Exponential Organisations. Why there are new organisations that are ten times more scalable and profitable than yours (and what you can do about it).
The Rafael del Pino Foundation organised, on 10 May 2017 at 19:00, the Keynote Conference "Exponential Organisations. Why there are new organisations that are ten times more scalable and profitable than yours (and what you can do about it)" by Salim Ismail.
Salim Ismail is an internationally renowned multi-entrepreneur, CEO and Founder of Singularity University, as well as the Yahoo business incubator and 7 technology companies in Silicon Valley.
Over the past five years, the business world has witnessed the emergence of a new generation of companies - Exponential Organisations (ExOs) - that have revolutionised the way they accelerate growth through the use of technology. An ExO can transform the linear and incremental way in which traditional companies grow, using assets such as community, on-demand staff, Big Data, AI and other new technologies, to achieve ten times the performance of similar companies.
Three business visionaries - Salim Ismail, Yuri van Geest and Mike Malone - have researched this phenomenon and documented ten characteristics of Exponential Organisations. In this book, Exponential Organisations, they take the reader on a journey to learn how any company, from a startup to a large multinational, can become an ExO, improving its performance and evolving to the next level.
Summary:
On 10 May 2017, Salim Ismail, CEO and founder of Singularity University, gave a lecture at the Rafael del Pino Foundation on the occasion of the presentation of his book "Exponential Organisations". Ismail began his speech by asking how to move the world from a physical to a digital environment. That is the fundamental question for today's managers and for the survival of companies. In the past, companies managed scarcity, but now new companies are managing abundance and you have to adapt to that. We are in a world of rapid technological change, where the throughput of information processing capacity is doubling every few years. This is not only enabling the very rapid development of new technologies such as artificial intelligence, robotics, biotechnology, nanotechnology, medical-related technologies, neurotechnology, energy or data processing capacity. Technological development is also enabling the interaction of these technologies. Singularity University therefore asks itself how to apply new technological developments to solving the world's problems. From there, they organise courses from which some twelve start-ups emerge each year. They are companies with the ability to anticipate things before they become mainstream. At Singularity Universty they also teach how to identify these patterns of duplication. In this new world, the problem facing top management is to know which technological developments can impact them, because they can disappear, as happened to Kodak. The question is how to detect these patterns of change, because the brain perceives things in a linear way. So if you want to anticipate exponential change, you have to think differently. Disruption means moving from physical products to digital products. This has a revolutionary impact on different sectors, because when you digitise something it becomes disruptive. From that point on, the marginal cost is drastically reduced and tends to zero, and the business model shifts towards a model of abundance. This is the case, for example, of the cost of genome sequencing or of the photovoltaic cells incorporated in solar panels. It is also seen in data processing capacity, which benefits, for example, healthcare because much more data about our bodies can be managed and diagnoses can be made more quickly and accurately. The biggest impact, however, is in the field of solar energy. In fifteen years, it will be possible to generate all the energy the planet needs in this way, so the business model of the energy companies will disappear and the price of oil will plummet. Another thing is how to store this energy. The development of batteries is seven years behind that of solar panels, but it will be resolved by 2020. Society is not ready for these changes, nor are political leaders. We need leaders who understand this and who respond to the two main concerns: the transformation of jobs and climate change. The volatility of corporate revenues has increased because when a sector goes digital, its revenues plummet. Companies are not designed to be flexible, so they have to partner with start-ups. In fact, the flexibility of companies correlates with their stock market price. Once a domain grows exponentially, it is very difficult to know where it will go. But this change cannot be stopped because these technologies are going through a democratisation of things.
The Rafael del Pino Foundation is not responsible for the comments, opinions or statements made by the people who participate in its activities and which are expressed as a result of their inalienable right to freedom of expression and under their sole responsibility. The contents included in the summary of this conference are the result of the debates held at the meeting held for this purpose at the Foundation and are the responsibility of their authors.
The Rafael del Pino Foundation is not responsible for any comments, opinions or statements made by third parties. In this respect, the FRP is not obliged to monitor the views expressed by such third parties who participate in its activities and which are expressed as a result of their inalienable right to freedom of expression and under their own responsibility. The contents included in the summary of this conference are the result of the discussions that took place during the conference organised for this purpose at the Foundation and are the sole responsibility of its authors.
