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cochrane.org.uk ca-global.org COCHRANE a s s o c i a t e s Peter Cochrane The Curse of Optimization Future sustainability, technology, industry and society Wednesday, 6 November 13
34

The curse of efficiency

May 08, 2015

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Business

Peter Cochrane

Of all the species on the planet we are alone in optimizing anything and everything. But this is not a route to long term sustainability, and to move on from the destructive vice of manufacturing more and more for the few, to a world of providing sufficient for the many, we have to think and act very differently. Today’s technologies and production methods cannot achieve an equitable, stable and sustainable future for mankind, but future tech probably can.

The key starting point lies at the cusp of nano, bio, artificial life and artificial intelligence, and our key challenge is to understand and master complexity. These components lie at the heart of (virtually) lossless repurposing, reuse and recycling and minimal energy consumption. We have to move on to material printing and programing instead of machining and forging; tagging and tracking instead of destruction and dumping; organic symbiosis instead of environmental destruction.

Is there an existence theorem for this hypothesis? Look no further than mother nature! She optimizes and wastes nothing, always goes for low energy and low material consumption, recycles efficiently whilst achieving impressive resiliency. Can we do the same ? Almost certainly, but we have to rethink our ‘short termism and quick win’ modes of operation, and we have to adopt methods and solutions focused on the long term future. We also have to adopt ‘good enough’ strategies instead of extreme optimization. In turn, this demands a partnership and symbiosis with our machines to overcome our fundamental human limitations precluding us achieving these goals unaided.
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Page 1: The curse of efficiency

cochrane.org.ukca-global.org

COCHRANE a s s o c i a t e s

Peter Cochrane

The Curse of Optimization Future sustainability, technology, industry and society

Wednesday, 6 November 13

Page 2: The curse of efficiency

In a

connectedworld

of

f i n i t eresources

a stove-piped

V i e wis

dangerousWednesday, 6 November 13

Page 3: The curse of efficiency

Optimizing by € € € € aloneleads to brittleness andinstability often with severe ecologicaland socialdamage

Wednesday, 6 November 13

Page 4: The curse of efficiency

Today’s financial systems only produce one result

Countries, companies & economies

that look like thisare short lived

Wednesday, 6 November 13

Page 5: The curse of efficiency

In the long term this is fundamentally impossible... . . . y o u c an ’ t have it all at the same time!

Wednesday, 6 November 13

Page 6: The curse of efficiency

This is what business schools teach budding managers, butit is incomplete, andit is wrong!

Wednesday, 6 November 13

Page 7: The curse of efficiency

Brittleness

This is what business schools teach budding managers, butit is incomplete, andit is wrong!

Wednesday, 6 November 13

Page 8: The curse of efficiency

Brittleness

Cost of

OwnershipThis is what business schools

teach budding managers, butit is incomplete, andit is wrong!

Wednesday, 6 November 13

Page 9: The curse of efficiency

η

€ € €

Efficiency𝓷

Efficiency - far more sophisticated than ripping out cost or sweating assets

Wednesday, 6 November 13

Page 10: The curse of efficiency

η

Failure free operating cost with efficiency f1(𝓷)

€ € €

Efficiency𝓷

Efficiency - far more sophisticated than ripping out cost or sweating assets

Wednesday, 6 November 13

Page 11: The curse of efficiency

η

Failure free operating cost with efficiency f1(𝓷)

Failure cost with efficiency f2(𝓷)

€ € €

Efficiency𝓷

Efficiency - far more sophisticated than ripping out cost or sweating assets

Wednesday, 6 November 13

Page 12: The curse of efficiency

η

Optimum cost efficiency is

at the point (𝓷) where:

Failure free operating cost with efficiency f1(𝓷)

Failure cost with efficiency f2(𝓷)

€ € €

Efficiency𝓷

Efficiency - far more sophisticated than ripping out cost or sweating assets

Wednesday, 6 November 13

Page 13: The curse of efficiency

η

Optimum cost efficiency is

at the point (𝓷) where:

Failure free operating cost with efficiency f1(𝓷)

Failure cost with efficiency f2(𝓷)

€ € €

Efficiency𝓷

f1’(𝓷) + f2’(𝓷) = 0

Efficiency - far more sophisticated than ripping out cost or sweating assets

Wednesday, 6 November 13

Page 14: The curse of efficiency

η

Optimum cost efficiency is

at the point (𝓷) where:

Failure free operating cost with efficiency f1(𝓷)

Failure cost with efficiency f2(𝓷)

€ € €

Efficiency𝓷

f1’(𝓷) + f2’(𝓷) = 0

For the specific exponential case:

Efficiency - far more sophisticated than ripping out cost or sweating assets

Wednesday, 6 November 13

Page 15: The curse of efficiency

η

Optimum cost efficiency is

at the point (𝓷) where:

Failure free operating cost with efficiency f1(𝓷)

Failure cost with efficiency f2(𝓷)

€ € €

Efficiency𝓷

f1’(𝓷) + f2’(𝓷) = 0

For the specific exponential case:

C = Aexp(-a.𝓷) + Bexp(b.𝓷)

Efficiency - far more sophisticated than ripping out cost or sweating assets

Wednesday, 6 November 13

Page 16: The curse of efficiency

η

Optimum cost efficiency is

at the point (𝓷) where:

Failure free operating cost with efficiency f1(𝓷)

Failure cost with efficiency f2(𝓷)

€ € €

Efficiency𝓷

f1’(𝓷) + f2’(𝓷) = 0

For the specific exponential case:

C = Aexp(-a.𝓷) + Bexp(b.𝓷)

The optimum operating efficiency is found to be:

Efficiency - far more sophisticated than ripping out cost or sweating assets

Wednesday, 6 November 13

Page 17: The curse of efficiency

η

Optimum cost efficiency is

at the point (𝓷) where:

Failure free operating cost with efficiency f1(𝓷)

Failure cost with efficiency f2(𝓷)

€ € €

Efficiency𝓷

f1’(𝓷) + f2’(𝓷) = 0

For the specific exponential case:

C = Aexp(-a.𝓷) + Bexp(b.𝓷)

𝓷o = b - a__1 loge Aa

Bb_

The optimum operating efficiency is found to be:

Efficiency - far more sophisticated than ripping out cost or sweating assets

Wednesday, 6 November 13

Page 18: The curse of efficiency

The worst

case

Wednesday, 6 November 13

Page 19: The curse of efficiency

The worst

case

Only humans optimize...

Mother Nature goes for good enough....

...and in doing so achieves sustainablerelationships....a symbiosis....

Wednesday, 6 November 13

Page 20: The curse of efficiency

€ € € €

Society

Ecology

The minimumdecision set

Wednesday, 6 November 13

Page 21: The curse of efficiency

€ € € €

Society

Ecology

The minimumdecision set

tec

hn

olo

gy

Wednesday, 6 November 13

Page 22: The curse of efficiency

Even more fundamental to all this is the advance and adoption of new technologythat is unpredicted/not fully understood

Wednesday, 6 November 13

Page 23: The curse of efficiency

old processes and industries

Susta

inabil

ity is

impo

ssible

by op

timizi

ng

Wednesday, 6 November 13

Page 24: The curse of efficiency

The Future

Wednesday, 6 November 13

Page 25: The curse of efficiency

The Future PrintingInstructing

NetworkingCollaboratingProgrammingRepurposing

RecyclingReusing

Bio Nano

AI, ALITC

Wednesday, 6 November 13

Page 26: The curse of efficiency

Wednesday, 6 November 13

Page 27: The curse of efficiency

Machines are the biggest communicators

on the Planet

They dominate manufacture and production and are moving into design and general knowledge,

modeling and decision support

Wednesday, 6 November 13

Page 28: The curse of efficiency

even more than we do !

They need The Cloud

Wednesday, 6 November 13

Page 29: The curse of efficiency

The Internet cannot scale to 9Bn people

and over 50Bn machines on

line, but Clouds

can

Wednesday, 6 November 13

Page 30: The curse of efficiency

We are increasingly defeated by complexity,

but our machines are not !

Wednesday, 6 November 13

Page 31: The curse of efficiency

We are increasingly defeated by complexity,

but our machines are notNow outgunning humans on general and specific knowledge

Wednesday, 6 November 13

Page 32: The curse of efficiency

Ha l f L i f e o f Knowledge

Physics~13 yrs

Medical~ 4 yrs

Economics~ 9 yrs

Software~ 4 yrs

Marine Bio~ 2 yrs

Wednesday, 6 November 13

Page 33: The curse of efficiency

ITC is vital to our symbiosis

Material Technology the biggest game changer for industry and sustainability

Wednesday, 6 November 13

Page 34: The curse of efficiency

Thank You

ca-global.orgcochrane.org.uk

COCHRANE a s s o c i a t e s

Wednesday, 6 November 13