Robo retail: The automated store of the future is heading closer to our doorsteps. — from jwtintelligence.com’

Excerpt:

The automated store of the future is heading closer to our doorsteps.

Self-checkout and online delivery services might soon be outmoded. Automated, cashier-less and mobile, doorstep-accessible shopping outlets are popping up globally—these offer not only a quick and seamless shopping experience, but also allow customers to handpick the items they are seeking.

Retail giant Amazon launched its Amazon Go store in Seattle in late January 2018. Amazon Go stocks everyday items, Whole Foods Market goods and Amazon-branded meal kits, but has no cashiers, no check-out lines and no barcode scanners. Shoppers enter by scanning an app, shop and leave—items purchased are automatically charged to their accounts. Dilip Kumar, vice president of technology for Amazon Go, suggests the concept is Amazon’s answer to solving “time poverty,” which he calls people’s “number one problem.”

This is just the tip of the iceberg. While Amazon Go currently only operates in Seattle, two other mobile concepts are hoping to reach a wider audience by physically bringing roving stores directly to the consumer. Robomart, based in the Bay Area, is a prototype tap-to-request grab-and-go food mart. Conventional grocery delivery services like those run by Amazon, FreshDirect or Instacart don’t let customers select products for themselves. If you’re particular about the ripeness of an avocado or conscious about bruises on tomatoes, being able to choose your own produce is essential. An autonomy-focused platform like Robomart puts consumers in the metaphorical driver’s seat, while still maintaining a high level of ease.

 

 

 

From DSC:
Speaking of cashiers, I had some comments regarding the future of cashiers towards the bottom of this posting here.  Another relevant posting is: “Tech companies should stop pretending AI won’t destroy jobs” + 6 other items re: AI, bots, algorithms, & more

 

 

 

From DSC:
My comments below are not meant to bash anyone at the Institute for the Future (which I really respect) nor at MIT Technology Review, in fact I recently posted an item from the latter organization that I thought was great. But l
ooking at the list below, I can’t help but think, “Oh…that should be no problem!  Geez that’s easy! ………NOT!”

As people lose their jobs to AI, robots, bots, algorithms, automation and the like — and try to reinvent themselves — many people won’t have the skills, interests, aptitudes, funding, background/prior knowledge, etc. to carve out their niches, to find out how to build teams that utilize robots and AI, and to make sense of complex systems. How many of us truly understand the world we’re living in these days? No one does.

Again, no problem on mastering these 5 peak performance zones. Easy peazy lemon squeezy. Geeez.  (Please hear the intense sarcasm dripping off my comments.)

How unrealistic can we get? It’s like saying, “Everyone can learn to code. No problem.”  That’s not true at all, especially given the current state of computer programming. Many (most?) people simply don’t think that way. That’s why programmers are always in demand and they are often highly paid. Why? Because most people don’t want to do it, can’t do it, or choose not to do it.

Please, let’s get realistic.

 


From the 2/22/18 e-newsletter from MIT Technology Review

The five skills you need for jobs of the future

The Palo Alto-based think tank Institute for the Future partnered with software company Cornerstone OnDemand to produce a report that identifies 15 skills that workers need to succeed in the workplace of tomorrow. They fall into five main buckets:

  1. Make yourself known through reputation management: Carve out your niche and brand across a variety of platforms to distinguish yourself from the crowd.
  2. Master human and machine collaboration: Know how to build teams that utilize robots and AI, as well as humans.
  3. Build your tribe: Personal networks and social connections will take you to the next level in a tech-focused world.
  4. Make sense of complex systems: The ability to be creative and connect the dots between different industries and organizations will be rewarded.
  5. Build resilience in extreme environments: Learn to thrive in more a risk prone society and build yourself new safety nets.

 

 

“To be fit for this future, you need to master five peak performance zones. These are the basics of future fitness for everyone. No matter what your own personal mission in life is, these are the workout zones that will get you ready to face whatever comes next.”

 

 

 

 

Tech companies should stop pretending AI won’t destroy jobs — from technologyreview.com / MIT Technology Review by Kai-Fu Lee
No matter what anyone tells you, we’re not ready for the massive societal upheavals on the way.

Excerpt (emphasis DSC):

The rise of China as an AI superpower isn’t a big deal just for China. The competition between the US and China has sparked intense advances in AI that will be impossible to stop anywhere. The change will be massive, and not all of it good. Inequality will widen. As my Uber driver in Cambridge has already intuited, AI will displace a large number of jobs, which will cause social discontent. Consider the progress of Google DeepMind’s AlphaGo software, which beat the best human players of the board game Go in early 2016. It was subsequently bested by AlphaGo Zero, introduced in 2017, which learned by playing games against itself and within 40 days was superior to all the earlier versions. Now imagine those improvements transferring to areas like customer service, telemarketing, assembly lines, reception desks, truck driving, and other routine blue-collar and white-­collar work. It will soon be obvious that half of our job tasks can be done better at almost no cost by AI and robots. This will be the fastest transition humankind has experienced, and we’re not ready for it.

And finally, there are those who deny that AI has any downside at all—which is the position taken by many of the largest AI companies. It’s unfortunate that AI experts aren’t trying to solve the problem. What’s worse, and unbelievably selfish, is that they actually refuse to acknowledge the problem exists in the first place.

These changes are coming, and we need to tell the truth and the whole truth. We need to find the jobs that AI can’t do and train people to do them. We need to reinvent education. These will be the best of times and the worst of times. If we act rationally and quickly, we can bask in what’s best rather than wallow in what’s worst.

 

From DSC:
If a business has a choice between hiring a human being or having the job done by a piece of software and/or by a robot, which do you think they’ll go with? My guess? It’s all about the money — whichever/whomever will be less expensive will get the job.

However, that way of thinking may cause enormous social unrest if the software and robots leave human beings in the (job search) dust. Do we, as a society, win with this way of thinking? To me, it’s capitalism gone astray. We aren’t caring enough for our fellow members of the human race, people who have to put bread and butter on their tables. People who have to support their families. People who want to make solid contributions to society and/or to pursue their vocation/callings — to have/find purpose in their lives.

 

Others think we’ll be saved by a universal basic income. “Take the extra money made by AI and distribute it to the people who lost their jobs,” they say. “This additional income will help people find their new path, and replace other types of social welfare.” But UBI doesn’t address people’s loss of dignity or meet their need to feel useful. It’s just a convenient way for a beneficiary of the AI revolution to sit back and do nothing.

 

 

To Fight Fatal Infections, Hospitals May Turn to Algorithms — from scientificamerican.com by John McQuaid
Machine learning could speed up diagnoses and improve accuracy

Excerpt:

The CDI algorithm—based on a form of artificial intelligence called machine learning—is at the leading edge of a technological wave starting to hit the U.S. health care industry. After years of experimentation, machine learning’s predictive powers are well-established, and it is poised to move from labs to broad real-world applications, said Zeeshan Syed, who directs Stanford University’s Clinical Inference and Algorithms Program.

“The implications of machine learning are profound,” Syed said. “Yet it also promises to be an unpredictable, disruptive force—likely to alter the way medical decisions are made and put some people out of work.

 

 

Lawyer-Bots Are Shaking Up Jobs — from technologyreview.com by Erin Winick

Excerpt:

Meticulous research, deep study of case law, and intricate argument-building—lawyers have used similar methods to ply their trade for hundreds of years. But they’d better watch out, because artificial intelligence is moving in on the field.

As of 2016, there were over 1,300,000 licensed lawyers and 200,000 paralegals in the U.S. Consultancy group McKinsey estimates that 22 percent of a lawyer’s job and 35 percent of a law clerk’s job can be automated, which means that while humanity won’t be completely overtaken, major businesses and career adjustments aren’t far off (see “Is Technology About to Decimate White-Collar Work?”). In some cases, they’re already here.

 

“If I was the parent of a law student, I would be concerned a bit,” says Todd Solomon, a partner at the law firm McDermott Will & Emery, based in Chicago. “There are fewer opportunities for young lawyers to get trained, and that’s the case outside of AI already. But if you add AI onto that, there are ways that is advancement, and there are ways it is hurting us as well.”

 

So far, AI-powered document discovery tools have had the biggest impact on the field. By training on millions of existing documents, case files, and legal briefs, a machine-learning algorithm can learn to flag the appropriate sources a lawyer needs to craft a case, often more successfully than humans. For example, JPMorgan announced earlier this year that it is using software called Contract Intelligence, or COIN, which can in seconds perform document review tasks that took legal aides 360,000 hours.

People fresh out of law school won’t be spared the impact of automation either. Document-based grunt work is typically a key training ground for first-year associate lawyers, and AI-based products are already stepping in. CaseMine, a legal technology company based in India, builds on document discovery software with what it calls its “virtual associate,” CaseIQ. The system takes an uploaded brief and suggests changes to make it more authoritative, while providing additional documents that can strengthen a lawyer’s arguments.

 

 

Lessons From Artificial Intelligence Pioneers — from gartner.com by Christy Pettey

CIOs are struggling to accelerate deployment of artificial intelligence (AI). A recent Gartner survey of global CIOs found that only 4% of respondents had deployed AI. However, the survey also found that one-fifth of the CIOs are already piloting or planning to pilot AI in the short term.

Such ambition puts these leaders in a challenging position. AI efforts are already stressing staff, skills, and the readiness of in-house and third-party AI products and services. Without effective strategic plans for AI, organizations risk wasting money, falling short in performance and falling behind their business rivals.

Pursue small-scale plans likely to deliver small-scale payoffs that will offer lessons for larger implementations

“AI is just starting to become useful to organizations but many will find that AI faces the usual obstacles to progress of any unproven and unfamiliar technology,” says Whit Andrews, vice president and distinguished analyst at Gartner. “However, early AI projects offer valuable lessons and perspectives for enterprise architecture and technology innovation leaders embarking on pilots and more formal AI efforts.”

So what lessons can we learn from these early AI pioneers?

 

 

Why Artificial Intelligence Researchers Should Be More Paranoid — from wired.com by Tom Simonite

Excerpt:

What to do about that? The report’s main recommendation is that people and companies developing AI technology discuss safety and security more actively and openly—including with policymakers. It also asks AI researchers to adopt a more paranoid mindset and consider how enemies or attackers might repurpose their technologies before releasing them.

 

 

How to Prepare College Graduates for an AI World — from wsj.com by
Northeastern University President Joseph Aoun says schools need to change their focus, quickly

Excerpt:

WSJ: What about adults who are already in the workforce?

DR. AOUN: Society has to provide ways, and higher education has to provide ways, for people to re-educate themselves, reskill themselves or upskill themselves.

That is the part that I see that higher education has not embraced. That’s where there is an enormous opportunity. We look at lifelong learning in higher education as an ancillary operation, as a second-class operation in many cases. We dabble with it, we try to make money out of it, but we don’t embrace it as part of our core mission.

 

 

Inside Amazon’s Artificial Intelligence Flywheel — from wired.com by Steven Levy
How deep learning came to power Alexa, Amazon Web Services, and nearly every other division of the company.

Excerpt:

Amazon loves to use the word flywheel to describe how various parts of its massive business work as a single perpetual motion machine. It now has a powerful AI flywheel, where machine-learning innovations in one part of the company fuel the efforts of other teams, who in turn can build products or offer services to affect other groups, or even the company at large. Offering its machine-learning platforms to outsiders as a paid service makes the effort itself profitable—and in certain cases scoops up yet more data to level up the technology even more.

 

 

 

 

5 benefits of using Augmented & Virtual Reality Technologies in eLearning — from elearningindustry.com by Christoper Pappas
Are you looking for ways to make your eLearning course stand out from the crowd? What if I told you there is technology that can help you achieve not only that but also increase online learner engagement and motivation? In this article, I’ll share the most notable benefits of using Augmented and Virtual Reality technologies in your eLearning course.

Excerpt:

Although their full implications are yet to be explored, alternate reality technologies make eLearning more engaging and productive. They are here to stay, and who knows what benefits they will bring to future learners. As the technology evolves, so too will the applications in eLearning. Which is why it’s essential for eLearning pros to keep up with cutting-edge tech and think of new and innovative uses for AR and VR tools.

 

 

 

National Museum of Finland Offers Virtual Time Travel — from vrfocus.com by
Visitors can step into the world of Finland in 1863 with the power of virtual reality.

 

National Museum of Finland Offers Virtual Time Travel

 

 

Every type of AR and VR explained, from Rift to HoloLens and beyond — from t3.com by David Nield
Know your augmented from your virtual

 

 

 

 

 

 

Augmented reality lets doctors peer inside the body like never before — from nbcnews.com by Tom Metcalfe
New devices will end ‘historic disconnect’ in doctors’ treatments of patients.

Excerpt:

Augmented reality (AR) technologies that blend computer-generated images and data from MRI and CT scans with real-world views are making it possible for doctors to “see under the skin” of their patients to visualize bones, muscles, and internal organs without having to cut open a body.

Experts say AR will transform medical care by improving precision during operations, reducing medical errors, and giving doctors and patients alike a better understanding of complex medical problems.

 

 

 

Healthcare VR innovations are healing patients — from cio.com by Peter Nichol
Virtual reality is healing patients with augmented technologies. The patient experience has been transformed. Welcome to the era of engaged recovery — the new world of healing.

Excerpt:

Three emerging realities will change the hospital experience with unparalleled possibilities:

  • Virtual reality (VR): full immersion, a simulated reality.
  • Mixed reality: partial immersion, virtual objects in a real world.
  • Augmented reality (AR): information overlay, simulated information on top of the real world.

Today, we’ll explore how advances in virtual reality are creating worlds that heal.

The next generation of clinical education
The list of possibilities for VR is endless. Augmented and virtual reality medical solutions are removing distractions, improving the quality of critical thinking, and maturing learning solutions, saving time and money while supercharging the learning experience. Explosive developments in 3D virtual and augmented reality have taken clinical education and hands-on learning to the next level.

Innovation is ever present in the virtual reality space for healthcare.

  • Mindmaze has developed a breakthrough platform to build intuitive human-machine interfaces combining virtual reality, computer graphics, brain imaging and neuroscience.
  • MindMotionPRO is a healthcare product offering immersive virtual reality solutions for early motor rehabilitation in stroke patients.
  • Live 360 uses consumer-level virtual reality devices such as the Oculus Rift.
  • Medical Realities offers systems designed to reduce the cost of training.
  • ImmersiveTouch is a surgical virtual reality technology that offers a realistic surgical touch and feel. It also brings patient images to life with AR and VR imaging.
  • BioFlight VR offers a broad range of medical VR and AR services, including VR training and simulations, AR training, behavior modification and 360-degree video.
  • Zspace is an immersive medical learning platform, virtualizing anatomical representations into complete procedural planning. zSpace brings a new dimension to medical learning and visualization across three spaces: gross anatomy VR lab (13,000 plus anatomical objects), teaching presentation view (share the teaching experience with the class via HD TV) and DICOM Viewer (volumetrically render 2D DICOM slices).

 

EyeSim

 

 

 

Digital reality A technical primer — from deloitte.com

Excerpt:

Digital reality is generally defined as the wide spectrum of technologies and capabilities that inhere in AR, VR, MR, 360° video, and the immersive experience, enabling simulation of reality in various ways (see figure 1).

 

 

 

 

Key players in digital reality

In terms of key players, the digital reality space can be divided into areas of activity:

  • Tools/content—platforms, apps, capture tools, etc.
  • Application content—information from industry, analytics, social, etc.
  • Infrastructure—hardware, data systems, HMDs, etc.

Increasing investment in infrastructure may drive the growth of software and content, leading to new practical applications and, possibly, an infusion of digital reality software development talent.

 

 

 

 

This All-Female Founders Pitch Event Was Held in VR — from vrscout.com by Malia Probst
Hailing from 26 countries across the world, people came together in virtual reality to cheer on these top female founders in the XR industry.

 

 

 

 

 

How AR, VR and MR can Revolutionise Consumer Tech — from kazendi.com by Pauline Hohl

Excerpt:

Enterprise leading consumer tech adoption
Concerning the need for a VR/AR eco system Max referred to the challenge of technology adoption: people need to be able to try different use cases and be convinced about the potential of AR ,VR and MR. In order to become available (and affordable) for consumers, the technology would have to be adapted by businesses first as the story of 3D printing shows as one example.

He also highlighted the importance of the right training for users to reduce the general learning curve for immersive technology. Poor instructions in the first instance can lead to bad user experiences and cause doubt and even a dismissall of ‘new’ technologies.

We see this firsthand at Kazendi when users try out Microsoft HoloLens for the first time. Max commented that: ‘When people try to make the basic hand gestures and fail they often take the device off and say it’s broken.’

We do have a robust entry demo process to combat this but at the consumer level, and this is as true for VR as much as it is for MR and AR, there is little room for error when learning curves are concerned.

 

 

 

 

 

Mapping the Trends on Our Doorstep: The Pace of Change Has Changed — from an article that I did out at — and with — evoLLLution.com [where LLL stands for lifelong learning]; my thanks to Mr. Amrit Ahluwalia, Managing Editor out at evolllution.com and to his staff as well!
The higher education industry has changed significantly over the past decade, and given the pace and significance of change hitting other industries as a result of technological advances, it’s fair to say the postsecondary space is ripe for further transformation.

 

From DSC:
From the perspective of those of us working within higher education, we see massive changes occurring in the corporate world, and we see innovations and changes also occurring in the world of K-12. Higher education should also be adapting, changing, questioning, and reflecting upon how we can best prepare our students for a rapidly changing workplace.

Below is another interesting item that I believe gives credence to the idea that we are now on an exponential pace of change. Companies are coming and going on the S&P Index…at an ever faster pace.

The 33-year average tenure of companies on the S&P 500 in 1964 narrowed to 24 years by 2016 and is forecast to shrink to just 12 years by 2027 (Chart 1).

 

Here is the video:

This is the transcript with the original graphs in it.

This is a nice PDF file from evoLLLution.com with the transcript, with some different graphics and some other

 

 

 

 

The 9 best online collaboration tools for remote workers — from invisionapp.com by Jes Kirkwood

Excerpts:

With this in mind, we asked remote workers from companies like Treehouse, Help Scout, Zapier, Buffer, and Zest to share their favorite online collaboration tools. Here’s what they said.

  1. Slack: The best team communication app
  2. Zoom: The best video conferencing app
  3. InVision: The best design collaboration app
  4. GitHub: The best software development tool
  5. Trello: The best project management software
  6. Dashlane: The best password manager
  7. Google Drive: The best file management app
  8. Zapier: Workflow automation for business
  9. World Time Buddy: Time converter for distributed teams

 

 

From DSC:
With some predictions saying that the workforce is going to be composed of upwards of ~50% of us being contingent workers, (I’ve already seen figures around mid 30’s and even 40%), the question I have is:

Are we teaching students how to protect themselves, how to sell themselves, how to sell their businesses, how to plan financially, etc.? 

Consider this article:

Would our students know about these types of mistakes?

Also, it seems to me that higher education should be helping students “future proof” themselves — or at least as much as possible. One of the values higher education should be bringing to the table is to identify which jobs are going to be around for the next 5-10 years and which ones aren’t.

Along these lines, lifelong learning and learning how to learn are becoming increasingly important. Thus, I will continue to try and post articles/resources on this blog in regards to metacognition and the like.

 

 

 

What really is the difference between AR / MR / VR / XR? — from medium.com by North of 41

Excerpt:

Extended Reality (XR)
Extended Reality (XR) is a newly added term to the dictionary of the technical words. For now, only a few people are aware of XR. Extended Reality refers to all real-and-virtual combined environments and human-machine interactions generated by computer technology and wearables. Extended Reality includes all its descriptive forms like the Augmented Reality (AR), Virtual Reality (VR), Mixed Reality (MR). In other words, XR can be defined as an umbrella, which brings all three Reality (AR, VR, MR) together under one term, leading to less public confusion. Extended reality provides a wide variety and vast number of levels in the Virtuality of partially sensor inputs to Immersive Virtuality.

Since past few years, we have been talking regarding AR, VR, and MR, and probably in coming years, we will be speaking about XR.

 

Summary: VR is immersing people into a completely virtual environment ; AR is creating an overlay of virtual content, but can’t interact with the environment; MR is a mixed of virtual reality and the reality, it creates virtual objects that can interact with the actual environment. XR brings all three Reality (AR, VR, MR) together under one term.

 

 

 

Audi AR App Brings Advertising Into Your Living Room — from vrscout.com by Joe Durbin

Excerpt:

Audi has released a new AR smartphone application that is triggered by their TV commercials. The app brings the cars from the commercial out of the screen and into your living room or driveway.

According to a release from the company, the Audi quattro coaster AR application “recognizes” specific Audi TV commercials. If the right commercial is playing, it will then trigger a series of AR events.

 

From DSC:
How might this type of setup be used for learning-related applications?

 

 

 

Will Augmented and Virtual Reality Replace Textbooks? — from centerdigitaled.com by Michael Mathews
Students who are conceptual and visual learners can grasp concepts through AVR, which in turn allows textbooks to make sense.

Excerpt:

This past year, Tulsa TV-2, an NBC News affiliate, did a great story on the transition in education through the eyes of professors and students who are using augmented and virtual reality. As you watch the news report you will notice the following:
  • Professors will quickly embrace technology that directly impacts student success.
  • Students are more engaged and learn quicker through visual stimulation.
  • Grades can be immediately improved with augmented and virtual reality.
  • An international and global reach is possible with stimulating technology.

 

 

How augmented and virtual reality will reshape the food industry — from huffingtonpost.com by Jenny Dorsey

Excerpt (emphasis DSC):

Within the food industry, AR and VR have also begun to make headway. Although development costs are still high, more and more F&B businesses are beginning to realize the potential of AR/VR and see it as a worthwhile investment. Three main areas – human resources, customer experiences, food products – have seen the most concentration of AR/VR development so far and will likely continue to push the envelope on what use cases AR & VR have within the industry.

 

 

 

The Future of Education Can Be Found Within This AR Tablet — from futurism.com

Excerpt:

Hologram-like 3D images offer new ways to study educational models in science and other subjects. zSpace has built a tablet that uses a stylus and glasses to allow students to have interactive learning experiences. Technology like this not only makes education more immersive and captivating, but also can provide more accurate models for students in professional fields like medicine.

 

 

Architecture, Engineering and Construction Embrace VR — from avnetwork.com

 

 

 

The Washington Post’s latest augmented reality game brings the Winter Olympics into your living room — from journalism.co.uk by Caroline Scott
The publisher hopes the game will help audiences better engage with the different sports while becoming more familiar with AR technology

 

 

 

 

Augmented Reality Skates into New York Times Coverage of Winter Olympics — from mobile-ar.reality.news by Tommy Palladino

Excerpt:

Just days after previewing its augmented reality content strategy, the Times has already delivered on its promise to unveil its first official AR coverage, centered on the 2018 Winter Olympic Games in PyeongChang. When viewed through the NYTimes app for iPhones and iPads, the “Four of the World’s Best Olympians, as You’ve Never Seen Them Before” article displays AR content embedded at regular intervals as readers scroll along.

 

 

AR Magic Portal—The Beginning Of Your Next New Adventure — from invisible.toys

 

 

 

Tokyo Government uses VR to Promote Tourism — from vudream.com

 

 

 

Is VR the Next Big Thing in Retail? — from virtualrealitypop.com by Sophia Brooke

Excerpt:

Retail IT is still in its infancy and is yet to become general practice, but given the popularity of video, the immersive experience will undoubtedly catch on. The explanation lies in the fact that the wealth of information and the extensive range of products on offer are overwhelming for consumers. Having the opportunity to try products by touching a button in an environment that feels real is what can make the shopping experience more animated and less stressful. Also, through VR, even regular customers can experience VIP treatment at no additional cost. Sitting in the front row at the Paris Fashion Week without leaving your local mall or, soon, your own house, will become the norm.

 

 

 

 

LinkedIn Workforce Report | United States | January 2018 — economicgraph.linkedin.com

Excerpt:

Over 143 million workers in the U.S. have LinkedIn profiles; over 20,000 companies in the U.S. use LinkedIn to recruit; over 3 million jobs are posted on LinkedIn in the U.S. every month; and members can add over 50,000 skills to their profiles to showcase their professional brands. That gives us unique and valuable insight into U.S. workforce trends.

The LinkedIn Workforce Report is a monthly report on employment trends in the U.S. workforce, and this month’s report looks at our latest data through December 2017. It’s divided into two sections: a National section that provides insights into hiring, skills gaps, and migration trends across the country, and a City section that provides insights into localized employment trends in 20 of the largest U.S. metro areas: Atlanta, Austin, Boston, Chicago, Cleveland-Akron, Dallas-Ft. Worth, Denver, Detroit, Houston, Los Angeles, Miami-Ft. Lauderdale, Minneapolis-St. Paul, Nashville, New York City, Philadelphia, Phoenix, San Francisco Bay Area, Seattle, St. Louis, and Washington, D.C.

 

 

 

 

 

What these firms all have in common are powerful digital platforms that provide the scale and scope to expand into new growth markets and geographies at speeds never before possible.

 

 


From DSC:
To me, the item below provides another example of the exponential pace of change that we are beginning to experience:


Corporate Longevity Forecast: The Pace of Creative Destruction is Accelerating — from innosight.com by Scott Anthony, S. Patrick Viguerie, Evan Schwartz and John Van Landeghem

Excerpt/Executive Summary:

Few companies are immune to the forces of creative destruction. Our corporate longevity forecast of S&P 500 companies anticipates average tenure on the list growing shorter and shorter over the next decade.

Key insights include:

  • The 33-year average tenure of companies on the S&P 500 in 1964 narrowed to 24 years by 2016 and is forecast to shrink to just 12 years by 2027 (Chart 1).
  • Record private equity activity, a robust M&A market, and the growth of startups with billion-dollar valuations are leading indicators of future turbulence.
  • A gale force warning to leaders: at the current churn rate, about half of S&P 500 companies will be replaced over the next ten years.
  • Retailers were especially hit hard by disruptive forces, and there are strong signs of restructuring in financial services, healthcare, energy, travel, and real estate.
  • The turbulence points to the need for companies to embrace a dual transformation, to focus on changing customer needs, and other strategic interventions.

 


Are Corporations Ready for Increased Turbulence?

Viewed as a larger picture, S&P 500 turnover serves as a barometer for marketplace change. Shrinking lifespans of companies on the list are in part driven by a complex combination of technology shifts and economic shocks, some of which are beyond the control of corporate leaders. But frequently, companies miss opportunities to adapt or take advantage of these changes. For example, they continue to apply existing business models to new markets, are slow to respond to disruptive competitors in low-profit segments, or fail to adequately envision and invest in new growth areas which often takes a decade or longer to pay off.

At the same time, we’ve seen the rise of other companies take their place on the list by creating new products, business models, and serving new customers. Some of the market forces driving these exits and entries include the mass disruption in retail, the rising dominance of digital technology platforms, the downward pressure on energy prices, strength in global travel and real estate, as well as the failure of stock buyback efforts to improve performance.

 

 

 

 

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