Market success is increasingly determined by strategic flexibility. Even major corporate giants are trying to embrace startup techniques to not be left behind in the digital era.
It won’t be long until the rest of the business world realizes that exponential organizations (ExOs) not only provide clear strategic benefits in the modern corporate environment but may also help to reshape it. Except for ExOs, no one has been able to portray the enormous scope of shifts and disruption possible and how it is affecting every industry nearly as well.
At Vates, we have created the robust ExO Launchpad, which integrates a multitude of approaches and high-tech services and enables startups to take the plunge.
Learn how ExOs are the future of startup businesses.
What are Exponential Organizations?
An exponential organization (ExO) uses innovative organizational strategies with the help of advanced technology but fewer resources. The impact of an ExO is exceptionally large, often 10 times larger than that of its competitors. Netflix, Google, Amazon, Airbnb, Spotify, Skype, and Uber are all examples of ExOs with huge impacts.
ExOs are revolutionizing a wide range of industries, including philanthropy, manufacturing, services, and retail. Since ExOs are designed to take advantage of developing technology, they help firms adapt to the transformations carried on by the 4th Industrial Revolution.Vates is also offering ExO Launchpad for startups. Check it out here.
Eleven Characteristics Of An Exponential Organization
Salim Ismail researched exponential businesses and discovered 11 characteristics that influenced them in his book “Exponential Organizations.”
It’s crucial to remember that not every one of the eleven characteristics must be incorporated into a startup to qualify as an exponential organization; they must, however, have a minimum of four.
MTP – Massive Transformative Purpose: Every ExO is required to have MTP, which goes further than a mission statement.
S – Staff on Demand: Utilize talent outside your business; outsource and draw inspiration from other sources.
C – Community and crowd: Create a community and leverage the masses to hasten and improve decision-making.
A – Algorithm: To eliminate inefficiencies from judgments and procedures, use machine learning and artificial intelligence.
L – Leveraged Assets: Don’t construct any hard assets, like computer resources, that you may rent instead.
E – Engagement: Engage individuals in a greater cause to capitalize on their wish to join an MTP.
I — Interfaces: These are the methods and tools that allow external SCALE approaches to complement and support internal ones. The best interfaces enable smooth internal and external cooperation.
D — Dashboards: Create simple methods for gathering and sharing metrics, progress, and insights throughout the business.
E — Experimentation: To speed up learning, use cautious iteration without any fear of failing.
A — Autonomy: Encourage people to operate independently and decentralized.
S — Social Technologies: Use technologies for communication and sharing.
How ExOs are the Future for Businesses?
Businesses will thrive in exponential organizations in the future. You must adopt ExO techniques if you want your business to survive. Therefore, whether you’re starting a new business or revamping an established one, have a clear, comprehensive transformational goal, assemble a dynamic team, and avoid relying solely on linear/vertical strategy. Always be prepared for the unexpected, and use your imagination!
This exponential organizational concept already has a name in the startup community–scalability. Scalability, however, is only a general description. It leaves open the subject of why certain companies can withstand greater pressures while others cannot. The idea of an exponential organization can be applied in this situation.
You may benefit by adopting the exponential business model and expanding the success and profitability of your company with the help of an industry expert like Vates.
Why Startups Should Choose ExOs
Technological advancements in the past’s vertically integrated businesses typically worked to lower labor requirements and raise profit margins at numerous points along a particular manufacturing chain. However, the speed and range of technological advancement today have almost turned vertically integrated businesses obsolete.
In the last seven years, 3D printing costs have decreased by a factor of 400 due to ExOs. Industrial robots are now 1/3 as expensive as they were five years ago. Drone prices have decreased by 143 times since 2010, and the cost of human genome sequencing has decreased by 10,000 times since 2009.
These innovations may still need extensive study, invention, and validation, but utilizing them doesn’t. Team members with the right approach may now complete tasks that were previously only possible for governments and large corporations, and they can do so quicker and more efficiently than their major competitors’ thanks to the availability of advanced tech at cheaper rates.
The technologies accessible to organizations have been expanding and changing tremendously for years, from big data analytics to crowdfunding. They have changed, as have the incentives for companies to use them. Vates provides a comprehensive range of Big Data analytics, IT, AI, IoT, and IoB services that may reduce your company’s dependency on physical assets and refocus it on a corresponding technological scale.
An excellent example is Uber which uses advanced tech at a cheaper rate. Low-cost limo services are replacing traditional taxi operations with their continuous expenses and responsibilities by taking advantage of the availability of drivers who are easily accessible. In addition, Uber’s CEO is expanding on the urban logistics fabric and food delivery services.
But ExOs go beyond merely being more competitive. Additionally, they frequently represent the only sorts of organizations designed for long-term sustainability.
Although technological advancements are accelerating, the digital age is also creating new expectations. Big data analytics that rely on manual processing face potentially unsolvable issues due to the emergence of the Internet of Things, smartphone devices, and smart app software.
Within a linear perspective, what ought to be a wealth of data turns into a serious shortage of useful business insights. The digital business economy can only be fully realized by ExOs because of the way they are constituted. In that sense, the decision to evolve as an ExO must be made as well as it is necessary.
Do you want to be an exponential startup? Vates offers several packages to give you if you have a startup and want to establish the foundation for exponential development to reach the growth you desire.
With more than 50 StartUps under our belt and years of expertise coaching business owners on how to use exponential organization ideas for their success, Vates provides you with numerous services, including ExOLaunchpadMVP, MVP development, software scaling, and ExOLaunchpad mentoring.
We also offer custom software development, big data consulting services, Agile software development services, Jira service management, PMO software services, IoT consulting services, software quality control and testing services, software integration services, and much more!
Reach out to us for more details.