Imagine the leading companies of the future. They will have externalized many of their core functions so they can draw on the best talent, wherever it can be found. They will be highly adaptive and able to acquire new competencies as soon as they see new opportunities.
These companies’ decision making will have a kind of fluidity; they’ll swap resources in and out of long- and short-term goals as needed. They will be Darwinian in the sense that their core mission will be longevity: They would be built to thrive for a long time in contrast to today’s S&P 500, which can expect a lifespan in the Index of only 15 years.[i]
In fact, these kind of companies exist today. They are all around us at differing stages of development. With colleagues from the Apigee Institute, in particular Institute director, Bryan Kirschner, we set out to examine how those companies make decisions about innovation and transformation. We interviewed, in-depth, 29 executives and surveyed over 300 more. Here are some of our key findings.
Surprisingly, some of the new generation of enterprises have old and familiar names.
Intel is renowned for chip manufacturing but is about to launch a new open-source 3D printed consumer robotics project, and recently invested substantially in consumer heads-up display maker Recon Instruments. These moves take Intel deeper into consumer products. The chipmaker is climbing out from its “ingredient” status to become a more integrated company, connecting to all kinds of customers.
Philips, formerly a leader in consumer electronics, is creating lifestyle experiences that combine hardware, software, services and connectivity. In the process, the company is transforming how it secures revenues. Instead of just shipping products to the shelves of retailers, Philips is building long-term customer interactions where it hopes to draw revenues and engagement from user-communities. It is doing that via developer communities and by opening up APIs to its products (like lighting).
Of course, they are far from alone. Companies like Google do adaptive processes very well, too. Amazon is a master of new enterprise processes. And smaller, growth companies like Box are reconfiguring how senior executives relate to the internal “crowd” that is their employee base.
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Alexander Crépin
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