Thomas Frey Executive Director

1
Thomas FreyExecutive Director

• DaVinci Institute
• PO Box 270315
• Louisville, CO 80027
• [phone]
• dr2tom_at_davinciinstitute.com

2
2005 was defined by.

• Google and iPods

3

• The World is Flat and natural disasters

4

• Deep Impact

5

• Blogs and podcasting

6

• Bill Gates and Steve Jobs

7

• and a dramatic influx of new technologies
  designed to give us freedom and control of our
  lives

8
Broadband Penetration
9
Online Content
10
Online Content
11
Single Purchase Vs. Subscription
12
Spending on Online Content
13
Confluence of Influence

• People are no longer satisfied with just
  receiving information, they want to help create
  it.

14
Confluence of Influence

• 31.2 - Million Blog Sites
• 16,736 Podcasts
• 18,821 - Magazines Published in US
• 8,841 - FM Radio Stations
• 4,758 - AM Radio Stations
• 2,250 - Daily Newspapers
• 1,749 - Broadcast TV Stations

15
The New Face of Influence

• Glenn Reynolds Instapundit
• Michelle Malkin MichelleMaking.com
• Mark Fauenfelder Boing Boing
• Xeni Jardin Boing Boing

16
Confluence of Influence

• When 31 million bloggers speak, people listen
• The pace of change is speeding up

17
(No Transcript)
18
Tortillas Trends

• 2001 - Tortilla Sales - 811 million
• 2004 - Tortilla Sales - 963 million
• 2001 - White Bread Sales - 2.32 billion
• 2004 - White Bread Sales - 2.05 billion

19
Bangalore Real Estate

• Average commercial property lease, rupees per
  square foot
• 1985 400
• 1995 3,750
• 2005 7,000

20
Breakfast Cereal Trends

• Sales growth for ready-to-eat breakfast cereals
  April 2004 thru April 2005
• China Up 14
• India Up 32
• US Down 1

21
Wal-Mart Trends

• 1995 2,667 stores (1 per 100,000 people)
• 2000 3,118 stores (1 per 90,000 people)
• 2005 3,808 stores (1 per 78,000 people)
• 2010 4,523 stores (1 per 70,000 people)

22
Seeds of Entrepreneurship

• For every 100 individuals that join the ranks of
  the unemployed, 7 will start a new business

23
Seeds of Entrepreneurship

• Percentage of New Business Filings in 2005
• California - 33
• Texas - 55
• Illinois - 28
• New York - 35
• Ohio - 69

24
Seeds of Entrepreneurship

• Americans who do all or part of their job at home
  45 million

25
Empire of One

• One person business with far reaching influence

26
Empire of One

• Typical Scenario
• Products manufactured in China or India
• Sent to a distribution center in the US or Canada
• Sold to customers in the UK or Brazil
• All controlled by one person

27
Empire of One

• Outsource Everything
• Manufacturing
• Operations
• Marketing
• Distribution
• Bookkeeping
• Legal

28
Empire of One

• Eliminate HR problems
• Freedom to travel
• Control your own destiny

29
Empire of One

• Primary Skills
• Business Architect
• Planning
• Relationship Building
• Money Management
• Tech Savvy

30
Empire of One

• Global Entrepreneurs for the Emerging Global
  Economy

31
(No Transcript)
32
Trends in Innovation

• Aging Marketplace Driving Biotech
• People live 2.5 years longer every decade
• U.S. spending 1.7 trillion on health care in
  2003
• Expected to reach 3 trillion within 10 years

33
Life Expectancy

• Born in 1940 63.6 Years
• Born in 1950 68.4 Years
• Born in 1960 70.0 Years
• Born in 1970 71.1 Years
• Born in 1980 73.7 Years
• Born in 1990 75.4 Years
• Born in 2000 76.7 Years
• Born in 2025 79.1 Years

34
People Trends

• Average Weight of 10 Year Old in US
• 1965 75.8 pounds
• 2002 86.4 pounds
• Average Weight of 50 Year Old in US
• 1965 157.1 pounds
• 2002 182.3 pounds

Source National center for Health Statistics
35
Medical Trends

• Number of Plastic Surgery Procedures
• 1997 721,000
• 2003 1,380,000
• Number of Cardiac Surgeries
• 1997 3.23 million
• 2003 3.55 million

Source American Society of Aesthetic Plastic
Surgery and the American heart Association
36
Trends in Innovation

• The Age of 100 Million Products
• Amazon 2 million books
• Software Superstore 1 million programs
• iTunes 1 million songs
• One new grocery store products introduced every
  30 minutes
• Domain Names
• Google keywords

37
Trends in Innovation

• Patent Filings Reach All-Time High
• 2004 376,810 patents filed
• 2004 187,170 patents granted
• Backlog of 700,000
• 27 month average wait

38
Trends in Innovation

• The Next Big Thing was Invented Over 25 Years Ago
  
• The Internet is 35 years old
• Cell phone invented in 1973
• Breakthrough technologies take at least a
  generation to gain a foothold

39
The Age of Hyper-Individuality

• Time Compression Driving Consumer Behavior
• People spend 2 hours less per night sleeping than
  in 1920
• 34 of lunches eaten on the run
• 66 of people surf the web watch TV
• 43 have trouble making decisions from data
  overload

40
The Age of Hyper-Individuality

• We no longer care about keeping up with the
  Jones

41
The Age of Hyper-Individuality

• The Long Tail
• When consumers are offered infinite choice, the
  true shape of demand is revealed
• People gravitate towards niches
• Fewer and fewer hit products
• Many new Long Tail aggregators

42
The Age of Hyper-Individuality

• We can now build successful businesses around
  products that only appeal to one in 35,000 people

43
The Age of Hyper-Individuality

• Transitioning from a Product-Based Economy to an
  Experience Based Economy

44
The Age of Hyper-Individuality

• Reputations are based on your experiences, not
  what you own
• Experiences are now valued more than products
• Baby boomers are beginning to shed their belonging

45
(No Transcript)
46
Power Vs. Freedom

• Power is about what you control. Freedom is
  about what you can unleash.
• -Harriet Ruben
• Founder Doubleday/Currency Book Publisher

47
Thomas Edison

• Opportunity is missed by most people because
  it is dressed in overalls and looks like work.
  -- Thomas Edison

48
Thomas FreyExecutive Director

• DaVinci Institute
• PO Box 270315
• Louisville, CO 80027
• [phone]
• dr2tom_at_davinciinstitute.com