42 REAL-LEADERS.COM / SUMMER 2022 Develop an Exponential Mindset In the beginning, exponential growth was slow. The first digital camera took 0.1-megapixel images, then 0.2, 0.4, and 0.8. The rate was doubling, but this speed of innovation was imperceptible to executives at Kodak. Fast-forward 30 years, and this failure to perceive where the market was going put Kodak out of business. Its business model had gone fromdeceptive growth to disruptive growth by failing to acknowledge that digital cameras had reached 36megapixels by 2012 — the year they went out of business. Dematerialize, de-monetize, and democratize products and services. The digital camera has dematerialized the camera — it became an app on your mobile phone. It de-monetized the cost of film — nobody thinks twice about snapping hundreds of images a day at no cost, and the rise of mobile phones has given everyone a camera. The combination of abundant capital in the markets and the rapid rate of technological innovation allows companies to do things with $1 that used to cost them$10 a few years ago. It’s an invisible financial savings that business leaders should look to exploit. CEOs need to understand the speed of change to take advantage of where things are going. Diamandis stresses that the coming change will affect every business owner, not just those involved in the tech world. People have no idea how powerful AI will be in transforming every industry. “Think about the rise of flying cars,” he says, giving one example. “Howwill this affect real estate investments —when your hour-long car commute suddenly becomes a 7-minute flight? Will my choice of where I choose to buy property change?” Sundar Pichai, the CEO of Alphabet, has said that AI will be more important than the invention of electricity or fire to humanity, and he’s right,” says Diamandis. CEOs Must Be Technologists and Futurists To stay abreast of the looming technology revolution, Diamandis suggests all organizations should have someone onboard keeping an eye on what’s next. In his opinion, this should be the CEO. “Transforming your company during a period of disruptive change and creating moonshots doesn’t bubble up from the bottom,” he says. “A board of directors needs to support a CEOwho is constantly thinking about how to reinvent the business. If someone is not disrupting themselves, someone else is — to your disadvantage. Hire some bright 20-something year-olds for your team, but don’t use that as an excuse to relinquish your duty as a CEO to stay focused on where things are going. Ask yourself: What is blockchain? What is the metaverse? Explore how these might affect your business and feel the need to experiment.” The Importance of Moonshots Creating a moonshot opportunity is about going 10 times bigger when your competition is going 10%bigger. A category of companies called exponential organizations (EXOs) has tapped into this moonshot mentality — think Tesla, Amazon, Google, and SpaceX. How do they do it? First, they identify 5-10% of their team that should be focused onmoonshots. Ninety percent of their efforts will fail, but the 1 in 10 that succeeds will create results that could reimagine your business for a decade ahead. “We’re already seeing a massive change in the health industry,” says Diamandis. “Longevity is a hidden trend that business leaders should take seriously. Adding 20-30 years onto human life (and beyond) through stem cells and regenerative medicine will see 100 years old becoming the new 60. CEOs who find themselves with an extra 30 years of leadership ahead will need to consider how this changes their planning horizon. Likewise, the game will change drastically for life and health insurance companies. The entire retirement industry could face an overhaul in the next decade. Competition vs. Collaboration We do our best work when we compete, according to Diamandis. “New records are set at the Olympics because it’s the best in the world, competing against the best in COVER STORY HOW WILL YOU LEVERAGE FOR SUCCESS? The Smartness Economy: In the late 1800s, if you wanted a good idea for a new business, all you needed was to take an existing tool, say a drill or a washboard, and add electricity to it—thus creating a power drill or a washing machine. In the 2020s, AI will be the electricity. In other words, take any existing tool, and add a layer of smartness. Example: We all know the big names incorporating AI into their business models—from Amazon to Salesforce. But more AI startups arise each day: 2,300 AI-related startups around the world raised over $70 billion in 2021, more than double the amount raised in 2020. Decentralized Autonomous Organizations (DAOs): At the convergence of blockchain and AI sits a radically new kind of company—one with no employees, no bosses, and nonstop production. A set of preprogrammed rules determines how the company operates, and computers do the rest. Example: While DAOs are just beginning to emerge, the platform DAOstack is working to provide these businesses with tools for success. For example, a fleet of autonomous taxis, for instance, with a blockchainbacked smart contracts layer, could run itself 24/7, including driving to the repair shop for maintenance, without any human involvement.
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