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Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

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Page 1: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Managers’ Forum

Bio: Nano: Info The Exponential Economy

Ken DozierExecutive Director, WESRAC

3/26/2008

Page 2: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

The Western Research Application Center

http://ttc.usc.edu/learningcenter/presentations.asp

Page 3: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Jack Welch, Former Chairmen General Electric

The Future

“When the Rate of Change Outside is Greater Than the Rate of Change Inside, The End Is In Sight”

Source: John F. Welch, Jr. Chairman / CEO General Electric’s 2000 Annual Report

Page 4: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Source: Lon Hatamiya, Secretary - California Trade and Commerce Agency, South Bay Economic Development Partnership, “South Bay of Los Angeles County Workforce Perspective", October 2001

Velocity

“ According to Silicon Valley CEO’s, 60 % of the high-tech items they manufacture today did not exist 10 months ago”

Page 5: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Truth Knowledge Belief

Universal

No Debate

Phenomena

Social

Converge on debate

Theory

Personal

Diverge on debate

Guess

Source: “Ten Philosophical Mistakes”, Mortimer J. Adler 1985

What is Knowledge ?

Observation Explicit Tacit

Page 6: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Page 7: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Can You Find the Billionaires ?

Page 8: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

DevelopersDrivers

Gates “Microsoft” XeroxJobs “Apple” XeroxClark “SGI” E&S, StanfordClark “Netscape” University of

Illinois

The Non-Linear

Page 9: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Source: The world Competitiveness Yearbook IMD International 2005

3. Singapore

4. Iceland

5. Canada

6. Finland

7. Denmark

8. Switzerland

9. Australia

10.Luxembourg

Global Competition

1. USA

2. Hong Kong

Page 10: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Demassification

Denationalization

Despacialization

Disintermediation

Disaggregation

Decentralization

Source: The Social Life of information, Brown & Duguild March 2000

6-D Dimensions of Global Commerce

Page 11: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Where are the Brains?

(ERI/McGraw Hill,”America’s Clusters”,1995)

Page 12: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

An increasing attribute of our knowledge age

Exponential Economy

Copyright SRI International 2002

Page 13: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Source: Corporate Information Systems, Lynda Applegate, 1999

Make & Sell vs. Sense & Respond

Page 14: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Info-Tech

Nano-Tech

Bio-Tech

Technologies Change Fast

Source: SRI International 2002

Page 15: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

“where ... The ENIAC is equipped with 18,000 vacuum tubes and weighs 30 tons, computer in the the future may have only 1,000 vacuum tubes and weigh only 1.5 tons” - Popular Mechanics, 1949

“I predict the internet... Will go spectacularly supernova and in 1996 catastrophically collapse ” - Bob Metcalfe, 3COM founder and inventor, 1995

“This ‘Telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us”

- Western Union, Internal memo, 1876

“The problem with television is that the people must sit and keep their eyes glued on a screen; The average American family hasn’t time for it” - New York Times, 1949

“There is no reason anyone would want a computer in their home”- Ken Olson, president and founder, Digital Equipment Corp., 1977

People Do Not (Anchor and Adjust)

Source: “The Future is Ours” Communication of the ACM, March 2001

Page 16: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Can Our Brains Handle It?

• Judgmental Forecasts of Exponential Growth are Highly Conservative.

• People Tend to Think in Terms of Unit Differences Rather than Percentage Differences

• J. Scott Armstrong (1985)

Page 17: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Exponential Growth

• How thick do you think a paper folded in-half 42 times would be?

• How thick would it be after 100 folds?

Source: “Long Range Forecasting” Amrstong 1985

Page 18: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Exponential Growth

The Answers

• 42 folds = 440,000 Km (the distance from the earth to the moon.)

• 100 folds = 850 trillion times the distance from the earth to the sun!

Source: “Long Range Forecasting” Amrstong 1985

Page 19: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

How Far Does A Penny Go

1988 $ 11.00 per Megabyte

2007 1 cent per Megabyte

IBM Millipede (2008)

1 cent per Gigabyte

Nantero/Zettacore (in 4 years)

1 cent per Terabyte

Hewlett Packard (in 6 years)

1 cent per Petabyte

Source: Jack Uldrich, “The Next Big Thing is Really Small”

Page 20: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

High Performance Computing (HPC)

• Gigaflop – One Billion Floating Point Operations per Second

• Teraflop – One Trillion Floating Point Operations per Second

• Petaflop- One Thousand Trillion Floating Point Operations per Second

Page 21: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

• PetaFLOPS computers—capable of performing a thousand trillion mathematical operations per second

• Will open new doors to understanding the functions of biological molecules.

HPC and Next Generation Biology

Page 22: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

HPC and Next Generation Biology

• Simulating 100 microseconds of protein folding could take 1025 machine instructions

• This computation would take three years on a PetaFLOP system or

• Keep a 3.2GHz microprocessor busy for the next million centuries.

Source: Communications of the ACM. Volume 47, Number 11 (2004), Pages 34-41

Page 23: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Blue Ribbon Task Force on Nanotechnology

• A joint federal-state venture to promote California as the national center for research, development, and commercialization of the nanotechnology industry.

Page 24: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

California Council on Science and Technology 2004

Page 25: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Media Bandwidth

DSL/ Cable

IEEE 1394 / Firewire

Gigabit Ethernet

LASER / Fast Ethernet

10BaseT/CAT 5 Ethernet

Microwave

G2 Wireless

G3 / Wireless LAN

Async. Trans. Mode (ATM)

G1 Wireless

10Gig Ethernet

Vo

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Gam

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Fil

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Dig

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ideo M

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10^11

10^10

10^9

10^8

10^7

10^6

10^5

10^4

Ban

dw

idth

Req

uir

edB

its/

sec

(bp

s)120 Gbps 12X QDR InfiniBand 10^12

Page 26: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

The U.S. Has Lost It ?

• The United States initially was the world leader in broadband deployment.

• Now it has plunged to 19th place.

• While the United States is still first in absolute number of broadband lines, its lead will soon be overtaken by China.

Source: http://www.websiteoptimization.com/bw/0601, January 2006

Page 27: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

The Bad New?

• The Brookings Institution estimated that America’s broadband decline could lead to a potential loss of $1 trillion in economic productivity over the next decade, as well as more than 1.2 million jobs that could be created by better broadband.

Source: The Brookings Institute 2004

Page 28: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Cities Are Getting It

• City of Amsterdam announced a project to deploy FTTU throughout the city. http://www.lightreading.com/document.asp?doc_id=86384

• Paris, France, announced the goal of deploying FTTU throughout “all of Paris.” http://www.lightreading.com/document.asp?doc_id=86547

• The City of Vienna, Austria, announced plans for a citywide FTTU network that will provide residents 1 Gbps of symmetrical broadband capacity. http://www.heise.de/english/newsticker/news/68912

Page 29: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Is Connectivity Enough?

Walmart Perspective

• If you can understand your data, you can do predictive analysis.

• It’s an advantage if suppliers can link into Walmart’s systems and perform their own analyses using Walmarts’s complex tables- CTO Walmart (September 2006)

Source: HPC Wire, September 15th , 2006

Page 30: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

How Important is Computing?

Pratt & Whitney Perspective

• Building models on the computer is faster and lower-cost, and you can look at any level of detail.

• Digital models are the basis for innovation. • Suppliers also do modeling and simulation to speed

development and reduce costs.• We take a lot of time determining whether suppliers

can use these tools.- Chief engineer for systems analysis & aerodynamics, Pratt & Whitney

(September 2006)Source: HPC Wire, September 15th , 2006

Page 31: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Adapted from OSC GraphicsCouncil and USC ISI Proprietary

Competitiveness Transformation Challenge

20

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Nu

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1 4 64

National ProductivityOpportunity

Entry Level

HPCUsers Experienced

HPC “Heroes”

Nodes 1,000 10,000+

NICE:Moving Users Forward

NICE:Moving Users Forward

World Class Computing

GovernmentLaboratories &University HPC

Centers

Experienced Industry Users

NICE: Filling the Expertise Gap

NICE: Filling the Expertise Gap

Never

Ever

Users

Mid-Range Users

Page 32: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Exponential Dynamic Systems

Common modes of complex in dynamic systems

Source: System Dynamics, John Sterman, 2000

Page 33: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Jay W. Forrester

• MIT 1939 Servomechanism Laboratory– Feedback control mechanisms for military equipment

• 1945 created an aircraft flight simulator for the U.S. Navy– Design was based on the untested technology of the “digital computer”

• 1947 MIT Digital Computer Laboratory founded (Director Forrester) WHIRWIND (general purpose digital computer)– Used to test computerized Combat Information Systems– Created technology– Invented computer magnetic core memory

• 1950 MIT Lincoln Laboratory Division – Semi-Automatic Ground Environment (SAGE) air defense system– 99.8% uptime during 25 years of deployment

• Experience as Manager on these projects lead him to conclude– The biggest impediment to progress was management not technology– Social Systems are much harder to understand than physical systems

Page 34: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Forrester: System Dynamics

• Forrester appreciated the difficulties faced by managers

• 1956 became professor at the newly-formed MIT School of Management

• Created Systems Dynamics– Under sponsorship of General Electric– 3 year employment cycle– Problem was due to internal structure of the firm not to

an external force such as the business cycle

• Moved to formal computer modeling of system dynamics

Page 35: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

The Beer Game

Steady state at 4 cases per week.

Densmore O. 2005

Page 36: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Connectivity

J.W, Forrester, A. T. Kearney 2000

Page 37: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

The Beer Game - Not Sharing

The system after only a single change from 4 to 8 case.

Page 38: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

The Beer Game - Sharing

Knowledge sharing, reduces the damage of a simple change in the system.

Densmore 0. 2005

Page 39: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Dozier/Chang Findings 2004

• Disruptions move up and down the supply chain. Creates a state of co-dependency.

• Knowledge sharing between members of the supply chain tend to suppress the damage created by unwanted oscillations.

• Grid computing can create a B2B trust environment that creates super supply chains.

Page 40: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

High Performance Grid Computing

Page 41: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

Assessing Your Technology

Ind

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Executive’s Approach to Technology

CEO Not Involved CEO Involved

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CIO Magazine June 2002

Page 42: Western Research Application Center (WESRAC) Managers’ Forum Bio: Nano: Info The Exponential Economy Ken Dozier Executive Director, WESRAC 3/26/2008

Western Research Application Center (WESRAC)

http://wesrac.usc.edu

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