Innovates Ten Times faster!
By Marc Dresner, Senior Editor, IIR
emerged. And chances are it is ten times faster, more efficient and more capable
of innovating than your company.
suggests, they scale amazingly well.
(at least initially) big name players, but according to Salim Ismail, Founding Executive Director of Singularity University, they can outperform them by a factor of ten on a variety of
Gamble takes about 300 days to go from a new idea to a product on the shelf at
Walmart. Quirky does that in 29 days,' noted Ismail, co-author of 'Exponential Organizations: Why New Organizations are Ten Times Better, Faster and Cheaper than Yours (and what you can do about it).'
organizations, Ismail observes, tend to be hierarchical, centralized and
closed, and they operate around an 'ownership' model predicated on scarcity (of
people, resources, assets, platforms, etc.).
he calls them'function in a way that's fundamentally different; they embrace
and leverage openness, transparency and abundance.
outward, not inward, and according to Ismail this gives them an edge in a world
where the pace of technological advancement is increasing exponentially.
do innovation solely from inside, you're dead,' said Ismail in a podcast
interview with Forward Focus.
incubator'added that companies that cling stubbornly to
innovating from within will more likely than not strangle their own innovation pipeline.
do a traditional skunkworks, the immune system of the company will attack you,'
he said, 'because our traditional organizational structures are built to withstand
change and withstand risk and keep doing the same thing.'
same argument was made by Steve Blank in an earlier interview with Forward Focus.
Check it out here.
(and potentially alarming) characteristics is that they like to play in different
top of a category are particularly vulnerable to being disrupted by them.
companies are stuck in a particular vertical trying to build products and services
for that vertical. We think they are sitting ducks,' Ismail said.
resident category'maybe more so than its design capability and underlying technology supply chain'that
Ismail credits with Apple's success.
does'unlike any other big company in the world'is they take a small, disruptive
team, keep them completely stealth, put them at the edge of the organization
and say, 'go attack another industry,' leveraging an information capability and
then adding to their platform,' said Ismail.
theoretical limit to their market cap,' he added. 'I fully expect they will be
the first trillion-dollar company because they are not stuck in one
Forward Focus'FEI's expert interview series'Salim Ismail acquaints us
with the exponential organization and what it will take for established
companies to compete.
Ismail will be delivering a keynote at the 13th Annual Front End of Innovation taking place May 18-20 in Boston.
information or to register for FEI 2015, please visit www.frontendofinnovation.com
ABOUT THE INTERVIEWER
Marc Dresner is IIR USA's sr. editor and special communication project lead. He is the former executive editor of Research Business Report, a trade publication for the marketing research and consumer insights industry. He may be reached at firstname.lastname@example.org. Follow him @mdrezz.