be cut to what was once deemed impossible: zero.
Disruption is the New Norm o Today, the outsider has all the advantages. With no legacy systems to worry about, as well as the ability to enjoy low overhead and take advantage of the democratization of information and— more important— technology, the newcomer can move quickly and with a minimum of expense.
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Thus, new actors and entrants are well equipped to attack almost any market, o The rate of change is so high everywhere these days that you now must assume that someone will disrupt you, and often from a direction you least expect. Death to the Five-Year Plan o In an exponential world, the five-year plan is not only unworkable, it is seriously counterproductive— and the advent of ExOs signals its death.
This may seem counterintuitive. The only solution is to establish a big vision i. Smaller Beats Bigger o For decades, scale and size have been desirable traits in an enterprise.
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A bigger company could do more, the argument went, because it could leverage economies of scale and negotiate from strength. The unparalleled and unprecedented ability of a small team today to do big things— an ability that grows ever greater if the exponential technologies described previously are put to use.
Asset Leverage: Engagement creates network ripples and feedback cycles that are far-reaching. Tools like game logic empower people so they can make progress on the scale. Information Accelerates Everything: In , million films were produced for analog photo cameras. Already in , just 10 years later, more than billion digital photographs were captured, equivalent to 8 billion analog film rolls. Today, internet users upload an average of 1 billion photos a day.
The more sensors available, the more information is created at ever-increasing speeds. Analyzing these data is a new need called Big Data, which, when used by companies, leads to exponential growth.
That also creates network effects, in which companies capture an unbelievable amount of data that leads to monopolies like Google and Amazon. Focus on Demonetization: One of the most important and celebrated effects of the internet is that it took the marginal costs of marketing and sales to almost zero. On the internet, you can promote a product worldwide for a fraction of the cost that existed 25 years ago. In companies like Uber, for example, it costs almost zero to add a new driver to your platform.
Disruption becomes the pattern: Beware of Experts: History shows us that seldom disruptive innovations come from experts. Usually, they come from people who have new perspectives on an established field;. The Death of 5-Year Planning: In the exponential world, long-term plans become counterproductive and ineffective. The small one surpasses the big one: The important thing is to get to exponential growth as quickly as possible to become a platform because once this occurs, growth limits disappear;.
Renting instead of buying: Everything exists on demand, and the initial costs tend to be smaller, which makes access to capital less important;. Openness becomes an essential component: Open platforms inspire more confidence than closed platforms. What is predictable will become automated, and the human will play an increasingly important role in what is not predictable;. Everything becomes measurable: Step 1: Get started with the question: What big problem is my company looking to solve?
Understand space and create purpose aligned with it. Elon Musk chose to revolutionize the automotive industry through electric cars and solar energy company Solar City.
Recently, Elon revisited his purpose and realigned his MTP to focus on revolutionizing the entire energy industry, not just the automotive industry.
Step 2: Create communities or join your MTP. Connect with people aligned with a vision similar to yours. Make the decisions of your company based on the interests of this community;.Malone is the author or co-author of nearly twenty award-winning books, including Exponential Organizations. For example, they maintain a very small core of employees and facilities, allowing enormous flexibility as margins soar.
Transform leadership. Elon Musk chose to revolutionize the automotive industry through electric cars and solar energy company Solar City. At the same time, established companies must transform themselves or they will quickly become obsolete. And all with a minimum of resources and time. It closes the gap between the linear organization and its exponential environment. As knowledge about the most diverse disciplines spreads, the volume of information in the world begins to double almost annually;.
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