from the world's big
Three Steps to Becoming an Exponential Entrepreneur, with Steven Kotler
The co-author of "Bold: How to Go Big, Create Wealth and Impact the World" discusses the 6 D's of exponential entrepreneurship while explaining how advanced technologies, psychological tools, and crowd-access strategies help exponential entrepreneurs get a leg up over their competition.
Steven Kotler is an award-winning journalist, a New York Times bestselling author, and executive director of Flow Research Collective. His books include the non-fiction works The Rise of Superman, Abundance, A Small Furry Prayer, West of Jesus, and the novel The Angle Quickest for Flight. His works have been translated into over 30 languages. His articles have appeared in over 60 publications, including The Atlantic Monthly, Wired, GQ, Popular Science, and Discover.
His latest book, co-authored with tech CEO Peter Diamandis, is Bold: How to Go Big, Create Wealth and Impact the World.
Steven Kotler: An exponential entrepreneur is an entrepreneur who is leaning on exponentially accelerating technology — so network sensors, AI, robotics, synthetic biology, 3D printing — these technologies that are all on exponential growth curves. They’re also relying on what we call exponential psychological tools, right. These are ways to think at scale, flow states, things along those lines. Things that let entrepreneurs to scale up their mental game like never before. And finally they’re also using exponential crowd-power tools. These are crowdsourcing, crowdfunding, incentive prizes and community building, right, that let entrepreneurs get access to capital, get access to expertise, really scale up their reach farther than ever before, right. So an exponential entrepreneur is people who are using these three kind of categories to level up.
If you want to be an exponential entrepreneur and you want to play with exponential technology, you need to understand the kind of growth cycle that exponential technologies go on. And we use something call the six D's to talk about this, right. The first D is digitalization, right. A technology becomes exponential once it becomes digitalized. It becomes represented in ones and zeroes. Once that happens, right, it becomes an information-based technology and it hops on an exponential growth curve, right. A classic example being Moore’s laws covering transitions. But now we’re seeing in all of these technologies; we’re seeing in synthetic biology once we realized that DNA was essentially, could be represented as a binary code, right. It hopped on this exponential growth curve and now synthetic biology is accelerating five times the speed of Moore’s law. That’s the first D. And when that happens, there’s usually a lot of excitement. A lot of hype, a lot of excitement, which is unfortunate because the second D is deception.
What happens is these technologies get introduced and it takes a while for them to get up to speed, right. And there’s all this hype in the beginning and they fall into this deceptive period and people kind of dismiss them. 3D printing was in that deceptive period for a very, very long time. Robotics, AI, all these things. But all of the technologies that we’re talking about in bold are now moving out of that deceptive period, right. What Gardner and the Gardner hype cycle calls the "trough of disillusionment," which I think is a great term, right. They’re all leaving that trough of disillusionment. What happens next is they become very, very, very disruptive, right. A classic example is Uber. It’s totally disrupting the taxicab industry. Instagram totally disrupting Kodak. These are classic examples of the disruption. After they move out of this disruptive phase, you look at demonetization. This means that the cost of the technology itself is dropping and dropping and dropping.
The money comes out of the equation. So, for example, once you could store digital images on a camera, right, film was totally demonetized. And suddenly nobody was buying roll film anymore. Pixels did the same job. So the money comes out of the equation, right. Dematerialization is what follows. So think about all the 1980s or '90s technology that now come free with your cell phone, right. Peter and I did a calculation in Abundance and we were looking at this and we found the average cellphone houses over like a million dollars’ worth of technologies from the 1980s. You have your GPS locator, your encyclopedia, your radio and record player, your camera, video recorder, on and on and on, right. You can now with Instagram get access to editing software that 10 years ago was a $2 million package. And today it’s free with an Instagram account. So demonetization, dematerialization, the technology itself is disappearing. Nobody’s going out and buying cameras anymore because it comes on your smartphone.
The next thing that happens is democratization. This is what happens when these technologies themselves become cheaper and cheaper and cheaper. Cellphones are a classic example. Back in the '80s these were a luxury technology, right, that only the wealthiest could have and then it kind of slowly moved down the scale until where we are today. I mean 50 percent of the world doesn’t even just have a cellphone; they have a smartphone, right. They’re carrying a supercomputer in their pocket. That’s how much these things have been democratized. Access becomes available to anyone.
Directed/Produced by Jonathan Fowler, Elizabeth Rodd, and Dillon Fitton
Steven Kotler, co-author of "Bold: How to Go Big, Create Wealth and Impact the World," explains the basic tenets of what he and Peter Diamandis call "exponential entrepreneurship." An exponential entrepreneur is an entrepreneur who leans on exponentially accelerating technology, exponential psychological tools, and exponential crowd-power tools. He also points to the 6 D's: digitization, deception, disruption, demonetization, dematerialization, and democratization. Each of these is a stage in the exponential entrepreneur process, which Kotler explains is a great way to get a leg up over the competition.
Higher education faces challenges that are unlike any other industry. What path will ASU, and universities like ASU, take in a post-COVID world?
- Everywhere you turn, the idea that coronavirus has brought on a "new normal" is present and true. But for higher education, COVID-19 exposes a long list of pernicious old problems more than it presents new problems.
- It was widely known, yet ignored, that digital instruction must be embraced. When combined with traditional, in-person teaching, it can enhance student learning outcomes at scale.
- COVID-19 has forced institutions to understand that far too many higher education outcomes are determined by a student's family income, and in the context of COVID-19 this means that lower-income students, first-generation students and students of color will be disproportionately afflicted.
What conditions of the new normal were already appreciated widely?<p>First, we understand that higher education is unique among industries. Some industries are governed by markets. Others are run by governments. Most operate under the influence of both markets and governments. And then there's higher education. Higher education as an "industry" involves public, private, and for-profit universities operating at small, medium, large, and now massive scales. Some higher education industry actors are intense specialists; others are adept generalists. Some are fantastically wealthy; others are tragically poor. Some are embedded in large cities; others are carefully situated near farms and frontiers.</p> <p>These differences demonstrate just some of the complexities that shape higher education. Still, we understand that change in the industry is underway, and we must be active in directing it. Yet because of higher education's unique (and sometimes vexing) operational and structural conditions, many of the lessons from change management and the science of industrial transformation are only applicable in limited or highly modified ways. For evidence of this, one can look at various perspectives, including those that we have offered, on such topics as <a href="https://www.insidehighered.com/digital-learning/blogs/rethinking-higher-education/lessons-disruption" target="_blank">disruption</a>, <a href="https://www.nytimes.com/2020/02/20/education/learning/education-technology.html" target="_blank">technology management</a>, and so-called "<a href="https://www.insidehighered.com/sites/default/server_files/media/Excerpt_IHESpecialReport_Growing-Role-of-Mergers-in-Higher-Ed.pdf" target="_blank">mergers and acquisitions</a>" in higher education. In each of these spaces, the "market forces" and "market rules" for higher education are different than they are in business, or even in government. This has always been the case and it is made more obvious by COVID-19.</p> <p>Second, with so much excitement about innovation in higher education, we sometimes lose sight of the fact that students are—and should remain—the core cause for innovation. Higher education's capacity to absorb new ideas is strong. But the ideas that endure are those designed to benefit students, and therefore society. This is important to remember because not all innovations are designed with students in mind. The recent history of innovation in higher education includes several cautionary tales of what can happen when institutional interests—or worse, <a href="https://www.insidehighered.com/news/2016/02/09/apollos-new-owners-seek-fresh-start-beleaguered-company" target="_blank">shareholder</a> interests—are placed above student well-being.</p>
Photo: Getty Images<p>Third, it is abundantly apparent that universities must leverage technology to increase educational quality and access. The rapid shift to delivering an education that complies with social distancing guidelines speaks volumes about the adaptability of higher education institutions, but this transition has also posed unique difficulties for colleges and universities that had been slow to adopt digital education. The last decade has shown that online education, implemented effectively, can meet or even surpass the quality of in-person <a href="https://link-springer-com.ezproxy1.lib.asu.edu/article/10.1007/s10639-019-10027-z" target="_blank">instruction</a>.</p><p>Digital instruction, broadly defined, leverages online capabilities and integrates adaptive learning methodologies, predictive analytics, and innovations in instructional design to enable increased student engagement, personalized learning experiences, and improved learning outcomes. The ability of these technologies to transcend geographic barriers and to shrink the marginal cost of educating additional students makes them essential for delivering education at scale.</p><p>As a bonus, and it is no small thing given that they are the core cause for innovation, students embrace and enjoy digital instruction. It is their preference to learn in a format that leverages technology. This should not be a surprise; it is now how we live in all facets of life.</p><p>Still, we have only barely begun to conceive of the impact digital education will have. For example, emerging virtual and augmented reality technologies that facilitate interactive, hands-on learning will transform the way that learners acquire and apply new knowledge. Technology-enabled learning cannot replace the traditional college experience or ensure the survival of any specific college, but it can enhance student learning outcomes at scale. This has always been the case, and it is made more obvious by COVID-19.</p>
What conditions of the new normal were emerging suspicions?<p>Our collective thinking about the role of institutional or university-to-university collaboration and networking has benefitted from a new clarity in light of COVID-19. We now recognize more than ever that colleges and universities must work together to ensure that the American higher education system is resilient and sufficiently robust to meet the needs of students and their families.</p> <p>In recent weeks, various commentators have suggested that higher education will face a wave of institutional <a href="https://www.businessinsider.com/scott-galloway-predicts-colleges-will-close-due-to-pandemic-2020-5" target="_blank">closures</a> and consolidations and that large institutions with significant online instruction capacity will become dominant.</p> <p>While ASU is the largest public university in the United States by enrollment and among the most well-equipped in online education, we strongly oppose "let them fail" mindsets. The strength of American higher education relies on its institutional diversity, and on the ability of colleges and universities to meet the needs of their local communities and educate local students. The needs of learners are highly individualized, demanding a wide range of options to accommodate the aspirations and learning styles of every kind of student. Education will become less relevant and meaningful to students, and less responsive to local needs, if institutions of higher learning are allowed to fail. </p> <p>Preventing this outcome demands that colleges and universities work together to establish greater capacity for remote, distributed education. This will help institutions with fewer resources adapt to our new normal and continue to fulfill their mission of serving students, their families, and their communities. Many had suspected that collaboration and networking were preferable over letting vulnerable colleges fail. COVID-19's new normal seems to be confirming this.</p>
President Barack Obama delivers the commencement address during the Arizona State University graduation ceremony at Sun Devil Stadium May 13, 2009 in Tempe, Arizona. Over 65,000 people attended the graduation.
Photo by Joshua Lott/Getty Images<p>A second condition of the new normal that many had suspected to be true in recent years is the limited role that any one university or type of university can play as an exemplar to universities more broadly. For decades, the evolution of higher education has been shaped by the widespread imitation of a small number of elite universities. Most public research universities could benefit from replicating Berkeley or Michigan. Most small private colleges did well by replicating Williams or Swarthmore. And all universities paid close attention to Harvard, Princeton, MIT, Stanford, and Yale. It is not an exaggeration to say that the logic of replication has guided the evolution of higher education for centuries, both in the US and abroad.</p><p>Only recently have we been able to move beyond replication to new strategies of change, and COVID-19 has confirmed the legitimacy of doing so. For example, cases such as <a href="https://www.washingtonpost.com/education/2020/03/10/harvard-moves-classes-online-advises-students-stay-home-after-spring-break-response-covid-19/" target="_blank">Harvard's</a> eviction of students over the course of less than one week or <a href="https://www.nhregister.com/news/coronavirus/article/Mayor-New-Haven-asks-for-coronavirus-help-Yale-15162606.php" target="_blank">Yale's apparent reluctance</a> to work with the city of New Haven, highlight that even higher education's legacy gold standards have limits and weaknesses. We are hopeful that the new normal will include a more active and earnest recognition that we need many types of universities. We think the new normal invites us to rethink the very nature of "gold standards" for higher education.</p>
A graduate student protests MIT's rejection of some evacuation exemption requests.
Photo: Maddie Meyer/Getty Images<p>Finally, and perhaps most importantly, we had started to suspect and now understand that America's colleges and universities are among the many institutions of democracy and civil society that are, by their very design, incapable of being sufficiently responsive to the full spectrum of modern challenges and opportunities they face. Far too many higher education outcomes are determined by a student's family income, and in the context of COVID-19 this means that lower-income students, first-generation students and students of color will be disproportionately afflicted. And without new designs, we can expect postsecondary success for these same students to be as elusive in the new normal, as it was in the <a href="http://pellinstitute.org/indicators/reports_2019.shtml" target="_blank">old normal</a>. This is not just because some universities fail to sufficiently recognize and engage the promise of diversity, this is because few universities have been designed from the outset to effectively serve the unique needs of lower-income students, first-generation students and students of color.</p>
Where can the new normal take us?<p>As colleges and universities face the difficult realities of adapting to COVID-19, they also face an opportunity to rethink their operations and designs in order to respond to social needs with greater agility, adopt technology that enables education to be delivered at scale, and collaborate with each other in order to maintain the dynamism and resilience of the American higher education system.</p> <p>COVID-19 raises questions about the relevance, the quality, and the accessibility of higher education—and these are the same challenges higher education has been grappling with for years. </p> <p>ASU has been able to rapidly adapt to the present circumstances because we have spent nearly two decades not just anticipating but <em>driving</em> innovation in higher education. We have adopted a <a href="https://www.asu.edu/about/charter-mission-and-values" target="_blank">charter</a> that formalizes our definition of success in terms of "who we include and how they succeed" rather than "<a href="https://www.washingtonpost.com/opinions/2019/10/17/forget-varsity-blues-madness-lets-talk-about-students-who-cant-afford-college/" target="_blank">who we exclude</a>." We adopted an entrepreneurial <a href="https://president.asu.edu/read/higher-logic" target="_blank">operating model</a> that moves at the speed of technological and social change. We have launched initiatives such as <a href="https://www.instride.com/how-it-works/" target="_blank">InStride</a>, a platform for delivering continuing education to learners already in the workforce. We developed our own robust technological capabilities in ASU <a href="https://edplus.asu.edu/" target="_blank">EdPlus</a>, a hub for research and development in digital learning that, even before the current crisis, allowed us to serve more than 45,000 fully online students. We have also created partnerships with other forward-thinking institutions in order to mutually strengthen our capabilities for educational accessibility and quality; this includes our role in co-founding the <a href="https://theuia.org/" target="_blank">University Innovation Alliance</a>, a consortium of 11 public research universities that share data and resources to serve students at scale. </p> <p>For ASU, and universities like ASU, the "new normal" of a post-COVID world looks surprisingly like the world we already knew was necessary. Our record breaking summer 2020 <a href="https://asunow.asu.edu/20200519-sun-devil-life-summer-enrollment-sets-asu-record" target="_blank">enrollment</a> speaks to this. What COVID demonstrates is that we were already headed in the right direction and necessitates that we continue forward with new intensity and, we hope, with more partners. In fact, rather than "new normal" we might just say, it's "go time." </p>
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