Summary of Exponential Organizations

Every industry is being disrupted

These are going to drop in cost.

* artificial intelligence (AI),
* robotics,
* biotech and bioinformatics,
* medicine,
* neuroscience,
* data science,
* 3D printing,
* nanotechnology
* and even aspects of energy

Disruptive technology occurs when you cross fields

This water and -> loom

Art -> Chemistry-.> Biology

The experts in many fields look in a linear fashion not across disciplines

The doubling pattern identified by Gordon Moore in integrated circuits applies to any information technology. Once it starts to double it does not stop

Ten years ago we had five hundred million Internet-connected devices.
Today there are about 25 billion. A lot of companies missed out on this and went to the graveyard from missing them (think camera, among others)

large, matrixed organizations find extremely difficult to adapt

Waze (Uber, AirBnb) success
1. Access resources you don’t own. In Waze’s case, the company made use of the GPS readings already on its users’ smartphones.
2. 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.

 Massive Transformative Purpose (MTP) think BIG

MTP’s of some companies (these are great examples)

* TED: “Ideas worth spreading.”
* Google: “Organize the world’s information.”
* X Prize Foundation: “Bring about radical breakthroughs for the benefit of humanity.”
* Quirky: “Make invention accessible.”
* Singularity University: “Positively impact one billion people.”

The use these statements to drive culture


* Staff on Demand – the half-life of learned skill is down. Leverage outsourced workforce
* Community & Crowd – “f you build communities and you do things in public,” he says, “you don’t have to find the right people, they find you.
* Algorithms – algorithms to mitigate and compensate for many of the following heuristics in human
* Leveraged Assets – outsourcing even mission-critical assets. (Again think uber)
* Engagement – gamification of problems


* Interfaces – algorithms and automated workflows that route the output of SCALE externalities to the right people at the right time.
* Dashboards – in the past its been quarterly report. Today people are leveraging wireless broadband, the internet, sensors and the cloud to track this same data in real time.
* Experimentation – Lean Startup methodology of testing assumptions and constantly experimenting with controlled risks.
* Autonomy – self-organizing, multi-disciplinary teams operating with decentralized authority.
* Social Technologies* Reduce the distance between obtaining (and processing) information and decision making
* Migrate from having to look up information to having it flow through your perception
* Leverage community to build out ideas

Social objects
Activity streams
Task management
File sharing
Virtual worlds
Emotional sensing

* Information Accelerates Everything – the more info the quicker you can make decisions
* Drive To Demonetization – race to zero
* Disruption is the New Norm
* Domain (or technology) becomes information-enabled
* Costs drop exponentially and access is democratized
* Hobbyists come together to form an open source community
* New combinations of technologies and convergences are introduced
* New products and services appear that are orders of magnitude better and cheaper
* The status quo is disrupted (and the domain gets information-enabled)
* Beware the “Expert” – disruption typically comes from the outside.
* Death to the Five-Year Plan

MTPs for overall guidance and emotional enrollment.
Dashboards to provide real time information on how a business is progressing.
Leveraging “Moments of Impact” for clean, productive decision-making.
A one-year (at most) operating plan that is connected to the Dashboard.

* Smaller Beats Bigger
* Rent, Don’t Own
* Trust Beats Control and Open Beats Closed

Starting an ExO

* Select an MTP (Massive Transformative Purpose).
* Join or Create Relevant MTP Communities
* minimum 10x improvement over the status quo.
* everaging information to radically cut the cost
* Does the idea solve a real customer problem
* the key to success is relentless execution, hence the need for passion and the MTP.

How to build on free information:

* Immediacy – get it right now.
* Personalization:
* Interpretation: – add value
* Authenticity: product is real and safe
* Accessibility – easy to get.
* Embodiment – give it to us how we want ti
* Patronage – people want to pay
* Findability: – easy to find
Build the MVP

Validate Marketing and Sales

* Acquisition: How do users locate you? (Growth metric)
* Activation: Do users have a great first experience? (Value metric)
* Retention: Do users come back? (Value metric)
* Revenue: How do you make money? (Value metric)
* Referral: Do users tell others? (Growth metric)

Ask these questions all the time.

* Who is your customer?
* Which customer problem are you solving?
* What is your solution and does it improve the status quo by at least 10x?
* How will you market the product or service?
* How are you selling the product or service?
* How do you turn customers into advocates using viral effects and Net Promoter Scores to drive down the marginal cost of demand?
* How will you scale your customer segment?
* How will you drive the marginal cost of supply towards zero?
* It takes a 9x improvement to move people from incumbent products to new products from startups.”

Building and Maintaining a Platform

* Gather: The algorithmic process starts with harnessing data, which is gathered via sensors, people, or imported from public datasets.
* Organize: The next step is to organize the data. This is known as ETL (extract, transform and load).
* Apply: Once the data is accessible, algorithms such as machine or deep learning extract insights, identify trends and tune new algorithms.
* Expose: The final step is exposing the data in the form of an open platform.

4 strategies to keep operational businesses intact while changing.

* Transform leadership.
* Partner with, invest in or acquire ExOs.
* Disrupt.
* Implement ExO Lite internally.

Transform leadership

* Education – educate employees on radical change
* Board Management – Educate the board
* Implement Diversity it’s a big world Remember that one of the most important aspects of diversity requires putting young people into positions of power and influence. In addition, include more women on your board.
* Skills and Leadership – Remove anyone who puts his or her own career ahead of the success of the enterprise.
* Partner with Accelerators, Incubators and Hackerspaces

5 Favorite Quotes

“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

“As Eric Ries explains, “The modern rule of competition is whoever learns fastest, wins.”
― Salim Ismail

“You have to be self-aware and look for that startup idea and purpose that is a perfect fit with you—with you as a person, not as a business[person].”
― Salim Ismail

“The Exponential Organization The modern corporation takes great pride in how fast it can bring products and services to market compared to companies in the past.”
― Salim Ismail

“as data becomes the new oil, many business models will be transformed from hardware to software to services.”
― Salim Ismail