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Diamandis details 21st century entrepreneurship

Peter hits the nail squarely here. Humans have a hard time understanding exponentials. And the exponential economy seems like a mystery to them. But if you do not organize your community to deal with exponentials, you will likely fail.

Being an entrepreneur today is vastly different than it was 20 years ago.

Today, each of us has access to more capital, more technological tools, more information, more talent, and more computational power than the CEOs of the world’s biggest companies did just two decades ago.

As I think about what it takes to succeed in a world of Abundance and a world of accelerating returns, I focus on six mindsets and tools that every exponential entrepreneur needs to master.

Here’s a quick look:

1. You Must Understand Exponentials

We’re local and linear thinkers in an exponential world.

Our brains haven’t had a significant upgrade in over a million years, whereas our technology is doubling in power every 18 to 24 months.

Exponential technology is transforming products and services and disrupting industries. That’s why Ray Kurzweil and I cofounded Singularity University.

I often talk about my “6 D’s” framework – it’s a lens through which I contextualize all technological change and opportunities:

The 6 Ds Progression:

  • Digitized: Turning every product or service into “1’s and 0’s.”
  • Deceptive: The doubling of small numbers is deceptive. Start doubling 0.1 to 0.2… 0.4… 0.8… and at this phase, it all looks like “zero.”
  • Disruptive: After we reach “1,” just 30 doublings later, we’re at 1 billion.
  • Dematerialized: Exponential technology turns tangible “things” into digital apps. I no longer carry around GPS equipment – it’s an app on my phone.
  • Demonetized: The cost of duplicating and sending an app is essentially zero.
  • Democratized: Once products and services are digital, they go global and can become ubiquitous.

Exponential entrepreneurs use the 6 D’s as a technological road map to predict where technologies are going and when to capitalize on the opportunities. This framework gives them an unfair advantage over competitors.

2. You See the World as Abundant (vs. Scarce)

Exponential entrepreneurs understand that technology is a force that transforms things from scarcity to abundance.

Technology is creating a world of abundance in almost every major arena, including energy, knowledge, transportation, computation, access to education and access to healthcare.

Once these industries transform from scarcity to abundance, their products and services become cheap (or free) and their quality goes through the roof.

Exponential entrepreneurs understand that despite the constant barrage of negative news from the Crisis News Network (my joking term for CNN) and its ilk, the world is becoming better at an extraordinary rate on almost every possible measure, including food, energy, education, poverty and health. (Note: I collect detailed charts on “Evidence of Abundance here.”)

Exponential entrepreneurs also know that scarcity-minded, closed business models ultimately fail, and open platforms ultimately win.

3. You Leverage Exponential Technologies

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4. You Have an MTP and a Moonshot

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5. You Tap the Crowd for Expertise, Solutions & Capital

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6. You Launch Your Vision, Experiment & Disrupt Yourself

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So many good points. Read and execute them all.

Image: luk.s

Moving Adobe into the Special category

Adobe’s Record Revenue Proves Successful Business Transformation Is Possible
[Via Daring Fireball]

Ron Miller, writing for TechCrunch:

As we watch organizations like IBM, HP and EMC struggle to transform, Adobe is an interesting contrasting case. It went from selling boxed software to a cloud subscription model in shorter order, and judging from its financial report that came out last week, it’s done quite well making that leap.

First, let’s have a look at the numbers. Adobe reported a record $1.31 billion in revenue for the quarter, a 22 percent year over year increase. It disclosed record annual revenue of $4.8 billion. Mind you these are significant, but the big number to me is that recurring revenue from subscriptions now represents 74 percent of Adobe’s business. What’s more, just under $3 billion in revenue in 2015 came from digital media-related annual recurring revenue (ARR).

Adobe is making this switch to subscription pricing look easy. It’s not.

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Apple has been a great example of a 21st century company, transitioning from a mass producer of  millions of things to a personal producer of things for millions of people.

This is the key transition to the new economy being created. It requires a changing balance between the hierarchical authority so useful in the Age of Mass Production and the distributed democracy driving the Age of Personal Production.

Adobe no longer sells millions of boxes of the same thing to people for them to consume. It has a personal connection to millions of subscribers who use the offerings of Adobe.

This is not easy today but I expect that more will appear over the next decade,

It is all personal.

Image: Valerie Everett

 

Disagreement, Yes. Disrespect, No.

Amazon Is Right That Disagreement Results in Better Decisions
[Via Harvard Business Review]

When I worked in the federal government, I was amazed at the large numbers of factual errors in widely-read stories, even in the best newspapers. As a colleague of mine, a staunch Democrat, observed in 2009, “I now think that at least half of the things I most disliked about the Bush Administration . . . never happened.”

I tell this little tale because the lengthy New York Times story, detailing some apparently brutal features of the culture at Amazon, should be taken with many grains of salt. But even if the story is full of inaccuracies, and if we put the company’s alleged harshness to one side, Amazon’s approach offers indispensable guidance for companies both large and small when they are deciding how to make group decisions.

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Disagreement does not mean disrespect. Finding the right balance will help companies become successful and wise.

The disagreement must be based on and argued using logical rhetoric. Allowing logucal fallacies to be raised in a disagreement will result in a failed process and little wisdom.

As Brook’s law suggests, projects cannot be made successful by spending more time or throwing more people at them. What can make the projects successful is effective information flow, lowering the friction for important information to traverse the group. 

One way that works to do this is to have open discussions, including open disagreement. These prevents groupthink will enhancng the inflow of novel information.

But, logical fallacies or lawyerly tactics (ie belittling, bullying, anger, intimidation) will destroy the benefits of this process and eventually cause the company to fail.

Because the dissenters, the disruptors who disagree, will either leave for better pastures or be forced out. Leaving the company full of easy going, hard working drones who simply follow the easiest path rather than the wise one.

Image: Carsten Tolkmit