In recent years, exponential has become a mainstream word. From the spread of the pandemic that disrupted the entire world to unicorn startups that racked in billions within a few years, everything and everyone seems to be moving at an exponential pace.
Similar popularity of exponential growth has been noticed among global business leaders as well. From software development firms to e-commerce websites, all startups and enterprises that are starting out these days are keen to be exponential.
Businesses want to generate billions of dollars within the first two years like Facebook and Airbnb. But unfortunately, many few are able to make the cut. In fact, if you look at the list of 2022’s top exponential organizations, you will only find a handful out of the million startups that venture out every year.
So what is an exponential organization and how does one become one? Let’s answer all these questions in this blog. Starting from what are exponential organizations to the features that make one, we’ll cover each aspect.
And lastly, we’ll tell you why it’s so important for your startup to become an exponential organization via the Vates ExO Launchpad.
What is an Exponential Organization?
If you go online and type exponential organization, you will find plenty of blogs and articles to read. Some would tell you the attributes of ExOs while other will promise you to make one within ten days.
But nobody will tell you the gist of being an exponential startup or organization. Let’s put that matter to rest first. Here’s what an exponential organization does:
Unlike traditional and linear businesses that grow over a course of five or ten years, exponential organizations are keen to grow exponentially. This means that an ExO will double its assets, resources, and revenue within a couple of years (or whatever the timeframe an ExO has in mind).
Generates More Revenue
You may find exponential organizations racking up billions of dollars within the first two years. This is because of the operational efficiency and forward-thinking exponential organizations have to generate higher revenue than their competitors in lesser time.
Whether you look at a software company such as Vates or a ride-hailing service such as Uber, an exponential organization is always keen to expand its reach. ExOs with their service/product as well as their resources, are looking to tap into the global market.
Name an exponential organization and look at their global impact. Exponential organizations have made a significant impact with their services. ExOs understand the importance of denting the core of the industry to make a name for themselves.
Offers Something Different
While linear organizations think of improving an existing product or service, exponential startups think of changing it. Exponential organizations offer different products that set a new precedent and help them carve a niche for themselves.
And lastly, all the exponential organizations you’ll see have altered their respective industry trends. Airbnb changed the way hospitality worked. Uber changed the way ride-hailing services functioned, and Facebook changed the way we interact.
ExOs alter trends while generating more money and making a bigger impact!
What Features Make an Organization Exponential?
Now you know what an exponential organization does. But do you have what it takes to be an ExO? Let’s look at some of the features that make a startup an exponential organization.
Massive Transformative Purpose
A Massive Transformative Purpose (MTP) is the backbone of an exponential organization. Without an MTP, an ExO is much like any linear business that’s out there to survive. MTPs help ExOs visualize their goals, devise a growth strategy, and offer a product that aligns with their transformative purpose. MTP ensures that ExOs not just survive but thrive.
Start with a Minimum Viable Product
A Minimum Viable Product (MVP) is the second feature of an exponential startup. Instead of investing millions in custom software development or systems integration that may not work, ExOs start their operations with a miniature version of the product that’s offered to a limited audience. The feedback of the MVP helps ExOs devise their future course of action.
Catalyze with Innovation
The driving force of an exponential organization, after its MVP, is innovation. Using innovation (and look up where we talked about altering trends), exponential startups head out to change the way a certain industry works. Innovation is the catalyst of an exponential startup’s journey.
Leverage Exponential Technologies
Another key feature of exponential organizations is that ExOs leverage exponential technology. From hiring IoT services to big data to artificial intelligence, exponential organizations rely on exponential technology at every step of the way. This is what helps ExOs make decisions with more agility and accuracy.
Aim to Disrupt
Exponential organizations are not just out to grab a chunk of the market share. Instead, ExOs are looking to disrupt the market, carve a niche for themselves, and emerge as an industry leader. From software services such as Vates to tech giants like Google, ExOs are making a name for themselves by changing the way a business works.
Agile and Fast-Paced
Exponential organizations are great when it comes to adaptation and agility. Cultivating a fast-paced culture, exponential startups are moving rapidly and keeping up with the pace of technological evolution. This is why the growth of exponential organizations is also faster than those around it.
Scalability at the Core
In recent years, scalable solutions have garnered a lot of attention among successful businesses. This is because scalability is a cost-effective, sustainable, and long-term solution for businesses that seek continuous growth despite challenges.
ExOs in essence make scalability their core practice and never invest in rigid and redundant infrastructures. Instead, here’s what ExOs do.
Almost all businesses are acknowledging the benefits of outsourcing. This is why nearshore outsourcing firms such as Vates have become an integral part of many businesses’ tech infrastructure. But exponential organizations take outsourcing a notch up and piggyback on outsourced assets too. This helps ExOs invest in technological solutions instead of resources and assets.
Suppress Corporate Immunity
Exponential startups are not hindered by corporate immunity and traditional challenges that prevent growth or innovation. ExOs create a culture of equity and equality to change the thinking of their employees and incentivize them with bigger targets than mere annual bonuses.
Seek Global Reach
Exponential startups, as discussed above, are not restricted by geographical limitations. Both in terms of its service/product and its operations, an exponential startup is headed to tap the global market. This allows ExOs to emerge as global industry leaders that turn communities into customers.
Unlike linear businesses, exponential startups are not just looking to solve day-to-day problems. ExOs think ahead of the time and look at the demands that may arise a decade from the present time by using data analytics services such as Vates. This helps ExOs cultivate a forward-thinking culture among teams and stay relevant (and profitable) for many years to come.
Why Must All Startups be Exponential?
So why is that all startups that are venturing out today must be willing to adapt to these attributes and become exponential organizations? Here are some of the reasons.
Changed Business Dynamics
The global business landscape is changing rapidly and it’s essential for businesses that seek to succeed, to adapt to exponential growth methodology. Going exponential is the only way forward.
Rapid Technological Evolution
Technology is changing faster than we can imagine. Every day, a new disruptive IoT solution, an advance AI or ML, is surfacing and altering business practices.
Disruption on the Back of IoT and IoB
Internet of Things (IoT) and Internet of Behaviors (IoB) are giving businesses deeper insights than ever. The 30 billion IoT devices have disrupted business processes and will continue to do so. Only ExOs are equipped to leverage IoT and IoB offered insights.
Data Analytics is a Game-Changer
Big data consulting companies such as Vates are at the forefront of innovation, growth, and agile solutions. Startups that want to do things right, such as offer a high-demand product, adopt competitive marketing practices, and increase efficiency, rely on big data.
No Room for Traditional Methods or Conventional Products
The time has come for all businesses to acknowledge the disruption exponential organizations have caused in the last decade. Moving forward, it’s unlikely for a linear business to survive with redundant practices. While the linear approach may continue to work for small-scale businesses, startups that aim to become unicorn startups must be exponential.
Go Big or Go Home
And lastly, if your startup cannot be exponential, it cannot succeed. From software development to deployment to quality assurance, exponential practices have to be adopted every step of the way. This is the mantra to the future’s success and the world already sees it.
Start Your Journey Toward Exponential Growth
If you are a startup that seeks to make a bigger impact, generate higher revenue, and grow exponentially, then get in touch with Vates. The South American software development company is an ExO member and is facilitating startups with its ExO Launchpad.
Offering a wide range of agile software development services, IoT consulting, data consultancy, as well as software testing services, Vates is a global name among the IT solutions provider.
Get in touch today!