Exponential Organizations, as defined by strategist, entrepreneur and futurist Salim Ismail, is one whose impact (or output) is disproportionally large – at least 10 times larger – compared to its peers because of the use of new organizational techniques that leverage exponential technologies. Organizations with exponential characteristics and mindsets are in the best position to thrive in the coming digital era. That’s because unlike traditional command-and-control organizations, Exponential Organizations are digital, information-based agencies. Where traditional companies are driven by scarcity of the resources that are under their control, exponential organizations thrive on abundance, by tapping the larger ecosystem. Traditional organizations move deliberately. Exponential Organizations are flexible, adaptable and agile, and have few barriers to enter any industry and therefore grow explosively.
Next Generation of Shared Services
The viability of an organization’s business model itself may depend on the emerging fourth stage of Shared Services. The fourth stage makes the leap from Shared Services as a cost optimization engine to being a digital business model creator for the whole enterprise. It needs to be a core part of every company’s business strategy.
It is a digital redo of internal and external business models using Exponential Technologies, Exponential Work Processes and Exponential Ecosystems. It already exists in digitally native enterprises. Larger organizations need to catch up quickly.