Predictive Analytics and AI and the disruption to the workforce March 2017

Transcription

1 Predictive Analytics and AI and the disruption to the workforce March 2017 Peter du Plooy Chief Information Officer

2 Agenda Setting the context Analytics Automation Artificial Intelligence Workplace disruption Next steps

3 Setting the context What do companies want? Agility Responsive Customer experience Cut costs Build value How to do this? New business model Digitally enabled Integrated Sequenced to achieve step-changes Revenue, customer experience, cost Will automation improve productivity, deliver freedom from boring work, improve quality of life, or do we fear threats to job disruption and strains to social fabrics

4 Analytics Sophisticated quantitative methods (e.g. data mining, prediction, simulation and optimization) to produce insights that traditional approaches to BI such as query and reporting are unlikely to discover. What is happening? Why did it happen? Descriptive Diagnostic Predictive Prescriptive Analytics Simple Arithmetic How can we make it happen? Reporting / Dashboards Common BI Platform Familiar What will happen? Advanced Analytics Data Science Business Problem Solving Mathematic Based Tools Disturbing

5 Opportunities for analytics Disruptive nature of analytics Data volumes double every three years Computing power improvements Sophisticated algorithms Deep data insights! Operational excellence Predictive maintenance Inventory management! Customer intimacy Merchandising Price analysis Segmentation CRM Call Centre

6 Automation Impact on business processes Impact on jobs About 60% of jobs have at least 30% activities ready for automation Improve productivity Repetitive tasks Supply and demand increasing the people pool Digital companies vs. traditional Errors, quality and speed People working alongside machines and algorithms Automation will change the daily work activities of everyone

7 Artificial Intelligence Used in digital platforms like Uber, Upwork, Etsy Higher output, better quality, fewer errors Machine learning strategy and C-suite Organisation structures Insight driven Description: collection and OLAP Prediction: data quality Prescription: determine a pattern Virtual Planning Assistants (VPAs) Google s Deepminds experiment

8 Workplace disruption Driven by: Analytics Algorithms Machine learning AI Automation Skills, employment, wages Untapped human potential (~850 million people) Unemployed, underemployed, inactive 4 billion people still offline Automation affecting processes rather than occupations Automating an organisation Activities Redefine processes and jobs Law of Disruption: technology changes exponentially, but social, economic and legal systems change incrementally

9 Disintermediation of jobs Impact of Artificial Intelligence Impact of algorithms and machine learning Impact of robotics How will governments respond Supply and Demand Man v.s. Machine

10 Universal Basic Income (UBI) Canada, Finland, Holland, Switzerland, India, Namibia Will people change? Ontario (2017/2018) 2500 citizens USD 970 p/m Simplify the social grant system

11 The future of work Self employment Independent work Satisfaction and motivation Impact on policy makers Digitally enabled society creating opportunities Underutilisation of skills Training Soft skills LinkedIn 37% don t believe skills are being used Digital platforms match skills and jobs

12 Next Steps Digitalisation Remove silo-ed processes and cluster platforms and journeys Advanced analytics Deliver insights and make recommendations Intelligent process automation Involves robotics, automation and machine learning Business process outsourcing Labour arbitrage, mainly back-office processes and functions Lean process redesign Eliminate waste and foster a culture of continuous improvement

13 Thank you DISCLAIMER The information contained herein is of a general nature and not intended to be a detailed analysis of the subject matter. Engen accepts no responsibility for any loss or damage that may arise from reliance on information contained in this document. This document is subject to Copyright laws. Unless Engen has furnished you with its prior written consent, no part of this document may be reproduced, stored or transmitted in any form.