An elastic enterprise is one where growth and profitability rely on a range of external factors and automated business relationships that help scale business at low cost relative to the returns that elasticity uniquely makes possible. The external factors are critical resources such as developers, suppliers and customer ingenuity that do not figure on a balance sheet but are instead self-directed entities or partnerships that exist in a recognizable business ecosystem, usually supported by a business platform.
The core competency of the company becomes the orchestration of these independent entities.
The elastic enterprise resource strategy typically sees resource allocation become resource attraction and assembly orchestrated by a lead company.
Elastic enterprise strategies are typically multi-sector because the capacity to orchestrate business through a combination of platform and ecosystem becomes a new core competency. That core competency in turn enables companies to make radical adjacency moves into new markets as competency grows in attracting and orchestrating independent resources. Radical adjacency is one of the toughest of all business moves but it seems to come easily to truly elastic enterprises, signalling a new era of strategy in business.