We can’t count on the long-term success of an organization based on factors such as strength, size, or scalability alone. So, what can businesses do to better prepare for the future?
Is your business ready for the next generation of startups? Or should you partner with Vates, a system integration company, to elevate your organization?
There is one thing we are certain of regarding the next wave of thriving start-ups: culture will play a significant role. You need more than just a fresh perspective to successfully implement cutting-edge innovation in a stagnant industry. New businesses have a better chance of survival and growth if their leaders think in long term and act in short term, value diversity, and prioritize and respond to the needs of their customers and workers.
The most successful businesses are the ones that are always trying new things and improving. These organizations enjoy their rapid growth and development, which earns them the name of “learning” or “exponential” organizations (ExOs).
To improve your company’s competitive advantage, it’s important to gear up on the best practices for creating a flexible, dynamic, and savvy organization. Let’s dive deeper into ExOs and why they’re the blueprint for successful startups of tomorrow.
Why are Exponential Organizations Taking Over?
An Exponential Organization (ExO) is one that has a significantly bigger influence (or output) than its contemporaries, by a factor of at least 10. This is because it employs cutting-edge methods of organization that make the most of rapidly developing technologies.
Information technologies are the backbone of exponential organizations, digitizing traditional practices and bringing them into the online, on-demand era.
Businesses of the future will follow the ExO framework. To stay in business, you’ll need to adopt certain ExO ways of thinking and doing. Whether you’re starting a new business or trying to revamp an established one, it’s important to have staff that can adapt to changing circumstances and not rely too heavily on a predetermined game plan. Always be on the lookout for new ways to use your imagination and never stop innovating!
As we enter an era of exponential growth, one of the most pressing questions is: how can we information-enable more practices? The main effect of having access to resources and information-enabling them is that marginal costs are reduced to zero.
From Scarcity to Scalability
To be exponential means that your business employs and enjoys abundance. This mindset of abundance, as opposed to scarcity, amplifies the company’s fundamental value proposition.
The startup community has a term for this fundamental organizational concept: scalability. However, scalability is merely a descriptor, and a quite ambiguous one at that. It doesn’t explain why some businesses are resilient while others collapse under increased pressure. At this point, the idea of an exponentially growing organization becomes relevant.
That’s because exponential is a frame of mind, not a logical justification. Companies can opt out if they want to—and to every company’s delight, scalability is a byproduct of exponential growth.
Why Choose Exponential Growth?
Traditional, vertically integrated corporations used technical advances to decrease the need for human labor and maximize profits at various points throughout their production processes. However, the speed and scale of technological advancements in the present day have rendered vertically integrated businesses nearly obsolete.
When it first hit the markets, the price of 3D printing used to be 400 times what it is today. Just five years ago, the price of an industrial robot used to be 23 times higher and decoding the human genome in 2009 was 10,000 times more expensive than it is today. These resources are, hence, becoming more accessible for startups.
While intensive research, development, and testing may still be needed to make these types of breakthroughs, reaping their benefits is something every organization can do. With the appropriate strategy, small teams can now outperform their larger counterparts in a variety of areas, thanks to the availability of ever-affordable and more powerful technology.
The New Era is All about Tech and Innovation
For a long time now, businesses have had access to an ever-expanding set of tools, from crowdfunding platforms to big data analytics. Incentives for enterprises to adopt them have also increased. If you’re hoping to leverage these tools for your organization, the big data consultants at Vates can help.
It’s not enough to say that exponential growth companies have an edge in the marketplace. In many situations, these are also the only organizations designed to last the long haul.
While the possibilities of technology continue to grow tremendously, the demands of the “digital revolution” are only increasing. The proliferation of mobile devices and apps, along with the emergence of the Internet of Things, creates an ocean of data. These are massive amounts of data that can’t be handled by humans alone.
A linear framework turns what should be a wealth of data into a severe dearth of useful business insights. Only exponential firms are set up to fully capitalize on the opportunities presented by the emerging digital business sector. So, being an exponential organization is not so much a matter of preference but of absolute need.
How Can Your Organization Manage Technological Innovations?
When it comes to resources, knowledge is an ExO’s most valuable possession. It’s vital to gather, organize, and evaluate data on customers and markets. Both experimentation and adaptability are necessary here. To save time and effort, several ExOs have adopted fully automated systems to manage data effectively.
Businesses that operate in a linear fashion require substantial capital investment and a huge workforce. On the other hand, having a small team and limited assets allows ExOs greater freedom and flexibility for a fraction of the labor cost.
Not all ExOs are the same, but in order to join their ranks, a company must have a purpose that’s truly world-changing. This is known as the Massive Transformative Purpose or MTP.
The MTP maps out an organization’s goals. It expresses the organization’s values and highlights its raison d’etre. There are five exterior (SCALE) and five internal (IDEAS) features that complement the MTP and ultimately give an organization ExO status.
If you’re looking for a reliable software development company to help your business benefit from big data, digital transformation, and tech innovation, reach out to Vates. Our Big Data consultants will develop a thorough clear roadmap and strategy toward a more powerful, successful, and adaptable company.
To find out more about the services we provide, please get in touch with us.