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Weill Cornell Graduate School of Medical Sciences ​what I want to try to do in a very short period of time is walk you through what's been about a decade of research so I've been a entrepreneur an investor in the digital space for roughly about 20 years and in those 20 years we lived in a perpetual state of confusion we were always doing stuff where there was no road map or no plan so we got pretty good at faking our way through stuff and started realizing very quickly that as I had experienced building companies before there was a browsable internet so what we called the dark web that much has a very different meaning today right through web one right through web 2 to where we are today in whatever you call it the reality is we noticed something very specific and what I want to talk to you about is the subject matter of a book that we coming out and about the next 12 months that were writing live time about this very issue which is that in 2008 when the recession ended in its wake we saw something very specific happen a very fundamental change something that didn't look like it had looked before and I would argue that if you look at the digital age beginning in and around the late nineties call it 1996 1997 then in fact what happened is it ended in 2008 that the digital era as we knew it ended that year and what rose in its wake was what I would call the great rewrite an era where we are literally living in a tear down the planet that we live in that we're standing in is being rewritten from the ground up almost everything you do from how we speak how we educate our children how we buy how we hire people is being completely rewritten now for me as an entrepreneur my journey began 20 years ago I spent most of my life worrying about ones and zeros things that were intangible I ended up selling my last business to a company in the United States called the Anschutz corporation one of the largest live sport entertainment businesses in the world owning assets like the Los Angeles Galaxy the LA Lakers the LA Kings we were one of the largest concert promoters in the world I ended up going from an entrepreneur or in a very intangible world to becoming president of the innovation and digital group inside this company that dealt with very tangible things the entertainment business is very simple you put physical people in front of other physical people you entertain them and you sell them hot dogs and beer that's basically the business so talking about innovation and how a world is being rewritten around them is highly complicated when the owner of the business doesn't have a cell phone or a computer now today I left as every good entrepreneur does when their earn out finishes they leave the company that ended up buying their business I'm still very involved in pro sport I'm one of the owners of a professional football club in England called Coventry City and what I realized in dealing with the leagues and dealing with large brands and dealing with almost anyone in positions of power as they had no idea what was going on zero there was this consistent state of confusion where you would talk and they would expect to know something that they would understand it or want to understand it but in the end they couldn't and so the whole purpose of developing this book in this theory was to get to a place where we could simply and quantifiably explain what was going on around us in this world that was being rewritten now if you don't understand how the world is being rewritten just think about this in one sentence which is today the largest media business in the world owns and produces no content the largest transportation business in the world owns no vehicles the largest telecom in the world has no phone lines and the largest hospitality business in the world owns no hotels and has no hotel rooms a completely rewritten planet based on network effect something very different than the physicality we were used to and if you want to poster boy for this movement it would be Pope Francis as one of the oldest most difficult organizations in the world in terms of its rigidness this Pope has become the poster boy for change and rewriting has physically rewritten the church in less than two years who would have thought that a pope would have come out completely changing the power structure from Europe to the rest of the world to telling Catholics that it's okay not to go to church and be a good Catholic that probably didn't go over very well in the first meeting of the Cardinals but this is an individual who has taken one of the oldest and most difficult institutions and turn it around and there is no reason why you can't do the same if he can now let me take a step back and talk about the foundation and the fuel of this which is the internet it is the driver of what's caused this rewrite but again many people struggle to figure out why it's so relevant and why it's become such a big part of our lives let me give you a very simple explanation we have lived as human beings through five media revolutions the first was movable-type the Gutenberg moment transmitted wire recorded media and the one that ruined most of us television each one of these media revolutions is identical they are exactly the same they are broadcast in nature either one-to-one or one-to-many they're incredibly expensive you couldn't just go and set up your own television network if you wanted to and they were all regulated by government if you fast-forward to the fifth media revolution we are living in now which is the Internet you will see why


this is so fundamentally different it is the first time in the history of our species where we have mass communication on a many-to-many basis where millions of people can speak to millions of other people with virtually no additional cost to their disposable income it is quite difficult if not impossible for governments to regulate so why does it matter it matters because this is the first time in humanity that we have owned our own communication on a global level at mass scale that's why the internet matters and that's the foundation of this rewrite the rewrite which some people try to compare what we're going through as is this another Industrial Revolution this is not a revolution at all revolutions were quite long historically they took hundreds of years to complete this is happening at 1/10 of that time there are four main drivers that we are living through that caused this confluence of events post 2008 where I would argue the digital age ended and we began this rewrite the first is technology we all understand as I said before the internet is the foundation in the fuel of this rewrite but the technological piece to understand that's causing it to grow at an exponential rate has to do with cost the tools of innovation for all of the tech we're building is driving to nothing it's a marginal zero cost environment if you think about the most powerful computer in the world in 1975 it would have cost five million dollars to build not to buy you couldn't have afforded it it was priceless at the time five million dollars today you had the exact same computing power in an iPod - in 2010 for $200 today sitting in your purses and pockets you have more power on your person than NASA had to go to the moon if you think about supercomputing supercomputing which is the modern-day version of things like IBM's Watson was incredibly expensive but what's happened that's changed in this growth rate is the cheap access for front-end devices where they can access this supercomputing at very very cost-efficient levels to give you an example in the United States well point which was one of the HMOs just did a huge cooperation and partnership with IBM and they discovered that Watson through very cheap and effective front-end means is 90% effective at discovering and diagnosing lung cancer in human beings whereas doctors were at a rate of 45% this computer can diagnose cancer at a rate much faster and much more effective than human beings let me talk about human behavior the second driver of this rewrite we were virtually the same people for 3,000 years since the rise of the commercialized Internet in the late 90s we have changed more as a species in our behavior than in the preceding three thousand years in just a 20-year period you are fundamentally different human beings than the people who walked here long ago your behaviors are fundamentally different and if you don't believe how different we are let me give you one small example think about how we behaviorally think about celebrity variety due to study in the United States with teenagers to ask them to identify the celebrities that they valued or looked up to the most on that list out of the top 10 there was only one Hollywood celebrity the rest of them were YouTube celebrities there is a complete generational shift in way we behave and think about who we see a celebrity and the view and the lens through which we see them so why did this happen what we now know through much research coming of the sociology departments at schools right throughout the United States and Europe is that you are actually two people that the rise of the commercialized Internet we followed what science fiction predicted which is that we bifurcated into two beings you are in this room two people you are a physical person the person who is typically in face-to-face interactions and you are a virtual person the person you are in non face-to-face interactions email text social media everything you're doing where you're not physically face-to-face with someone and those two personalities are completely different often they're fundamentally in conflict so why should you care about this this by the way in my view is probably the most important sociological finding in the last two centuries marketers need to figure this out people an HR need to figure it out speaking to your own children becomes much easier when you understand this it's happened at such a quick rate that we don't realize how it's affected our lives this behavioral shift today why you should care about it is because the average Westerner spends two thirds of their working day and their virtual identity and not their physical one capital markets this is the scariest of the changes for 200 years the capital markets in the United States and Europe protected large business they protected the GM's and the Ford's the people who basically buttered their bread on a daily basis if you were to compete or threaten those entities it was very difficult for you to get any large scale capital infusion what has happened in 2008 in the wake of the recession is that the large investment banks realized that that when they watched their brother and sister banks go bankrupt they could no longer rely on traditional industry to make it happen for them so they created a wall and basically said we will no longer do this now whether they formerly said it or informally said it you can just watch how things are being capitalized today you are seeing industries regardless of what you do horse and buggies making hearing aids digital it doesn't matter there will be without question at least two businesses in every sector that are coming up through the ranks as a disruptor with at least a billion dollars in financing the greatest example of that is Tesla the electric car is not new technology there has been a multi-billion dollar effort to keep the the electric vehicle off the road for the last 70 years so how did this suddenly happen how did it lawn musk suddenly take Tesla from a multi-billion dollar effort to keep it from never existing into one of the top five auto brands in the United States and the answer is because Wall


Street led him because they were no longer prepared to protect the Fords in the GM's of the world this is a massive capital market shift the fourth is the rise of the entrepreneurial class this is important to understand we used to live in an era that was about jobs and jobbers your parents went to work stayed there for 30 years got the gold watch and retired this is no longer the case entrepreneurship which was a phenomenal French word for meaning you were unemployable in effect now is a position that has changed the entire economy it is now the most desired program in almost every business school and for most of us we are in a position that we will be forced to be entrepreneurs not just because we desire it but because economic conditions will require us to be entrepreneurs the age of retirement as we knew it is over retirement was a ridiculous concept it was created for the baby boomers to get them out of the workforce if you show people in their 20s commercials about retirement the response you'll typically get back is so you're telling me that my life begins at 60 which means my life before that was so bad that it's got to begin at the end of it no thanks not interested so the rise of this entrepreneurial class has put us in a position where the whole economy has changed around how we see ourselves in relation to what we do every day so one of the things I wanted to show you is my own personal kind of passion about how we are rewriting the world in the entertainment business we took a big step and the Anschutz group was one of the drivers behind that we not only took to set out to rewrite the way the market work but to rewrite the human being to rewrite the human form the company owned a very large festival that goes on in the palm desert called Coachella which some of you may be familiar with and what you are looking at here is not a photograph of a human being this is a photograph of a rapper who passed away almost a decade ago named Tupac Shakur this is a hologram of Tupac Shakur and not your old Star Wars obi-wan kenobe hologram this is a twelve and a half million dollar 3d CG odd replication of a human being who performed live on stage with snoop and Dre and interacted live with the audience about a year later the modern iteration of this occurred if you watch the American Billboard Awards you would have seen Michael Jackson onstage with nine dancers not a single human being on that stage and what was amazing about it was Michael Jackson was performing a song that he recorded before he died but had never ever performed live this has been taken into the political realm now we're in Spain human protest in person was disallowed so holograms for freedoms started to create protests of holographic human beings to do and function in the same way so we are functionally rewriting the human form and we now know that in the live entertainment world anywhere from 10 to 30 percent of the entertainment we see will not be live human beings at all so how does this affect you in a world that's being rewritten around you it's important in whatever size organization you live in not-for-profit small business large corporation government it doesn't matter we are moving into the age of the parallel enterprise which simply means this public companies have done this for decades there's the business of the public company and there's the business of the company and they're often very different every organization is now going to be required to run this parallel enterprise R&D and research is never going to be again stuck in the basement with a bunch of guys in lab coat working on projects you are functionally going to have two organizations at any given time and there will be a perpetual road race whether it's the traditional old core competency organization or the new one that's figuring out the future that's gonna let you know where you're gonna win and win the war so while I can't give you the roadmap of exactly what this is going to look like I can tell you for sure this is going to be one hell of a 365 days thank you very much you Union Theological Seminary, Morningside Heights (Columbia University area).

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THE UNIVERSITY RANKING METHODOLOGY  
THE UNIVERSITY RANKING METHODOLOGY  
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