Dariana Marcela Lora Romero

International Business
EAN University

THE VERTIGINOUS EVOLUTION OF THE MARKETS:

¿A THREAT OR AN OPPORTUNITY?

Total access to information, that is exactly what globalization brings and that mainly affects the
markets and those who reside in them, especially companies that are not sufficiently truthful or
that are not willing to face the changes at the same rate as these they are giving. Therefore thanks
to the impetuous changes it is not easy to achieve a 100% correct projection because the economic
and the business world have growth fluctuations that do not respond, in effect, to a linear vision.

To this extent, we name Exponential Organizations as those companies, entities or companies that
are capable of adapting to these changes and championing the new trends that arise in the
environment, a more precise concept provided by Michael Malone and Yuri van Geest in his book
Exponential Organizations is the following: "That organization whose impact (or result) on the
economy and its environment is disproportionately large, at least 10 times larger, when compared
with its peers, other companies of the sector, of a linear nature." they add that these organizations
have a very peculiar characteristic, and that is the disruptive way in which they manage, the
techniques they implement and the technological tools they use.

Basically to understand a bit of an Exponential Organization we must consider about 10 pillars or

characteristics implicit in them, however, many of these ExO has not realized how to have at least
4 attributes to be considered an Exponential Organization (Malone, M.,) In addition, you can
obtain greater stability and make an analysis, with respect to a micro-determinant and a macro that
establish your vision and most of the way of carrying out the processes. which is the SCALE and
the IDEAS, clearly focusing on a purpose of massive transformation, which would be part of the
concepts that should become more evident in your organization.

Well, already understanding a bit that exponential organizations share characteristics in common,
especially information, we can ask ourselves, what is SCALE, what is IDEAS and what do we
mean when we speak of a PTM (Purpose of Massive Transformation). explaining according to
what is stated in the book of Exponential Organization written by Malone and Geest that they refer
to Initially it is good to decipher a little the acronym of SCALE, S (Staff on Demand), C
(Community and Crowd), A (Algorithms), L (Leveraged Assets), E (Engagement), in turn, it
should be noted that these make up a group of factors that evaluate the company with respect to
the environment where it operates, that is, external type and its main characteristics is to provide
the company a creative approach, to take risks, preferably those that are easy to control by the
company and do not represent a great threat, and ultimately boost growth of the organization.

Staff on demand, is a way to shorten the expenses of the staff by using them, only as long as they
are required, that is to say, term contracts for the duration of the project, however the company
must maintain a small proportion of permanent employees that they are the ones in charge of
visioning, posing and getting what is necessary to execute the tasks of the project to be carried out.
As for Community and Crowd, we refer essentially to the environment and the work space that is
given to the community that would be the people who work with the company. In the third place,
we focus on Algorithms, which is a mechanism through which the company's processes can be
considered as objectives, since most of the time they are operations carried out by machines, it is
worth noting that they can learn the execution of projects through a deep or automatic learning.
The Leveraged Assets are essentially so that the company is not tied to being in one place and can
not change or put their offices anywhere or at any time, so the benefit of this is to minimize the
depreciation of buildings and not be very involved with the Having a physical heritage with it
provides agility to the organization. Finally we talk about Engagement taking into account that
when an employee or agent operating in the organization is committed to the scope of a vision has
clarity in the objectives and sense of belonging to it, which leads to transparent actions and the
first beneficiary of it they are the clients, because the organization reflects reliability and that
loyalty to the consumers.

On the other hand, when an organization focuses on the search for order, stability and
centralization of the processes, it is necessary to speak of qualities corresponding to the acronym
and division of IDEAS, which, breaking down a bit, we find that its components are I (Interfaces),
D (Dashboard), E (Experimentation), A (Autonomy), and finally a Social aspect (S), these
elements are essential for a relationship to be fulfilled in the way external elections are carried out
of the company from an internal governance and internal development of it.

The Interfaces, an essential and fundamental characteristic for an exponential organization, since
thanks to its use the organization can handle the reduction of errors that can occur, likewise helps
to have a filter of the attributes of the SCALE, allowing the unification of external aspects , that
is, the macro environment of the ExO with its micro environment, for this reason, its development
is given great importance, thus it also promotes the automation of the evaluation of results in the
organization. Second, we find the Dashboards, to define it is essential to understand that the ExO
need and are based on the execution of projects in a minimum time, for it the dashboards provide
a management and monitoring of instantaneous processes, these mainly focused on growth
strategies and scalability according to the vision of a company.

When talking about Experimentation, it is necessary to stress and emphasize that an exponential
organization is essentially known thanks to the risks it takes, starting from the concept of disruptive
business models, changing traditional management methods and so on; thus an ExO must take
risks, however these should be able to be controlled by the organization and in turn the failures
obtained from the unsuccessful processes to which the organization has launched serve to
determine what should be corrected to carry out the project again and repeat it until the strategy
has been perfected. Therefore we talk about the autonomy of the teams, normally the classic
processes of team-building work is based on a training where in a team all have the same
knowledge or more explicit are teams where its members are experts in a single area, for For this
reason, an ExO that wants to achieve accelerated growth must conceive teams of people with
different abilities and knowledge, which can each contribute a different point of view and be able
to create complete projects, with the participation of professionals from different areas, a The
benefit of this is that the authority is not centralized, and they can self-establish themselves as a
working group. To finalize IDEAS we must speak of a Social aspect that takes into account the
values on which the company is founded, especially the transparency that it transmits about the
way it carries out its processes, creating a reliable brand image.

In addition to the above, we can address the concept of PTM which is focused and closely linked
to the projection and scope of vision that a company has, because it is possible to grow in a
sustainable manner only if the entire company is projected towards growth and its strategies and
training are fit to achieve that. The PTM seeks to understand the expansion interest and the action
plan to be executed, for it consists of a procedure that mixes classic and new aspects, essentially
to develop a PTM it is necessary to establish the vision of the company, define what is and that is
its main activity, in addition to that, questions are answered of the "For Who ?, How ?, With what
resources? and finally the values that will be promoted within the ExO. It is important to maintain
a focus of productive transformation purpose, to constantly understand the changes of the
environment and to pose the same questions mentioned above while evolving.

To explain the theory a bit we will make an application example where we will evaluate X-Culture
Kids how an exponential organization, due to the business model that is posed, which is a
disruptive education method, a non-traditional teaching method that provides many benefits to
those who are part of, in turn, this project derived from the organization of X-Culture, helps to
develop skills through the investigation and application of concepts in a real environment, which
does not focus on imparting theory but on providing experience.

X-Culture is one of the few organizations that propose this form of learning through challenges in
a global way and with multicultural teams focused on the use of virtual tools, but in addition, one
of the few that develops a program or derived organization that in this case is X-Culture Kids,
which focuses on schools, for this this company has been able to develop a rich program in
developing competencies, implementing the technology that already exists and simply giving it a
different use that allows to take advantage of what is already to gain benefits, therefore I consider
that X-Culture Kids is an exponential organization since the form of data filter, which according
to the concepts mentioned above would refer to the interfaces, is closely linked to the results
obtained in response to each project that They also test the creativity and experimentation of the
organization with external factors related to Staff on Demand. is the use of teachers according to
the number of students or universities that enroll is a clear example of this, as well as the
commitment of their employees because they are really motivated due to the philosophy of the
organization.

Consequently, it is also an organization that makes use of Leveraged Assets and has known how
to take advantage of the virtual world as a development platform for its business model; it is an
organization that focuses its strategies towards both vertical and horizontal growth, since it looks
for each more time to reach countries where it is not found and expand the portfolio it offers,
adapting as a company to the changing demand of the environment in which it operates. In
addition, for those who participate, multifunctional teams are assembled because each person is
different and has skills that can complement those of their colleagues, obtaining a broad vision that
is reflected in the solutions that are found in most work teams.
In conclusion, an exponential organization is only achieved when a different and unconventional
business model is restructured and adopted that responds to the new needs of the market and
facilitates consumers to obtain goods or services that they are looking for, providing comfort to
the client and managing to increase the profits and benefits of the organization with the growth of
its profits, in addition to this an ExO has to know how to make use of the information and turn it
into its best ally for the development of its projects, as well as to know how to identify Market
growth trends and not stay in order and stability but must link this with creativity and risk.

Source

- Malone, M. (2016). Exponential Organization. Editorial: Bubok publishing.