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LECTURE L03
EXPONENTIAL WORLD
CURRENT EVENTS
HEADS UP DISPLAY
LECTURE L03
EXPONENTIAL WORLD
Process by which an organisation transforms labor, capital,
material, and information into products and services of greater
values
Technology
The value you get out of a product for which you have 

paid some cost
Product Performance
Innovation
The change in the technology
HOW DOES TECHNOLOGY EVOLVE?
Evolution of technology is closely

linked with the evolution of mankind
Charles Darwin published
“On The Origin of Species” in 1852
Evolutionary Process
Each generation
breeds the next, 

and becomes 

an input
Samuel Butler
published 1859 

a letter to the editor of
the Press
in New Zealand,
called
“Darwin among the
Machines”
Kingdom of the machines
Kevin Kelly: The Seventh Kingdom
Kevin Kelly’s
The Seventh Kingdom
http://www.bordalierinstitute.com/images/brainEvolution.jpg
Evolution of the 

human brain
EXPONENTIAL
IF PRODUCT PERFORMANCE DOUBLES EVERY YEAR
IN 10 YEARS WE HAVE 1,000 FOLD 

INCREASE IN PERFOMANCE
IN 30 YEARS WE HAVE 1,000,000,000 FOLD 

INCREASE IN PERFOMANCE
THE DIGITAL REVOLUTION
IBM System/360
360/20 with 24K of memory
Computers in 1964
Transistor, 1947
Integrated circuit, 1959
Intel 4004, 1971
Vacuum tube, 1904
THE DIGITAL REVOLUTION
Gordon Moore
published an article
in 1965 called
“Cramming More
Components onto
Integrated Circuits”
Number of transistors on

an integrated circuit will double
in about 18-24 months
Moore’s Law
Number of transistors on

an integrated circuit will double
in about 18-24 months.
Moore’s Law
Technological growth

accelerates
Exponential Growth
The Fifth Paradigm
1977
Apple II $1,298
4000 bytes memory
Motorola 6502 1MHz
2007
iMac 17-inch $1,199
1GB memory
Intel 2.0GHz
30 years of product improvements
iPad	
  2	
  as	
  fast	
  as	
  Cray	
  2	
  supercomputer,	
  
fraction	
  of	
  the	
  size

Read	
  more:	
  http://www.electronista.com/articles/11/05/10/ipad.2.benches.as.fast.as.cray.2.from.1985/#ixzz1jdOS0Es4
Cray 2 1985 Apple iPad 2 2011
30 years of product improvements
Slow growth in the beginning
than accelerates
Exponential Growth
Flickr	
  picture	
  by	
  spwelton
SECOND HALF OF THE CHESSBOARD
The Legend of the

Ambalappuzha Paal Payasam
Number of transistors on

an integrated circuit will double
in about 18-24 months
Moore’s Law
EXPONENTIAL GROWTH
COMPUTERS WILL BE FASTER
COMPUTERS WILL BE SMALLER
COMPUTERS WILL BE CHEAPER
STUDY EXERCISE
THINGS THAT ONCE WHERE IMPOSSIBLE BECOME POSSIBLE
From a 1946 Comic strip to CES 2009
And from 2009 to 2014
ANY NEW TECHNOLOGY
THAT COMES TO THE MARKET

IS LIKELY TO BE AT LEAST 10 YEARS OLD
Source:	
  http://www.businessweek.com/innovate/content/jan2008/
id2008012_297369.htm	
  
Bill Buxton’s 

Long nose of Innovation
The Long Nose of Innovation
Growth of
Technology
Evolutionary processes – both

biology and technology, tend to 

a c c e l e r a t e
Ray Kurzweil on how technology will transform us (from TED.com)
PLANS ARE USUALLY ASUME 

LINAR GROWTH
DESIGN PRODUCTS WITH TECHNOLOGY OF

THE FUTURE IN MIND
TECHNOLOGICAL PREDICTIONS 

ARE USUALLY RIGHT,
JUST WRONG IN TIME
MOST PRODUCTS FAIL
BECAUSE ALL THE
ENABLING FACTORS

ARE IN PLACE WHEN NEEDED
The Law of Accelerating Returns
Evolution applies positive feedback in that the
more capable methods resulting from one stage
of evolutionary progress are used to create the
next stage.	
  
	
  
As a result, the rate of progress of an evolutionary
process increases exponentially over time.
“An analysis of the history of technology
shows that technological change is
exponential, contrary to the common-
sense ‘intuitive linear’ view. So we won't
experience 100 years of progress in the
21st century -- it will be more like 20,000
years of progress 

(at today's rate).”
- Ray Kurzweil
Disruptive stress or

opportunity
Growth of technology
Our view of the world
DISRUPTIVE STRESS
TECHNOLOGY IS CAUSING PROBLEMS
ESTABLISHED COMPANIES ARE TREATED

BUSINESS MODELS BECOME IRRELEVANT

LAWS BECOME USELESS
DISRUPTIVE OPPURTINTY
NEVER BEFORE IN HISTORY HAS SOME 

MUCH OPPORTUNITY BE AVAILABLE TO

SO MANY PEOPLE
Is this evolution of technology good?
Technology is neither
good nor bad; nor is it
neutral
Kranzberg’s 1. law of technology
Peter Diamandis
Why did smartwatches appear in 2014

when the idea came in the 50s
QUESTION
Adjacent Possible
NEXT
NEXT
The Adjacent Possible

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New Technology 2015 L03 Exponential World