Meeting the future head on

What lies ahead for business is the topic we’ll be looking at the Meeting the Future Head-On panel

What can businesses do to prepare for an exciting but challenging future?

As part of the New South Wales Government’s Back to Business Week, I’ll be on the Meet the Future Head-On panel looking at the future of business and work.

Facilitated by Jo Kelly, Director of People, Place and Partnership, the seminar will look at local and global business changes and what they mean for small to medium companies.

The keynote speakers are Terry Rawnsley – Principal & Partner of SGS Economics and Planning – who’ll discuss his company’s analysis of the economy in the year 2026, and Karen Borg – the Chief Executive Officer of Jobs for NSW – with an overview of the state’s Jobs for the Future report.

Joining me on the panel will be Paul Fairhead, the Managing Director of Huddle; Jost Stollmann, the Executive Director of Tyro Payments and Marianne McGee, the owner of Allis Technology.

Tickets for the 6pm event on March 1 at the Sydney International Convention Centre are free and can be booked through Eventbrite.

Come along and have your say. Look forward to seeing you there.

Avoiding a neo-feudal future

We have to rethink our economies if we’re to avoid a neo-feudal future warns writer Paul Mason.

“Neo liberalism is dead” was Paul Mason’s opening for his talk ‘Will Robots Kill Capitalism?’ At Sydney university on Monday night.

Mason, who was promoting his book ‘Postcapitalism: A Guide to Our Future’ was exploring how we create an alternative to the failing neo-liberal world while avoiding the failings of the past.

Describing the current ennui towards establishment politics as being “the biggest change since the fall of the wall in 1989,” Mason believes that the neo-Liberal, pro-markets, view of the world is now failing because the general population increasingly can’t afford the credit which powers the current system.

Increasing voter hostility

With increased insecurity the general population’s hostility towards the global elites is only going to increase, Mason says, as a low work future is traps people into low income ‘bullshit jobs’.

Mason describes a bullshit job as being something like the hand car washes that have popped up around UK (and Australia) where workers are paid the absolute minimum to provide a service cheaper than any machine.

With bullshit jobs, it’s hard not to consider the white collar equivalent – just yesterday The Guardian, which Mason writes for – described a report by UK think tank Reform which suggested 90% of British public service jobs could be replaced by chatbots and artificial intelligence.

It’s easy to see those same technologies being employed in the private sector as well with middle management and occupations like Human Resources and internal communications being easily automated out by much flatter organisations.

A low work future

The result of that, which we’re already seeing, is increasingly profitable corporations that barely employ anyone.

However for companies like Google, Facebook and Apple those business models also present risks as they are valued by the market far beyond any reasonable expectation of return – even if they do manage to eat each other.

Another risk to today’s tech behemoths is the commoditization of many of their industries. “Not all of the high tech economy will be a high value economy.” Mason point out, going on to observe that Google may have recognised this in carrying out their Alphabet restructure.

The neoliberal Anglos

Not all countries though have followed the Anglo Saxon neo-liberal model over the past forty years though. In what Mason describes as “The yin and yang of globalIzation,” he point out China, Germany, Japan and South Korea Have focused on production and raising living standards while the English speaking nations enforced austerity on their populations with large groups being left behind both socially and economically.

Which leads to Mason’s key question, “will the low work future see neoliberalism replaced by ‘neo-feudalism’ or something more enlightened?”

To support the latter, Mason suggests a transition path into the ‘low work future with the following features;

  • automation
  • basic income
  • state provided cheap, basic goods
  • externalising the public good
  • attacking rent seeking
  • promoting the circular economy
  • investing in renewable energy

That list seems problematic, and at best hopelessly idealistic, in today’s economies – particularly in the neoliberal Anglosphere.

A need for new mechanisms

Mason’s points though are important to consider if we are facing a ‘low work’ society as there has to be some mechanisms to allow citizens a decent standard of living even if the bulk of the population is unemployed.

Even if we aren’t facing a low work future, the transition effects we’re currently experiencing where many of today’s jobs are going to be automated away threaten serious political and economic dislocation in the short to medium term.

What Mason reminds us is that the political and economic status quos can’t be maintained in the face of dramatic technological change. We have to consider how we’re going to manage today’s transformations so we don’t end up in a neo-feudal society with the discontent that will entail.

 

Human bullies and autonomous vehicles

Will humans bully robots as they appear on our roads in our communities?

What happens when drivers encounter autonomous vehicles on the highways?

Conventional wisdom is the roads will be carnage as logically thinking robots literally collide with irresponsible humans.

The Chief Executive of Mercedes-Benz America has a different take, it may be that humans quickly learn to bully safety conscious and law abiding autonomous vehicles on the road.

Speaking at a motoring conference in Las VegasDietmar Exler suggested the immediate future will see aggressive drivers taking advantage of driverless vehicles programmed to avoid collisions and risky situations.

This raises an interesting question – will autonomous vehicles actually make the roads less safe in the earlier days despite being safer themselves?

How humans interact with new technologies is never a certain thing, and the idea that people will bully robots is a delicious, and plausible idea. It does raise though some interesting possibilities as robots become common in our lives.

What’s next for small business – trends in the modern workplace

What are the technology trends affecting businesses of all sizes?

This week’s The Future is now – Trends in the Modern Workplace webinar was an opportunity to look at the trends affecting small and micro businesses.

What’s notable is almost all the topics affecting small business are being felt by their corporate cousins. It shouldn’t be surprising the technology and social trends affecting society are equally being felt

Now the webinar is over, I’ve posted the presentation to Slideshare with the commentary below, we cover established trends like the shift to mobile then ponder the future of business with artificial intelligence and virtual reality.

The presentation ties up with the post I published a few days ago that provides the commentary to the slides.

Autodesk and the China manufacturing challenge

China’s focus on R&D is changing the country’s manufacturing outlook which has major consequences for the rest of the world.

At the recend Autodesk University event in Sydney I had the opportunity to talk with Pat Williams, the company’s senior vice president for Asia Pacific.

Williams’ beat covers all of Asia and he’s based out of Shanghai where he’s been based for the last eight years and prior to that he spent a decade in Japan.

Having spent so much time in North East Asia, and heading to the PRC the following week myself, it was interesting to hear Williams’ views on how industry is changing in China and ther country’s attitude to American software companies.

“There’s a lot of noise that gets made in China about their local IP and the local vendors and what I say is ‘the Chinese companies are competing in a global market and they are under the same competitive pressures as everybody else in the world so when they find a better tool they use it. Despite all the noise, business is quite good there.”

For the Chinese economy, the aging and increasingly expensive workforce presents a problem, something addressed by the China Manufacturing 2025 plan which sees the country increasingly competing in high tech sectors such as aerospace, telecommunications and biotech fields.

“China’s kind of an anomaly,” says Williams of the country’s immense growth rates. “From a government perspective there’s a lot of horsepower behind the things that they do – China 2025, their manufacturing initiative, you’ve got what they’ve been doing with Building Information Modelling (BIM) and our architectural tools.”

They’ve really kind of spearheaded what we’ve been talking about on things like 3D printing of houses. China on its own is just this mushroom that’s happening.”

While the industrial shift in China and the rest of Asia is promising opportunities to companies like Autodesk, that change is affecting their workforce as well with the company announcing plans to lay off ten percent of their workforce earlier this year.

Those cutbacks are part of the adjustment to a new market reality says Williams, “it was part of right sizing the business.” He observed “we realised our margins were going to be compressed as we move to a subscription model.”

Autodesk’s shifts illustrate how the opportunities in the new economy don’t come without costs even for the companies that seem to be winners in a shifting marketplace.

In China, American companies are finding they have to a unique proposition – companies like Apple and Autodesk are good examples – and as the country moves its economy further up the value chain all foreign businesses are going to have to show how they add value.

Succeeding in a changing economy isn’t without uncertainty. And it certainly isn’t without risks.

Industries of the future on display

Today’s startups indicate the future shape of the economy, but where will the jobs come from?

One of the challenges we face in looking at the economy’s future is going lies in identifying what tomorrow’s industries will be.

I’ve spent the day at the 500Startups pitch day at the Computer History Museum in the heart of Silicon Valley listening to the startups on the program making their investment spiels and in many ways those businesses are a glimpse of the future economy.

While not all of these businesses will survive, and many will pivot over time, they do indicate directions the economy is taking.

The question though is what sectors will drive jobs growth over the next quarter century and whether those industries will pay enough for workers and their families to survive, let alone keep a consumerist economy ticking along.

Google bets on artificial intelligence

Google bets on artificial intelligence and machine learning as the company deals with the shift to mobile

Breaking with the company’s tradition of the Sergi, Google’s CEO Sundar Pichai writes this year’s founders letter laying out how the search engine giant is focusing of artificial intelligence and the machine learning.

Pichai’s view of the world seems to tie in very closely with founders Larry Page and Sergei Brin with him laying out a vision of making the internet and computers accessible to all.

The challenge for Google is the shift away from personal computers, something that the company is struggling with and a factor that Pichai acknowledges.

Today’s proliferation of “screens” goes well beyond phones, desktops, and tablets. Already, there are exciting developments as screens extend to your car, like Android Auto, or your wrist, like Android Wear. Virtual reality is also showing incredible promise—Google Cardboard has introduced more than 5 million people to the incredible, immersive and educational possibilities of VR.

Whether Google can execute on that vision and manages to diversify its revenues away from depending almost exclusively upon web advertising will be what defines Pichai’s time as the company’s CEO. He has a challenging task ahead.

Government in a digital era

What is the future of governments in the digital world

Governments are struggling with the new channels of communication and the structures that will manage our societies are far from certain.

Last night the University of New South Wales’ School of Computer Science and Engineering in Sydney held a panel discussion about Digital citizens and the future of government. The group looked at how the open government movement is progressing and how public servants and politicians are dealing with a data driven world.

The panel featured Dominic Campbell, the founder of the UK’s FutureGov who are currently advising the Australian Digital Transformation office; Penny Webb-Smart, the Executive Director of Service Reform for the NSW Government’s clumsily named Department of Finance, Services and Innovation and Amelia Loye, a social scientist who worked on Australia’s first Action Plan for Open Government.

Centralising decision making

One key question for the panel was how governments use data which gives rise to two views. The prevalent view is information systems tend to centralise power – something that has been a feature of the last two centuries – while access to information is a democratising forces that hands control back to individuals and local communities.

Amelia made the point in some respects we’re already at the point where individuals can take control, “the tools for participatory government are already available, we have to start looking at – and talking about – how to use them,” she said.

That conversation certainly isn’t happening at the moment despite the odd blurting of fine words from ministers and public servants and while in some areas government data is being freed up, in others it’s increasingly being hoarded for political purposes or due to ill thought out privatisations.

Commercial in confidence

Private sector data is another problem for the open data movement as many of the functions carried out by governments are outsourced to companies which generally reluctant to share information with the public. This leaves communities with an incomplete picture of the data affecting them.

The main unanswered question in the discussion was the relationship between local and central governments, the panel’s consensus was central government would become more dominant and in the Australian context the states would become irrelevant. This however may not be true.

Centralised government is by no means a given, as the prevailing corporatist ideologies of Western governments strive to cut services it’s likely communities are going to increasingly find ways of delivering those services independent of national bureaucracies and politicians in capital cities.

Cumbersome central governments

Another unspoken aspect was the increasing cumbersome nature of central government. In fast moving economies it’s hard for the decision making structures based in capital cities to quickly react to societal and political changes. National governments may simply be too big to manage the data flows coming into them.

The main conclusion out of the evening’s discussion is there is great uncertainty about the structure of government in the digital era.

Uncertainty over how governments will be shaped by today’s changes isn’t surprising, increased communications and the change in public finances radically altered the role of government last century – the wars and economic downturns of the first third of the century saw the introduction of central government income taxes which central power in capital cities.

Changing communications

Similarly mass media communications, the radio and television, dramatically changed the politician’s role and how citizens interacted with government.

One great mistake today is many of our political, public service and business leaders think the current models are inviolate and fixed when in actual fact they are dynamic systems which are evolving with technology.

Governments are a reflection of the societies and economies they lead. Just as both the economy and society are changing so too will the structures of the public service and politics. We may not recognise some of those changes until well after they’ve happened.

Towards the post journalist media world

How will public relations people will deal with the post-journalist media landscape?

For years I resisted attending the Tech Leaders conference, formerly Kickstart, as I felt a bit of an imposter being invited to attend as a journalist.  As a consequence I missed the peak days of the event.

In the ‘good old days’ dozens of journalists, most in the employ of profitable media companies, would fly to a Queensland resort to wine, dine and debauch themselves as PR agencies who were picking up the tab would try to introduce their clients and pitch to the group of hungover scribes.

Funding these events was relatively straightforward, public relations agencies and their clients were happy to pay substantial sums for access to journalists. In the golden days of technology journalism, large IT supplements were full of lucrative advertising for jobs and products.

That river of advertising gold has long dried up and in the technology industry that shift has been exacerbated by the collapse in IT industry margins which has further hurt advertising budgets.

As the industry has faded so too have the numbers of media professionals, many journalists have either moved into PR roles themselves or are now desperate freelancers.

The industry shift to freelancers has been problematic for the organisers as the remaining staff journalists are chronically time poor so can’t lightly take a day away from the desk and the independent reporters don’t offer direct access into trade journals and general news outlets.

Events like Tech Leaders are giving the PR industry a glimpse of the journalist free media landscape of the near future where the traditional pitching to outlets in the hope of being published is effectively obsolete. Looking at the numbers at Tech Leaders, it’s clear that world is not far off.

The question everyone in the industry has to ask is ‘how do people perceive I add value?’ For many, including myself, the answer is ‘we don’t’.

In an age where there is an almost unlimited supply of information and commentary, journalists and PR people have to find a new way to convince the market they add value.

When autonomous vehicles and humans collide

The interaction between humans and autonomous vehicles is not turning out well so far

With the rapid advances in driverless cars, it was only a matter of time before the question of what happens when people encounter them would be answered.

It turns out not too well for the autonomous vehicles reports Bloomberg citing a study by the University of Michigan’s Transportation Research Institute that found driverless cars have accident rates double those of normal vehicles.

As it turns out, those accidents are usually minor and are caused by humans colliding with the autonomous vehicles as the law abiding computers catch drivers unawares.

That people aren’t very good at driving cars isn’t a surprise but now we’re seeing what happens when distracted, mistake prone humans encounter cautious and usually correct computers.

We now have to start thinking about what happens when artificial intelligence encounters human frailty.

The limits of today’s technologies – day two of Autodesk University

The second day of Autodesk University gave more insights into the future of design and manufacturing but it also showed the limits

The second day of Autodesk University 2015 in Las Vegas continued the focus on innovation and changing industries, the afternoon innovation session was particularly focused on some of the opportunities being realised in drones, pre-fabricated buildings and lampshades made out of fungus.

Brooklyn based designer Danielle Trofe gave a great demonstration of how she’s using fungus to create a range of sustainable light shades. Interestingly in a conversation earlier in the day with Autodesk CTO Jeff Kowalski the topic of growing products out of Mycelium, the vegetative part of a fungus that Trofe uses, was discussed in terms of smart packaging and biodegradable products.

Growing products out of organic material is one of the themes explored in Mercedes Benz’s Biome concept car which proposes to grow the chassis out of seeds. While realising that concept is some way off, Trofe’s Mush-Lume idea shows some products are already at that stage.

Rethinking prefab buildings

Following Trofe was Jos Mulkens, the CEO of Dutch building company Voorbij Prefab, who described how by using sophisticated design tools and 3D printing to make prefabricated building panels they had reduced to the time to fabricate elements from days to hours.

Mulkens gave a good insight into how design and production workflows are being accelerated with modern technology, particularly in replacing manual form makers to make the moulds for the precast panels. Voobij Prefab are flagging a lot of disruption heading for the building industry.

At one the media breakout sessions a group of senior Autodesk managers discussed the trends in design and materials engineering. This turned out to be an interesting session on the limits of current technologies.

Composite technologies

Max Moruzzi, Autodesk’s Principal Research Scientist, is a passionate believer in composite materials and the benefits they promise. However he conceded when challenged by his colleague Steve Hobbs, who joined Autodesk last year with the acquisition of  UK based Computer Aided Manufacturing company Delcam, about the structural properties of composites that we still have a lot to understand about how they behave and fail.

Bringing a touch of English scepticism to the panel, Hobbs pointed out almost all metallic components made by 3D printing require some sort of mechanical, subtractive finishing such as milling or polishing.

Hobbs went onto warn that we risk introducing a “hairball of complexity” into the design and manufacturing industries as people experiment with developing products with materials and techniques they don’t fully understand.

All the panel, which also included Carl White – Autodesk’s senior director of marketing for advanced manufacturing – and Benjamin Schrauwen who leads the company’s Spark 3D printing division, agreed that applying current design and manufacturing methods need to be rethought in the light of new methods being developed.

The limits of 3D printing

It was notable in the panel Q&A around the revelation that 70% of 3D printing projects fail, the panel put this down to the relative immaturity of software and machinery along with the technologies currently being poorly understood. Hobbs observed that for GE to 3D print their jet engine parts they rebuild and reprogram the printers they buy to their own higher specifications.

For the final session CEO Carl Bass and CTO Jeff Kowalski faced a Q&A from analysts and the media, that session was interesting in exploring some of the directions Autodesk sees industry and business heading and I’ll write more about that tomorrow.

Overall, the Autodesk University has been an interesting insight into the future of design and manufacturing along with the effects this has on other industries. With these technologies at an early stage, it’s a field that is going to evolve rapidly.

Paul Wallbank travelled to Autodesk University in Las Vegas as a guest of Autodesk.

The three S’s of employee engagement

How do we engage with an always on, connected workforce?

We need to rethink how we measure performance in the workplace says Andrew Lafontaine, Senior Director Human Capital Managemet Strategy & Transformation at Oracle Australia.

As business adapts to a changing society and mobile technologies, one of the questions facing managers is the mismatch between the Millennial generation and those GenX and Boomers who make up most of the executive suite, Lafontaine sees this as been in how the younger cohort approaches authority.

“There certainly can be a disconnect between Millennials and boomers. Millennials don’t see hierarchy the way boomers see it as important,” says Lafontaine. “Boomers have ingrained view of the way they have come through the workforce.”

Breaking the old rules

Unfortunately for those older managers, their world was based on a formalised, ‘straight line’ hierarchy dating back to the days ships’ captains used flags and voice tubes to communicate.

That rigid military style worked well for nearly two hundred years of business with mail and then the telephone only reinforcing that management model. Now newer collaboration tools mean different ways of working becoming possible.

A problem with those different ways of working in teams is how performance is measured warns Lafontaine.  “What they are not measuring at the moment are what I call ‘network performance’. How workers they helping their colleagues, collaborating and working together.”

Separating home and office

With mobile technologies becoming ubiquitous it becomes harder to separate work from home life, “we working now from home and on the tram. You don’t need a nine to five workforce nad companies have to deal with and embrace the technology,” says Lafontaine.

In the context of babyboomers and GenX workers, that technology meant longer hours in the office but Lafontaine suggests things are now changing. “There other areas to measure. How are they looking after themselves? The days of babyboomers working 12 or 14 hours a day and neglecting their health or outside life are over.”

For the future company, the key to success lies in engaging their employees Lafontaine says. “A more highly engaged workforce delivers better outcomes. Engagement is the three S’s: Stay, Say and Strive”

Those S’s come down to three questions for the worker; should I stay? What should I say? and How should I strive to do a better job?

For managers the challenge is engage all workers regardless of age, the task of finding what engages and motivates workers of the computer generation is only just beginning.