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Examples of Exponential Organizations

An SAP business leader wrote on Exponential Organization, explaining that an "exponential organisation is one governed by an assumption of abundance, where the typical constraints of linear organisations – for example, building more offices in new locations and equipping them with the requisite staff and facilities – are bypassed through clever use of technology that enables low organisational demands". He cited Airbnb as an example, noting thus:

Airbnb is a typical exponential organisation: instead of establishing new locations for guest houses and hotels, building and equipping those locations, maintaining the properties, and sourcing and retaining staff, Airbnb accumulates listings around the world without incurring the capital expenditure to which most hotel groups are subject, leveraging technology to deliver a seamless and enjoyable customer experience that is often largely self-governable.

This slide from IBM provides more examples of these exponential organizations.

 

Interestingly, all the exponential companies are tech based, perhaps their forefathers (traditional firms) had done the hard job, giving them them the foundation and platform to triumph.

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