I attended the “Davos Deconstructed” seminar at Wits Business School on 1st February 2016.
I must admit, I have been following the 4th Industrial Revolution discussion since the World Economic Forum and I have been fascinated.
We’re in for a total change in the way business, society and technology works and interacts and I am not sure how many people are actually aware of what’s happening, or even that something is happening.
>>Click Here<< to view a video that sums up the 4th Industrial Revolution
What does IR4.0 mean for the world?
- 47% of US Jobs will be replaced by artificial intelligence - anything that is rules based or repetitive will be replaced
- There’s an expected 33% mortality rate of US listed companies in the next 5 years
- The economy will no longer be dominated by the Big beating the Small but rather the Fast beating the Slow
So what does this mean in South Africa?
- Automation means enhanced global competitiveness
Although automation and advanced manufacturing is seen as a restraint on job creation, we have seen clients who manufacture highly automated parts through 3D printing, be in a situation that they are now globally competitive as labour and by inference efficiency, the biggest costs in production are minimised. Existing manufacturers must look at innovation and upgrade their machinery and with grants and loans available there’s no reason not too.
- The potential removal of the middle class
With the middle class comfortable in having a good life we will see increased complacency - the middle class will need to identify new areas to increase skill in to be relevant to the work force and be able to adapt very quickly.
- Enhanced collaboration between public and private sector
We expect that there will have to be an enhanced function in PPP and we see this with the latest window in the Jobs Fund by the DBSA which was focused on innovation and provides matched grants per job created.