Power of Exponentials

Matt McCall writes: “Nothing is more powerful than the law of exponentials (Buffett refers often to the power of compounding interest). We all like to think in a linear fashion. If I work twice as hard, I will get twice the benefit. Products around me will continue to get incrementally better over time. The next version of software x will look like its predecessor but with added features and functionality. The biggest challenge with running technology firms is that technology advances exponentially. As a result, we get comfortable with a linear view of the world with a specific horizon, and our firm/product/service gets “curve jumped”. Mainframes moved to mini-computers moved to PC’s moved to client/server moved to hosted solutions which is not moving to handheld/portable computing going to ???(bio computing). At each transition, the leader of the former (DEC, Microsoft, Sun, etc) wave is not the leader of the next. As Steve Jurvetson always points out, Disruption occurs at the Edges often out of the mainstream or at the interstices between disciplines.”

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Rajesh Jain

An Entrepreneur based in Mumbai, India.