TECHNOLOGY INSIGHT
The wave of Industry 4.0
Bob de Wit, professor of strategic leadership at Nyenrode Business Universiteit, argues that more needs to be done to future-proof society
T he fourth industrial revolution, comprised of technologies such artificial intelligence (AI), robotics and the ‘Internet of things’, is likely to push societies towards economic and political instability. With most economic structures relying almost entirely on employment – and on employees spending their wages – mass redundancy caused by ever-more efficient tech taking on human roles could throw the system into chaos and significantly widen the gap between the rich and the poor. Politicians will scramble to solve these issues, but it is likely that the resulting decline in taxes and business subsidies will make governing problematic. It is clear these issues must be considered not just by our politicians but by our heads of industry, and that the leaders of the future must also be present at the table. That is why I chaired the Young Bilderberg Conference, a dialogue between managers of prominent, ethically responsible firms, and outstanding students, to discuss the challenges that Industry 4.0 may bring. The participants agreed that the impact of Industry 4.0 and digitalisation is likely to be seen and should be addressed in the following four key areas. ● Education – The education system, from primary school to university, must refocus to prepare younger generations for the future. Teachers and faculty members have an influence on the contributions people will make to shape the coming decades, and must take this responsibility seriously. Increased investment will be necessary to familiarise students with existing and potential technologies, as well as the themes of ethics, smart decision-making and future focus. ● Employment – It is commonly understood that there are two main categories of robots: process and cognitive.
Where one carries out manual tasks, the other is designed to devise and understand, often complicated, concepts and ideas. In the future, it is likely that tasks that can be automated will be done by robots, whereas humans will fulfil the role of business partners and advisers, interpreting digitally accumulated data. The onus lies with employers to ensure that workers are fully prepared to step into these roles and that there continues to be job creation for the human worker. ...could lead to the undermining of common societal and economic structures ● Security – The question on everyone’s lips about machines designed in our own image is whether they could become stronger or more intelligent than us. In this instance, how would we make the world safe? It is apparent that there is a possibility for AI to learn, adapt and exceed our own capabilities. Humans must stay in the lead at all costs. ● Energy – New technologies could lead us into a more sustainable future. The necessity for energy transition is clear, but there is another condition to successful change: the attractiveness of clean energy. It appears that this is lacking despite some improvements – such as government rulings and incentive schemes for using electric cars in cities. In the future, companies and governments must work more collaboratively and make legislation together, keeping in mind that true value is more important than return on investment. The implications of Industry 4.0, although yet undetermined, point to a potential
overhaul in the way business functions. Despite the argument that robotics and AI will never be able to emulate human creativity, ‘gut feelings’ or perhaps even gain the complete confidence of those who use them, these technologies are already being implemented and will develop over the coming decades. Some businessmen – such as industry chief Jürgen Maier, the UK and Ireland boss of German engineering giant Siemens – are predicting that if Industry 4.0 is correctly harnessed, Britain’s manufacturing sector could likely create thousands of human jobs and unlock £455bn over the next decade. These projections appear in a recent government-commissioned review on industrial digitalisation. However, the road to this success will be paved with ethical dilemma, perhaps already evident in the promise of job creation despite a country-wide stagnation of wages meaning that whilst inflation rises, salaries are losing their value. Managers of the future must be taught responsible and ethical leadership and safeguards must be put in place to prevent mass unemployment, or even poverty, that could lead to the undermining of common societal and economic structures. This is a debate that involves current as well as future generations, who must not be isolated from any dialogues. It is clear then, that business schools must play a key part in the structuring of business and society in the wake of digitalisation, but it is debatable whether the profundity of this is fully understood. Amidst uncertainty about what is to come, one thing remains clear. It is vital that future leaders, governments and organisations act now and act together to ensure that we ride the wave of digitalisation, instead of being drowned by it. n
| Professional in Payroll, Pensions and Reward | February 2018 | Issue 37 46
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