As the Fourth Industrial Revolution (IR4) fuses the physical, digital and biological worlds, there will be winners and losers.
This month’s issue ofAgility Update offers four articles that may be helpful in deepening understanding of the changes. These include potted guides to Artificial Intelligence (AI), and a big picture look at digitisation and its significant opportunities to kick start productivity growth of at least 2 percent a year.
Additional articles suggest paying closer attention to how businesses are valued and the tell-tale signs of cryptojacking.
Research by management consultants Boston Consulting Group (BCG) and MIT Sloan Management Review found that more than 70 percent of executives expect AI to play a significant role at their companies. However, the research also revealed markedly different levels of AI understanding and adoption, even within the same industry. BCG points out that whilst elements of AI are already in the market, it is not an off the shelf concept: “The hard work of managing the interplay of data, processes, and technologies happens in house”.
As an aid to busy executives, their report “aims to provide an intuitive and practical comprehension of AI”. At a deeper level, it also discusses many current and potential use cases for AI and examines the impact of AI on industry value pools, the future of work, and the pursuit of competitive advantage. Finally, it offers some practical guidance on how to introduce and spread AI within large organisations.
Businesses and advanced economies are poised to kick start a new trend of rising productivity growth of at least 2 percent a year to drive prosperity across advanced economies for years to come. However, this will take concerted effort from businesses as well as governments, say management consultants McKinsey.
Their advice to companies is to:
McKinsey’s research traces the current near historic low rates in labour-productivity-growth across many advanced economies to the collision of three waves: the waning of a productivity boom that began in the 1990s, financial crisis after effects including persistent weak demand and uncertainty, and digitisation.
It is the third wave – digitisation – that contains the promise of significant productivity-boosting opportunities, though the benefits have not yet materialised at scale.
Read McKinsey’s Solving the productivity puzzle and also The missing pieces in a picture of global recovery in the Australian Financial Review.
New research from Wharton is suggesting the need for a closer look at the way businesses are being valued.
Whilst analysts’ models have always looked at revenues, and how they eventually generate profit, the study claims that there is a lot of very important customer behaviour data embedded in the revenue number that warrants closer attention.
As an example, some businesses that have had strong revenue growth on the back of a number of acquisitions actually had weaknesses in their customer data which did not bode well for their ongoing success.
If your IT Help Desk gets a spike in complaints about slow computer performance or overheating systems causing CPU or cooling fan failure, this could be the first sign that your company systems have been cryptojacked.
Unlike most other types of malware, cryptojacking scripts do not damage computers or victims’ data. However, organisations with many cryptojacked systems can incur costs in terms of help desk and IT time spent tracking down performance issues and replacing components or systems in the hope of solving the problem.
For more about detection and prevention, read the ITNews article here.
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