Importance and Definition
In this text we will know the future, startups that are totally related to this subject, no company will be able to drive the pace of improvement defined by exponential organizations (ExOs) if they are not prepared to accomplish something drastically new, a new look of the organization that is so technologically intelligent, comfortable (Ismail, 2018).
The authors of the books have explored in detail the patterns of ExOs. They choose between the world’s most popular ExOs nowadays, such as: Waze, Tesla, Airbnb, Netflix, Google and others global leaders and researchers who present a new broad insight into technological business and trends that could be used in startups, medium and large companies (Ismail, 2018).
The author explains that ExOs achieves impact and growth disproportionately at least ten times more than other companies in the sector, this is because they applied disruptive organizational techniques that promote their results (Ismail, 2018).
The first step for ExOs’s designing is the exposure of a massive transformative purpose (MTP). The creation of a MTP is a kind of mission written clearly, directly describing ambition, that is, a purpose needs to be transformative and needs to be massive. If you can find this purpose it will create a gravitational force and attract the best employees, investors, consumers to your organization you need to capture people who are inside and outside your company (Ismail, 2018).
Google's employees know the MTP, which is to organize the information of the world, the MTP of TED is, ideas deserve to be spread and singularity university is positively impact 1 billion people, Xprize Foundation, promote radical advances for the benefit of humanity, the MTP does not report what the company does, but, what she aspires to. To accomplish it is indispensable to think big, so that the business model is adequate because if the company thinks small and exceeds its goals will be completely adrift sailing in a sea where it did not plan to be even a small company can think big, and today's ExOs has no embarrassment to declare they want to do miracles (ISMAIL, 2018).
If you want to build an exponential organization, start by selecting a MTP. And answer the question: What big problem does my organization seek to solve?
Innovation has emerged causing numerous unexpected changes in various sectors of society creating business and changing habits (Ismail, 2018), the world in which we experience is an exponential reality.
To understand exponential growth, imagine that you take 30 steps one after another, one meter, each, the growth of your steps will be linear and not exponential. With linear growth it is easy to imagine the distance you will be at each step and even easier to imagine that at the end of the 30 steps you will be 30 meters from where you started. The same does not happen if you take 30 more exponential steps, i.e. and bend the distance traveled each step such as 1, 2, 4, 8, 16, 32 and so on in the 30th step you will have a billion meters, or given 26 times the turn around the earth.
Researcher Gordon Moore, co-founder of Intel, published in Electronics Magazine a scientific paper in 1975 with the prediction that the number of components of a computer chip would double every two years, that is, the speed and performance of computers would also increase exponentially every two years this prediction proved extremely accurate and today we know that it also applies to other areas such as nanotechnology robotics, genetics and 3D printing (Ismail, 2018) and (Moore, 1965).
In the linear organization or traditional enterprise is limited to missing resources and the ExOs, one of the keywords is affluence. A way to understand the dissimilarity between an ExOs and a linear one, or exponential progress and linear progress, see Figure 1 below.
Figure 1. Linear versus exponential growth
And do you agree that ExOs has a big exponential factor?
The authors defined ten particularities that help companies become exponential and not all necessary, but at least four of them need to be present so that the effect and growth are disproportionate, see the first five characteristics that help to climb companies beyond their limits. (Ismail, 2018)
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Being on demand and nothing else, that is, using freelancers or service platforms in order to outsource your workforce, you do not need to have your own employees, it is possible to rent or even borrow the workforce that your organization needs;
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Community and crowd used to communicate with their audience to get feedback, validate ideas, find employees and use crowdfunding to validate market demand and get funding;
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Automating a process through algorithms, used by Google's servers is a great example where your algorithm, that is, the programs of your computers organize like no other company the information in the world, today there are already large amounts of data that can be accessed and the machines themselves can be trained to solve problems and create solutions for people;
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They are leveraged assets, just as companies can use outsourced labor, it is no longer necessary to own assets such as own facilities or computing servers, everything can be leveraged externally, increasing agility, and adjusting costs to the actual size of operations the cloud computing service in incubators, platforms for product development and others allow companies to own only what is critical to their business could outsource everything else. Uber and Airbnb are mega corporations that can't get a taxi and no hotel, i.e. their assets are leveraged;
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Engagement, prize draws, discount coupons, contests and gamification are great tips for turning fans into a community, products and services need to be created with the possibility of engagement and mind.
Now that we've seen these first five attributes, we must understand that they intend to explore creativity, growth and control uncertainties and are primarily executed activities to take advantage of resources that are outside organizations (Ismail, 2018).
Self-organized and multidisciplinary team that develop with decentralized sovereignty are one of the most important components inside an ExO (Ismail, 2018).
Several traditional companies listed as fortune's five hundred largest took 20 years to reach the billion-dollar market, and already exponential organizations, large startups have reached this value in a much smaller, for example, Google in eight years, Facebook five years, Uber, WhatsApp less than three years and Snapchat in two years as figure below (Ismail, 2018).
You must be wondering how far away your company is from ExOs? A diagnosis is available in 4 languages, except Portuguese on the https://www.openexo.com/exq website, which will support to measure your company's exponential co-aware.
Figure 2.
Market value in billions of dollars
Technology grows exponentially to allow new startups, innovations, and projects to emerge faster than they were a time ago.
Subsequent large companies will be oriented towards developing exponentially and at a high pace. The book Exponential Organizations shows how the large-scale information stendumand the addition of computational capacity integrates a new organizational conjuncture that is exhibited with a massive potential for transformation of society (Ismail, 2018).