Our world is fundamentally changing from a linear to an exponential world.
The basis of this is Moore’s Law: the computational price / performance ratio doubles every 18 months which means that once you take a domain or an industry area or a technology and you power it with information technologies it acquires informational properties and its price / performance ratio doubles and for now continues doing so.
Not only does this happen to all kind of domains and technologies but they also intersect thereby shifting from a world of scarcity and creating a world of Abundance as demonstrated by our Singularity University mentors Salim Ismail, Peter Diamandis & Ray Kurzweil.
Basically, 4 factors are taking place (4D Model):
- We are digitizing (or information enabling) the world and as a result, pace accelerates (from 500 Mio connected devices 10 years ago to a trillion in 2030)
- When you digitize items you shift from a material space of scarcity (taking courses in photography and composition to optimize every shot for instance) to a digital space of abundance (hundreds of pictures on several devices and you don’t know where our best pics are anymore). It becomes an abundance problem space and a change in business model appears, old models get disrupted.
- Plus we have the opportunity to apply machine learning, correlations, simulations, … on these digitized items
This happens to many technologies.
- (Neuroscience, AI, Digital Technology, Robotics, …) at the same point in time creating 20 Gutenberg moments simultaneously.
- Information enabling leads to huge deflationary effects & drops in revenues (newspapers, music, books, taxis, hotel rooms, …) as Intermediaries disappear (Netflix, Blockbuster, …) and as we move from ownership to access (pretty soon screwdrivers will be arriving by drone )
- Cost is dropping radically so everybody gets easy access to these technologies (without needing legacy experience & huge budgets), it is possible these days to validate a business idea without actually building the product
- Innovation used to be the prerogative of large organisations and universities, these days it happens in a garage
We are moving from a local & linear world (our parent’s life almost identical to their parents) to a global & exponential one. Orthogonal Information Effects make this transitional pace even faster.
But we still have old 20th century structures in place that were built for the purpose of scaling efficiency based on predictability (put a fence around your assets, repeat / copy, protect). So all our organizations are built to withstand change (matrix structures, immune systems will attack you if you try disruptive change) as that is how all managers got educated in business schools and MBA programs around the world. Today an advanced degree is out of date by the time you finish it.
The metabolism of the economy is accelerating rapidly (the time to become a 1 Bio unicorn shortens radically for instance) but as a society we are not ready, we need to re-architect our business and societal mechanisms.
The key question thus becomes: how do we organize for this world of Abundance?
And that is exactly why we at Y exist. This is our Raison d’être.
At Y we are very much influenced by Singularity University thinking & Exponential Organisations’ philosophy as developed by Salim Ismail at ExO Works, as a matter of fact we partner with them sharing experiences & competencies.
And that is exactly why we chose our MTP (Massive Transformative Purpose) to be: PREPARING TOMORROW