The imaginary organization = IO

DAN BERGLUND

Tallinn 30.03

The founder of IKEA started his business by selling matches to his neighbours

SMS first product was a wooden stand for coffee kettles.

Defenition of an IO

• ‘Imaginary organizations are systems wherein a company’s determining values, processes, and actors exists outside the company’s juridical entity, account, and organizational language of description.’

Prof. Bo Hedberg

The perspective of the IO helps us

• To make invisible resources visible • To manage externalities• To see what new structures are required• To cultivate the core competence• To develop the new cohesive forces• To understand better the intuitive aspects

of the business

In the imaginary organization

• The leader enterprise operates far outside its borders

• Others resources provide growth and flexibility• There are few employees but many involvees• Clients are involved in value creation• Business culture encompasses the entire

operation• Multiple accountings in multiple dimensions• IT is often an important facilitator

Thus , the new enterprise is built by;

• Value creation for and with customers• A clear and attractive vision• Leadership and empowerment• Partnerships• Shared values• Imagination• Information technology

Creations;The spider in the web

IO leader

Partner

Partner

Partner

Partner

Partner

Key Elements for the ”spider”

• Customer base • The base of the leader enterprise (core

comptence)• Partner base• Delivery Systems• Production Systems• Payment systems• Communication Systems

Creations;Interconnected islands

Leader Company

Partners

Partners

Partners

Shared Infractructuree.g. Information Technology

Partners

Partners

Creations; A united front

• Customers

Sales company X

Paper/Cottage Mill

Paper/Cottage Mill

Paper/Cottage Mill

RennovationsShare a customer base

Leader Company PartnerPartner

Customer base

RennovationsShare a delivery systems

Partner

Leader

Delivery Systems

RennovationShare production facilites

• Several actorsShare economies of scale in

productions facilites

Extension/Renovation – share our image

NK, Stockholm

Peak Performance

GANT

Tommy Hilfiger Hugo

Boss

The imaginators share certain characteristics • An imaginator trusts the involvees• It makes little difference whether the involvees in a formal

sense are employees of the imaginators own company or of another company

• An imaginator likes to work together with others . The idea of leading a company without boundaries appeals to him; the imaginator sees the company as an enterprise of unlimited resources.

• An imaginator communicates the common concept to involvees thus giving the IO an image within and outside the leader company.

• An imaginator sees such great benefits from the IO that he avoids petty bickering in each instance over who gets what. He tries to create win-win situations in which each party contributes according to its ability and is rewarded in a manner which is reasonably fair in the long run

Develop at least ten innovative products that make life easier within ten years. Five of these shall be world’s leading within its area.

SMS VISION

The imaginary organization

Core functions:

Relationship marketingFinance Management

Mechanical DesignEngineering

Project ManagementQuality control

SMS Core Values

• Honesty and trust.

• Hard work and encouraging individual initiative.

• Service to our partners above all else.

• Never being satisfied.

• Excellence in reputation, being part of something special.

Turnover Profit

Increase market share with the existing customer base

• The number of customers lost by 5% would result in a profitability increase of 25-85% depending on the industry

• A company which has been losing 15-20% of its customers each year can more than double its growth if it cuts the rate of customer loss in half

£22.00 £3.00

Imagine the most generic product ever...

Extended Identity

Core Identity

Simplexity

Partnership

Superior functional

design

Innovation CuriosityFlexibility

Responsive and

proactive

Simplicity

Pioneer

Straight-forward

SwedishEnhance and

enable

The SMS Brand

BRAND IDENTITY - COREInnovationSMS core competence lies primarily in the ability to constantly develop the business and create new innovative solutions. SMS is a curious, imaginative pioneer with a great sense for the coming needs of the market and the ability to build on new opportunities .

PartnershipSMS strength is built on partnership – with customers and with business partners in a flexible network organization. A combination of in-house expertise and partner services maximises speed of innovation, market responsiveness and product quality. In relation with customers SMS is proactive, straight-forward and service-minded – always making an extra effort to strengthen partnerships and care for mutual interests.

SimplexitySMS develops solutions with a high level of quality and complexity in construction, but with an even higher level of smartness and simplicity in usage. Whether complexity lies in the solutions themselves, in integrating them or in the process by which the customer acquires them, SMS makes it simple. In all aspects of the offer – construction, function, sales and service, the customer can rely on SMS to provide a smart answer to the needs of the end user, and simplicity in buying, installing and implementing it.

A Kiwi transported from New Zeeland to Sweden creates carbon dioxide discharge of five times its own weight.

There is room for 240 pieces of SMS Flatscreen Polytech on one pallet, at a weight of 100 kilos.

A pallet of 66 steel brackets from China weighs about 500 kilos.

Innovation outside the box:Evoko Room Manager

EVOKO

Evoko Room Manager

Vandalism in the public transport system of Stockholm cost over 100 million SEK every year.

[Klick to see movie]

The Boomerang Nebula is the coldest place in the Universe with a temperature of -272°C

[Klick to see movie]

The advantages with an IO• Access to expertise from different countries, acting over time zones.

• The possibility for organizations to reconfigure themselves, without having to restructure or change work.

• Provide the possibility for smaller business to remain small while at the same time using the larger company’s resources for development, economies of scale, and market penetration.

• Reduces the need for capital through sharing with others.

• Shortens time to market and increases growth in a way that an individual company would be unable to achieve.

• Take advantage of complimenting partners’ ability to focus on customer possibilities.

• Leads to success when every organization specializes, and is allowed to focus, on what it is best.

DISADVANTAGES

• Lack of strategic partners and incompatible management styles

• The project and its goals are badly defined

• Lack of trust

• Lack of win-win

In the middle of the 40ties the Swede Anders Ruben Rausing said “To do something no one else has done before is actually quite difficult.”

In 2008 141 milliard cartons from Tetra Pak where consumed.

Thank you