Unlocking the business-transforming secrets

of exponential.

THE 10x EFFECT

WHY IT’S IMPORTANT

Our world is exponential, ready or not.

‘Business as usual’ companies are falling away.Agile, exponentially-minded companies

are exploding onto the scene.

TODAY’S THEME

Do more with less.

MORE SPECIFICALLY...

Ephemeralization.

“To do more and more with less and less until eventually you can do everything with nothing.”

~R. Buckminster Fuller

OUR JOURNEY

● Our world is changing — fast● How we got here● Exponential vs. Linear● Massive paradigm shift● A brave new world● What does a 10x business look like?● What drives a 10x business?

OUR WORLD IS CHANGING — FAST

NON-STOP ACCELERATION

“If you go back 500 years, not much changed in a century. Now a lot happens in 6 months. Technology

feeds on itself and it gets faster and faster.”

~Ray Kurzweil

WHAT’S DRIVING CHANGE?

Computing Connectivity Digitization Lifestyle Economy

Internet of Things

Miniaturization

Ubiquitous Computing

Artificial Intelligence

3D Printing

Virtual & Augmented Reality

Natural Language Processing

Visual Recognition

Cryptocurrencies

Sharing Economy

Globalization

Political Volatility

Bluetooth, NFC, Zigbee

PAN, LAN, MAN, WAN

Balloons, Drones, Satellites

LTE Advanced, 5G

Smart Home

Life Extension

Sustainability

Quantified Self

MOTIVE FORCE OF CHANGE

Computing power is driving theprogression of society.

It is the “engine of prosperity.” ~Michio Kaku

RIPPLE EFFECTS

Computing Power

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Moore’s law has impacted nearly every

aspect of our lives.

Ever faster, cheaper computing power

creates ever faster, cheaper industries.

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GROWTH OF COMPUTING POWER

Computing power underpins the pace

of technological change and it is

growing exponentially.

Which drives change in our world at an exponential rate.

youtube.com/watch?v=jndZviHWE28

DATA STORM

2.5 quintillion bytes of data is created every day.

90% of the world’s data has been created in the last 2 years.

Coming from IoT sensors, social media posts, digital pictures and videos, purchase transactions, cell phone and GPS signals.

The importance of massive amounts of data on our pace of change cannot be overstated.

www-01.ibm.com/software/data/bigdata/what-is-big-data.html

SCARCITY BECOMES ABUNDANCE

Technology, the enabler.

Technology allows us to transform scarce materials and services into

abundant and inexpensive.

wired.com/2003/09/diamond

HOW WE GOT HERE

THE INDUSTRIAL REVOLUTIONS

en.wikipedia.org/wiki/Industry_4.0

1st INDUSTRIAL REVOLUTION

Water and steam power.

Mechanizing production.

2nd INDUSTRIAL REVOLUTION

Electric power.

Scaling up mechanized productioninto mass production.

3rd INDUSTRIAL REVOLUTION

Digitization.

Using electronics and information technology to automate production.

4th INDUSTRIAL REVOLUTION

Convergence of digital and physical.

Fusing technologies and blurring the lines between ‘things,’ digital and biology.

EXPONENTIAL VS. LINEAR

WHAT IS EXPONENTIAL?

Every iteration feeds into itself.Do more with less at each new generation.

FOR EXAMPLE...

10 linear steps: 20 feet 10 exponential steps: 1024 feet

0+2 2+2 4+2 6+2 8+2 10+2 12+2 14+2 16+2 18+2 0 2x2 4x2 8x2 16x2 32x2 64x2 128x2 256x2 512x2

JUST AS IN BIOLOGY

via: mirrorsmagazine.com/a-stem-cell-differentiates-by-making-new-proteins

EXPONENTIAL IN ACTION

‘Put your money to work for you.’

Each round of interest is applied

to all previous.

Compound interest

EXTEND IT TO MOORE’S LAW

‘Put your work to work for you.’

Each generation is used to build the

next.

homepages.cwi.nl/~steven/Talks/2014/03-20-internet/

Faster computers building even faster

computers.

MASSIVE PARADIGM SHIFT

BIOLOGY LAGS TECHNOLOGY

How we evolved Today

Everything we knew waswithin a day’s walk.

We can travel anywhere in the world within hours.

If something happened on other side of planet, we knew nothing about it.

Something happens on other side of planet, we know about it seconds later.

Nothing changed over generations. Life is changing year-to-year.

Local & linear. Global & exponential.

youtube.com/watch?v=Mx8qYmkV5NQ

EXPONENTIAL IS HARD FOR HUMANS

We are hardwired to think linearly, butOur technologies are driving change at

an exponential rate.

IN THE PHYSICAL WORLD...

Things happen linearly.

If 25% of the time has gone by, we assume we

are 25% of the way there.

BUT IN THE EXPONENTIAL AGE...

Business requires a new way of thinking.

‘We must unlearn what we have learned.’

Drop the linear, in favorof the exponential.

A BRAVE NEW WORLD

CHANGING OF THE GUARD

Long-standing business titans are quickly dying out as their markets are being ripped away from them by

more agile, exponentially-minded businesses.

THE DEMISE OF MONOLITHIC

“The fact that nearly 9 of every 10 Fortune 500 companies in 1955 are gone,

merged, or contracted demonstrates that there’s been a lot of market

disruption, churning, and Schumpeterian creative destruction over the last 60

years.”

“50 years ago, the life expectancy of a firm in the Fortune 500 was around 75 years. Today, it’s less than 15 years and

declining all the time.”

aei.org/publication/fortune-500-firms-in-1955-vs-2015-only-12-remain-thanks-to-the-creative-destruction-that-fuels-economic-growthaei.org/publication/fortune-500-firms-in-1955-vs-2014-89-are-gone-and-were-all-better-off-because-of-that-dynamic-creative-destruction

THE RISE OF AGILE

● Recognize the changes● Capitalize on the changes● Catalyze/cause new

changes

CapitalizeCatalyze

Change

Recognize

HOSPITALITY INDUSTRY

vs.

TRANSPORTATION INDUSTRY

vs.

MEDICAL INDUSTRY

vs.

WHAT DOES A 10x BUSINESSLOOK LIKE?

10x BUSINESS IS SURFING

3 PILLARS OF 10x BUSINESS

Built on exponential technologies● Let the wave push you

Uses exponential procedures● Stay on the wave

Exercises exponential leadership● Steer towards the next wave

“The greatest mathematical

discovery of all time.”

~Albert Einstein

Not just for finance.

COMPOUNDING EFFECT

EXPONENTIAL TECHNOLOGIES

Leverage the inherent compounding effect of exponential

technologies.

The goal is not to become an expert in the technologies, but to know

where the technologies are going so you can jump on the wave.

EXPONENTIAL PROCEDURES

Leverage the compounding effect through...

● Kaizen● Internet Centered● Customer Devoted● On-demand staffing● Autonomous organizational structure● Impact-driven engagement● Crowdsourcing● Crowdfunding● Algorithm-centered operations

EXPONENTIAL LEADERSHIP

Leverage the compounding effect through autonomy.

Less focus on making decisions and more emphasis on

empowering decisions within the organization.

WHAT DRIVES A 10x BUSINESS?

NET IT OUT

Exponential Technology

Exponential Procedures

Exponential Leadership

Abundance Thinking

Builds Creates Drives

Accelerating Returns

Exponential Mindset

Exponential Business

Exponential Growth

GlobalImpact

Exponential Value

WHAT IS EXPONENTIAL MINDSET?

Endlessly searching for and leveraging tools and resources that allow you to

do more and more with less and less.

IN ENTREPRENEURSHIP TERMS…

10 linear days: 900 lines of code 10 exponential days: 5400 lines of code

Start with open source appLeverage developer community

Develop a new software application.

ACCELERATING RETURNS

Linear Mindset Exponential Mindset

It takes 50% more effort to produce 50% more

output.

It takes 50% less effort to produce 200% more

output.

INHERENT UNCERTAINTY

Just like a winding road, you can’t see around the bend when

riding an exponential curve.

An exponential mindset helps you become comfortable with

uncertainty.

NEED FOR EXPERIMENTATION

Fail to learn.

“If you want to increase your success rate, double your

failure rate.”

~Thomas J. WatsonFormer CEO, IBM

WRAPPING IT UP

Exponential Technology

Exponential Procedures

RECAP

Exponential Leadership

Abundance Thinking

Builds Creates Drives

Accelerating Returns

Exponential Mindset

Exponential Business

Exponential Growth

GlobalImpact

Exponential Value

3 PILLARS OF 10x BUSINESS

CapitalizeCatalyze

Change

Recognize 10x LeadershipSteer towards next wave

10x TechnologyLet wave push you

10x ProceduresStay on wave

ONLY A DECISION AWAY

The exponential mindset takes vision and a leap of faith to commit to the unknown.

WHAT ARE YOUR THOUGHTS?

[ The 10x Effect = Ephemeralization ]

Endlessly searching for and leveraging ways…

“To do more and more with less and less until eventually you can do everything with nothing.”

UNLEASH YOUR BUSINESSEMBRACE EXPONENTIAL

10xnation.com