Disruption in the 4IR. 12 June 2018

Transcription

1 Disruption in the 4IR 12 June 2018

2 New world in the making: The Fourth Industrial Revolution (4IR) The changes unleashed by the Fourth Industrial Revolution are so profound that, from the perspective of human history, there has never been a time of greater promise or potential peril. Klaus Schwab Founder and Executive Chairman, World Economic Forum 2

3 Mobility Comms Energy Agricultural Production Preindustrial Wind-powered shipping Ad-hoc, private communication networks Biomass, water, animal and air power Domesticated farming, smallscale agriculture Artisanal manufacturing

4 Mobility Comms Energy Agricultural Production First industrial Steam-power, rail networks, new navigation aids and sea routes Organized postal networks, newspapers, widespread printing Coal and coal mining, heat engine and steam power Increasingly capital-intensive, scale farming, global supply chains Factory production, first scaled automation Preindustrial Wind-powered shipping Ad-hoc, private communication networks Biomass, water, animal and air power Domesticated farming, smallscale agriculture Artisanal manufacturing

5 Mobility Comms Energy Agricultural Production Second industrial Oil-powered shipping, road systems, commercial airline Radio, telephone networks, television, air mail, mass market books Oil production, gas turbines, electricity system Artificial fertilizer, mechanized farming, cold chain Scientific management, mass production systems First industrial Steam-power, rail networks, new navigation aids and sea routes Organized postal networks, newspapers, widespread printing Coal and coal mining, heat engine and steam power Increasingly capital-intensive, scale farming, global supply chains Factory production, first scaled automation Preindustrial Wind-powered shipping Ad-hoc, private communication networks Biomass, water, animal and air power Domesticated farming, smallscale agriculture Artisanal manufacturing

6 Mobility Comms Energy Agricultural Production Third industrial Satellite-guided navigation, digital transport Internet, mobile data, video, digital and social media Alternative energy systems Precision farming systems Outsourced production systems, digital production and consumption Second industrial Oil-powered shipping, road systems, commercial airline Radio, telephone networks, television, air mail, mass market books Oil production, gas turbines, electricity system Artificial fertilizer, mechanized farming, cold chain Scientific management, mass production systems First industrial Steam-power, rail networks, new navigation aids and sea routes Organized postal networks, newspapers, widespread printing Coal and coal mining, heat engine and steam power Increasingly capital-intensive, scale farming, global supply chains Factory production, first scaled automation Preindustrial Wind-powered shipping Ad-hoc, private communication networks Biomass, water, animal and air power Domesticated farming, smallscale agriculture Artisanal manufacturing

7 Mobility Comms Energy Agricultural Production Fourth industrial Networks of autonomous vehicles Neurocommunication Distributed energy systems Fully automated farming synthetic meat Distributed manufacturing, ubiquitous robots Third industrial Satellite-guided navigation, digital transport Internet, mobile data, video, digital and social media Alternative energy systems Precision farming systems Outsourced production systems, digital production and consumption Second industrial Oil-powered shipping, road systems, commercial airline Radio, telephone networks, television, air mail, mass market books Oil production, gas turbines, electricity system Artificial fertilizer, mechanized farming, cold chain Scientific management, mass production systems First industrial Steam-power, rail networks, new navigation aids and sea routes Organized postal networks, newspapers, widespread printing Coal and coal mining, heat engine and steam power Increasingly capital-intensive, scale farming, global supply chains Factory production, first scaled automation Preindustrial Wind-powered shipping Ad-hoc, private communication networks Biomass, water, animal and air power Domesticated farming, smallscale agriculture Artisanal manufacturing

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9 The speed of disruption 1900

10 100 years ago, mobility had dramatically changed in a decade

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12 4IR technologies transforming supply chains Example trade finance New technologies Product selection Pre-transaction Transaction processing After transaction Data entry Workflow management Document check Compliance check Problem resolution Client mgmt. information system Optical character recognition (OCR) Artificial intelligence (AI) Advanced analytics (AA) Intelligent and personalized marketing: Offer new product sales or client promotions based on insights on clients needs and behaviors Text recognition from trade documents to minimize data entry Populate fields with text extracted from documents (integrate OCR with transaction process) Enhanced KYC (e.g., web scrape) Check for completeness of documents based on transaction/ product type Validate/remed-iate data with crossreferences, machine learning Efficient process and productivity monitoring, and predictive analytics to detect patterns Scrape documents for AML keyword hit Contextual filtering: Identify suspicious or unusual activity and block suspicious transactions based on predictive indicators Intelligentproblem resolution: Track individual error rates and flag users in need of remediation Reports enable enhanced operational and strategic decisions Robotic process automation (RPA) Bridge data flow and communication: Integrate data from different systems into single interface Internet of things (IoT) Ease of tracking goods and documents; dynamic pricing and financing triggered by shipment events; automated payments release based on smart contracts Track document locations: Track goods (location, volume, quality) Source: Bain & Company Distributed ledger technology (DLT) Create smart letter of credit as smart contract on distributed ledger - auto notifications Replace documentation, checks, data entry, validation, with single digital record Real time verification and reconciliation; workflow executed as per smart contract conditions; replace payment and funds transfer with cryptocurrency

13 The 4IR leadership challenge The Question is not But Am I going to be disrupted? When is disruption coming? What form will it take? How will it affect me and my organization? What are my new strategic options?

14 Forces of disruption 1. Online markets 2. Automation 3. Clean power 4. New modes 5. Materials 6. Distributed business 7. Visibility and transparency 8. Connected brains

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19 Eliminating the idea of waste by giving consumers a more convenient, premium product experience By TerraCycle NO WASTE

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23 Pathways towards intelligent supply chains Eliminating pain points Costs incurred by manual labour; lack of data Automated Human error/fraud and safety risk; labour costs, delays Connected Lack of visibility; costs and error due to reprocessing Intelligent Limited leverage of 4IR technologies Paperless Pain points

24 Policy makers need to strike good balance between protecting citizens and promoting innovation

25 Policy making: balancing protection with progress

26 Non-regret moves Upgrade core legacy IT systems, shifting to a modular, adaptable architecture that uses middleware and APIs Invest selectively in new technologies, such as AI and robotic process automation, to harness digitalization s near-term benefits Define advanced technology roadmap, and prioritize use cases for proof of concept, business models and cost-benefit cases Explore strategic partnerships with other ecosystem participants, including public private partnerships Design a next-stage operating model, incl. new governance and ways of working to better adapt to new technologies and leverage them for new solutions 26

27 Thank you