tips to applying exponential organization principles to large cpg companies
TRANSCRIPT
ExponentialsLiving & Growing In A World The Human Mind Is Yet Prepared To Understand
In a lake, there is a patch of lily pads. Every day, the patch doubles in size. If it takes 48 days for the patch to cover the entire lake, how long would it take for the patch to cover half of the lake?
Logarithmic scales do not make sense to our minds
Everything you thought you knew about how the world works is turned
on its head
So if the whole business world seems upturned it’s because these businesses operated
here - until 2000s
here - in 2015 +
Everything moves much faster, thanks to information
…we are beyond Moore’s Law
A definition
How would you put on ISS (International Space Station) a 6 pound-coffee making machine with just $1,000 in 2 days?
Considering that today, it costs $10,000 to put a pound of payload in Earth orbit - according to NASA
Airbnb
90X more listings per employee vs a traditional hotelier
Quirky
10X faster product development (29 days vs 300 days in CPG industry)
Here’s how these companies are doing it
What makes an ExO - at least 4 out of 10 attributes
Staff on demand
Speed Flexibility Acces to diverse talents
Community & Crowd
DYI Drones delivered a US military grade drone at $300 vs $4mil - the cost of a Predator.
Algorithms
Protect us from our human errors & enhance our capabilities.
Leveraged Assets
Do not own. Look to rent. In order to enhance speed, flexibility and lower CAPEX.
Engagement
Incentives Gamification Sweepstakes, quizzies, coupons
Interfaces & Dashboards
How you make sense of data that counts, in real time.
“There are about 65 different metrics for innovation. No company needs all 65. You need half a dozen. you need to pick the right half dozen contextually for whatever it is your’re trying to achieve strategically”
Larry Keely - President, Doblin Group
Experimentation & Autonomy & Social Technologies
https://vimeo.com/54041857
“Success is a lousy teacher. It seduces smart people into thinking the can’t lose”
Bill Gates
Here’s how large companies can apply ExO principles
Education
Board Management
Diversity
Leadership Skills
Transform Leadership
A child innovates because he doesn’t know what is not possible. An adult innovates when she or he is aware of what is possible.
Transform Leadership
Bring in outside sources to update senior management & board on accelerating technologies.
Education
Board Management
Diversity
Leadership Skills
Transform Leadership
Transform Leadership
Break up bastions of old thinking. Replace them with individuals offering different perspectives and experiences.
Education
Board Management
Diversity
Leadership Skills
Transform Leadership
Identify
Partner
Invest
Acquire
Partner, Invest, Acquire ExOs.
Implement a programe to identify, partner, select a suitable ExO.
ExOs@Edge
Accelerators Incubators
Hackerspaces
Disrupt yourself
Find an incubator or accelerator that is a good fit for your company. If you can’t find any suitable one, create it!
Community
Algorithms
Experimentation
Dashboards
Implement ExO LiteLook at SCALE & IDEAS attributes and select a couple for internal implementation.
Social Technologies
Doblin 10 Types of Innovation - Model1. Profit Model - how you make money2. Network - how you create with others to
create value3. Structure - how you organize and align
talent & assests4. Process - how you use signature methods
to do your work.5. Product Performance - how you develop
distinguishing features & functionality6. Product system - how you create
complimentary products & services7. Service - how you support the value of
your offerings8. Channel - how you deliver your offerings to
customers & users9. Brand - how you represent your offering10.Customer Engagement - how you foster
compelling interactions
It’s not just for software companies
1. Performance is tracked daily in real time <Dashboards>
2. Every quarter, each team has the opportunity to vote its leader out <Autonomy>
3. HOPE (Haier Open Partnership Ecosystem) is an open innovation system with 670,000 users (employees, suppliers, customers, retailers) <Engagement>
4. Anyone can propose new products which are voted by employees, customers and suupliers <community & crowd>
Which will be your moonshot?
Ileana ChermenschiHead of Digital Marketing Intelligence - [email protected]
Brand consultant & Growth Marketer at: ileanachermenschi.com @I_Chermenschi