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“The Six Ds are a chain reaction of technological progression, a road map of rapid development that always leads to enormous upheaval and opportunity.”
–Peter Diamandis and Steven Kotler, Bold
We live in incredible times. News travels the globe in an instant. Music, movies, games, communication, and knowledge are ever-available on always-connected devices. From biotechnology to artificial intelligence, powerful technologies that were once only available to huge organizations and governments are becoming more accessible and affordable thanks to digitization.
The potential for entrepreneurs to disrupt industries and corporate behemoths to unexpectedly go extinct has never been greater.
One hundred or fifty or even twenty years ago, disruption meant coming up with a product or service people needed but didn’t have yet, then finding a way to produce it with higher quality and lower costs than your competitors. This entailed hiring hundreds or thousands of employees, having a large physical space to put them in, and waiting years or even decades for hard work to pay off and products to come to fruition.
“Technology is disrupting traditional industrial processes, and they’re never going back.”
But thanks to digital technologies developing at exponential rates of change, the landscape of 21st-century business has taken on a dramatically different look and feel.
The structure of organizations is changing. Instead of thousands of employees and large physical plants, modern start-ups are small organizations focused on information technologies. They dematerialize what was once physical and create new products and revenue streams in months, sometimes weeks.
It no longer takes a huge corporation to have a huge impact.
Technology is disrupting traditional industrial processes, and they’re never going back. This disruption is filled with opportunity for forward-thinking entrepreneurs.
The secret to positively impacting the lives of millions of people is understanding and internalizing the growth cycle of digital technologies. This growth cycle takes place in six key steps, which Peter Diamandis calls the Six Ds of Exponentials: digitization, deception, disruption, demonetization, dematerialization, and democratization.
According to Diamandis, cofounder and chairman of Singularity University and founder and executive chairman of XPRIZE, when something is digitized it begins to behave like an information technology.
Newly digitized products develop at an exponential pace instead of a linear one, fooling onlookers at first before going on to disrupt companies and whole industries. Before you know it, something that was once expensive and physical is an app that costs a buck.
Newspapers and CDs are two obvious recent examples. The entertainment and media industries are still dealing with the aftermath of digitization as they attempt to transform and update old practices tailored to a bygone era. But it won’t end with digital media. As more of the economy is digitized—from medicine to manufacturing—industries will hop on an exponential curve and be similarly disrupted.
Diamandis’s 6 Ds are critical to understanding and planning for this disruption.
The 6 Ds of Exponential Organizations are Digitized, Deceptive, Disruptive, Demonetized, Dematerialized, and Democratized.
Diamandis uses the contrasting fates of Kodak and Instagram to illustrate the power of the six Ds and exponential thinking.
Kodak invented the digital camera in 1975, but didn’t invest heavily in the new technology, instead sticking with what had always worked: traditional cameras and film. In 1996, Kodak had a $28 billion market capitalization with 95,000 employees.
But the company didn’t pay enough attention to how digitization of their core business was changing it; people were no longer taking pictures in the same way and for the same reasons as before.
After a downward spiral, Kodak went bankrupt in 2012. That same year, Facebook acquired Instagram, a digital photo sharing app, which at the time was a startup with 13 employees. The acquisition’s price tag? $1 billion. And Instagram had been founded only 18 months earlier.
The most ironic piece of this story is that Kodak invented the digital camera; they took the first step toward overhauling the photography industry and ushering it into the modern age, but they were unwilling to disrupt their existing business by taking a risk in what was then uncharted territory. So others did it instead.
The same can happen with any technology that’s just getting off the ground. It’s easy to stop pursuing it in the early part of the exponential curve, when development appears to be moving slowly. But failing to follow through only gives someone else the chance to do it instead.
The Six Ds are a road map showing what can happen when an exponential technology is born. Not every phase is easy, but the results give even small teams the power to change the world in a faster and more impactful way than traditional business ever could.
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The best storytellers react to their audience. They look for smiles, signs of awe, or boredom; they simultaneously and skillfully read both the story and their sitters. Kevin Brooks, a seasoned storyteller working for Motorola’s Human Interface Labs, explains, “As the storyteller begins, they must tune in to… the audience’s energy. Based on this energy, the storyteller will adjust their timing, their posture, their characterizations, and sometimes even the events of the story. There is a dialog between audience and storyteller.”
Shortly after I read the script to Melita, the latest virtual reality experience from Madrid-based immersive storytelling company Future Lighthouse, CEO Nicolas Alcalá explained to me that the piece is an example of “reactive content,” a concept he’s been working on since his days at Singularity University.
For the first time in history, we have access to technology that can merge the reactive and affective elements of oral storytelling with the affordances of digital media, weaving stunning visuals, rich soundtracks, and complex meta-narratives in a story arena that has the capability to know you more intimately than any conventional storyteller could.
It’s no understatement to say that the storytelling potential here is phenomenal.
In short, we can refer to content as reactive if it reads and reacts to users based on their body rhythms, emotions, preferences, and data points. Artificial intelligence is used to analyze users’ behavior or preferences to sculpt unique storylines and narratives, essentially allowing for a story that changes in real time based on who you are and how you feel.
The development of reactive content will allow those working in the industry to go one step further than simply translating the essence of oral storytelling into VR. Rather than having a narrative experience with a digital storyteller who can read you, reactive content has the potential to create an experience with a storyteller who knows you.
This means being able to subtly insert minor personal details that have a specific meaning to the viewer. When we talk to our friends we often use experiences we’ve shared in the past or knowledge of our audience to give our story as much resonance as possible. Targeting personal memories and aspects of our lives is a highly effective way to elicit emotions and aid in visualizing narratives. When you can do this with the addition of visuals, music, and characters—all lifted from someone’s past—you have the potential for overwhelmingly engaging and emotionally-charged content.
Future Lighthouse inform me that for now, reactive content will rely primarily on biometric feedback technology such as breathing, heartbeat, and eye tracking sensors. A simple example would be a story in which parts of the environment or soundscape change in sync with the user’s heartbeat and breathing, or characters who call you out for not paying attention.
The next step would be characters and situations that react to the user’s emotions, wherein algorithms analyze biometric information to make inferences about states of emotional arousal (“why are you so nervous?” etc.). Another example would be implementing the use of “arousal parameters,” where the audience can choose what level of “fear” they want from a VR horror story before algorithms modulate the experience using information from biometric feedback devices.
The company’s long-term goal is to gather research on storytelling conventions and produce a catalogue of story “wireframes.” This entails distilling the basic formula to different genres so they can then be fleshed out with visuals, character traits, and soundtracks that are tailored for individual users based on their deep data, preferences, and biometric information.
The development of reactive content will go hand in hand with a renewed exploration of diverging, dynamic storylines, and multi-narratives, a concept that hasn’t had much impact in the movie world thus far. In theory, the idea of having a story that changes and mutates is captivating largely because of our love affair with serendipity and unpredictability, a cultural condition theorist Arthur Kroker refers to as the “hypertextual imagination.” This feeling of stepping into the unknown with the possibility of deviation from the habitual translates as a comforting reminder that our own lives can take exciting and unexpected turns at any moment.
The inception of the concept into mainstream culture dates to the classic Choose Your Own Adventure book series that launched in the late 70s, which in its literary form had great success. However, filmic takes on the theme have made somewhat less of an impression. DVDs like I’m Your Man (1998) and Switching (2003) both use scene selection tools to determine the direction of the storyline.
A more recent example comes from Kino Industries, who claim to have developed the technology to allow filmmakers to produce interactive films in which viewers can use smartphones to quickly vote on which direction the narrative takes at numerous decision points throughout the film.
The main problem with diverging narrative films has been the stop-start nature of the interactive element: when I’m immersed in a story I don’t want to have to pick up a controller or remote to select what’s going to happen next. Every time the audience is given the option to take a new path (“press this button”, “vote on X, Y, Z”) the narrative— and immersion within that narrative—is temporarily halted, and it takes the mind a while to get back into this state of immersion.
Reactive content has the potential to resolve these issues by enabling passive interactivity—that is, input and output without having to pause and actively make decisions or engage with the hardware. This will result in diverging, dynamic narratives that will unfold seamlessly while being dependent on and unique to the specific user and their emotions. Passive interactivity will also remove the game feel that can often be a symptom of interactive experiences and put a viewer somewhere in the middle: still firmly ensconced in an interactive dynamic narrative, but in a much subtler way.
While reading the Melita script I was particularly struck by a scene in which the characters start to engage with the user and there’s a synchronicity between the user’s heartbeat and objects in the virtual world. As the narrative unwinds and the words of Melita’s character get more profound, parts of the landscape, which seemed to be flashing and pulsating at random, come together and start to mimic the user’s heartbeat.
In 2013, Jane Aspell of Anglia Ruskin University (UK) and Lukas Heydrich of the Swiss Federal Institute of Technology proved that a user’s sense of presence and identification with a virtual avatar could be dramatically increased by syncing the on-screen character with the heartbeat of the user. The relationship between bio-digital synchronicity, immersion, and emotional engagement is something that will surely have revolutionary narrative and storytelling potential.
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Many of us intuitively think about intelligence as an individual trait. As a society, we have a tendency to praise individual game-changers for accomplishments that would not be possible without their teams, often tens of thousands of people that work behind the scenes to make extraordinary things happen.
Matt Ridley, best-selling author of multiple books, including The Rational Optimist: How Prosperity Evolves, challenges this view. He argues that human achievement and intelligence are entirely “networking phenomena.” In other words, intelligence is collective and emergent as opposed to individual.
When asked what scientific concept would improve everybody’s cognitive toolkit, Ridley highlights collective intelligence: “It is by putting brains together through the division of labor— through trade and specialization—that human society stumbled upon a way to raise the living standards, carrying capacity, technological virtuosity, and knowledge base of the species.”
Ridley has spent a lifetime exploring human prosperity and the factors that contribute to it. In a conversation with Singularity Hub, he redefined how we perceive intelligence and human progress.
Raya Bidshahri: The common perspective seems to be that competition is what drives innovation and, consequently, human progress. Why do you think collaboration trumps competition when it comes to human progress?
Matt Ridley: There is a tendency to think that competition is an animal instinct that is natural and collaboration is a human instinct we have to learn. I think there is no evidence for that. Both are deeply rooted in us as a species. The evidence from evolutionary biology tells us that collaboration is just as important as competition. Yet, at the end, the Darwinian perspective is quite correct: it’s usually cooperation for the purpose of competition, wherein a given group tries to achieve something more effectively than another group. But the point is that the capacity to co-operate is very deep in our psyche.
RB: You write that “human achievement is entirely a networking phenomenon,” and we need to stop thinking about intelligence as an individual trait, and that instead we should look at what you refer to as collective intelligence. Why is that?
MR: The best way to think about it is that IQ doesn’t matter, because a hundred stupid people who are talking to each other will accomplish more than a hundred intelligent people who aren’t. It’s absolutely vital to see that everything from the manufacturing of a pencil to the manufacturing of a nuclear power station can’t be done by an individual human brain. You can’t possibly hold in your head all the knowledge you need to do these things. For the last 200,000 years we’ve been exchanging and specializing, which enables us to achieve much greater intelligence than we can as individuals.
RB: We often think of achievement and intelligence on individual terms. Why do you think it’s so counter-intuitive for us to think about collective intelligence?
MR: People are surprisingly myopic to the extent they understand the nature of intelligence. I think it goes back to a pre-human tendency to think in terms of individual stories and actors. For example, we love to read about the famous inventor or scientist who invented or discovered something. We never tell these stories as network stories. We tell them as individual hero stories.
“It’s absolutely vital to see that everything from the manufacturing of a pencil to the manufacturing of a nuclear power station can’t be done by an individual human brain.”
This idea of a brilliant hero who saves the world in the face of every obstacle seems to speak to tribal hunter-gatherer societies, where the alpha male leads and wins. But it doesn’t resonate with how human beings have structured modern society in the last 100,000 years or so. We modern-day humans haven’t internalized a way of thinking that incorporates this definition of distributed and collective intelligence.
RB: One of the books you’re best known for is The Rational Optimist. What does it mean to be a rational optimist?
MR: My optimism is rational because it’s not based on a feeling, it’s based on evidence. If you look at the data on human living standards over the last 200 years and compare it with the way that most people actually perceive our progress during that time, you’ll see an extraordinary gap. On the whole, people seem to think that things are getting worse, but things are actually getting better.
We’ve seen the most astonishing improvements in human living standards: we’ve brought the number of people living in extreme poverty to 9 percent from about 70 percent when I was born. The human lifespan is expanding by five hours a day, child mortality has gone down by two thirds in half a century, and much more. These feats dwarf the things that are going wrong. Yet most people are quite pessimistic about the future despite the things we’ve achieved in the past.
RB: Where does this idea of collective intelligence fit in rational optimism?
MR: Underlying the idea of rational optimism was understanding what prosperity is, and why it happens to us and not to rabbits or rocks. Why are we the only species in the world that has concepts like a GDP, growth rate, or living standard? My answer is that it comes back to this phenomena of collective intelligence. The reason for a rise in living standards is innovation, and the cause of that innovation is our ability to collaborate.
The grand theme of human history is exchange of ideas, collaborating through specialization and the division of labor. Throughout history, it’s in places where there is a lot of open exchange and trade where you get a lot of innovation. And indeed, there are some extraordinary episodes in human history when societies get cut off from exchange and their innovation slows down and they start moving backwards. One example of this is Tasmania, which was isolated and lost a lot of the technologies it started off with.
RB: Lots of people like to point out that just because the world has been getting better doesn’t guarantee it will continue to do so. How do you respond to that line of argumentation?
MR: There is a quote by Thomas Babington Macaulay from 1830, where he was fed up with the pessimists of the time saying things will only get worse. He says, “On what principle is it that with nothing but improvement behind us, we are to expect nothing but deterioration before us?” And this was back in the 1830s, where in Britain and a few other parts of the world, we were only seeing the beginning of the rise of living standards. It’s perverse to argue that because things were getting better in the past, now they are about to get worse.
“I think it’s worth remembering that good news tends to be gradual, and bad news tends to be sudden. Hence, the good stuff is rarely going to make the news.”
Another thing to point out is that people have always said this. Every generation thought they were at the peak looking downhill. If you think about the opportunities technology is about to give us, whether it’s through blockchain, gene editing, or artificial intelligence, there is every reason to believe that 2017 is going to look like a time of absolute misery compared to what our children and grandchildren are going to experience.
RB: There seems to be a fair amount of mayhem in today’s world, and lots of valid problems to pay attention to in the news. What would you say to empower our readers that we will push through it and continue to grow and improve as a species?
MR: I think it’s worth remembering that good news tends to be gradual, and bad news tends to be sudden. Hence, the good stuff is rarely going to make the news. It’s happening in an inexorable way, as a result of ordinary people exchanging, specializing, collaborating, and innovating, and it’s surprisingly hard to stop it.
Even if you look back to the 1940s, at the end of a world war, there was still a lot of innovation happening. In some ways it feels like we are going through a bad period now. I do worry a lot about the anti-enlightenment values that I see spreading in various parts of the world. But then I remind myself that people are working on innovative projects in the background, and these things are going to come through and push us forward.
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In the third of Singularity University’s Future of Everything YouTube series with Jason Silva, Silva discusses “The Big Three” exponential technologies, which he defines as GNR: genetics, nanotechnology, and robotics.
“If I were to be talking to entrepreneurs, if I was talking to heads of companies, I would tell them, pay attention to exponentials,” Silva says. “Pay attention to disruptive technologies… These are the forces that are upending the world. These are the trillion-dollar industries that are going to emerge out of no place.”
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