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:
- 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
- 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.
- 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.
- 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:
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.
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 firstname.lastname@example.org
Tesla wants its factory workers to wear futuristic augmented reality glasses on the assembly line
- Tesla patent filings reveal plans for augmented reality glasses to assist with manufacturing.
- Factory employees has previously used Google Glass in its factory as recently as 2016.
To cut down on the number of fit and finish issues — like the “significant inconsistencies” found by UBS— Tesla employees on the assembly line could soon use augmented reality glasses similar to Google Glass to help with car production, according to new patent filings.
Last week, Tesla filed two augmented reality patents that outline a futuristic vision for the relationship between humans and robots when it comes to manufacturing. The “smart glasses” would double as safety glasses, and would help workers identify places for joints, spot welds, and more, the filings say.
Here’s how it works:
And here’s the specific technical jargon outlining the invention (emphasis ours):
The AR device captures a live view of an object of interest, for example, a view of one or more automotive parts. The AR device determines the location of the device as well as the location and type of the object of interest. For example, the AR device identifies that the object of interest is a right hand front shock tower of a vehicle. The AR device then overlays data corresponding to features of the object of interest, such as mechanical joints, interfaces with other parts, thickness of e-coating, etc. on top of the view of the object of interest. Examples of the joint features include spot welds, self-pierced rivets, laser welds, structural adhesive, and sealers, among others. As the user moves around the object, the view of the object from the perspective of the AR device and the overlaid data of the detected features adjust accordingly.
As Electrek points out, Tesla has previously been employing Google Glass Enterprise as early as 2016, though it’s not clear how long it was in use.
Tesla has a tricky relationship with robotics in its factory. In April, CEO Elon Musk admitted its Fremont, California factory had relied too heavily on automated processes. Those comments, to CBS This Morning, came after criticism from a Bernstein analyst who said “We believe Tesla has been too ambitious with automation on the Model 3 line.”
Still, the company seems to be hoping for a more harmonious relationship between human and machine this time around.
“Applying computer vision and augmented reality tools to the manufacturing process can significantly increase the speed and efficiency related to manufacturing and in particular to the manufacturing of automobile parts and vehicles,” the patent application reads.
This article was originally published on Business Insider. Copyright 2018.
The great buy-in: How to learn to love AI at work
The conversation around AI is changing — and the emphasis on the augmentation of current workers, rather than the wholesale replacement of segments of the workforce, is a significant (and many would argue, necessary) shift. However, anxiety and fear are still tough contenders for those trying to usher in a new era of AI-assisted workplaces.
Zoom.ai is a chat-based productivity tool that helps employees automate everyday tasks including searching for files, scheduling meetings, and generating documents. In an interview with DX Journal, Sriubiskis said public opposition to AI remains a major stumbling block not just for technology companies, but for businesses around the world.
As the language around AI changes, it becomes obvious that people want change from the technology, but remain hesitant about the disruptive effect AI-based automation could bring to their industries.
As highlighted in a recent Forbes article, knowledge-based workers with tenure, who have developed their skill-set over a period of time, are acting along the lines of basic psychology when it comes to fear surrounding automation. Unfortunately, that push-back can severely stunt the success of digital transformation projects designed to improve the lives of workers throughout the company, not replace them.
“A lot of people are afraid that AI’s going to take their job away,” said Sriubiskis. “That’s because that’s the narrative that we’ve seen for so long. It’s now about shifting the narrative to: AI’s going to make your job better and give you more time to focus more on the things that you’ve been hired to do because you’re good at doing them. There are tons of websites online talking about whether your job’s going to be taken away by AI, but they never really talk about how people’s jobs are going to be improved and what things they won’t have to do anymore so they can focus on the things that actually matter.”
Buy-in requires tangible results
This general AI anxiety can seem like a big obstacle to companies looking to adopt AI — but there are important steps companies can take to ensure their AI on-boarding is done with greater understanding and effectiveness.
As startups and businesses look to break through the AI fear-mongering, they have to demonstrate measurable benefits to employees, showing how AI can make work easier. By building an understanding of how AI affects employees, showing them how it benefits them, and using that information to inspire confidence in the project, businesses can work to create a higher level of employee buy-in.
One of the simplest examples of how to demonstrate this kind of benefit comes from Zoom.ai’s digital assistant for the workplace. An immediately beneficial way AI can augment knowledge-based workers is by giving them back their time.According to McKinsey & Company research cited by Zoom.ai, knowledge workers spend 19 percent of their time — one day a week — searching for and gathering information, sequestered by app or database silos. By showing how the employee experience can be improved with the use of automated meeting scheduling or document retrieval, you generate employee buy-in, said Sriubiskis.
“For us, the greatest advantage is giving employees some of their time back, so they can be more effective in the role that they were hired to do. So if there’s a knowledge-based worker, and they’re an engineer for example, they shouldn’t be spending time booking meetings, generating documents, finding information or submitting IT tickets. Their time would be better spent putting it towards their engineering work. For an enterprise company, based on our cases, we estimate that we can give employees at least 10 hours back a month. That allows them to be more productive, increase their collaboration and their creativity, and the overall employee experience improves.”
Full comprehension of a problem leads to better implementation
Another way to ensure a greater level of employee confidence is to understand the core problem that AI could be used to solve. You can’t just throw AI at an issue, said Sriubiskis. The application of the AI solution has to make sense in the context of an identified problem.
“When a lot of companies talk about their current endeavours, they’re saying, ‘we’re exploring AI to do this.’ But they’re not actually understanding a core problem that their employees are facing. If you just try to throw a new technology at a problem you don’t fully understand, you’re not going to be as successful as you want. You might be disappointed in that solution, and people are going to be frustrated that they wasted time without seeing any results.”
This deliberate effort to understand a key problem before implementing a solution can drive to better outcomes. That’s why Zoom.ai has incorporated this kind of core observation into its process of on-boarding clients or approaching a new project.
“Before we do a proof-of-concept or a pilot now,” said Sriubiskis, “we require companies to do an interview with some of our product and our UI/UX team. That way, we can understand how they do things currently, but also so we can provide a quantitative metric. Qualitative is nice, but people also want to see the results, and make sure their work was worth it. We make sure to interview a whole bunch of users, clearly understand the problem, and make sure what we’re doing isn’t a barrier to what they’re actually trying to solve, it’s going to help it and help it more over time.”
These approaches are all about making the team of employees feel like an AI solution is working for them, leading to greater effectiveness of AI implementation to augment the workforce. It remains key, said Sriubiskis, to make sure employees can see the tangible benefits of the technology. Zoom.ai makes that employee experience a core part of their on-boarding process: “We report back to our users and tell them how many hours they’ve saved. So they see how the actual improvements are seen by them, not just by management or the company as a whole.”
The future is filled with AI. It’s just a question of making sure it helps, not hurts, human capital — and that a positive transition to AI tools prioritizes the employee experience along the way.
Navigating the AI Hype
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!
DeepMind AlphaFold Delivers “Unprecedented Progress” on Protein Folding
“Proteins are essential to life. Predicting their 3D structure is a major unsolved challenge in biology and could impact disease understanding and drug discovery. I’m excited to announce that we have won the CASP13 protein folding competition!”
Facebook And MIT Researchers Want To Use AI To Create Addresses For The Billions Of People Who Don’t Have One
“Artificial intelligence will revolutionize how we live, creating both incredible opportunity for benefits, as well as some disruption that will be important to manage,”
Tech giants offer empty apologies because users can’t quit
“Sorry means nothing since so does We’re deleting.”.
DuckDuckGo Says Google’s Filter Bubble Is Real, and It Can Prove It
A study shows incognito mode does not mean anonymous
Microsoft President: We’ll Give Pentagon ‘All the Technology We Create’
“For us, we’ve been clear: we are gonna provide the US military with access to the best technology — to all the technology — we create. Full stop. We just said that flat out.”
LinkedIn used 18M non-member emails to target Facebook ads. Were you a victim?
A Data Protection Commissioner investigation found that LinkedIn violated data protection policies shortly before onset of GDPR
Marriott hotels: data of 500m guests may have been exposed
“This indicates that as far as security monitoring and being able to respond in a timely and adequate fashion, Marriott had severe challenges being able to live up to its mission statement of keeping customer data safe.”
Quora data breach FAQ: What 100 million hacked users need to know
“On Friday [November 30] we discovered that some user data was compromised by a third party who gained unauthorized access to one of our systems.”
Emails of top NRCC officials stolen in major 2018 hack
“The NRCC can confirm that it was the victim of a cyber intrusion by an unknown entity. The cybersecurity of the Committee’s data is paramount, and upon learning of the intrusion, the NRCC immediately launched an internal investigation and notified the FBI, which is now investigating the matter,”
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