The next industrial
revolution? Peter Cochrane
                 www.ca-global.org

                COCHRANE
                 a s s o c i a t e s
A prequel !
Not so long ago....unbelievable constraints !
Not so long ago....unbelievable constraints !
An amazing confluence....all the technologies
available in the same timeframe!
Everybody is now on line...




The digital divide has gone...hardware and access costs are
                     no longer an issue....and nor is software!
>5Bn people have mobiles & >50% are internet ready!
Soon it will be everything!




>5Bn people have mobiles & >50% are internet ready!
~20 years of living on line…

…and now entering the workforce…
	

     -Any platform
    - Any device
	

 - Any OS
	

 - Any Application
	

 - An entirely different expectation!
For young people, joining a company is like
being catapulted back in time...


                    Networked
                     Cool Apps
              Unlimited storage
              Processing Power
                     Bandwidth
                Fixed & mobile
                  Open, sharing
                      Influential
For young people, joining a company is like
being catapulted back in time...


                    Networked
                     Cool Apps
Why isn’t working at
              Unlimited storage
              Processing Power
the office the same   Bandwidth
as working at home?
                Fixed & mobile
                  Open, sharing
                      Influential
IT Dept’s can
no longer cope
...or compete !
Creativity is now
at the edge, out
of control, open,
& distributed...
The most important hot spot....

   Commerce              People
       &                   &
   Governance            Society



             Science
                &
            Technology
The most important hot spot....

   Commerce              People
       &                   &
   Governance            Society



             Science
                &
            Technology
The most important hot spot....

                     Commerce              People
                         &                   &
                     Governance            Society



                               Science
                                  &
This where the action         Technology
always is – and ‘we’ are
the primary impediment
of change
How the previous industrial revolution is still
perceived....
How the previous industrial revolution is still
perceived....
The reality today....




Machines produce everything....and without them
we would all die...
The reality today....




Machines produce everything....and without them
we would all die...
We have to stand on the shoulders of what went
before....but it was a ‘food to waste’ cycle




 This is unsustainable in the long, and perhaps even
 the short, term - and growth always has limits !
Mother Nature on the other hand....has created
sustainable ‘food to waste to food’ cycles




 This eco-system model is now one we have to
 aspire to…to live symbiotically with our planet !
How ?
A new all encompassing approach....

           Nano        Bio




                  IT
                   +
                  AI
A new all encompassing approach....

           Nano        Bio




                  IT
                   +
                  AI
A new all encompassing approach....

                             Nano        Bio




                                    IT
                                     +
This will give rise to new          AI
materials, medicines,
capabilities and greater
understanding
The convergence of ‘dry’ & ‘wet’ science’ - genome,
protein, nano, intelligence, robotics, AI + AL with
old, and new forms of genetics
A new ability to replicate 3D objects at a
distance...
A new ability to replicate 3D objects at a
distance...
Distributed design and production in the office
and home...




With recycling that works and a new ‘open hardware’
movement/culture...leading to new models of innovation!
A new ability to program materials to form 3D
objects of a predefined shape & function...
A new ability to program materials to form 3D
objects of a predefined shape & function...
A new ability to program materials to form 3D
objects of a predefined shape & function...
A new ability to program materials to form 3D
objects of a predefined shape & function...
A new ability to understand complex systems
through sheer computational power and AI...will
transform Pharma & R&D +++
The biggest challenge we face?
Our inherent inability to change quickly coupled
with our ignorance of everything complex and
non-linear...
The biggest challenge we face?
Our inherent inability to change quickly coupled
with our ignorance of everything complex and
non-linear...



                          We need help from the very
                          technology we are creating...in
                          order to make the right
                          choices & decisions
Where are people & society headed?
 Where are New Companies headed?




                                 More
Less
Where are people & society headed?
 Where are New Companies headed?
               Openness




                                 More
Less
Where are people & society headed?
 Where are New Companies headed?
               Openness

               Sharing




                                 More
Less
Where are people & society headed?
 Where are New Companies headed?
               Openness

               Sharing

             Communicative




                                 More
Less
Where are people & society headed?
 Where are New Companies headed?
               Openness

               Sharing

             Communicative




                                 More
Less



             Tech Capable
Where are people & society headed?
 Where are New Companies headed?
               Openness

                Sharing

             Communicative




                                 More
Less



             Tech Capable

               Transitory
Where are people & society headed?
 Where are New Companies headed?
                Openness

                Sharing

             Communicative




                                 More
Less



             Tech Capable

               Transitory

              Independence
Where are people & society headed?
 Where are New Companies headed?
                Openness

                Sharing

             Communicative




                                 More
Less



             Tech Capable

               Transitory

              Independence

                 Global
Openness

         Sharing

       Communicative




                       More
Less



       Tech Capable

        Transitory

       Independence

          Global
Where are New Companies headed?




                                     More
Less
Where are New Companies headed?

                   Controlism




                                     More
Less
Where are New Companies headed?

                   Controlism

                  Concentration




                                     More
Less
Where are New Companies headed?

                   Controlism

                  Concentration

                    Hierarchy




                                     More
Less
Where are New Companies headed?

                   Controlism

                  Concentration

                    Hierarchy




                                     More
Less



                    Myopia
Where are New Companies headed?

                       Controlism

                     Concentration

                        Hierarchy




                                            More
Less



                        Myopia
               Adaptability & Flexibility
Where are New Companies headed?

                       Controlism

                     Concentration

                        Hierarchy




                                            More
Less



                        Myopia
               Adaptability & Flexibility

                     People Focus
Where are New Companies headed?

                       Controlism

                     Concentration

                        Hierarchy




                                            More
Less



                        Myopia
               Adaptability & Flexibility

                     People Focus

                      Outsourcing
IT continues to be exponential !
Is	
  there	
  an	
  end	
  in	
  sight??
100 mm                     Shockley, Bardeen,
              Human
0.1 mm                     and Brattain - 1947
               hair                                    The first IC-1959
 10 mm
                                                             ICs-1980
 1 mm       Bacteria
                                                 Today’s
                          Visible light        transistors
0.10 mm
                      Intel 2006
              Viruses Intel 2010
                                                             End of the road?
 10 nm                                                        ~2020 - 2025

          Diameter of a                          X-rays
1.0 nm     DNA helix
                             Silicon lattice
                                constant
           Diameter of a
 0.1 nm
           carbon atom                               1 angstrom
Atomic manipulation has been a reality for some time…
& just gets better – currently approaching the electron
Why is IT really critical?




Well, on a grand scale, we don’t
understand much!
Everything in the universe is
governed by non-linearity and
chaotic actions….
Everything in the universe is
governed by non-linearity and
chaotic actions….

     …but we are linear and
     limited thinkers devoid
     of tools & techniques to
     help us comprehend…
Everything in the universe is
                  governed by non-linearity and
                  chaotic actions….

                         …but we are linear and
                         limited thinkers devoid
                         of tools & techniques to
                         help us comprehend…

If we have a long-term future it lies with technology &
machines and their ability to extend our knowledge
and understanding
Futures
Advance

   Society
   Technology
   Wealth
   Health
   Well Being




                  Time
Futures
Advance

   Society
   Technology
   Wealth
   Health
   Well Being
                         Oil runs out
                             We do nothing
                                 Planet retaliates
                         	

         Life dies

                  Time
Futures
Advance

   Society
   Technology
   Wealth                 Our green effort works
   Health                 & status quo just holds
   Well Being
                         Oil runs out
                             We do nothing
                                 Planet retaliates
                         	

         Life dies

                  Time
Futures      Cold Fusion
                         Climatic Control
Advance
                         Earth Management
                         Nano - Bio Tech
   Society                     AI + AL +++
   Technology
   Wealth                 Our green effort works
   Health                 & status quo just holds
   Well Being
                         Oil runs out
                             We do nothing
                                 Planet retaliates
                         	

         Life dies

                  Time
Futures          Cold Fusion
                             Climatic Control
Advance
                             Earth Management
                             Nano - Bio Tech
   Society                         AI + AL +++
   Technology
   Our climate and planet models are
   Wealth                   Our green effort works
    so crude that we have& no real just holds
   Health                    status quo clue
   Well Beingwhich trajectory we are on
     about
   …..and if we can influence itout
                        Oil runs anyway!
                           We do nothing
                                    Planet retaliates
                             	

        Life dies

                     Time
We now live in a world of the infinite…
       … how do you find, how do you choose?
Predicting the Present


                         Economic Index



       Lag Variables      Google Trends   Other Exogenous Variable
Automobiles




              35
Auto Sales by Make (Top 9 Make by Sales)
Monthly Sales vs. Google Trends at Second Week of each month




                                                               36   9
When you get
tectonic forces…
When you get
tectonic forces…

  Shift happens!
The changing shape of societies…
                                          Inherently
 Hunter       Early        Industrial   linear & well
Gatherer   Civilizations   Revolution     behaved…

                                        Optimizing
                                        individual
                                         parts can
                                         optimize
                                        the whole

                                         Intuition
                                          mostly
                                          works
The changing shape of societies…
                                                   Inherently
  Hunter             Early          Industrial   linear & well
 Gatherer         Civilizations     Revolution     behaved…

                                                 Optimizing
                                                 individual
                                                  parts can
                                                  optimize
                                                 the whole

                                                  Intuition
                                                   mostly
Connectivity   ∝ N and does not scale              works
The changing shape of societies…

          Information
            Society
The changing shape of societies…
Connectivity
Phone   ∝N 2       Information
                     Society
Internet∝N     n
The changing shape of societies…

           Semantic
            Society
                               This all gets
                                very much
                                 worse as
                                everything
                                becomes
                               mobile and
                               intelligent
                              and sensory
The changing shape of societies…

           Semantic
            Society
                               This all gets
                                very much
                                 worse as
                                everything
                                becomes
                              mobile and
                               intelligent
                              and sensory
The changing shape of societies…

           Semantic
            Society
                               This all gets
                                very much
                                 worse as
                                everything
                                becomes
                               mobile and
                               intelligent
                              and sensory
The changing shape of societies…

           Semantic
            Society
                               This all gets
                                very much
                                 worse as
                                everything
                                becomes
                               mobile and
                               intelligent
                              and sensory
The changing shape of societies…

           Semantic
            Society
                               This all gets
                                very much
                                 worse as
                                everything
                                becomes
                              mobile and
                               intelligent
                              and sensory
The changing shape of societies…
                               Inherently
                              non-linear &
           Semantic
                                not well
            Society            behaved…

                               Optimizing
                                individual
                               parts never
                                optimizes
                                the whole

                                   Intuition
                                    mostly
                                      fails
Web 3.0...4.0...5.0...
Web 3.0...4.0...5.0...

Autonomous:   Sensors
              Computing power
              Artificial Intelligence
              Human Augmentation
              Decision Making
              System Control
              People Support
              Society Support
              Commercial Support
The sociology of people & animals will be overtaken
by the sociology of fixed & mobile things
The sociology of people & animals will be overtaken
by the sociology of fixed & mobile things
A	
  general	
  observa3on	
  !


We reward those who afford us more freedom
                                       – not less!
Spot the problem...

~9 months            Tech Cycle


            ~2.5 years          Management Cycle


                     ~5 years              People Cycle


                           2 - 10 years            Procurement Cycle
Expect to see books, paper,
telephones, email, txt ++ to
die within the next
decade ...and social nets &
apps take over...
We live in a society obsessed with risk!




  What about the upside/downside ratio?
Modern organizations now look like this…



                            Risk
                            analysis
Modern organizations now look like this…



                               Risk
                               analysis




                 Opportunity
                    analysis
Thank You




COCHRANE
a s s o c i a t e s
Thank You

 ca-global.org
cochrane.org.uk

   COCHRANE
   a s s o c i a t e s

The next industrial revolution

  • 1.
    The next industrial revolution?Peter Cochrane www.ca-global.org COCHRANE a s s o c i a t e s
  • 2.
  • 3.
    Not so longago....unbelievable constraints !
  • 4.
    Not so longago....unbelievable constraints !
  • 5.
    An amazing confluence....allthe technologies available in the same timeframe!
  • 6.
    Everybody is nowon line... The digital divide has gone...hardware and access costs are no longer an issue....and nor is software!
  • 7.
    >5Bn people havemobiles & >50% are internet ready!
  • 8.
    Soon it willbe everything! >5Bn people have mobiles & >50% are internet ready!
  • 9.
    ~20 years ofliving on line… …and now entering the workforce… -Any platform - Any device - Any OS - Any Application - An entirely different expectation!
  • 10.
    For young people,joining a company is like being catapulted back in time... Networked Cool Apps Unlimited storage Processing Power Bandwidth Fixed & mobile Open, sharing Influential
  • 11.
    For young people,joining a company is like being catapulted back in time... Networked Cool Apps Why isn’t working at Unlimited storage Processing Power the office the same Bandwidth as working at home? Fixed & mobile Open, sharing Influential
  • 12.
    IT Dept’s can nolonger cope ...or compete !
  • 13.
    Creativity is now atthe edge, out of control, open, & distributed...
  • 14.
    The most importanthot spot.... Commerce People & & Governance Society Science & Technology
  • 15.
    The most importanthot spot.... Commerce People & & Governance Society Science & Technology
  • 16.
    The most importanthot spot.... Commerce People & & Governance Society Science & This where the action Technology always is – and ‘we’ are the primary impediment of change
  • 17.
    How the previousindustrial revolution is still perceived....
  • 18.
    How the previousindustrial revolution is still perceived....
  • 19.
    The reality today.... Machinesproduce everything....and without them we would all die...
  • 20.
    The reality today.... Machinesproduce everything....and without them we would all die...
  • 21.
    We have tostand on the shoulders of what went before....but it was a ‘food to waste’ cycle This is unsustainable in the long, and perhaps even the short, term - and growth always has limits !
  • 22.
    Mother Nature onthe other hand....has created sustainable ‘food to waste to food’ cycles This eco-system model is now one we have to aspire to…to live symbiotically with our planet !
  • 23.
  • 24.
    A new allencompassing approach.... Nano Bio IT + AI
  • 25.
    A new allencompassing approach.... Nano Bio IT + AI
  • 26.
    A new allencompassing approach.... Nano Bio IT + This will give rise to new AI materials, medicines, capabilities and greater understanding
  • 27.
    The convergence of‘dry’ & ‘wet’ science’ - genome, protein, nano, intelligence, robotics, AI + AL with old, and new forms of genetics
  • 28.
    A new abilityto replicate 3D objects at a distance...
  • 29.
    A new abilityto replicate 3D objects at a distance...
  • 30.
    Distributed design andproduction in the office and home... With recycling that works and a new ‘open hardware’ movement/culture...leading to new models of innovation!
  • 31.
    A new abilityto program materials to form 3D objects of a predefined shape & function...
  • 32.
    A new abilityto program materials to form 3D objects of a predefined shape & function...
  • 33.
    A new abilityto program materials to form 3D objects of a predefined shape & function...
  • 34.
    A new abilityto program materials to form 3D objects of a predefined shape & function...
  • 35.
    A new abilityto understand complex systems through sheer computational power and AI...will transform Pharma & R&D +++
  • 36.
    The biggest challengewe face? Our inherent inability to change quickly coupled with our ignorance of everything complex and non-linear...
  • 37.
    The biggest challengewe face? Our inherent inability to change quickly coupled with our ignorance of everything complex and non-linear... We need help from the very technology we are creating...in order to make the right choices & decisions
  • 38.
    Where are people& society headed? Where are New Companies headed? More Less
  • 39.
    Where are people& society headed? Where are New Companies headed? Openness More Less
  • 40.
    Where are people& society headed? Where are New Companies headed? Openness Sharing More Less
  • 41.
    Where are people& society headed? Where are New Companies headed? Openness Sharing Communicative More Less
  • 42.
    Where are people& society headed? Where are New Companies headed? Openness Sharing Communicative More Less Tech Capable
  • 43.
    Where are people& society headed? Where are New Companies headed? Openness Sharing Communicative More Less Tech Capable Transitory
  • 44.
    Where are people& society headed? Where are New Companies headed? Openness Sharing Communicative More Less Tech Capable Transitory Independence
  • 45.
    Where are people& society headed? Where are New Companies headed? Openness Sharing Communicative More Less Tech Capable Transitory Independence Global
  • 46.
    Openness Sharing Communicative More Less Tech Capable Transitory Independence Global
  • 47.
    Where are NewCompanies headed? More Less
  • 48.
    Where are NewCompanies headed? Controlism More Less
  • 49.
    Where are NewCompanies headed? Controlism Concentration More Less
  • 50.
    Where are NewCompanies headed? Controlism Concentration Hierarchy More Less
  • 51.
    Where are NewCompanies headed? Controlism Concentration Hierarchy More Less Myopia
  • 52.
    Where are NewCompanies headed? Controlism Concentration Hierarchy More Less Myopia Adaptability & Flexibility
  • 53.
    Where are NewCompanies headed? Controlism Concentration Hierarchy More Less Myopia Adaptability & Flexibility People Focus
  • 54.
    Where are NewCompanies headed? Controlism Concentration Hierarchy More Less Myopia Adaptability & Flexibility People Focus Outsourcing
  • 55.
    IT continues tobe exponential !
  • 56.
    Is  there  an  end  in  sight?? 100 mm Shockley, Bardeen, Human 0.1 mm and Brattain - 1947 hair The first IC-1959 10 mm ICs-1980 1 mm Bacteria Today’s Visible light transistors 0.10 mm Intel 2006 Viruses Intel 2010 End of the road? 10 nm ~2020 - 2025 Diameter of a X-rays 1.0 nm DNA helix Silicon lattice constant Diameter of a 0.1 nm carbon atom 1 angstrom
  • 57.
    Atomic manipulation hasbeen a reality for some time… & just gets better – currently approaching the electron
  • 58.
    Why is ITreally critical? Well, on a grand scale, we don’t understand much!
  • 59.
    Everything in theuniverse is governed by non-linearity and chaotic actions….
  • 60.
    Everything in theuniverse is governed by non-linearity and chaotic actions…. …but we are linear and limited thinkers devoid of tools & techniques to help us comprehend…
  • 61.
    Everything in theuniverse is governed by non-linearity and chaotic actions…. …but we are linear and limited thinkers devoid of tools & techniques to help us comprehend… If we have a long-term future it lies with technology & machines and their ability to extend our knowledge and understanding
  • 62.
    Futures Advance Society Technology Wealth Health Well Being Time
  • 63.
    Futures Advance Society Technology Wealth Health Well Being Oil runs out We do nothing Planet retaliates Life dies Time
  • 64.
    Futures Advance Society Technology Wealth Our green effort works Health & status quo just holds Well Being Oil runs out We do nothing Planet retaliates Life dies Time
  • 65.
    Futures Cold Fusion Climatic Control Advance Earth Management Nano - Bio Tech Society AI + AL +++ Technology Wealth Our green effort works Health & status quo just holds Well Being Oil runs out We do nothing Planet retaliates Life dies Time
  • 66.
    Futures Cold Fusion Climatic Control Advance Earth Management Nano - Bio Tech Society AI + AL +++ Technology Our climate and planet models are Wealth Our green effort works so crude that we have& no real just holds Health status quo clue Well Beingwhich trajectory we are on about …..and if we can influence itout Oil runs anyway! We do nothing Planet retaliates Life dies Time
  • 67.
    We now livein a world of the infinite… … how do you find, how do you choose?
  • 68.
    Predicting the Present Economic Index Lag Variables Google Trends Other Exogenous Variable
  • 69.
  • 70.
    Auto Sales byMake (Top 9 Make by Sales) Monthly Sales vs. Google Trends at Second Week of each month 36 9
  • 71.
  • 72.
    When you get tectonicforces… Shift happens!
  • 73.
    The changing shapeof societies… Inherently Hunter Early Industrial linear & well Gatherer Civilizations Revolution behaved… Optimizing individual parts can optimize the whole Intuition mostly works
  • 74.
    The changing shapeof societies… Inherently Hunter Early Industrial linear & well Gatherer Civilizations Revolution behaved… Optimizing individual parts can optimize the whole Intuition mostly Connectivity ∝ N and does not scale works
  • 75.
    The changing shapeof societies… Information Society
  • 76.
    The changing shapeof societies… Connectivity Phone ∝N 2 Information Society Internet∝N n
  • 77.
    The changing shapeof societies… Semantic Society This all gets very much worse as everything becomes mobile and intelligent and sensory
  • 78.
    The changing shapeof societies… Semantic Society This all gets very much worse as everything becomes mobile and intelligent and sensory
  • 79.
    The changing shapeof societies… Semantic Society This all gets very much worse as everything becomes mobile and intelligent and sensory
  • 80.
    The changing shapeof societies… Semantic Society This all gets very much worse as everything becomes mobile and intelligent and sensory
  • 81.
    The changing shapeof societies… Semantic Society This all gets very much worse as everything becomes mobile and intelligent and sensory
  • 82.
    The changing shapeof societies… Inherently non-linear & Semantic not well Society behaved… Optimizing individual parts never optimizes the whole Intuition mostly fails
  • 83.
  • 84.
    Web 3.0...4.0...5.0... Autonomous: Sensors Computing power Artificial Intelligence Human Augmentation Decision Making System Control People Support Society Support Commercial Support
  • 85.
    The sociology ofpeople & animals will be overtaken by the sociology of fixed & mobile things
  • 86.
    The sociology ofpeople & animals will be overtaken by the sociology of fixed & mobile things
  • 87.
    A  general  observa3on  ! We reward those who afford us more freedom – not less!
  • 88.
    Spot the problem... ~9months Tech Cycle ~2.5 years Management Cycle ~5 years People Cycle 2 - 10 years Procurement Cycle
  • 89.
    Expect to seebooks, paper, telephones, email, txt ++ to die within the next decade ...and social nets & apps take over...
  • 90.
    We live ina society obsessed with risk! What about the upside/downside ratio?
  • 91.
    Modern organizations nowlook like this… Risk analysis
  • 92.
    Modern organizations nowlook like this… Risk analysis Opportunity analysis
  • 93.
    Thank You COCHRANE a ss o c i a t e s
  • 94.
    Thank You ca-global.org cochrane.org.uk COCHRANE a s s o c i a t e s