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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 the
progression of society.
It is the “engine of prosperity.” ~Michio Kaku
RIPPLE EFFECTS
Computing Power
Socialchange
Qualityofmaterials
Financialgrowth
Sensorsensitivity
Moore’s law has
impacted nearly every
aspect of our lives.
Ever faster, cheaper
computing power
creates ever faster,
cheaper industries.
Widespreadeducation
Speedofinnovation
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 production
into 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 was
within 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, but
Our 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 favor
of 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-growth
aei.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
BUSINESS
LOOK 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
Global
Impact
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 app
Leverage 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. Watson
Former 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
Global
Impact
Exponential
Value
3 PILLARS OF 10x
BUSINESS
CapitalizeCatalyze
Change
Recognize
10x
Leadership
Steer towards next wave
10x
Technology
Let wave push you
10x
Procedures
Stay 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 BUSINESS
EMBRACE EXPONENTIAL
10xnation.com

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