Industry 4.0 The Future of Innovation
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1 Industry 4.0 The Future of Innovation Peter Merrill Chair; ASQ Innovation Think Tank Why Innovation? Global Change Digitization Market Change Social Change Perfect Storm of Change Leading to more Change It is not the strongest that survive, nor the most intelligent, but the one most responsive to change. - Charles Darwin 1
2 Understanding Innovation. Range of understanding Number of definitions Like Quality, Essential elements: driven by an unmet need create something new. the new creates benefit. radical change in doing Improvement v Innovation 4 th Industrial Revolution Industry 4.0 Internet of Things (IoT) Big data Artificial Intelligence World without Work Social Issue Opportunities 2
3 Industry 4.0 The Evidence Google Glasses Fitbit Smart Watch Auto Electrification Global Warming 3D Printing I.o.T. Factory 3
4 Internet of Things Network of physical objects devices, vehicles, buildings etc. Connectivity, embedded with electronics, software, sensors Enables collect and exchange data Allows objects to be sensed and controlled remotely Direct integration of physical world with IT systems Smart grids, homes, cities, transport Smart Factory Connecting cyber-physical systems Virtual Models To operate Data analysis immediate decisions Independent decisions Internet of Services Flexibility 4
5 Challenges IT Security, IP Protection, Dark Side We can find a café Terrorists find each other Deep Web Benefit Big Data.but New Skill Sets needed Big Data Big data influence (from IoT) Economic apps Uber, Airbnb Multisided platforms Medicine slow (Part Privacy) Dangers Need Data Protection Stds Data Opportunities 5
6 Data Opportunity Rolls-Royce sensor technology Identify engine problems early optimize maintenance, New business model retain engine ownership provide maintenance, single fee from hours flown. better inventory management. Data Opportunity UK White Van Crowd delivering from e-retailers roadway congestion, London Council Agile Urban Logistics project. delivery data + traffic data >> shared-delivery services Vodafone, phone co. identify drivers speed pinpoint traffic jams, TomTom, GPS provider. TomTom buys information tell users where jams are Data Fuels A.I. 6
7 Data Fuels A.I. Artificial Intelligence (A.I.) Alan Turing Theory of Computation Binary Notation Imitation Game /Enigma 1955 Intelligent Machines 1974, 1987 A.I. Winters Post 2000 computer power Aims of A.I. Reasoning Solve problems Move objects etc. Current A.I. Search Doc s Speech Recognition Digital voice assistance Computers play chess Driverless cars Robots can do simple stuff Can Read simple Emotions Humans - fast intuitive judgement Sci-Fi Download personality Middle skill customer service replace by A.I. Stephen Hawking warning No moral responsibility for A.I. 7
8 A.I. Subfields Computer Science Mathematics Psychology Linguistics Philosophy Neuro Science A.I. Challenges Default Reasoning Nothing is simply true or false Common Sense We have own knowledge base Instinct Chess player see s threat Artist Sensitive to colour Learning Computer to learn by reading? Future Challenges Social Intelligence, Creativity General Intelligence 8
9 Future of Jobs; WEF Keynes hours a day 7 million jobs will go in 5 years 35% UK, 47% US workers lost Jobs in 10 years 65% of these Jobs don t yet exist Downward pressure on low pay US On-shoring from India and China Robot serving Restaurant meal? I-Pad Menu WEF Report Future of Jobs World without Work? Work gives our lives meaning Kill jobs Increase inequality Long term unemployed are giving up Super wealthy and poverty Major Social Pressure Need skill and adaptability Education still in 20 th Century e Learning still clunky 9
10 Major changes will occur in the next five years. Major disruption in US and Asia 10
11 Engineering and Mathematics grow Office and manufacturing decline You need to get Creative >>> 11
12 Skill Changes 2015 >> Creativity +5 Emotional Intel +2 Critical Thinking -4 Negotiation >-5? QC (Not on the List) Innovation People 12
13 Creative Behaviors Exploration we step out of the box gain new learning. Collaboration interact with people different from ourselves. Experimentation Willingness to fail and find new solutions. Culture is The way things get done around here. - Deal and Kennedy Creative solutions Produce solutions through imagination and unconventional approach Occurs when we Have freedom to think interact with new stimuli. Daily work removes freedom Step out of the box Use Collective knowledge go right brain Einstein; No problem can be solved with the same level of consciousness that created it 13
14 Spread of wealth Currently Wealthy Benefit Impact on poor economies Rise of terrorism Current business model Won t get zero carbon Won t get zero poverty Need shared opportunity Not foster greed No law on equal benefit Need policy Government Role? Social Innovation 1. the application of innovative, practical, sustainable, market-based approaches 2. to benefit society in general low-income or underserved in particular. Business is understanding Social Responsibility Align S.I. with Innovation Leverage Human assets, 14
15 CEO concerns Restore stakeholder trust (PWC CEO Survey) 60% Millennial s want to Make a Difference through their job Retention is key But; rising income inequality Spending power Over 60 s $15 Trillion by 2020 Looking Forward Work and income may separate Digital Economy Entrepreneurial Opportunity Good to eliminate Machine Adjunct work Non Manufacturing jobs Communication skills, Entrepreneurship, R & D focus New Technologies New Careers 15
16 Path Forward Self Assess (website) Think Career Join the Division Execute a Project pm@questmgt.com
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