Established Companies Are Not Structured for Exponential Growth

(p. A13) Why are large tech companies losing the ability to innovate? Entrepreneur and author Salim Ismail studies the new generation of “exponential corporations,” enterprises that grow 10 times faster than the average rate. He believes that established companies simply aren’t structured for this kind of speed. So their only choice is to buy those companies that can still innovate rapidly.
If Mr. Ismail is correct–and the current dynamic in Silicon Valley suggests that he may be–we’re on the brink of a major restructuring of business strategy, venture capital and almost every part of the high-tech world. It may be time to stop waiting for famous tech companies to roll out the hottest new product and start investing in startups that can sell their innovations to big companies. Tech appears to be evolving into a different kind of field: one that is, paradoxically, more static at the top but also more dependent on entrepreneurship than ever before.

For the full commentary, see:
MICHAEL S. MALONE. “An Innovation Slowdown at the Tech Giants; Seen anything new and big lately from Cisco, Yahoo or even Twitter?” The Wall Street Journal (Weds., July 2, 2014): A13.
(Note: the online version of the commentary has the date July 1, 2014.)

The Ismail research mentioned above, is discussed further in:
Ismail, Salim, Mike Malone, and Yuri van Geest. Exponential Organizations: Why New Organizations Are Ten Times Better, Faster, Cheaper Than Yours (and What to Do About It). New York: Diversion Books, 2014.

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