Magnetic bits and transistor elements are shrinking rapidly. They could reach the atomic scale within the next few decades. But matter on a small scale can have very odd properties. How will engineers and designers exploit a world dominated by quantum effects? At IBM and in our department, we are preparing for the nano-world of tomorrow by learning to analyze and manipulate matter at the atomic scale. In 1989, one of our scientists forever changed the way we think about nano-engineering when he wrote "IBM" by moving individual xenon atoms.