Case Study Description of Goodbye Linear Thinking: Hello Exponential!
Humans and businesses alike evolved in a world that was local and linear. But today we live in a world that is global and exponential. The problem, say the authors, is that our brains-and thus our perceptual capabilities-were not designed to process at this scale or speed. Using the example of Kodak's downfall, they show that our linear minds literally cannot grasp 'exponential progression'. They present a framework called 'the Six Ds of Exponentials', which is designed to help today's leaders navigate 'the age of exponentials'-and avoid being disrupted.
Swot Analysis of "Goodbye Linear Thinking: Hello Exponential!" written by Peter F. Diamandis, Steven Kotler includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Exponential Exponentials facing as an external strategic factors. Some of the topics covered in Goodbye Linear Thinking: Hello Exponential! case study are - Strategic Management Strategies, Leadership and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Goodbye Linear Thinking: Hello Exponential! casestudy better are - – supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, geopolitical disruptions, increasing commodity prices,
increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, etc
Introduction to SWOT Analysis of Goodbye Linear Thinking: Hello Exponential!
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Goodbye Linear Thinking: Hello Exponential! case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Exponential Exponentials, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Exponential Exponentials operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Goodbye Linear Thinking: Hello Exponential! can be done for the following purposes –
1. Strategic planning using facts provided in Goodbye Linear Thinking: Hello Exponential! case study
2. Improving business portfolio management of Exponential Exponentials
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Exponential Exponentials
Strengths Goodbye Linear Thinking: Hello Exponential! | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Exponential Exponentials in Goodbye Linear Thinking: Hello Exponential! Harvard Business Review case study are -
Innovation driven organization
– Exponential Exponentials is one of the most innovative firm in sector. Manager in Goodbye Linear Thinking: Hello Exponential! Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Exponential Exponentials has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Goodbye Linear Thinking: Hello Exponential! - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Exponential Exponentials is present in almost all the verticals within the industry. This has provided firm in Goodbye Linear Thinking: Hello Exponential! case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Ability to lead change in Strategy & Execution field
– Exponential Exponentials is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Exponential Exponentials in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Exponential Exponentials are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Successful track record of launching new products
– Exponential Exponentials has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Exponential Exponentials has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Strong track record of project management
– Exponential Exponentials is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Exponential Exponentials has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Goodbye Linear Thinking: Hello Exponential! HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Exponential Exponentials is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Exponential Exponentials is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Goodbye Linear Thinking: Hello Exponential! Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Exponential Exponentials
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Exponential Exponentials does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Exponential Exponentials in the sector have low bargaining power. Goodbye Linear Thinking: Hello Exponential! has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Exponential Exponentials to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Exponential Exponentials has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Weaknesses Goodbye Linear Thinking: Hello Exponential! | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Goodbye Linear Thinking: Hello Exponential! are -
Capital Spending Reduction
– Even during the low interest decade, Exponential Exponentials has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Goodbye Linear Thinking: Hello Exponential! HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Exponential Exponentials has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Exponential Exponentials has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Exponential Exponentials even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Slow to strategic competitive environment developments
– As Goodbye Linear Thinking: Hello Exponential! HBR case study mentions - Exponential Exponentials takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Products dominated business model
– Even though Exponential Exponentials has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Goodbye Linear Thinking: Hello Exponential! should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Exponential Exponentials has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Increasing silos among functional specialists
– The organizational structure of Exponential Exponentials is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Exponential Exponentials needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Exponential Exponentials to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– Exponential Exponentials has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Interest costs
– Compare to the competition, Exponential Exponentials has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Skills based hiring
– The stress on hiring functional specialists at Exponential Exponentials has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Peter F. Diamandis, Steven Kotler suggests that, Exponential Exponentials is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Opportunities Goodbye Linear Thinking: Hello Exponential! | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Goodbye Linear Thinking: Hello Exponential! are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Exponential Exponentials is facing challenges because of the dominance of functional experts in the organization. Goodbye Linear Thinking: Hello Exponential! case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Learning at scale
– Online learning technologies has now opened space for Exponential Exponentials to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Developing new processes and practices
– Exponential Exponentials can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Exponential Exponentials can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Exponential Exponentials can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Goodbye Linear Thinking: Hello Exponential! suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Exponential Exponentials can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Exponential Exponentials can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Exponential Exponentials to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Exponential Exponentials can use these opportunities to build new business models that can help the communities that Exponential Exponentials operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Exponential Exponentials in the consumer business. Now Exponential Exponentials can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Exponential Exponentials has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Goodbye Linear Thinking: Hello Exponential! - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Exponential Exponentials to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Exponential Exponentials to increase its market reach. Exponential Exponentials will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Leveraging digital technologies
– Exponential Exponentials can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats Goodbye Linear Thinking: Hello Exponential! External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Goodbye Linear Thinking: Hello Exponential! are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Goodbye Linear Thinking: Hello Exponential!, Exponential Exponentials may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Exponential Exponentials business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Exponential Exponentials is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Environmental challenges
– Exponential Exponentials needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Exponential Exponentials can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Stagnating economy with rate increase
– Exponential Exponentials can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Exponential Exponentials.
Consumer confidence and its impact on Exponential Exponentials demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Exponential Exponentials can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Exponential Exponentials needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Exponential Exponentials in the Strategy & Execution sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Exponential Exponentials in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Regulatory challenges
– Exponential Exponentials needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Weighted SWOT Analysis of Goodbye Linear Thinking: Hello Exponential! Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Goodbye Linear Thinking: Hello Exponential! needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Goodbye Linear Thinking: Hello Exponential! is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Goodbye Linear Thinking: Hello Exponential! is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Goodbye Linear Thinking: Hello Exponential! is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Exponential Exponentials needs to make to build a sustainable competitive advantage.
