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The New Industrial Revolution
The History of 20 Years in 2 Sentences


 The past decade was about finding
 new social and innovation models on
              the web

The next decade will be about applying
          them to the real world
The First Industrial Revolution
The Second Industrial Revolution

Democratize the tools of   Democratize the tools of
       creation                  distribution
The Third Industrial Revolution

Democratize the tools of   Democratize the tools of
       creation                  distribution
Distributed Manufacturing


                            New
    “Long Tail of Stuff”    Industrial
                            Revolution
    Open Innovation
       
        Community
       
        Open Source
       
        Crowdfunding
       
        Peer-production
       
        Co-creation
ArduCopter
$10,000,000s              Global Hawk
                                            (10s)
           Military
                           $1,000,000s     (10s)       Predator/Reaper
                          $100,000s        (100s)        ScanEagle
                         $10,000s         (1,000s)         Raven


                      $1,000s            (10,000s)            DIY Drones
Civilian




               $10s                      (100,000s)                 RC built-in


           $1s                        (1,000,000s)                      Chip
Software vs Hardware

                  Software                      Hardware

Format            Text                          Text, CAD, CAM, jpg, pdf, etc

Version Control   Git, SVN, Mercurial, etc      Software ones (yuck), wikis
                                                (yuck), Google Docs (yuck)

Metadata          Language, Platform, License   Manufacturing rules,
                                                materials, physical properties,
                                                authoring tools, parametric
                                                data, etc

Skills            Programming,                  Programming, Electronics
                  Documentation, Graphic        Documentation, Graphic
                  Design (rarely)               Design, Industrial Design, ,
                                                Mechanics, Manufacturing,
                                                Sourcing, Logistics, Supply
                                                Chain Management, QA, etc
Business Model

    “Give away the bits, sell the atoms”

    Charge 2.6x BOM

     Keep ahead of cloners by innovating faster,
    supporting better

     “90-1” Rule: 90% the performance of
    commercial UAVs at 1% the price

     Democratize the technology: low prices = high
    volume = high innovation.

     Internet model: engineers invented the Web
    (http://), but we all filled it and figured out what it
Innovation model

     Hardware: standard private company
    development, with employees and small beta-
    test group

     Software: open source teams, with volunteers
    and total public development. Incentives
    include:
       1) Making what you want, but default share
       2) Being part of something awesome
       3) Respect of others
       4) Opportunity to work with rockstars
       5) ….maybe employment/economic opportunities
The Hierarchy of Reward

                   Team leaders who
                   have shipped a
                   major project
                                       Equity

             Core Team leaders        Trip to dev
                                       meeting
          Accepts role as a      Dev team member
          project leader
                                  & free hardware
  “Sustained Contribution     Coffee mug & hardware
  Award” by team leader              discount

First accepted commit                  T-shirt
Far (China)
            (pre mfg infrastructure)           (volume efficiencies)



    1                100               1,000            10,000
                    Units
   (prototype)               (flexible manufacturing)


Close (US)
The New Industrial Revolution
The New Industrial Revolution
The New Industrial Revolution
The New Industrial Revolution

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The New Industrial Revolution

  • 1. The New Industrial Revolution
  • 2. The History of 20 Years in 2 Sentences The past decade was about finding new social and innovation models on the web The next decade will be about applying them to the real world
  • 3. The First Industrial Revolution
  • 4. The Second Industrial Revolution Democratize the tools of Democratize the tools of creation distribution
  • 5. The Third Industrial Revolution Democratize the tools of Democratize the tools of creation distribution
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14. Distributed Manufacturing New “Long Tail of Stuff” Industrial Revolution Open Innovation  Community  Open Source  Crowdfunding  Peer-production  Co-creation
  • 15.
  • 16.
  • 18. $10,000,000s Global Hawk (10s) Military $1,000,000s (10s) Predator/Reaper $100,000s (100s) ScanEagle $10,000s (1,000s) Raven $1,000s (10,000s) DIY Drones Civilian $10s (100,000s) RC built-in $1s (1,000,000s) Chip
  • 19. Software vs Hardware Software Hardware Format Text Text, CAD, CAM, jpg, pdf, etc Version Control Git, SVN, Mercurial, etc Software ones (yuck), wikis (yuck), Google Docs (yuck) Metadata Language, Platform, License Manufacturing rules, materials, physical properties, authoring tools, parametric data, etc Skills Programming, Programming, Electronics Documentation, Graphic Documentation, Graphic Design (rarely) Design, Industrial Design, , Mechanics, Manufacturing, Sourcing, Logistics, Supply Chain Management, QA, etc
  • 20. Business Model  “Give away the bits, sell the atoms”  Charge 2.6x BOM  Keep ahead of cloners by innovating faster, supporting better  “90-1” Rule: 90% the performance of commercial UAVs at 1% the price  Democratize the technology: low prices = high volume = high innovation.  Internet model: engineers invented the Web (http://), but we all filled it and figured out what it
  • 21. Innovation model  Hardware: standard private company development, with employees and small beta- test group  Software: open source teams, with volunteers and total public development. Incentives include: 1) Making what you want, but default share 2) Being part of something awesome 3) Respect of others 4) Opportunity to work with rockstars 5) ….maybe employment/economic opportunities
  • 22. The Hierarchy of Reward Team leaders who have shipped a major project Equity Core Team leaders Trip to dev meeting Accepts role as a Dev team member project leader & free hardware “Sustained Contribution Coffee mug & hardware Award” by team leader discount First accepted commit T-shirt
  • 23. Far (China) (pre mfg infrastructure) (volume efficiencies) 1 100 1,000 10,000 Units (prototype) (flexible manufacturing) Close (US)