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 creation

Democratize the tools of distribution

The Third Industrial Revolution

Democratize the tools of creation

Democratize the tools of distribution

Distributed Manufacturing

“Long Tail of Stuff”

Open InnovationCommunityOpen SourceCrowdfundingPeer-productionCo-creation

New Industrial Revolution

ArduCopter

$10,000s

$1,000,000s

$10,000,000s

$100,000s

Global Hawk

Predator/Reaper

ScanEagle

Raven

$1,000s

$10,000s

$10s

$10,000s

$1s

(10s)

(10s)

(100s)

(1,000s)(1,000s)

(10,000s)

(100,000s)

(1,000,000s)

DIY Drones

RC built-in

Chip

Military

Civilian

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, Documentation, Graphic Design (rarely)

Programming, Electronics Documentation, Graphic 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 was for

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

T-shirt

Coffee mug & hardwarediscount

Dev team member& free hardware

Trip to devmeeting

Equity

First accepted commit

“Sustained Contribution Award” by team leader

Accepts role as a project leader

Core Team leaders

Team leaders whohave shipped a major project

The Hierarchy of Reward

Close (US)

Far (China)

1001 1,000 10,000

(prototype)

(pre mfg infrastructure)

(flexible manufacturing)

(volume efficiencies)

Units