Exponential Organizations

Exponential Organizations

Faced with competition from start-ups able to introduce disruptive innovation conducive to exponential growth, which assets do traditional companies have at hand?

Author(s): Salim Ismail, Michael S. Malone, Yuri van Geest

Publisher: Diversion Books

Date of publication: 2014

Manageris opinion

Traditional companies now find themselves blindsided by unexpected competition from complete newcomers, that is, start-ups created a few short years ago with very few resources.

The author analyzes how start-ups manage to introduce disruptive innovations and attain exponential growth. They are able to surpass established market players in a very short timespan. Does this mean that traditional firms are destined to disappear? In any case, they must look beyond their habitual competitors and pay attention to apparently insignificant start-ups. It is also up to these companies to take inspiration from the methods of these new players, notably by encouraging more intrapreneurship or by partnering with them.

The author develops striking comparisons between traditional players and start-ups. His demonstration is powerful and should drive all to challenge their business model. That being said, traditional companies possess resources that start-ups don’t. By transposing a few best practices that stimulate entrepreneurial spirit, established organizations should be able to face these newcomers successfully.

Although the author’s tone is sometimes alarmist, he aims to identify concrete opportunities for traditional companies that need to reinvent their model.