Exponential improvement in core digital technologies is fueling exponential innovation. The cost-performance of three core digital technology building blocks—computing power, storage, and bandwidth—has been improving at an exponential rate for many years. As the rate of improvement accelerates, we are experiencing rapid advances in the innovations built on top of these core “exponential” technologies. The current pace of technological advance is unprecedented in history and shows no signs of stabilizing as other historical technological innovations, such as electricity, eventually did.
These rapid advances have the power to disrupt industries. The disruptive potential of exponential technologies is amplified when they interact and combine in innovative ways. The impact is further amplified when technologies coalesce into open platforms and ecosystems. These reduce the investment and lead time required to drive the next wave of innovation into markets by enabling people and technologies to rapidly build on previous waves of innovation.