The “new enterprise” as I call it is a network of highly engaged individuals or groups of individuals that may constitute the most successful organizationism in the future – organization + organism = organizationism. However it will be quite challenging to build the first of such “new enterprises” as many potential customers may require an organization they used to deal with: a big company. Only time will tell how this part of the business shift evolves. Here is an article from Gary Hamel “Three forces that will transform management” @ the McKinsey Blog that I highly recommend reading.
Let me share some vision for a structure where innovative leaders may create a company in the following way:
Creative customers provide requirements, people watching a market identify opportunities, Real time market research (social media monitoring) provides added intelligence and accidental information flow inspires the core team of the new enterprise to model and design new products.
Developing a prototype with some connected organizations (not employees), picking the best talents out there.
3) Crowd Sourcing
Giving the product or prototype to the market for tests and feedback. Crowd based product evaluation and vetting. The crowd becomes the best product managers.
Refining the product with the development teams and further feedback cycles. The users are testers and the Q+A team. The primary benefits to them: A lower cost product – but more importantly the product they want!
With the maturity of the product, identifying business partners who want to introduce the product to their customers, friends, networks – some may be as commercially oriented as manufacturers reps, yet with all their energy and enthusiasm some may be just friends and contacts in the social networks. In this very model there is no employed sales force.
6) Social Marketing
Then further broadening the market through the social web by providing platforms for the early adopters and advocates who like what they see and spread the word. In this model there is no marketing department, no marketing employees. Maybe one person helping orchestrate the social platforms and discussions.
Like in many cases already today, production is done by outsourced production companies. Smaller more flexible units may emerge to build parts in better quality with more motivated talents in shorter time.
Management is the new challenge. Managing such a company requires not only a new way of thinking but an understanding of the changing buying behavior, the shifts in our society and the rapidly growing desire for more personal recognition and freedom.
Such a company shrinks to a nucleus of maybe a 5-100 people. A traditional business equivalent in size may have 100 times more employees.
Innovation is now part of the core fabric of such a company. But not necessarily innovating new products but innovating better organization structures. The new enterprise is a connected group of independent businesses who all try to innovate their core activities, may it be engineering, production, sales, marketing, support…
We are actually going to build such a product with such a company