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The future of work continues to be rewritten

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This post references my recent presentation at Startupfest, Montreal. I’ve been studying the future of work for a number of years and it’s now come full circle in an environment and among business leaders who are more accepting of what’s in store in the coming decades and what they need to do to survive.

Currently, we live in this world of imbalance. Do you remember when business had a strong influence on how the markets behaved? We’ve seen this decline over the past few decades and business is being held hostage by their own doing. These corporations built these infrastructures based on markets that were predictable and environments that were relatively stable. The tables have turned and today markets are moving at a speed where business is struggling to keep pace. I’ve seen firsthand how technology has wielded its way into the marketing and media sector. It changed the way people consumed information, how they interacted with each other and how they bought. At the same time, it has obsoleted the very practices I’ve known be true.

Look at what’s happened in the last year alone: This digital disruption in retail has witnessed at least 21 U.S. retailers filing for bankruptcy protection in 2017 including Toys R Us, The Limited, and Payless. We have seen the demise of Sears in recent months.  The move to digital channels has been steady but incessant. Also, consider the changes within the $7.6 trillion global travel and tourism sector that necessitate continuous iteration of current business models. Because of Airbnb and Uber, which have, respectively, booked on average 100 million room nights per year and 40 million rides per month, pronounced shifts within this industry are happening today. At the heart of all this disruption is the explosion of adoption at the consumer level. The consumer is digital.

The most dangerous phrase … is: “We’ve always done it this way”

The way it was DONE could no longer be the way it WILL Be.

Consider the time it takes for a new product or technology to reach a significant milestone in user acceptance. It took the landline telephone 75 years to hit 50 million users. It took airplanes 68 years, the automobile, 62 years, and television, 22 years. Today, disruption is the new normal. Look at the impact of technology since the year 2000. YouTube, Facebook and Twitter were able to capture 50 million users in four, three and two years, respectively. These are nothing when compared to Angry Birds, which took a mere 35 days to reach 50 million users.

Creative destruction is moving at an accelerating pace. By leveraging the same systems, the same processes, the same best practices from legacy businesses to the predict market behavior, business will continue to chase the market and miss enormous opportunities.
Imagine a world in which the average company lasted just 12 years on the S&P 500.

A gale force warning to leaders: at the current churn rate, about half of S&P 500 companies will be replaced over the next ten years. The 33-year average tenure of companies on the S&P 500 in 1964 narrowed to 24 years by 2016 and is forecast to shrink to just 12 years by 2027.

Over the past five years alone, the companies that have been displaced from the S&P list include many iconic corporations: Yahoo! Staples, Dun & Bradstreet, Safeway, and Dell.

The environment is dictating how businesses organize

We have to consider the trends and what may seem like sustainable developments within the current environment, the interplay of technology and opportunity which will impact the way markets think, the way they behave and what they will expect. Four rising factors that will impact business include:

  1. Urbanization:  Throughout the world, urban populations are growing much faster than rural populations. Today, cities occupy just 2.6% of the earth’s crust, “but are home to more than 50% of the world’s population, generate more than 80% of the world’s GDP and use 75% of the world’s natural resources.” By 2030 60% of the world’s population will live in urban areas. This will have significant implications on demand for the world’s resources. It will also create an increased service economy and bring with it, more complexity. The growth of cities will mean consumer expectations will not wane. They want things fast, easy, convenient, and affordable
  2. The Gig Economy: By 2030, 43% of the workforce will be freelance. CEOs will need to encourage their organizations to adopt agile workforce strategies to meet the rapidly changing skills market. Increased competition will force companies to lower costs while improving productivity, which will mean they will hire for tasks vs headcount. To remain competitive, this idea of permanent workforce will not prevail. This will come at a time when workers will be interested in adopting more flexible working arrangements because it will grant them greater control, growth and even job security. The “liquid” workforce will also compel employers to continuously train staff and move them around the organization as needed.
  3. Social Responsibility:  Consumers in developed economies are becoming more value conscious and this is putting more pressure on companies to find ways to do more, and to do better. The buying model has shifted. The reputation of a company is now highly correlated with revenue. Employees will also weigh in and their collective voices will be more pronounced. Implications for employee retention will be profound as it is today. A study from Accenture for the World Economic Forum showed when there is a high level of trust in a company, it attracts new customers and strengthens existing ones. A high level of trust also makes employees more committed to staying with the company, and partners, and more willing to collaborate.
  4. Transparency:  If the Cambridge Analytica and Facebook data leak taught us anything, consumers are better informed, have higher expectations and demand much more transparency in how their information is being used. Trust becomes an important value in privacy and ethics, especially when data becomes the engine that drives many of tomorrow’s decisions. Mary Meeker references this Paradox of Privacy, where organizations seek to leverage personal information to provide more customization and, at the same time, are increasingly scrutinized in how they use the information. This is the first time the consumer is being given control over their own information. This wild west of rampant experimentation that created opportunism in business and in politics, at the expense of the individual, is over.

As Dave Gray, Author of the Connected Company pointed out,

“Business requires dismantling of its precious infrastructure”

New Mindsets: New Organizational Structure


The way business organizes today is through process and hierarchy. There are only a few people at the top. The work is divided and everyone gets their box in which they work. Rules ensure all decisions are run up the flagpole. The industrial revolution created this structure as well as a system of disseminated accountability. It was easy to hide behind your job description and claim, “It’s not my responsibility”. The division of work created these silos that stifled information sharing and ultimately, the speed of decisions.

Business 3.o must be:

  • ethical
  • empathic
  • nimble

Make no mistake – companies will be judged by their customers, their employees, their partners and their investors. How business innovates around these constituencies will determine their longevity.

Enter “Holacracy” 

What has been around for decades but hasn’t been as pervasive is this notion of self-management or HOLACRACY. This was developed through an agile methodology, which advocated the workflow. This allowed engineers to develop ideas without managerial direction. This “Fractal System is a complex, non-linear, and interactive system” and adapts readily to a changing environment. These systems are characterized by the potential for self-management especially in environments where balance does not exist.

So while the core functions are contained at the center of this org structure, including the policies and standards of the organization, the outer layer contains these pods of excellence, which allow for rapid experimentation, more fluid collaboration and where the members have direct accountabilities to the work unit. The individuals within these independent units are empowered to test, build, deploy, measure and iterate much more quickly than if they worked within today’s hierarchical structure.

Business Must Design for Ambiguity

…where complexity and uncertainty are the rules.  Three strategies that respond to this environment include:

    • The Perpetual Learning Organization – Digital business requires companies to act and respond faster than they ever have before.  While modifying the current communication and decision making structures will enable this, the widening business-to-market gap will mean closing the skills and knowledge gap between employees and a marketplace facing continuous change. This requires organizations to embed learning management systems to bring employees up to speed on market trends, to train and re-skill them on new technology, to encourage participation in new product development, plus modify job roles so they evolve with the new technology.  This will create an expectation of life-long learning within the culture.
    • Design Thinking – This is a strategic practice that radically changes the mindset of an organization from “static to fluid.” At the heart of this approach is to solve problems that are human-centered. In addition, collaboration is required cross-functionally to determine the impacts on all parts of the organization.  Rigorous data collection is required at all stages to ensure thorough identification of impacts to workflow and functional requirements. The focused group is created to speed up the process of innovation, get the required feedback and make autonomous decisions.  This method will discover redundancies in the current systems, but will also allow strengthening collaboration as employees within these groups will be much more energized to collaborate and own their solutions.  Projects will be able to go into production much faster as long as there is accountability and validation at each stage. This methodology fits squarely into the holocratic organizational strategy that ensures functional participation and empowers accountable experimentation and deployment.
    • Privacy by Design –  Data will drive everything in this century. Slowly boundaries are being severed between countries and organizations to contextualize information for the purpose of gaining increasing insight. What is also clear is the rise of the General Data and Protection Regulation (GDPR) that is telling organizations to slow down and put into place, standards and policy for the responsible collection, use and aggregation of information. Privacy by Design was developed by Dr. Ann Cavoukian, a 3-term Privacy Commissioner in Ontario. In the 1990’s, Cavoukian conceived of this idea to address the growing “systemic effects” as communication and information technologies integrated within increasingly networked data systems. When companies in the future are faced with petabytes of data being streamed from multiple feeds, there will be a mandate to explain model outputs. As well, functionally embedding privacy that is fair and moral into each layer of our systems will be required. Defining “fair” and “moral” needs to be functionally explicit. Continuous audits for fairness within systems and practices will also be required. The patterns that algorithms will detect will create opportunistic tendencies. This quote from an executive at Salesforce at a recent conference summed up nicely how business should respond: “Just because you can, doesn’t mean you should”. As we marshall into more disruptive technology using data, business will need to understand the long-term implications for the society at large.

This is the future of the “long-lived” company:

Connected companies learn and move faster, seize opportunities and link to a network of possibilities to spread their influence. ~Dave Gray

The future of work means destruction of silos. The panacea is a more fluid organization where decisions are made at the edges, where the business is in sync with its market, and where business perpetuates a value system that keeps it humming nicely.

Please reference the presentation here.

This post originally appeared on Forbes.

Hessie Jones is the Founder of ArCompany advocating AI readiness, education and the ethical distribution of AI. She is also Cofounder of Salsa AI, distributing AI to the masses. As a seasoned digital strategist, author, tech geek and data junkie, she has spent the last 18 years on the internet at Yahoo!, Aegis Media, CIBC, and Citi, as well as tech startups including Cerebri, OverlayTV and Jugnoo. Hessie saw things change rapidly when search and social started to change the game for advertising and decided to figure out the way new market dynamics would change corporate environments forever: in process, in culture and in mindset. She launched her own business, ArCompany in social intelligence, and now, AI readiness. Through the weekly think tank discussions her team curated, she surfaced the generational divide in this changing technology landscape across a multitude of topics. Hessie is also a regular contributor to Towards Data Science on Medium and Cognitive World publications.

This article solely represents my views and in no way reflects those of DXJournal. Please feel free to contact me h.jones@arcompany.co

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Philips is all in when it comes to the IoT

Lights may be a familiar sight whether you’re at home or anything to say about it, lighting will soon do a lot more than just illuminate.

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Sponsored by Cognizant

Stop reading for a moment and look up. Did you see a light on the ceiling, or maybe one over on the wall nearby? Of course you did. Lighting is everywhere we go — and not just indoors. It comes in all shapes, sizes, colours, and brightnesses, but if Philips Electronics has anything to say about it, lighting will soon do a lot more than just illuminate.

The Dutch electronics multinational — a leading global supplier of lighting technology — has announced that the IoT isn’t just an important technology, it’s going to be central to the company’s overall strategy in the future. That IoT-based strategy can be most clearly seen within Philips’ lighting division, where it even has its own name: Interact.

Related: Stepping into Digital with IOT – 14 Cases

“You can imagine all these devices — lamps, drivers, luminaries, sensors — being connected, sending information through software,” Philips Lighting CEO, Eric Rondolat, told attendees at the Light+Building exhibition in Frankfurt, earlier this year. “And all this software sending this information back to a cloud-based platform, an IoT platform that is called Interact,” he said.

The Power of Occupancy Sensing

While some of data gathered by Philips lighting will be related to energy consumption and other operational parameters for the lights themselves, there’s a lot more smart lighting can do.

One big area that Philips and the rest of the lighting industry is eyeing is occupancy sensing. The global occupancy sensor market was worth USD$1.7 billion in 2017, according to Market Prognosis, and is projected to reach USD$4.8 billion by 2023. Those numbers are being driven largely by a North American push to increase energy efficiency. Being able to know when someone is in a space that requires lighting, or HVAC, can lead to significant savings. But that same data has other value too, and Philips plans to leverage machine learning to unearth hidden insights trapped in that data.

Download] Stepping into Digital with IOT – 14 Cases

If these moves weren’t proof enough that Philips Lighting is betting big on the IoT, consider this: The company just hired former Cisco senior vice president, IoT sales, Chris White, to lead its Americas division. Then there’s the name. Philips Lighting announced in March that the company would change the company name to as Signify — a name it hopes will shine a light on the company’s beyond-lighting IoT focus.

DX Journal covers the impact of digital transformation (DX) initiatives worldwide across multiple industries.

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Navigating the AI Hype

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Welcome to Navigating the AI Hype. This will be a timely article that curates events in AI to tabulate AI’s journey as this unprecedented phenomenon makes its way into our lives: The Good, the Bad and the Ugly. We will acknowledge successes in AI as well as those that still require further progress. We will also highlight areas where human conscience will need to dictate policy and regulation as ethical standards will be built in lockstep with technology as it evolves. Finally, we will highlight references and resources for anyone wanting to dive in further into Artificial Intelligence. Enjoy!

The Good:

Uber applies for permission to test self-driving cars again

“ We have taken a measured, phased approach to returning to on-road testing, starting first with manual driving in Pittsburgh. We committed to deliver this safety report before returning to on-road testing in self-driving mode, and will go back on the road only when we’ve implemented improved processes.

Read more.

 

LinkedIn founder Reid Hoffman makes record-breaking gift to U of T’s Faculty of Information for chair in AI

“Artificial intelligence will revolutionize how we live, creating both incredible opportunity for benefits, as well as some disruption that will be important to manage,”

Read more.

MIT is investing $1 billion in an AI college

“Interdisciplinary learning should mean better, saner Artificial Intelligence”

Read more.

The Bad:

The future of border control agents might come in the form of an AI lie detector

A six-month trial will take place at four border crossing points in Hungary, Greece and Latvia.

 

Read more.

What to know about WhatsApp in Brazil ahead of Sunday’s election

“I don’t know where they found my phone number.”.

Read more.

Google wants to improve your smart home with iRobot’s room maps

The idea of Google using data about users’ home will be justifiably unsettling to some. Although Google doesn’t have as bad of a reputation for data leaks and breaches as Facebook, it’s still had a number of serious lapses.

Read more.

The Ugly:

Australia’s data breach numbers steady at 245 in three months

“Everyone who handles personal information in their work needs to understand how data breaches can occur so we can work together to prevent them”

Read more.

Radisson Hotel Group suffers data breach, customer info leaked

Radisson Hotel Group loyalty scheme members are affected and may have had their personal information stolen.

Read more.

China has been ‘hijacking the vital internet backbone of western countries’

“Using these numerous PoPs, [China Telecom] has already relatively seamlessly hijacked the domestic US and cross-US traffic and redirected it to China over days, weeks, and months”

Read more.

AI courses and resources

Machine Learning AI Certification by Stanford University (Coursera)

Artificial Intelligence Certification: Learn How To Build An AI (Udemy)

The week in breaches – Newsletter 

 

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Canadians up in arms: Privacy without consent and the dangerous precedent

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It’s the news that has taken Canada by storm of late, on Twitter, in the headlines, and in today’s parliamentary debate: Statistics Canada, Canada’s agency which issues statistical research on the state of Canada, its population, the economy and culture, unwittingly walked into the spotlight when Global News revealed the agency had asked TransUnion, a credit bureau that amasses credit information for many financial institutions to provide financial transactions and credit histories on approximately 500,000 Canadians, without their individual prior consent. The Liberal government has endorsed this move.

During the parliamentary debate, Conservative opposition Gérard Deltell declared,

If the state has no business in people’s bedrooms, the state has no business in their bank accounts either. There is no place for this kind of intrusion in Canada. Why are the Liberals defending the [Statistics Canada] indefensible? 

The data being demanded, according to Global News, consists of private information including name, address, date of birth, SIN, account balances, debit and credit transactions, mortgage payments, e-transfers, overdue amounts, and biggest debts on 15 years worth of data. Equifax, the other credit reporting agency that supports financial institutions in Canada has not been asked to provide data.

Francois-Philippe Champagne, Minister of Infrastructure and Communities was vague in his response. While he affirms StatsCanada’s upstanding practices in anonymizing and protecting personal data, he also admitted proper consent was not received,

StatsCan is going above the law and is asking banks to notify clients of this use. Stats Canada is on their side… We know data is a good place to start to make policy decisions in this country, and we will treat the information in accordance with the law. They can trust Statistics Canada to do the right thing.

Statistics Canada and the Liberal government failed to disclose the explicit use of this information, however,

By law, the agency can ask for any information it wants from any source.

I posed this question to former 3-term Privacy Commissioner, Ann Cavoukian, who currently leads the Privacy by Design Practice at Ryerson University, Toronto:

Ann Cavoukian Twitter

Ann Cavoukian Twitter

What’s troubling is that while the opposition cried foul, lashing out accusations of authoritarianism and surveillance, the latter outcome is not implausible.

According to Personal Information Protection and Electronic Documents Act (PIPEDA) Guidelines to Obtain Meaningful Consent, these are the main exceptions

  • if the collection and use are clearly in the interests of the individual and consent cannot be obtained in a timely manner;
  • if the collection and use with consent would compromise the availability or the accuracy of the information and the collection is reasonable for purposes related to investigating a breach of an agreement or a contravention of the laws of Canada or a province;
  • if disclosure is required to comply with a subpoena, warrant, court order, or rules of the court relating to the production of records;
  • if the disclosure is made to another organization and is reasonable for the purposes of investigating a breach of an agreement or a contravention of the laws of Canada or a province that has been, is being or is about to be committed and it is reasonable to expect that disclosure with the knowledge or consent of the individual would compromise the investigation;
  • if the disclosure is made to another organization and is reasonable for the purposes of detecting or suppressing fraud or of preventing fraud that is likely to be committed and it is reasonable to expect that the disclosure with the knowledge or consent of the individual would compromise the ability to prevent, detect or suppress the fraud;
  • if required by law.

For Statistics Canada, its broad legal reach is enough for the agency to circumvent explicit disclosure of data use and permission. This alone sets a dangerous precedent that wrestles with current European GDPR mandates, which will be referenced in the updated PIPEDA Act, at a time yet to be determined.

However, this privilege will not make StatsCanada immune to data breaches, but in fact, will make it a stronger target for data hackers. According to the Breach Level Index, since 2013 there have been 13+ billion records lost or stolen, with an average of 6.3+ million lost on a daily basis. The increasing centralization of data makes this more likely. For Statistics Canada, which has been collecting tax filings, census data, location, household, demographic, usage, health and economic data, it is increasingly amassing its data online. According to National Newswatch, the dwindling survey completions and costly census programs have necessitated a move to compile information from other organizations such as financial institutions, which come at more reasonable costs and better data quality.

If this is the catalyst to aggregate compiled information, with the goal of record linking, it will unearth significant privacy alarms in the process. For StatsCanada, which has received significant government support because of the critical information it lends to policy decisions, there are looming dangers of being the purveyor of every Canadian’s private information, beyond data breach vulnerabilities.

Anonymized Data Doesn’t Mean Anonymous Forever

I spoke to Alejandro Saucedo, the Chief Scientist at The Institute for Ethical AI & Machine Learning, a UK-based research center that develops industry standards and frameworks for responsible machine learning development and asked him to weigh in on this issue:

Canadians are rightly worried. It concerns me that StatsCanada is suggesting that just discarding names and addresses would be enough to anonymize the data. Not to point out the obvious, but data re-identification is actually a big problem. There have been countless cases where anonymized datasets have been reverse engineered, let alone datasets as rich as this one. 

Re-identification is used to reverse-engineer the anonymity data state and uses alternative data sources to link information to identity. Using publicly available data, easily found in today’s BigData environment, coupled with the speed of advanced algorithms, Saucedo points to successful attempts of re-identification: reverse engineering credit card data, or when this engineer was able to create a complete NYC taxis data dump of 173 million trips and fare logs by decoding the cryptographically secure hashing function that anonymized the medallion and taxi number.

Ethical hacks are not new to banking or any company that collects and manages significant data volumes. These are intentional hacks propagated internally and intentionally by corporations against their existing infrastructure to ensure mitigation of vulnerabilities on-premise and online. This practice ensures the organization is up to par with the latest methods for encryption and security as well as current breach mechanisms. As Saucedo points out:

Even if StatsCanada didn’t get access to people’s names (e.g. requested the data previously aggregated), it concerns me that there is no mention of more advanced methods for anonymization. Differential Privacy, for example, is a technique that adds statistical noise to the entire dataset, protecting users whilst still allowing for high-level analysis. Some tech companies have been exploring different techniques to improve privacy – governments should have a much more active role in this space.

Both Apple and Uber are incorporating Differential Privacy. The goal is to mine and analyze usage patterns without compromising individual privacy. Since the behavioral patterns are more meaningful to the analysis, a “mathematical noise” is added to conceal identity. This is important as more data is collected to establish these patterns. This is not a perfect methodology but for Apple and Uber, they are making momentous strides in ensuring individual privacy is the backbone of their data collection practices

Legislation Needs to be Synchronous with Technology

GDPR is nascent. Its laws will evolve as technology surfaces other invasive harms. Government is lagging behind technology. Any legislation that does not enforce fines for significant breaches in the case of Google Plus, Facebook or Equifax will certainly ensure business and government maintain the status quo.

Challenges of communicating the new order of data ownership will continue to be an uphill battle in the foreseeable future. Systems, standards and significant investment into transforming policy and structure will take time. For Statistics Canada and the Canadian government, creating frameworks that give individuals unequivocal control of their data require education, training, and widespread awareness. Saucedo concedes,

 A lot of great thinkers are pushing for this, but for this to work we need the legal and technological infrastructure to support it. Given the conflict of interest that the private sector often may face in this area, this is something that the public sector will have to push. I do have to give huge credit to the European Union for taking the first step with GDPR – although far from perfect, it is still a step in the right direction for privacy protection.

 (Update) As of Friday, November 1, 2018, this Petition E-192 (Privacy and Data Protection) was put forward to the House of Commons calling for the revocation of this initiative. 21,000 signatures have been collected to date. Canadians interested in adding their names to this petition can do so.
Petition to the House of Commons
Whereas:
  • The government plans to allow Statistics Canada to gather transactional level personal banking information of 500,000 Canadians without their knowledge or consent;
  • Canadians’ personal financial and banking information belongs to them, not to the government;
  • Canadians have a right to privacy and to know and consent to when their financial and banking information is being accessed and for what purpose;
  • Media reports highlight that this banking information is being collected for the purposes of developing “a new institutional personal information bank”; and
  • This is a gross intrusion into Canadians’ personal and private lives.
We, the undersigned, Citizens and Residents of Canada, call upon the Government of Canada to immediately cancel this initiative which amounts of a gross invasion of privacy and ensure such requests for personal data never happen again.

This post first appeared on Forbes.

Hessie Jones is the Founder of ArCompany advocating AI readiness, education and the ethical distribution of AI. She is also Cofounder of Salsa AI, distributing AI to the masses. As a seasoned digital strategist, author, tech geek and data junkie, she has spent the last 18 years on the internet at Yahoo!, Aegis Media, CIBC, and Citi, as well as tech startups including Cerebri, OverlayTV and Jugnoo. Hessie saw things change rapidly when search and social started to change the game for advertising and decided to figure out the way new market dynamics would change corporate environments forever: in process, in culture and in mindset. She launched her own business, ArCompany in social intelligence, and now, AI readiness. Through the weekly think tank discussions her team curated, she surfaced the generational divide in this changing technology landscape across a multitude of topics. Hessie is also a regular contributor to Towards Data Science on Medium and Cognitive World publications.

This article solely represents my views and in no way reflects those of DXJournal. Please feel free to contact me h.jones@arcompany.co

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