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LECTURE L13
RISE OF THE MACHINE
Keep this in Mind
Adjacent possible

The S-curve

The Law of Diffusion of Innovation

Arrogance of the Present

The Disruption of Innovation Theory

The Resources, Processes and Values Theory

The Liquid Network
History of Computers
History can help us explain many things

We can use our laws and theories to explain events

Computers are relatively recent and their development is
fairly fast
“I can assure you on the highest authority that the data
processing is a fad and won’t last out the year.”
Editor-in-charge of business books, Prentice-Hall 1957
Think About This!
Why are flight tickets and boarding passes in this format?
Think About This!
Why are flight tickets and boarding passes in this format?
dictionary.com
“I	think	there	is	a	world	market	for	maybe	
five	computers.”	
-	Thomas	Watson,	chairman	of	IBM,	1943	
72 years ago
“There	is	no	reason	for	any	individual	to	have	a	
computer	in	their	home.”	
-	Kenneth	Olsen,	president	and	founder	of	Digital	
Equipment	Corp.,	1977	
42 years ago
History
Computing is time consuming and error prone

Demands for computation were increasing 

with more organised societies

Industrial revolution and the Napoleonic

reforms
Impetus came from Government:

Taxing and Defence
Efforts to speed calculations started early

Use of logarithmic tables and 

trigonometry to speed calculations
The Counting Business
The Slide Rule by William Oughtred in 1625

Built using logarithms, multiplication of two numbers could
be done easier

a*b = 10^(log(a)+log(b))

Much quicker than manual calculation
The Counting Business
Early Machines
Wilhelm Schickard (1592 -1635)
German professor of Hebrew and Astronomy
University of Tüblingen, Germany
Built a calculating machine in 1620s
Documented in letters to Johannes Kepler
1623 and 24
Early Machines
Blaise Pascal (1623-1662)

French mathematician, physicist, and 

religious philosopher

Built an adding machine in1642-44

Tried to commercialize the 

machine but labor was too cheap
Early Machines
Wilhelm von Leibniz
(1646-1716)
German mathematician and
philosopher
Built a machine, the Leibniz
Wheel that could multiply and
divide
History
Workmanship for building complex machines lacked

In late eighteenth century demand for calculation was
growing

Calculations were done by hand

Tedious, slow and error-prone and tables of logarithms
were riddled with errors
3.14159265358979323846264338327950288419716939937510582097494459230781640628620899862
8034825342117067982148086513282306647093844609550582231725359408128481117450284102701
9385211055596446229489549303819644288109756659334461284756482337867831652712019091456
4856692346034861045432664821339360726024914127372458700660631558817488152092096282925
4091715364367892590360011330530548820466521384146951941511609433057270365759591953092
1861173819326117931051185480744623799627495673518857527248912279381830119491298336733
6244065664308602139494639522473719070217986094370277053921717629317675238467481846766
9405132000568127145263560827785771342757789609173637178721468440901224953430146549585
371050792279689258923
How long does it take to compute 707
decimal places of PI?
Think About This!
The idea of calculating with steam was to many
impossible - machines could never take over this human
activity 

Yet it did. Can you think of a task done today that will be
taken over by machine in the future?
Lecture Exercise L13 - E
Inventor of the Computer

Wanted to remove the
inevitable human errors from
computing

Believed that machines
could replace laborious and 

error-prone calculations
Charles Babbage (1791 – 1871)
A Programmable Machine - 

General purpose computer

Contained 

mill to calculate, 

store to keep data, 

and formulas

The first programmer
Augusta Ada King (1815-1852)

Countess of Lovelace
The Cash Register
The Cash Register
One of the first calculating machines developed by
James Ritty in 1879 in response to thefts by staff

“The Incorruptible Cashier”

National Cash Register Company – NCR

Tomas Watson, Sr. was salesman

Watson would later leave for 

Computing-Tabulating-Recording
Tabulating Machines
Tabulating Machines
In the US need for data processing was growing

One application was census taking

US population grew from 

17 million in 1840 to 

50 million in 1880

It took 1.495 clerks 7 years to 

produce the 1880 census
Source:	Tabulating	machine

Herman	Hollerith	
Tabulating Machine Company – TMC

US Census Bureau awarded Herman Hollerith a contract to
produce the 1890 census

Tabulating Machines with punched cards

Successfully finished in 2,5 years

with one-third less cost (claimed)
Tabulating Machines
Think About This!
Why are flight tickets and boarding passes in this format?
Think About This!
Why are flight tickets and boarding passes in this format?
Source:	Tabulating	machine	Herman	Hollerith	
Used punched cards

Hollerith cards were in use until 1960s
Tabulating Machines
The Business of Data Processing

Even with the growing need for data processing around
1900, the market for tabulating machines was limited

CRT and TMC merged and would later

change the name to 

International Business Machines – IBM

Tabulating Machines
Lessons Learned: Early Computing Machines
Early machines could not compete with manual labor

The cost was not low enough to disrupt

Workmanship was lacking

Energy to power machines was not available

Computing requirement were modest until 18 th century

Babbage failed to build machines despite the resources

Babbage (or rather Ada), had the idea of a modern computer
Lessons Learned: Early Computing Machines
First practical calculating device was a Cash Register

Designed due to another problem: theft

Specialised problem instead of a generic one

Tabulating machines appear with the electricity

First buyers of tabulating machines were governments

Centralised
Electronic Brains
Foundation of electric computing was laid early 

Mechanical computers were not considered practical

Threat of war is looming in the 1930s

Governments turn to computing for ballistic computations

Code-breaking was important
Electric Computing
Although electricity had entered the equation, it had
done so only as an alternative method of powering
mechanical equipment
Source:	Engines	that	Move	Markets
The Prevailing Technology Trap
Konrad Zuse (1910-1995)
German Engineer
Built primitive machines, Z1-Z4 based 

on relay switches in 1936 – 1944
Used binary system
Designed his own language, Plankalkül
Never received any official support from

war-time Germany unlike the Allies
P2 max (V0[:8.0],V1[:8.0]) => R0[:8.0]
V0[:8.0] => Z1[:8.0]
(Z1[:8.0] < V1[:8.0]) -> V1[:8.0] => Z1[:8.0]
Z1[:8.0] => R0[:8.0]
END
Source:	Konrad	Zuse
Early Work
Location of top-secret code-breaking team

Code-breaking the German coding machine ENIGMA
Bletchley Park
Source:	Alan	Turing,	COLOSSUS,	Enigma
English mathematician, logician and
cryptographer

Headed team at Bletchley Park, worked on
algorithms to break the ENIGMA code

Bombe Computer based on heuristics, lead

to COLOSSUS

Publishes paper in 1936: On Computable
Numbers
Alan Turing
Source:	COLOSSUS
COLOSSUS
Used by British code breakers to read encrypted German
ENIGMA messages during World War II

Winston Churchill specifically ordered the destruction of 

most of the Colossus machines into 

“pieces no bigger than a man's hand”
War Machines
Source:	EINIAC
ENIAC — Electronic Numerical Integrator and Computer

Built by the U.S. Army for the purpose of calculating
ballistic firing tables

Used 18.000 vacuum tubes

Designed by John Mauchly and 

J. Presper Eckert
The machine was unveiled in 1946 

and was in operation until 1955
War Machines
John	von	Neumann,	Von	Neumann	architecture
Hungarian mathematician

Worked on the Manhattan project and
became involved in Moore’s School ENIAC
and EDVAC projects

Publishes On computer design, 1945

Von Neumann architecture
John von Neumann
Copyright	©	2011	Ólafur	Andri	Ragnarsson
Post-war computers
Based on vacuum tubes
Commercial Computer

5,200 vacuum tubes, weighed 13 tons, consumed 125 kW,
and could perform about 1,905 operations per second
running on a 2.25 MHz clock

Occupied more than 35.5 m²

of floor space

The addition time was 525 

microseconds Source:	Model	of	UNIVAC	I,	c.	1954.

Picture	from	Smithsonian	Institution	
UNIVAC I
United States presidential election of 1952
Eisenhower vs. Stevenson
Transistor Era
Device use to amplify or switch electronic signals

Huge performance improvement

Smaller

Less energy

More robust

Faster
Transistor
Copyright	©	2011	Ólafur	Andri	Ragnarsson
Computers became

faster, larger and more
powerful
Source:	Tyranny	of	Numbers,	Transistor	Computer	
Computer Engineers have much more flexibility with
transistors

Problem was that as the number of components 

increased, wiring them together became a problem
Tyranny of Numbers
The Integrated circuit
Copyright	©	2011	Ólafur	Andri	Ragnarsson
Source:	Integrated	circuit	
Introduced in 1958 by two inventors

Robert Noyce at Fairchild Semiconductor
and Jack Kilby at Texas Instruments

Transistors could be wired 

together in practical way

Mass manufacturing of ICs
The Invention of the Integrated Circuit
Two inventors at the same time invented
the IC

Because the time had come and all the
enabling technologies were available

Silicon Wally becomes the technology
center of the world
Adjacent possible
Competition Emerges
The Computer Market is born

The main application is data processing (business
applications like payroll, inventory etc.)

IBM enters the computer business

Tomas Watson, Jr. launched

IBM System/360 in 1964

Systematically replaced 

data processing machines

with mainframe computers
In the 1950s Automation Starts
Automation – Computers begin to disrupt work

Start to replace jobs

Banks and insurance companies were early adopters

Handling paycheques, payroll that used to require many
clerks to compute
Automation
Source:	Desk	Set	(from	IMDB)
Hollywood took notice

Desk Set from 1957 with 

Spencer Tracey and

Katherine Hepburn
Automation
Lessons Learned: Early Computing Machines
Electricity was key to computers — switching
technologies

First electric computers were primitive, fragile and low
performance

Centralisation — First computers were in centers

Expensive, large, run by experts – Priests
Lessons Learned: Early Computing Machines
Giant “Brains”

Association with human thought

Automation – Disruption

Companies need fewer clerks to compute 

Tedious jobs eliminated

Big debate – computer executive had to defend the
existence of their machines

Abstractions few

Programs were wired in
Computers in the 1970s
The Disruptive Innovation
Theory

The Resources,
Processes, and Values
Theory
Think About This!
IBM	704
IBM	System/360
Large computers in data
centres

Batch operations

Critical applications

Financial transaction
processing

Mainframes
Computers were expensive to purchase and maintain

To make it efficient required multiple users

Large data centres

Utility Computing

Time-sharing of expensive

equipment
Time-sharing
Cost of computers went down

Computers became faster, smaller and cheaper

In that changing environment, normal economics
did not apply
Moore’s Law
Cost for new entrants in the computer business was
prohibitive in the 60s

Market for those that did not need complete solution but
could benefit from using computes

Birth of the Minicomputers
Minicomputers
The academic community embraced the opportunity of
minicomputers

Militaries were also early users of minicomputers
Minicomputers
Founded in 1957 by Ken Olsen

Launched PDP-1 in 1960

The PDP-8 was the first successful 

commercial minicomputer – 1965 

Used integrated circuits

Time-sharing allowed multiple 

users to use the machines at the 

same time
Digital Equipment Corporation
Digital used relatively simple,
convenient, low-cost innovation to
create growth and disrupt IBM
The Disruptive Innovation Theory
IBM Was a mainframe company, their customers
wanted mainframes, not low-performance
minicomputers
The Resources, Processes, and Values Theory
Although IBM/360 Model 20 was later consider to
have the same characteristics as minicomputers
Clayton	M.	Christensen:	The	Innovator’s	Dilemma
Lessons: Mainframes to Mini computers
IBM, industry’s first leader, sold mainframe computers to the
central accounting and data processing departments of large
organizations

The emergence of the minicomputer represented disruptive
technology to IBM and competitors

Their customers had no use for it: it promised lower, not higher
margins

As a result the mainframe makers ignored it for years
Clayton	M.	Christensen:	The	Innovator’s	Dilemma
This allowed new entrants: DEC, Data General, Prime,
Wang and Nixdorf – to create and dominate the
minicomputer market

IBM entered the minicomputer market when it was
performance competitive to the needs of their customers

The history repeated itself
Lessons: Mainframes to Mini computers
May 25, 1961
Status:

Mainframe era, minicomputer early days

Transistor era, integrated circuits just invented

Programming languages new
“The space program badly needed the things the
integrated circuit could provide.”
- Jack St. Clair Kilby
Robert Noyce and Gordon Moore founded Intel

Semiconductor company

Initial focus was on memory chips

There was still enormous potential market for calculations

The vision of Charles Babbage was still not realized but the
mainframe market met the needs of governments and large
organisations
Semiconductor Industry is Born
Intel introduced the first microprocessor 4004 in 1971

8008 in 1972, 8080 in 1974 and 8088 in 1979

The beginning of the PC
The Microprocessor
Intel was really reluctant to go into the microchip business

No market existed

No demand at the time

Intel created 4004 for another company

They would not market chips, but built them when ordered

The company cancelled the order and Intel was forced to
offer them for sale
The Microprocessor
The Calculator
Advances in technology introduced the 

desktop calculator

The market grew fast

With advances, the calculators became more powerful
and smaller

Pocket calculators Became widespread in the 70s

Replaced the slide rule after 374 years
The Calculator
Many companies start to make Calculators

Casio, Sharp, Canon, HP, MITS and more

In Europe, Aristo, Denner & Pape, a slide rule
manufacturer since 1872, also entered the market in 1972

Price dropped fast: $400 in 1972, $200, $100 and $50 in
1974

Companies like MITS need to find new ways of revenues
Calculator Wars
Think about this!
All minicomputer companies had the opportunity to use
microchips and build scale products – they even had
people proposing the idea, but they did not!

Left the field open…
Think About This!
The Personal Computer
MITS marketed Altair in 1975

Came with Intel 8080

Users needed to assemble the machine themselves

No keyboard, no screen, no printer

256 byte of RAM, programmed with switches

Included BASIC interpreter from Microsoft

Written by Bill Gates and Paul Allen

Cost of $397 appealed to computer enthusiasts
The Personal Computer
Bill Gates and Paul Allen
Wrote a BASIC interpreter for the Altair

Founded a company they called Micro-Soft
Microsoft is founded 1975
Steve Jobs and Steve Wozniak
Show the Apple I in the Palo Alto Homebrew
Computer Club in 1976

Apple II was marketed 1977 and became 

a huge success - “Apple growth”

Hewlett-Packard had turn 

Wozniak down – no market
Apple is founded 1976
“The Personal Computer will fall flat on its face in business.”
- Ken Olsen
Existing computer companies were not interested in PCs

DEC, HP, IBM, and Control Data did not see a business model

HP rejected a proposal from Steve Wozniak

DEC rejected a proposal from David Ahl

Support for machines like this was considered impossible
Computer Companies
Consequence: The development of the PC had to begin with
hobbyists and new entrants to the market
The Liquid Network
Think About This!
Assignment 3 due this Sunday

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