Blitzscaling in Growth Markets
Reid Hoffman, Founder of LinkedIn, introduced the term “Blitzscaling”. The idea: that to compete in the global, networked age, companies need to outmaneuver more competitors than ever, and they need to do it, crucially, by scaling lightning fast. with the goal of becoming the first mover at scale. Hoffman says to win the game, it has to be the “first mover at scale”.
Silicon Valley is special because it enables companies to get very large, very quickly. Not just to start up, but scale-up. Globalization is a form of network. It adds networks of transport, commerce, payment, and information flows around the world. In such an environment, you have to move faster, because competition from anywhere on the globe may beat you to scale.
Hoffman taught a course in Fall 2015, “ Technology-Enabled Blitzscaling” at Stanford University. Hoffman said that it’s time to export Silicon Valley success ‘secret’ globally. Hoffman invited tech leaders as guest speakers who Blitzscaled Google, Facebook, AirBnB, and other leading Silicon Valley Unicorns during last 15 years.
Hoffman said few things are critically important, most don’t matter in a Startup. Brian Chesky said “One of the keys to get to scale, is to do things that don’t scale”. Eric Schmidt said keep it small, then once you hit the point where it’s working, you grow as fast as possible. Jeff Weiner said one thing that companies often confuse is the mission vs. vision, mission is the overarching objective and vision is the dream. Elizabeth Holmes said hire for mission and establish a culture in the company. Sam Altman said before product-market-fit hire slowly and AirBnB took 9 months to hire first employee. Marissa Mayer said build a strong culture and company culture should be identifiable beyond company logos. Mariam Naficy said growth companies are hungry and constantly looking for new sources of growth and products. Reed Hastings said in the first couple of years, founders has to do everything — customers, investors and dishes.
Developing economies like BRICS and Next Eleven are referred as Emerging Markets. Arif Naqvi founder & CEO of Abraaj Group believed in Growth Markets. Abraaj is largest private equity firm of Growth Markets, managing more than $9B of assets across 33 countries in South America, Africa & Asia. Abraaj Group Forum on Global Growth Markets report highlights that Cities, not countries or continents, are the geography of opportunity. 5 of the world’s 10 largest economies will be from today’s growth markets, by 2030.
Fourth Industrial Revolution and Shared Economy will produce more Silicon Valleys around the World in China, India, Middle East and Africa. Reid Hoffman’s Technology-Enabled Blitzscaling cookbook provides a successful template for hockey-style first growth digital Startups. Bernard Meyerson, Chief Innovation Officer, IBM said at World Economic Forum in Abu Dhabi last year that we are witnessing ‘hockey-stick’ like growths and material industries are being disrupted in months.
Globalization is a form of network. It adds networks of transport, commerce, payment, and information flows around the world. In such an environment, you have to move faster, because competition from anywhere on the globe may beat you to scale. Hoffman’s Blitzscaling is the recipe for the fast-growing tech Startups in Growth Markets!
ABOUT THE AUTHOR:
Imran Jattala is an Entrepreneur & IoT Innovator with 10 years of experience. He is Co-Founder of UrbanBazaar, Hult Global Ambassador and President of Hult Smart Cities & IoT Club at Hult International Business School Dubai.
Originally published at https://www.linkedin.com on May 19, 2016.