When You Think Like THIS, You Can Create A BILLION Dollar Company feat. Peter Diamandis

How do we create a world of abundance? Because the realization is that the world's biggest problems are the world's biggest business opportunities, right? The best way to become a billionaire is help a billion people. Just think about that. And my goal here is to have you think big, help you think boldly. One of the things that I realized is we don't have enough people taking action in the world. And I think that difference between someone who says, I'm going to sit back and let it go by, and someone who says, no, I don't like the way it is, is huge. We're now living in a time where the ability we have to actually stop complaining about problems and solving problems is extraordinary. I think about the fact that hundreds of thousands, you know, thousands of years ago, if you wanted to solve a problem on a global scale or on a national scale, you had to be the king or queen of a country to have an impact. Hundreds of years ago, you'd have to be the head of state or a robber baron or an industrialist to have an impact. Today, all of us can have an impact. The difference between having an impact and not having impact is a decision. It's not resources, it's not money. It's all there. It's a decision. So I'll talk a little bit about mindset today, about thinking about how we think, because ultimately, it's the most critical thing. What distinguishes us as humans from every other animal we. What distinguishes one human from another is how we think. And I want to encourage you to think in what I call a bold and abundant mindset, because how you think matters. And it changes everything in your business, in your life. Everything. And again, the thing that I realize is that most of humanity is so mired in the muck that comes from over the television and the newspaper and the radio, what I call the Crisis News Network. Every time I walk by CNN in my office, it's some calamity on the planet going on that is fed to you in high definition over and over again. And if you listen to the news and you read the newspapers and you read, you know, watch television, their mission in life is to capture your attention. And every murder, every problem on the planet is fed to you over and over again in high definition. I mean, how can you possibly have a positive mindset watching the news? And I think if you know my work, the realization is that it's not the way the world really is. In fact, the world has gone under tremendous transformation over the last hundred years driven by technology, which is itself exploding onto the scene. And we'll talk about that a little bit. So Abundance was a book about where we're going to be in 20 or 30 years. Bold is about how to get there. Bold is what I'm going to be speaking about here. It's co authored with my good buddy Steven Kotler. But it's the how to manual of how do we create a world of abundance? Because the realization is that the world's biggest problems are the world's biggest business opportunities. Right? The best way to become a billionaire is help a billion people. Just think about that. And my goal here is to have you think big, help you think boldly. So let's talk about where we're going in abundance. So the first is increase in freedom and happiness. So this is in fact the look at slavery and indenturedness over the world. From 1750 or 3/4 of the world was indentured or enslaveitude, if you would down to under 10% today. This is annual hours worked per person. So even as the rate of our status of living has increased massively, the number of hours that we've had to work for that standard of living have plummeted. And of course on this graph you can see that France is where you work the least. This is percentage of degrees awarded to women has been skyrocketing. And I love this graph. It is a correlation, a direct correlation between happiness and access to technology. And guess what's happening in terms of access to technology? It's exploding around the world. If you look at reduction of violence and increase in safety, CNN would have you believe that there's constantly a world under siege, that your life is about to end. But the fact of the matter is, and this comes from the work of Steven Pinker, we're living during the most peaceful time ever in human history. Your chance of dying a violent death is 1-500th of what they used to be. So you can see just the radical fall off in war around the world. Yes, World War II and World War II one are peaks here. But at the same time, look at what's been happening over the last 20 years in terms of regional and local wars. If you look at safety, automobile and airline just plummeting in terms of fatality rates, increasing health. I love this maternal mortality for the mothers in the room here. It used to be a risky business to have a baby. Today it's dropped off to near zero. At the same time, infant mortality. Imagine having your children die. Today. The ability to guarantee that your children can get through childbirth and live to age 5 or older. On the flip side, the extended healthy human lifespan more than doubled the human lifespan in the last hundred years. And I'll be talking about how we double it again very shortly. On the energy front, electrification and the cost of energy has dropped and plummeted. Solar costs are plummeting at the same time that the production of solar is going through the roof. I was having drinks with Elon talking about from solar cities, what the prediction is 50% solar in the US within the next 15 to 20 years and the rest of the sunnier parts of the world catching up very quickly thereafter. Reducing poverty. And I love this, this is the COVID of the Economist magazine that we really are heading towards the end of poverty on this planet. At least extreme poverty. Finally, what's making this all possible is technology. And look at these numbers. This is bandwidth costs for a gigabit $1,200 down to $23 over the last 15 years. This is the cost per a million transistors used to be $222 down to 6 cents. This is the cost of storage for a gigabyte, 600 bucks down to 3 cents. This is happening right now. And if you want to know why your businesses are exploding and what's going on, the reach you have around the world, here's the data, this is what's happening. And then finally, I love this one, which all of us are the beneficiaries of. In 2000, if you wanted to start a tech startup, the average startup cost was 5 million bucks. Today it's 5,000 bucks, thousand times cheaper. Talk about an explosion of entrepreneurship. So what's going on on the scene here is that we remain unchanged as humans. We haven't had a software upgrade in 50,000 years. We're the red line here. That linear and local thinker that evolved on the savannas of Africa, that yellow line, that exponential growth. An exponential is simple doubling. 1, 2, 4, 8, 16, 32. That's exploding on the scene is the technology that we are creating and using. And the difference between those is, is either disruptive stress or disruptive opportunity, depending on your point of view. If you're the CEO of a Fortune 500 company and one of you guys come up with a disruptive innovation, it's disruptive stress. If you're the kid in the garage who comes up with innovation, it's disruptive opportunity. What we're going to be seeing over this next decade, and we're living at the knee of the curve. This is like the most important time and exciting time ever to be alive. Science fiction is becoming science reality every single day is that in the next 10 years, 40% of today's Fortune 500 companies are going to be gone, put out of business by companies we haven't heard of yet. At the same time, to echo that, this was from Richard Foster at Yale. If you started a company in the 1920s, you had a 67 year run rate that you could milk the company before you were disrupted. Today the average is 15 years. The rate of disruption is increasing at an extraordinary pace. I love this. And it's happening every day. And we report on it. We go from I've got an idea to I run a billion dollar company in record time. Literally we're seeing billion dollar startups in 18 months. And here's just a short list of some of them that we read about, play with, know about. And it's possible, right? You can go from I've got this great idea and scale to a billion dollar valuation in a year's time, two years time. It's not easy, maybe you have to be lucky, but it is now possible like never before. All of that's being driven by computational power. All of this exponential change I speak about is being driven by the fact that computers are getting faster and faster and faster. That nine years from now, the average thousand dollar computer that you go out and buy, it's got the computational power of the human mind and then 25 years later, it's got the computational power of the entire human race. And what's happening that's so extraordinary is we're living into this world of convergence. This is where I spend my life. I spend my life running the xprize singularity university abundance360, looking at and feeling the pulse of this convergence where all of these faster and faster computers are driving a slew of different technologies. What do you mean by that? I mean pervasive networks connected everywhere, ubiquitous sensors, a trillion sensor economy where you're going to be able to know anything you want any time you want anything you want to be measured. Artificial intelligence, which is going to rock our world like you've Never imagine. Robotics, 3D printing, synthetic biology and medicine. And so faster computers is sort of the growth medium that all of this stuff is happening in. And all of this stuff is technology that if you're not using it yet, you will be guarantee you will be touching and using all of these technologies within the next five years. Do you remember the first time that you guys remember seeing email or hearing about email or a webpage it was like this foreign thing. I remember the first, like, what's this AOL thing I keep hearing about? Or this web page thing I keep hearing about? And now it's second nature. We're using it all the time. You're going to feel that way about these technologies soon enough, and you have to be able to have the impact scale that you want on this planet. And part of my mission, part of my ethos is helping people understand how to use this, how to gain access to it, and how to use it to try and solve bigger and bigger problems, creating wealth, but also creating a world of abundance in the process, because those two are so correlated. So I want to give you just a fallback a little bit on some of the lessons here to give you an understanding. So what's driving all of this convergence and this explosion of technology is what it's called Moore's Law. You may have heard of it. This is the guy it's named after Gordon Moore, who's one of the founders of Intel. And while he was at intel, he noticed that the number of integrated circuits he could put on a chip was doubling every 12 to 24 months. So he wrote this paper in 1965, after just seven years of seeing these doublings, predicting this was going to continue. And in this paper, he said the IC chip price performance doubles every 18 to 24 months and is expected to for the near future. And that projection is held true for 50 years. And every time we hit a boundary condition of what kind of particular manufacturing processes, we break through that boundary condition. So what does that look like? So this is the first integrated circuit ever built in 1958. It's got two transistors on it. You can see it there, those, like rectangular things, and they're interconnected. So it's an IC. In 1971, intel put out its first commercial product. It had 2,300 transistors, about a dollar per transistor, 740 kilohertz frequency. And then a couple years ago, here's the Nvidia GPU graphical processor unit. That's 7.1 billion transistors at, you know, 0.0000001. And that's what's driving all this. The fact that you have so much capability so cheaply that empowers so many different technologies. Here's the first Digital Camera Ever, 1976. Steve Sasson comes up with it inside Kodak. Brings into the boardroom of Kodak and says, here it is, the future of Kodak. And of course, Kodak ignores it because they don't realize what business they're truly in. They think they're in the paper and chemicals business, while they're really in the memory business, in the photography business. And so today the digital camera is not 0.01 megapixels, it's 10 megapixels. It's 10 bucks. It's a thousand times better resolution, a thousand times cheaper, a thousand times a billion fold improvement. And because Kodak missed it, they went bankrupt. But here's the point. This is where it is today. If you expect it's going to stay here and don't project where it's going to be, you're missing the point. Where's it going to be when 10 years from now it's 1,000 times better than this and 20 years, a million times better and 30 years, a billion times better? I mean, it's going to be insect eyes, right? It's going to be in our clothing, it's going to be floating through the air in microdrones. It's going to be everywhere. And as a marketer, you're going to be able to ask a question. How many people in Manhattan at 5th and Madison are wearing blue shirts right now and know that answer. I mean, the notion that you're going to be able to know anything you want, any time you want is what's happening with this global sensor explosion. So I think about the fact that this is where it is today and you have to stretch your imaginations to imagine where is it going to be a decade from now and build your businesses with a projection. I remember meeting the founders of Siri who said when we got together to found Siri, the technology didn't exist for it. We had to project where it was going to be three years from now in terms of bandwidth, computational power and build for that. So as you, the first learning here is as you are building your businesses, you need to project where's technology going to be as a facilitator for you two, three, four, five years from now? Because if you deliver a product based on what it's today, you're out of business or you miss the boat. Does that make sense? It's getting to the puck and I'm not a good sports analogy guy, but I think that's correct. This is the first inertial measurement unit that took us to the moon. £50, millions of dollars. Here it is today, under a buck a chip on your phone. This is what makes drones possible. Where's it going to be in the future? It's going to be molecular in size. It's going to be in the clothing, it's going to be in. Every device is going to have accelerations and velocity and state vectors, information. So as you pick up your fork, it's going to tell you how fast you're eating your food. This is the first GPS unit. 120,000 bucks. 53 pounds. Imagine this on the dashboard of your SUV. Here it is today, right? You can barely pick it up because it's too small. Five bucks. So where is this going to be? So just think about the technologies you have today and project them forward. Because what we think about in science fiction is in fact happening. And again, this is where it is today. It doesn't stop here. It isn't like we're not like, aha, we've achieved it, we've arrived. No, it continues a billion fold better than that. As I teach this, I teach about the six Ds of where exponential technology is going. And this is a framework for you to think about your business and technology. The first is that anything that becomes digitized becomes digital, and everything's becoming digitized. Manufacturing, health, obviously, everything that we do in this room here, it enters a period of deceptive growth. Because in the beginning of exponential growth, 0.01 megapixel cameras, 0.02, 0.04, 0.0. It's a slow growth phase, and it becomes disruptive. Then it drives three things that's rocking our world right now. Dematerialization, demonetization, and democratization. Dematerialization means that today, all of these things, these physical objects, have dematerialized into your phone. So I ask CEOs all the time which of your products or services are going to dematerialize. Because once they do, they demonetize, right? Uber has demonetized the taxi fleets, Skype, long distance, Amazon, the bookstores, Google Research, Airbnb, hotel chains. Craigslist has decimated the newspapers. It's taken the money out of these, put them back in the consumer pockets. So you have to be clear. Are you demonetizing an industry or are you being demonetized? Because I would posit to you that everything can be demonetized and dematerialized in one form or another. And then when that happens, it democratizes a billion handsets in Africa. By 2016, you can come up with a concept and have a billion users in Africa. I mean, you had to have been Coca Cola with arms and legs in every country around the world to have that kind of a reach today. You're a kid in a dorm room. That's the exciting world we're living in. So, four critical insights. The first is that the only constant is change. And the rate of change is increasing. Are you with me there? And you can't relax or you can't sit back. You can. I mean, it's up to you. We're living in a world where abundance is coming, but if you want to keep on top of it. The second is you either disrupt your own company or someone else will. Standing still equals death. And this is what scares the shit out of Fortune 500 CEOs. And they pay me to scare them. But this is what should be exciting to you, because when you see a great profit margin in a large company, your opportunity is to go and figure out how do I disrupt them because they cannot move as fast as you can. Third insight is your competition, and this is mostly to large corporations, is no longer the multinational overseas. It's the guy or gal in the garage. And the interesting thing is that it's not the one or two guys or gals in the garage. It's millions of them in Mumbai, in Singapore, in San Jose. The number of entrepreneurs is exploding into the world. And then finally, your mindset matters a lot. So the question is, what's yours?

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I also, in bold, really drill down into what the eight innovation principles are that Google uses. And then with Stephen, look at how Lockheed Skunk Works maps onto that. So one of the most extraordinary companies and mindsets. And how do they work? Let me share with you these eight principles. The first is focus on the user. Google's issue, and you'll see this again and again, is focus on user. What does the user need? Pretty obvious, pretty direct. The second is Open will win. You know, I bet ON Android over iOS for that one reason. Open will win the ability for having billions of people to contribute to you instead of thinking that, oh, my 10,000 employees are the best and brightest in the world, you know, there's no competition there. The second is ideas can come from everywhere or anywhere. The whole notion of crowdsourcing, right, we talk about that at Abundance360. We talk about that at, at Xprize, at HeroX, it's the fact that you can crowdsource solutions from around the world to solve your problems. Think big, start small. So at Singularity University I constantly teach the students start with a product that has the ability to earn a dollar on day one but can impact a billion people in a decade. That's the think big, start small. Never fail to fail. This is where big companies screw up, where they don't take risks. And you guys know that as entrepreneurs, never fail to fail the rapid experimentation, launch early and iterate. My friend who's the CEO Reid Hoffman of LinkedIn says if you're not embarrassed by your first product release, you've launched too late. And I believe that when you look for striving for perfection, you miss the whole benefit of this hyper connected world today. Be a flat, a platform, float all boats and then finally make it matter. Make it matter. Oh my God, make it matter. So in bold, I talk about a concept that my good friend Salim Ismail coined which is having a massively transformative purpose, an mtp. Do you have for yourself and for your company a massively transformative purpose that matters, that's going to attract people to work for you, right? At xprize, it's making the impossible possible or solving the world's grand challenges. So here's the eight. We'll talk about these a little bit more. My question for you is what is the area of your business where you should be going 10 times bigger rather than going 10% bigger? So I want you to reflect on that and think about that. Don't have time to do a session now, but ask yourself that question, please. So here's one of the first moonshot organizations. One of the first bold thinkers out there is Kelly Johnson who in 1943 is called by the Defense department says we're losing the war against Nazi Germany and we need a jet plane. Never had a jet plane before. In 143 days these guys did not design a jet plane. They delivered working hardware. You can't negotiate a contract 143 days. Today they also delivered the U2, the SR71s. The question is how did they do this? And, and so Inbold actually looked at how Lockheed Skunk work did this, compared this against Google X and came up with some shared elements. And here they are. The first is having a compelling purpose or mission, an MTP that is uniquely yours. Google's is to categorize the world's information. And if someone else came up with that mtp, they say no, that's Google's. So something uniquely that's yours. That attracts the world's top people to come and work for you. The second that Kelly Johnson and Google X Share is small teams, a passion around small teams. And this is the words from Kelly Johnson. The number of people connected to any project should be restricted in an almost vicious manner. This is Jeff Bezos two pizza rule, right? Teams under 10, ideally 5 or 6. Extreme isolation. Access by outsiders to the project and its personnel must be strictly controlled. Because if you're trying to innovate inside your organization of even 100 people, let alone 5,000 people and you're trying to do something that's disrupting your company, the entire immune organization is going to come out to you and say that's a crazy idea, it can't be done. If you do it, you can put us out of business. What are you doing? Come on, stop it. And so actually taking that skunk works inside your group and isolating it, right? It's Steve Jobs taking his Mac team to a different building with a pirate flag above. So how do you isolate your team? Authority and autonomy. The manager must have control of his program, create mutual trust and very close cooperation on a day to day basis. It's the notion that my team at PhD Ventures Abundance360. It's five group, it's a team of five. It's like they're a self managed company. They have the authority and the autonomy to go and run on their own. I learned that from Strategic Coach. Of course. It's all good things. Flexibility must provide a very flexible drawing. So when they designed the fighter jets and the U2 and the SR71, there was a drawing in the middle of the room where anybody could go and change the drawing. There was no sort of organizational hierarchy. I need to get this person's permission. You could go and change the drawing of that airplane. And so it provided immense flexibility but also responsibility. Lives were at stake if you screwed up. But it allowed rapid iteration like never before. And then finally testing and experimentation. You know, fail often, fail early. Test, test, test, the next part of the book. I actually had a chance to sit down at length with a number of amazing people. Larry Page, Elon, Jeff Bezos, Richard Branson studied their work and came up with a series of eight I'll share six. Thinking at scale, strategies, passion and purpose. You know, Elon said, I didn't go and build a car company and a rocket company to make money. I'm not crazy. It was like driven by my passion, thinking at scale and experimentation. Jeff Bezos saying, you know, you need to have thick skin if you're not failing often, if you're not experimenting on a monthly or daily basis, you're not going to innovate. Larry Page saying, you know, we need to be customer centric. We need to be doing stuff and touching stuff that people use every day. Richard Branson saying, we need to have risk mitigation. And again, you guys will get copies of my book. But specifically, entrepreneurs are ones who take risk but set it off to someone else. Long term thinking. Jeff Bezos with Amazon is a perfect example of long term thinking. And then finally, you know, optimistic thinking. And Larry gives me credit on abundance often. But it's, you know, it's, we have a reason to be tremendously optimistic in the world today. And having that mindset inside your organization and your company and your family and your life changes how you think about the future. So three key questions here. Jot these down and think about this later. Where are you thinking local and linear? Where you should be thinking global and exponential? Which of your products and services might become dematerialized or demonetized? And where inside your company are you taking moonshots? Okay.

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