May 5, 2017 Presented by Prof. Kyeong Seok HAN, CMC

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1 The Fourth Industrial Revolution and Successful Innovation May 5, 2017 Presented by Prof. Kyeong Seok HAN, CMC

2 Contents What is the 4th Industrial Revolution? A Fusion of Technologies-Consulting with the Deep Learning Concept Consulting Environment: Connection through IoT(Internet of Things) Consulting While Considering The Future of Jobs Conclusion

3 What is the 4 th Industrial Revolution? (Source: WEF(World Economic Forum)) The First Industrial Revolution used water and steam power to mechanize production. The Second used electric power to create mass production. The Third used electronics and information technology to automate production. Now a Fourth Industrial Revolution is building on the Third, the digital revolution that has been occurring since the middle of the last century. 3

4 What is the 4 th Industrial Revolution? (Source: WEF(World Economic Forum)) It is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres. There are three reasons why today s transformations represent not merely a prolongation of the Third Industrial Revolution but rather the arrival of a Fourth and distinct one: velocity, scope, and systems impact. 4

5 What is the 4 th Industrial Revolution? (Source: WEF(World Economic Forum)) The speed of current breakthroughs has no historical precedent. When compared with previous industrial revolutions, the Fourth is evolving at an exponential rather than a linear pace. Moreover, it is disrupting almost every industry in every country. And the breadth and depth of these changes herald the transformation of entire systems of production, management, and governance. 5

6 What is the 4 th Industrial Revolution? (Source: WEF(World Economic Forum)) The possibilities of billions of people connected by mobile devices, with unprecedented processing power, storage capacity, and access to knowledge, are unlimited. And these possibilities will be multiplied by emerging technology breakthroughs in fields such as artificial intelligence, robotics, the Internet of Things, autonomous vehicles, 3-D printing, nanotechnology, biotechnology, materials science, energy storage, and quantum computing. 6

7 What is the 4 th Industrial Revolution? The Impact on Consu lting Business (Source: WEF(World Economic Forum)) On the whole, there are four main effects that the Fourth Industrial Revolution has on business on customer expectations, on product enhancement, on collaborative innovation, and on organizational forms: On customer expectations ->Consulting for Marketing On product enhancement ->Consulting for Operations Management 7

8 What is the 4 th Industrial Revolution? The Impact on Consu lting Business (Source: WEF(World Economic Forum)) On customer expectations ->Consulting for Marketing On product enhancement ->Consulting for Operations Management On collaborative innovation ->Consulting for Innovation, and On organizational forms ->Consulting for Human Resource Management *Basic technologies to support the consulting are those of Management Information Systems. 8

9 What is the 4 th Industrial Revolution? (Source: WEF(World Economic Forum)) A key trend is the development of technologyenabled platforms that combine both demand and supply to disrupt existing industry structures, such as those we see within the sharing or on demand economy. These technology platforms, rendered easy to use by the smartphone, convene people, assets, and data thus creating entirely new ways of consuming goods and services in the process. 9

10 What is the 4 th Industrial Revolution? (Source: WEF(World Economic Forum)) A world of customer experiences, data-based services, and asset performance through analytics, meanwhile, requires new forms of collaboration, particularly given the speed at which innovation and disruption are taking place. And the emergence of global platforms and other new business models, finally, means that talent, culture, and organizational forms will have to be rethought. 10

11 What is the 4 th Industrial Revolution? (Source: WEF(World Economic Forum)) Overall, the inexorable shift from simple digitization (the Third Industrial Revolution) to innovation based on combinations of technologies (the Fourth Industrial Revolution) is forcing companies to reexamine the way they do business. The bottom line, however, is the same: business leaders, senior executives and management consultants like CMCs need to understand their changing environment, challenge the assumptions of their operating teams, and relentlessly and continuously innovate. 11

12 A Fusion of Technologies-Consulting with the Deep Learning Concept Definition: Intelligence Intelligence has been defined in many different ways including as one's capacity for logic, understanding, self-awareness, learning, emotional knowledge, planning, creativity and problem solving. It can be more generally described as the ability to perceive information, and retain it as knowledge to be applied towards adaptive behaviors within an environment or context. 12

13 Definitions: AI vs IA (Source: The presentation by Dr. Jim Spohrer (IBM) IBM UPWard 2016) AI is Artificial Intelligence, or intelligence in machines (smart machines) IA is Intelligence Augmentation, or people thinking and working together with smart machines. IA is what IBM calls Cognitive Computing and the smart machines are called Watson Solutions or more generally Digital Cognitive Systems (Cogs) 13

14 A Fusion of Technologies-Consulting with the Deep Learning Concept Multi-disciplinary research: The Main Role of CMCs Disciplines: Breadth of disciplines to tackle issues: Psychology and cognitive science, philosophy, design and art, public policy and management, law and regulations Systems: Professional associations to tackle industry and system issues, including novice to expert progression on tasks Socio-technical system design loop and smart service systems 14

15 Types of AI for Management Consultants (CMCs) Tool Assistant Collaborator Coach Mediator 15

16 Types: Progression of models and capabilities Task & World Model/ Planning & Decisions Self Model/ Capacity & Limits User Model/ Episodic Memory Institutions Model/ Trust & Social Acts Tool Assistant Collaborator Coach Mediator

17 A Fusion of Technologies-Consulting with the Deep Learning Concept Artificial Neural Networks Dendrite Soma Axon Spin 17

18 A Fusion of Technologies-Consulting with the Deep Learning Concept Simple Perceptron The neuronal model we have just discussed is also known as a perceptron The perceptron is the simplest form of a neural network used for the classification of patterns said to be linearly separable Basically, it consists of a single neuron with adjustable synaptic weights and bias 18

19 A Fusion of Technologies-Consulting with the Deep Learning Concept Simple Perceptron 19

20 A Fusion of Technologies-Consulting with the Deep Learning Concept 20

21 A Fusion of Technologies-Consulting with the Deep Learning Concept Simple Perception 21

22 A Fusion of Technologies-Consulting with the Deep Learning Concept Simple Perception Example Banana Apple 22

23 A Fusion of Technologies-Consulting with the Deep Learning Concept Simple Perception Example 23

24 A Fusion of Technologies-Consulting with the Deep Learning Concept X 2 =(30/300)x 1 -(50/300) (140,17.9) (200,19.83) (210,9.4) (195,8.1) -(50/300) 24

25 A Fusion of Technologies-Consulting with the Deep Learning Concept Simple Perception Example -30* * = 1,460 > 0 àclass C 1-30* * = -3,430 < 0 àclass C 2 25

26 A Fusion of Technologies-Consulting with the Deep Learning Concept 26

27 Consulting Environment: Connection through IoT(Internet of Things) Internet of Things (IoT) Extending the current Internet and providing connection, communication, and internetworking between devices and physical objects, or "Things," is a growing trend that is often referred to as the Internet of Things. The technologies and solutions that enable integration of real world data and services into the current information networking technologies are often described under the umbrella term of the Internet of Things (IoT) 27

28 Consulting Environment: Connection through IoT(Internet of Things) Sensor devices are becoming widely available - Programmable devices - Off-the-shelf gadgets/tools 28

29 Consulting Environment: Connection through IoT(Internet of Things) More Things are being connected Home/daily-life devices Business and Public infrastructure Health-care 29

30 Consulting Environment: Connection through IoT(Internet of Things) People Connecting to Things ECG sensor Internet Motion sensor Motion sensor Motion sensor 30

31 Consulting Environment: Connection through IoT(Internet of Things) Things Connecting to Things - Complex and heterogeneous resources and networks 31

32 Consulting Environment: Connection through IoT(Internet of Things) How are the networks changing? Extensions More nodes, more connections, IPv6, 6LowPan,... Any TIME, Any PLACE, Any THING M2M, IoT Billions of interconnected devices, Everybody connected. Expansions Broadband Enhancements Smart networks Data-centric and content-oriented networking Context-aware (autonomous) systems 32

33 Consulting Environment: Connection through IoT(Internet of Things) Why should CMCs learn about IoT? Business Trend Emerging Technologies Growing IoT Services and Application Innovating Clients Companies through New Technologies 33

34 Consulting Environment: Connection through IoT(Internet of Things) Opportunities 34 Source:

35 Consulting Environment: Connection through IoT(Internet of Things) Technology trend 35

36 Consulting Environment: Connection through IoT(Internet of Things) Market growth According to a study conducted by Frost & Sullivan in 2011, the global RFID market of $3 billion to $4 billion (in 2009) will grow by twelve percent per year through 2016 and reach a volume of approximately $6.5 billion to almost $9 billion. 80 percent of all households in the European Union are expected to have intelligent power meters by A building s energy management can then be monitored and administered remotely via a smartphone or a PC. Market experts predict that this global market, which represented $5.3 billion in In February 2012 the Chinese government therefore decided to set up a fund of approximately $775 million to support this field in the next five years. It will grow to $11 billion by This sector is expected to grow to $116 billion by 2015, according to a report published by the Xinhua News Agency in late Source: Siemens, /_html_en/facts-and-forecasts-growth-market-of-the-future.html 36

37 Consulting Environment: Connection through IoT(Internet of Things) Internet Connected devices Source: Siemens, 37

38 Consulting Environment: Connection through IoT(Internet of Things) Internet of Things Module Image courtesy: Wilgengebroed 38

39 Consulting While Considering The Future of Jobs Today, we are at the beginning of a Fourth Industrial Revolution. Developments in genetics, artificial intelligence, robotics, nanotechnology, 3D printing and biotechnology, to name just a few, are all building on and amplifying one another. Smart systems homes, factories, farms, grids or cities will help tackle problems ranging from supply chain management to climate change. The rise of the sharing economy will allow people to monetize everything from their empty house to their car. 39

40 Consulting While Considering The Future of Jobs The Future of Jobs Report is a first step in becoming specific about the changes at hand. It taps into the knowledge of those who are best placed to observe the dynamics of workforces Chief Human Resources and Strategy Officers by asking them what the current shifts mean, specifically for employment, skills and recruitment across industries and geographies. 40

41 Consulting While Considering The Future of Jobs The question, then, is how CMCs will react to these developments. To prevent a worst-case scenario technological change accompanied by talent shortages, mass unemployment and growing inequality reskilling and upskilling of today s workers will be critical. 41

42 Consulting While Considering The Future of Jobs In particular, business collaboration within industries to create larger pools of skilled talent will become indispensable, as will multi-sector skilling partnerships that leverage the very same collaborative models that underpin many of the technology-driven business changes underway today. 42

43 Consulting While Considering The Future of Jobs To ensure that we achieve this vision, we must become more specific and much faster in understanding the changes underway and cognizant of our collective responsibility to lead our businesses and communities through this transformative moment. 43

44 Consulting While Considering The Future of Jobs Disruptive changes to business models will have a profound impact on the employment landscape over the coming years. Many of the major drivers of transformation currently affecting global industries are expected to have a significant impact on jobs, ranging from significant job creation to job displacement, and from heightened labour productivity to widening skills gaps. 44

45 Consulting While Considering The Future of Jobs By one popular estimate, 65% of children entering primary school today will ultimately end up working in completely new job types that don t yet exist. In such a rapidly evolving employment landscape, the ability to anticipate and prepare for future skills requirements, job content and the aggregate effect on employment is increasingly critical for businesses, governments and individuals in order to fully seize the opportunities presented by these trends and to mitigate undesirable outcomes. 45

46 Consulting While Considering The Future of Jobs 46

47 Consulting While Considering The Future of Jobs 47

48 Consulting While Considering The Future of Jobs Impact of Disruptive Change on Employment By contrast, further unpacking the bundle of technological drivers of change in the mould of the Fourth Industrial Revolution yields a rather more optimistic picture regarding the job creation potential of technologies such as Big Data analytics, mobile internet, the Internet of Things and robotics. 48

49 Consulting While Considering The Future of Jobs 49

50 Consulting While Considering The Future of Jobs 50

51 Conculsion CMCs need to prepare the future consulting business based on the Innovation through the New Body of Knowledge and Strategies to Adjust Ourselves to Disruptively Changing Environment in the Fourth Industrial Revolution Era. 51

52 Thank you Q&A

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