2011: The Year in Review

As we close out 2011, in many ways the world looks very different than it did a year ago. From political upheavals in the Middle East, a cooling economy in China, an ongoing debt crisis in Europe, and the deaths of several of the world's most odious characters, the world has not seen such a transformative year since the end of the Cold War in 1991. Although we could have seen glimmers of all of these things a year ago, most of these changes were difficult to predict. My friend Nassim Nicholas Taleb might call them “Black Swan Events.”

Since this blog is primarily about futurism, I feel that I should go back and examine the predictions I have made for 2011 to hold myself accountable. With some predictions it is not always obvious whether they are correct or incorrect. Furthermore, self-evaluations tend to be a bit biased, and some futurists have the unfortunate tendency to go to absurd contortions to avoid admitting mistakes. In this post I will try my best to avoid that, but will rely on my readers to keep me honest.

By 2011 – Near-field communication comes equipped in many new smartphones. Mobile payments become even more popular in the developing world, and makes inroads in Europe and the United States. (Jan. 2011)

Mostly correct

As of the end of 2011, some of the most prominent smartphones come with NFC chips, including Samsung's Galaxy series, Google's Nexus series, and Blackberry's Bold series, although in some cases the NFC chip is an add-on rather than a standard feature of the phone. Conspicuously absent from this list is Apple's iPhone, which does not yet have NFC. In September 2011, Google released Google Wallet, a mobile payment application for smartphones which uses near-field communication. As of now it is only available on Google's Nexus S phone, although Google is working with handset manufacturers to incorporate Google Wallet into other Android phones.

This year also marked the growth of Fundamo, a mobile payment system that now operates in over 40 developing countries, and its subsequent acquisition by Visa. The mobile payment industry is somewhat unusual in that the developing world is actually far ahead of developed countries on this technology.

In Europe and the US, progress has been more slow than I anticipated on the mobile payment front, although as I stated last year, we would only be seeing the first glimpses of it in 2011, rather than its widespread adoption. One of the pioneers of this in the US has been Starbucks. The coffee chain has ported Starbucks cards onto Apple and Blackberry smartphones, and customers are able to pay their bill simply by swiping their phone over a scanner. Look for similar technologies to pop up in other businesses in 2012, although I still think it will be a couple more years before it goes mainstream in the United States.

By 2011 – Internet-equipped televisions or add-ons will become popular. (Jan. 2011)

Mostly wrong

I'm going to count this one as a miss. Although internet-equipped televisions and add-ons are commercially available, they are by no means popular yet. Google TV proved to be a very expensive flop for Google, with many cable companies explicitly blocking their web content from playing on Google TV. The biggest barrier to widespread adoption of smart televisions is no longer technological, it is economic. Unless laws are enacted to prevent content providers from discriminating against platforms like Google TV, we may be waiting for several years before economic circumstances will cause the content providers to relent.

Some of the smaller add-ons, such as Boxee and Roku, have proven much more commercially successful than smart televisions have. However, they are much more limited in what they can do.

By 2011 – At least 75% of countries improve their score on the Human Development Index compared to 2010, with the biggest improvements in developing countries. (Jan. 2011)

Correct

Although you would never know it from media reports, 2011 was a year of widespread economic success nearly everywhere in the world. My prediction that at least 75% of countries would be better off was actually quite conservative. 93% of countries improved their level of human wellbeing, as measured by the Human Development Index. The biggest winner of the year was Ghana, one of Africa's best-governed nations. The biggest loser was war-torn Libya. Of the 183 countries evaluated, 171 improved their wellbeing, 6 spent the year treading water, and another 6 lost ground. These unlucky countries were mostly located where you would expect them to be: debt-ravaged Europe and the turbulent Greater Middle East. Nearly everywhere else, people ended the year better off than they started.

By 2011 – There will be a major shakeup (or a total implosion) in the top leadership of North Korea and/or Iran. (Jan. 2011)

Mostly correct

The “and/or” is what made this prediction correct. I thought this was going to be a miss, but with two weeks to spare before the end of the year, Kim Jong-il of North Korea did me (and the rest of the world) a favor by dying. At this point it's too soon to speculate how North Korea's government will change following the leader's death. His heir, Kim Jong-un, is unlikely to be able to wield total power like his father.

Surprisingly, Iran has been relatively stable this year. With all the simmering anger in Iran following the aborted 2009 election protests, it seemed likely that Iran would emulate its Arab neighbors in protesting its government. Iran's supreme leader, Ali Khamenei, reportedly has terminal leukemia, but there does not seem to have been any major leadership changes despite a year of palace intrigue. President Mahmoud Ahmadinejad spent much of the spring boycotting his official duties amidst a very ugly public spat with the Supreme Leader, who clearly does not trust Ahmadinejad any longer.

By 2011 – Tablet computers account for at least 13% of the US personal computer market. The market will become competitive with several new tablets seriously challenging Apple’s iPad. (Jan. 2011)

Somewhat

The first sentence is undeniably correct; the most recent estimates I can find for 2011 indicate that tablets accounted for about 17% of the PC market this year.

The tablet market is certainly more competitive now than it was a year ago, but most of the Android tablets continue to disappoint. The sole exception is Amazon's Kindle Fire, which has been an instant hit. It doesn't exactly “challenge Apple's iPad” as I predicted, because the two tablets are aimed at very different markets: the Kindle Fire is priced at $199, whereas even the cheapest iPad will cost $499.

By 2011 – Gaming (led by Microsoft’s Xbox Kinect) will begin to become gesture-based, rather than controller-based. (Jan. 2011)

Correct

Many games have been created for Xbox Kinect which rely exclusively on gestures. This technology is especially useful for exercise and sports-related games. Look for it to continue to expand in the coming years.

By 2011 – The migration of computer files from the hard drive to the cloud will begin in earnest, as people become more willing to allow third-parties to store all of the content on their computers via the internet. (Jan. 2011)

Correct

The big winners of the race to the cloud are Amazon, Verizon (Terremark), and IBM. The file hosting service Dropbox, which enables consumers to store their files in Amazon's cloud and easily work with files on multiple computers, has been one of the year's blockbuster startups. Some estimates indicate that it now has over 50 million users.

By 2011 – Voice Over IP services, such as Skype, become popular on smartphones, thus portending the eventual demise of traditional voice-telephone services. (Jan. 2011)

Wrong

Voice Over IP services have not yet caught on on smartphones. I think my error in this prediction was that I underestimated the difficulty of using Voice Over IP on 3G smartphones (I confess that I hadn't actually tried it on my own 3G phone at the time I wrote this prediction). 3G phones tend to be too slow to get good reception on an internet call, resulting in garbled and spotty transmission. Even people with 4G phones will be hindered unless the person they are calling also uses a 4G phone (or their computer). Until 4G smartphones become ubiquitous - which should happen within the next few years - traditional voice telephony will probably remain the dominant method of making calls.

By 2011 – At least one company offers genome sequencing for $1,000 or less (Jul. 2010)

Mostly wrong

I thought that attaching a specific dollar figure to this prediction would make it easy to evaluate and leave little room for interpretation, but I overlooked the fact that there are different kinds of genome sequencing. The price point is different, depending on how thorough one wants the analysis to be. At the lower end of the spectrum, Google-affiliated startup 23AndMe offers basic genotyping for $159, which includes a DNA analysis of a person's ancestry and their likelihood of acquiring various diseases with a clear genetic component. However, this service is not very robust. “Full genome sequencing” is considerably more expensive. The leading company for full genome sequencing, Illumina Technologies, currently charges $5,000 (or $4,000 for bulk orders). This is a price cut of more than 50% since this time last year, but we'll have to wait a while longer for the elusive $1,000 genome.

By my count, that's 5 correct or mostly correct, 1 somewhat correct, and 3 wrong or mostly wrong. I think that's a decent record, and it will be the benchmark I try to beat for my 2012 predictions, which I will be posting in the next few days. I am also interested to hear from my readers if I was too easy or harsh in grading my own predictions. Do you think I erred in any of my self-evaluations of my predictions? If so, which ones and why?

Book Review - "Disrupting Class" by Clayton Christensen

Clayton Christensen’s book, Disrupting Class, is a fascinating look at how disruptive new technologies will soon transform the dismal state of the American education system. By far, the most intriguing aspect is the potential for online education to completely upend traditional schools and dramatically improve education.

Some of the biggest problems with schools are often lost in the contentious political debates over teachers’ unions, vouchers, and merit pay. Often, the underlying problems are completely ignored because they seem intractable. The traditional classroom model – where one teacher instructs 25 students – is antiquated and ineffective at addressing students’ needs. As Disrupting Class illustrates, each student has unique learning styles and abilities, which are completely ignored in traditional schools.

In brick-and-mortar schools, where there are vastly more students than teachers, education cannot be customized to individual students. The instructor tries his or her best to teach according to the learning style that reaches the most students, but those who march to the beat of a different drum inevitably fall through the cracks. Classes invariably move at the same pace despite the fact that students do not learn at the same pace. An instructor teaches a unit, the students are tested on the material, and the entire class moves on to the next unit, regardless of the performance of individual students. As a result, the advanced students are bored in school and want to move faster, while the struggling students fall farther and farther behind as their knowledge deficiencies accumulate.

Disrupting Class envisions a future where these things are no longer problems, due to interactive online education that is far better than today’s education software, which far too often is nothing more than glorified flash cards. In the online classes of the future, each student will be able to learn at his or her own pace, and won’t advance to the next unit until he or she has mastered the material from the current one. The concept of awarding letter grades for classes might be replaced by measuring how long it takes a student to earn an A.

Additionally, online education will allow for classes to be customized to the student’s particular learning style. The debates over whether one particular teaching style is better than another, or whether charter schools are better than traditional schools, will vanish. When each student can learn the material in a manner tailored to his or her own needs, we will finally recognize that no single teaching style or type of school is best for all students.

Although the book primarily focuses on the American education system, the international implications of disruptive education technology are possibly even more profound. Salman Khan, the founder of the Khan Academy, stressed this point in his recent TED Talk. Online education offers the possibility to turbo-charge the human development of countries where access to education is still a problem. Far too many children in the slums of developing countries have little access to education of any kind. The proliferation of online education – which should roughly coincide with the proliferation of smartphones and tablets in much of the developing world – will open up vast new worlds of information to students in the most remote parts of the planet, where local teachers are unavailable, unknowledgeable, or expensive.

Disrupting Class gets its name because, in Christensen’s view, these educational innovations will largely take place outside of traditional classrooms, and eventually supplant them entirely. In the infancy of online education, teachers will use online education to supplement their in-class curriculum, or use it to allow students to take classes that are not offered at the school. Over time, education software will play a larger and larger role in classrooms until the schools themselves are no longer necessary. Students might continue to gather with their local friends in a building called a “school” to learn, but classes will be determined by learning style, ability, and personal interests rather than by school district. Teachers will instruct students entirely via computer.

How long will it take until online education is widely adopted? Not long, by Christensen’s estimate. He notes that online education is following the same adoption pattern of many other disruptive technologies, such as digital photography, which start off very slowly but suddenly become dominant once they reach critical mass. According to Christensen, in the United States in 2000 there were 1,000 students in classrooms for every 1 online learner. By 2007, this ratio had dropped to 100 to 1. If this trend continues, online learning will command a sizable chunk of the market (10%) by 2014, and gain a majority by 2019. Shortly thereafter, our 170-year-old model of classroom-based learning will come to an end.

Projections from "Disrupting Class" by Clayton Christensen

My sole criticism of the book is that it is a bit too broad. Christensen primarily focuses on online education, but devotes short sections to other innovations like new methods of evaluating teaching styles, and teaching highschoolers the necessary parenting skills they will need to one day raise successful children of their own. Although these are certainly interesting ideas worth exploring, they felt a bit out of place in a book primarily about the disruptive nature of education technology. I would have liked to see these chapters replaced with more information about online education, which is, after all, the main focus of the book.

Disrupting Class is thought-provoking and charts a very plausible course for would-be developers of online education tools. The future of education will inevitably be online. The advantages are just too numerous to ignore.

4/5 stars

Predictions For 2011

After revisiting my list of predictions, I realized that I didn’t have very many for 2011, due to my focus on things at least five years out. In honor of the new year, here are some of my predictions for 2011, in no particular order:

Electronic wallet? There’s an app for that. On December 16, 2010, Google and Samsung released the Nexus S, the first smartphone equipped with near-field communication. Near-field communication is an emerging technology that enables the transfer of data between devices at a range of 4 inches or less. This will eventually replace boarding passes, credit cards, and ATM cards among other things and will allow the easy transfer of money over the phone. 2011 is the year when the technology will first be useful, if not exactly mainstream yet. The places where it will take off the most quickly are developing countrieswhere credit card companies have never posed a lot of competition. Those of us in the US and Europe will probably have to wait a couple more years.

Is that a television or a computer? 2011 will be the year when the television and computer converge, just as the cell phone and computer have done in the last three years. An assortment of devices that hit the market in the last half of 2010 will serve up video content from the internet onto the television. The immediate effects will be relatively unimportant – people will be able to enjoy their favorite videos from YouTube, Netflix, Vevo, and Hulu on a much larger screen. In the longer term, this will change the way people view television and make them question if paying for channels they never use is really a good investment, especially if the same content is available online.

Human development will be widespread. Last year, all but seven countries in the world improved their score on the UN's Human Development Index (5 of those were stagnant while 2 actually lost ground). Emerging markets developed much more rapidly than wealthy nations. The long-term global trend has always been toward higher standards of living, and barring another severe economic downturn, we can expect the same from 2011. The vast majority of countries will share in economic gains, and developing countries will continue to outpace the US, Europe, and Japan.

At least one company offers genome sequencing for $1,000 or less. This one may be a bit of a reach, but I’m going to predict that 2011 will be the year that the holy grail of genomics – the $1,000 genome – is finally reached. For the last several years, the cost of genome sequencing has been following a Moore’s Law like trajectory, dropping nearly tenfold per year. A year ago, the cost of a simple genome sequencing was $6,000 and $10,000 from the two leading companies, Life Technologies and Illumina, respectively. It is therefore possible that by the end of 2011 a company will be able to do it for $1,000 which will throw open the doors to many more customers. Shortly after this milestone is reached, health insurance companies may begin covering the service, and the era of personalized medicine will dawn.

Shake-ups in the Axis of Evil. In his 2002 State of the Union address, President George Bush famously labeled Iraq, Iran, and North Korea the “Axis of Evil” and called for regime change in the three nations. During his presidency, Bush only deposed one of those regimes, but in 2011 he may get his wish in at least one more. Kim Jong-il, the supreme leader of North Korea, is believed to have suffered a stroke and has appeared very frail in his recent public appearances. He has been hastily creating a succession plan to transfer power to his 26-year-old son, Kim Jong-un, but the younger Kim has very little influence with key military officers who are necessary to sustain the regime. Wikileaks recently reported that Ayatollah Ali Khamenei of Iran has terminal leukemia. Khamenei is the glue holding the regime together; for example, he recently intervened personally to dissuade the Iranian Parliament from impeaching President Ahmadinejad. It is unclear if the Iranian regime can survive in any form without Khamenei. If either Kim or Khamenei dies, there will be a power struggle as various factions within the governments jockey for position in the power vacuum left in the deceased leader’s wake. Iran stands a real chance of serious democratic reform. North Korea does not (barring a total collapse and reunification with South Korea), but a shakeup could at least generate some Chinese-style economic reforms and perhaps an end to the bellicosity on the Korean Peninsula.

PREDICTIONS:
By 2011 – Near-field communication comes equipped in many new smartphones. Mobile payments become even more popular in the developing world, and makes inroads in Europe and the United States.
By 2011 – Internet-equipped televisions or add-ons will become popular.
By 2011 – At least 75% of countries improve their score on the Human Development Index compared to 2010, with the biggest improvements in developing countries.
By 2011 – At least one company offers genome sequencing for $1,000 or less.
By 2011 – There will be a major shakeup (or a total implosion) in the top leadership of North Korea and/or Iran.
By 2011 – Tablet computers continue to sell well. The market will become competitive with several new tablets seriously challenging Apple’s iPad.
By 2011 – Gaming (led by Microsoft’s Xbox Kinect) will begin to become gesture-based, rather than controller-based.
By 2011 – Voice Over IP services, such as Skype, become popular on smartphones, thus portending the eventual demise of traditional voice-telephone services.

The Future of Education: Effective Distance Learning

The year is 2025. Moseka, a 5^th grade Congolese girl living in Kinshasa, uses her tablet computer to access her interactive learning software from the cloud. It is capable of accessing any book in the world, watching high-definition videos of her instructors, and tracking her progress. Her tablet is a lower-end model – only a thousand times more powerful than the iPads of 2010. She doesn’t worry about it breaking; they are as cheap as scrap paper, and only slightly thicker.

Although Moseka is fluent in French and English as a result of her lessons, she still prefers to learn in her native Lingala. There is an entire library of online courses available in Lingala, complete with ratings from previous students and parents. Unlike the online classes in the United States of the late 1990s and 2000s, which were largely inferior to in-person education, Moseka’s classes are among the best of the best. Many of the best educators in the Congo (as well as everywhere else in the world) have become celebrities in their country, reaching thousands of pupils at a time. The old model of online education, which was mainly confined to reading text on a desktop computer screen and submitting homework assignments digitally, has mostly been replaced by interactive software and tablet computers which make the classes much more productive and engaging. Moseka doesn't have any physical textbooks; she can easily access them from the cloud on her tablet whenever she needs them. These e-books are not merely electronic copies of books that exist in the physical world. They are full of video clips, learning games, and customization.

Like most of her friends, Moseka has only ever seen schools in old American cartoons. This is not because of her location; she has lots of friends in the United States and Europe who have never set foot in a school either. What is the point of going to an old building to learn from a local teacher, she wonders, when she can learn whatever she wants to learn, whenever she wants, from some of the best instructors in the world? Her parents and friends all seem to agree, as do the governments of most nations. Nearly everyone has access to a good education now. Ubiquitous computing has eliminated the need to waste money on school buildings, and created the economies of scale necessary for the cost per pupil to drop to nearly nothing.

However, Moseka’s education is not impersonal just because her instructor has many students. Large class sizes are mostly irrelevant now that brick-and-mortar schools are a thing of the past; in fact, Moseka likes having a huge network of classmates whom she can turn to for help. Whenever she gets stuck on her lessons, she first turns to some older girls to help her (and likewise, she helps her younger brother with his schoolwork). If she is still confused, she can ask her class for help. With so many classmates, someone else is almost always having the same problem…and someone almost always knows the answer. Intelligent software can easily match these students with one another.

Moseka is excited about her future. In much of the developing world, her generation will be the first that has the opportunity to use their abilities to change the world. She wants to be a teacher, confident that she’ll be just as successful as the teaching superstars who instruct her today. And due to the new education paradigm, she very well might be.

PREDICTIONS:
By 2025 - Youth literacy rates exceed 90% in both Sub-Saharan Africa (up from 72% in 2008) and South Asia (up from 79% in 2008). Gender disparities in literacy have mostly disappeared; the global female youth literacy rate is no less than 98% of the male youth literacy rate (up from 94% in 2008).
By 2025 - Fewer than 75% of students in the United States physically attend a school on a daily basis.

Augmented Reality Will Change How We See The World

Augmented reality is the technology of superimposing virtual images over top of one’s view of the real world. One of the earliest examples is the yellow first down line in televised American football games, which has existed since 1998. The technology typically works by recognizing a certain object in the real world, which triggers a computer to impose a virtual image into the viewer’s line of vision. In the case of the first down line, it operates through a television screen, but any type of screen will do. Augmented reality applications already exist for computers, smartphones, special-design glasses, and airplane windshields.

General Electric has a very cool interactive demonstration of augmented reality with which you can experiment on your computer. In this demonstration, an ordinary computer webcam scans the room. GE’s program detects a certain symbol (on a printed piece of paper), and displays a virtual image over top of it. You can hold the paper from almost any angle. If you move the paper or change the angle, the virtual image will follow your movements so that it constantly appears that the virtual image is on top of the symbol.

But although this is certainly a cool trick, does augmented reality have any useful applications beyond keeping us mildly amused? Any good augmented reality application has at least two components: 1) Recognizing a real-world object to "trigger" the application to do something, and 2) Superimposing a virtual image into the user's line of sight. Imagine you are walking the streets of an unfamiliar city looking for a place to eat lunch. As you walk by restaurants with your augmented reality glasses on, you see the restaurants’ average Yelp rating (and the most recent reviews) hovering just above the buildings. Based on this data, you select the restaurant you want to eat at. This would certainly be more convenient than looking up each restaurant individually as you walked by.

Augmented reality software could be installed in the windshields of automobiles (as it already is in airplanes) to dramatically improve safety, according to General Motors. The technology could scan the car's surroundings for possible hazards. Any object deemed dangerous, such as a deer on the side of the road, could flash on the windshield to draw the driver’s attention to it. In conditions of poor visibility, an augmented reality windshield could help point out the edges of the road, the lines on the road, and any important road signs.

BMW has another example for how augmented reality might work in automobiles in the near future. Suppose that you wanted to repair something in your car, but knew very little about how to go about it. Rather than take it to a mechanic, you could put on your augmented reality glasses, and get step-by-step instructions for how to repair it yourself. The software in your glasses would recognize the parts of your car as you looked at them, and create a detailed illustration showing you exactly what you needed to do in real-time.

The tutorial applications of augmented reality are endless. In addition to repairing a car, augmented reality could help teach people how to perform a wide variety of tasks, from processes as simple as cooking to those as complex as open-heart surgery. Eventually, even augmented reality glasses will become obsolete, as computing power becomes cheap enough to fit inside regular eyeglasses or contact lenses to project virtual images directly onto the user’s eye.

Futurist Ray Kurzweil envisions a future in which contact lenses come with several different viewing modes, depending on what the user wants to see at any given moment. There would be a “normal mode,” which simply displays the real world as we currently observe it. There would be an “augmented mode,” in which the user’s augmented reality applications superimpose virtual images over top of the user’s regular view of the world. Finally, there would be a “blocking mode,” in which the real world was not displayed at all, allowing the user to become fully visually immersed in a website, book, movie, or computer game.

Some of the earliest applications of augmented reality are already being rolled out on the iPhone and Android. This technology seems poised to explode into mainstream use over the next 10-15 years, and will quite literally change how we see the world.

PREDICTIONS:

By 2013 – Useful augmented reality applications exist on PCs and/or tablets to allow shoppers to virtually try on clothing before purchasing it online.

By 2017 – At least one-third of all smartphone and/or tablet users have an augmented reality application to project virtual images over the real world, as seen through their screen.

By 2021 – Augmented reality is routinely used to train people how to perform process-based tasks such as cooking, dentistry, surgery, furniture assembly, factory work, and/or auto repair.

By 2023 – At least half of all new, non-driverless automobiles in the US have augmented reality technology in the windshield for safety and/or navigational purposes.

By 2028 – Augmented reality contact lenses exist which can place virtual overlays of the world directly onto the wearer’s eye, or block out the real world altogether if the wearer desires.

AT&T predicts the future (in 1993)

There are plenty of nasty things to say about AT&T, but don’t ever tell me that they’re bad futurists. Check out their “You Will” commercials from 1993. These predictions were made before the internet had exploded into popular use, yet they managed to correctly predict many technologies that are in common use in 2010.

In this series of commercials, AT&T correctly predicted e-readers, GPS, car navigation systems, wireless internet, ubiquitous email, tablet computing, RFID, e-commerce, video conferencing, voice-over-IP, streaming videos, and distance learning. Granted, not all of them turned out to work the way that AT&T probably imagined, but I’d say they did a pretty amazing job given the date of these predictions.

The only thing that I saw which seems like an obvious miss was the voice-activated security systems. Seventeen years later, we’re still waiting for that one. That seems to be a common prediction from the 1990s that never materialized; it turns out that pattern-recognition technology is much more difficult than most futurists thought. Also, I’ll give AT&T partial credit for the prediction about medical history cards which people carry in their wallets. Those are technically possible today, but they failed to consider the economic and political problems that prevent their common use in the United States.

I only count one and a half predictions that failed to manifest themselves, but what interests me even more is the biggest trend they missed entirely: cell phones. It’s quite amusing to see people video-conferencing on a pay phone. It is ironic that one of the top cell phone providers today completely missed the fact that mobile phones would become ubiquitous and pay phones would become obsolete.

Overall, I think these are incredibly prescient. Possibly the best set of predictions I’ve seen from this time period, although the commercials don’t really specify the date when these things would become widespread.