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LECTURE L03
EXPONENTIAL WORLD
Local and Linear
Local and Linear
Local and Linear — 90% worked in agriculture in 1800
Local and Linear — Hard work but machines are slowly used
Londin 1899 — Rate of innovation is growing
“Everything that can be invented 

has been invented”
- Purportedly said by Charles H. Duell, Commissioner, 

U.S. Office of Patents, 1899
http://wallpoper.com/
Time Machine
1899
Alternating Current Power Plant 

at World's Fair, Chicago, 1893.
TECHNOLOGY AT THE DAWN OF THE 20TH
CENTURY
Turn of the Century
New Age
Now explain to someone technology today
TECHNOLOGY AT THE DAWN OF THE 21ST
CENTURY
OUR VIEW
ON TECHNOLOGY
IS VERY CONTEMPORARY
Any sufficiently advanced technology is indistinguishable from magic
- Arthur C. Clark’s 3rd Law
1999
What was the atmosphere in
Hope?
Is time travelling possible?
Century of Science and Technology
Radio
Messages
Airplanes
Ice lolly
Ford
model T
Talking
pictures
Zipper
Stainless
steel
Tanks
Penicillin
FM Radio
Computers
Nuclear
fission
Ballistic
missile
Transistor
Atom
bomb
Solar
battery
PC
Integrated
circuit
Video
game
consoles
GUIs
TV
ARPANET
Laser
Altair
CD-ROM
Mosaic
DVD
WWW
Internet
VCR
Digital
cameras
Satellites
Mircochip
“He was the pre-eminent scientist
in a century dominated by science.
The touchstones of the era — the
Bomb, the Big Bang, quantum
physics and electronics — all bear
his imprint.”
special theory of relativity
model of the atom
discovery of the electron
theory of continental drift
nuclear chain reaction
discovery of the positron, neutron
big bang theory
quantum theory
uncertainty principle
200018001600140012001000800
ComplexityofTechnology
Time
Complexity of Technology
200018001600140012001000800
ComplexityofTechnology
Time
Exponential Growth
The Digital Revolution
IBM System/360
360/20 with 24K of memory
Computers in 1964
The Digital Revolution
Transistor, 1947
Vacuum tube, 1904
The Digital Revolution
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”
Cramming Components
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
If product performance double every year:
Moore’s Law
In 10 years we have 1,000 fold increase in performance
In 30 years we have 1,000,000,000 fold increase in
performance
30 linear steps
30 meters
30 exponential steps
27 x Globe
Is Moore’s Law over?
The “Colossus” boasts 1216
processors on a chip the size of a
postage stamp
Technological growth

accelerates
Evolutionary Process
200018001600140012001000800
ComplexityofTechnology
Time
Evolutionary Processes are exponential
The Fifth Paradigm
When one
paradigm cannot
increase
performance any
more, new ways
are found
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
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
Which means we overestimate short term
potential and underestimate long term
potential
Exponential Growth
Flickr	picture	by	spwelton
The Second half of the Chess Board
The Legend of the

Ambalappuzha Paal Payasam
The total amount of rice required to fill a
64-squared chess board is (2^ (64) - 1),
which is equal to 18446744073709551615
grains
460 billion tons
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
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 usually assume linear growth
Design product with technology of the future in mind
Techology Predictions are usually right, just wrong in time
Most products fail becase all the enabling factors are
not 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
Disruption
Working in an exponential industry with a liner
view is deadly
People in many 20th century traditional
businesses got used to linear mindset and are
now being challenged by new entrants using
exponential digital technologies…
Peter Diamandis, Zeitgeist 2012
Finance Healthcare Retail
Transportation Education
?
Any industry
Disruptive stress or

opportunity
Growth of technology
Our view of the world
Disruptive Stress
Technology is causing problems

Established companies are threatened 

Business models become irrelevant

Laws become useless
Disruptive Opportunity
Never before in history has so much
opportunity been 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
Adjacent Possible
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L03 Exponential World