AI & Robotics Transforming Work and Lifespans

Alpesh Kadakia
Co-founder & Managing Partner
CKC Partners
October 2017
Artificial Intelligence &
Robotics enables the 4th
Industrial Revolution
and Powers the
Experience Economy

What is the average lifespan for human kind?
Credit: Cover image https://www.futurereadysingapore.com/2016/robots-versus-humans-in-the-supply-chain-who-wins.html © 2017 CKC Partners, LLC. ALL RIGHTS RESERVED

Source: http://www.icis.com/blogs/chemicals-and-the-economy/2015/02/rising-life-expectancy-enabled-industrial-revolution-to-occur/
Survey says….~80 years in western societies
Today:
~80 yrs
200 years ago:
~40 yrs
The Top 1%
lives on
average
another 10-
12 years…
…essentially
into their
90’s
© 2017 CKC Partners, LLC. ALL RIGHTS RESERVED

Average lifespan of humans is on the rise, but what
will it be 50 or 100 years from now?
110-125
years??
Source: UN Economic and Social Affairs, 2017
'til death do us part takes on a whole new meaning…

What is the average lifespan for a US corporation?

Over the past 100 years, corporate life expectancy
has declined significantly
Source: BBC 2015
1340
Declined by
~80%
gone are the days of the corporate gold watch…

Rising Mortality Risk
Companies don’t just die
younger; they are also more likely
to perish at any point in time.
Today, almost one-tenth of all
public companies fail each year, a
fourfold increase since 1965.
These trends of human and corporate life expectancy
have accelerated in the past 3 decades
Source: BCG Analysis

1. Technology has shifted the calculus of war
 more people die from suicide than are killed
2. Largely eradicated infectious disease
 more people die from old age than disease
3. On a global scale, we have reined in famine
 obesity kills more people than hunger
Human life expectancy on the rise due to*:
Corporations lifespan is on the decline due to:
1. Accelerating rate of technology innovation
2. Evolution of emerging asset light business models
3. Dominance of capitalism and globalization
― * Excerpt from Yuval Noah Harari, Homo Deus: A Brief History of Tomorrow

Life Expectancy  doubles and
continues to expand
Corporate Mortality  5 year exit
risk for S&P 500 stands at 32%
It’s against this paradox we explore the impact of
Artificial Intelligence and Robotics#ofyears
Period (Year)
This is the New Normal

Convergence of 4 Forces that are radically changing
the world as we enter the 3rd Millennia
People
Robots
“Work”
Artificial
Intelligence
“Experience
Economy”
People / Labor or the
“Workers”
(i.e. Homo sapiens)
Organization of “Work”
(i.e. the company)
Augment experiences for
People and Workers
(i.e. OIT, AV/AR, etc.)
Augment the notion of “work”
(i.e. RPA, Intelligent Machinery, etc.)
We stand on the brink of a technological revolution that will
fundamentally alter the way we live, work, and relate to one another

Before we look to the future….a quick look at the
journey of how we got here
The Four Stages of Industrial Revolutions
2017
Now
Agrarian Industrial Services What’s next?

Welcome to the “Experience Economy”!
Economic Distinctions
Source: HBS, 1998
Economic Offering Commodities Goods Services Experiences
Economy Agrarian Industrial Service Experience
Economic Function Extract Make Deliver Stage
Nature of Offering Fungible Tangible Intangible Memorable
Key Attribute Natural Standardized Customized Personal
Method of Supply Stored in Bulk
Inventoried after
production
Delivered on
Demand
Revealed over a
duration
Seller Trader Manufacturer Provider Stager
Buyer Market User Client Guest
Factors of Demand Characteristics Features Benefits Sensations

Movement towards the Experience Economy
Source: HBS, 1998
Four Realms of the
Experience Economy
The Progression of
Economic Value
Undifferentiated
Market
Extract
Commodities
Make
Goods
Deliver
Services
Stage
Experiences
Competitive
Position
Differentiated
Pricing Premium

Enterprises are responding and evolving to
meet the challenge
History has shown that businesses adopt alternative service delivery operating
models in tandem with major shifts in technology architecture.
/L
Decentralised
Monolithic
Systems
Coordinated
In-House
Practices
BPO/Offshore
capture labor arbitrage
Digital Operations
labor elimination
Increased cost reduction/variable structure, scalability, and agility,
Operationalbenefits
5-10%
10-20%
20-40%
50+%
Enterprise wide
End-to-End Operations
Back-office
Operations
Non-Core
Operations
Next Generation
Operating Model
Present – Future
XaaS, AI, Automation, Robotics
Late 90’s - ~2010
Web-enabled
Late 80’s - Late 90’s
Client-Server
Pre-80’s
Mainframe
Source: PwC 2016
We are at another such inflection point…
(hint: it’s digital labor)

Let’s start by defining Artificial Intelligence and
having a common framework of understanding

Source: https://www.analyticsvidhya.com/blog/2015/07/difference-machine-learning-statistical-modeling/
Per Webster's:
Definition of artificial
intelligence:
1 :a branch of computer science
dealing with the simulation of
intelligent behavior in computers.
2 :the capability of a machine to
imitate intelligent human
behavior
What is AI?......Good question, lots of opinions

The Machine Learning Spectrum
Source: Medha Agarwal
Recent
advancements in
Reinforcement/
Deep Learning
have reignited the
debate……
…..and the use
cases are very
compelling

Deep Learning: A closer look
Source: Medha Agarwal
As we all know, clean data has always been a key ingredient…

….the program started with nothing but a blank board and
the rules of the game. It learned simply by playing
millions of games against itself, using what it learned in
each game to improve.
The new program represents a step forward in the
quest to build machines that are truly intelligent.
That’s because machines will need to figure out solutions
to difficult problems even when there isn’t a large amount
of training data to learn from.
“The most striking thing is we don’t need any
human data anymore,” says Demis Hassabis, CEO
and cofounder of DeepMind.
….but wait, it may not be a pre-requisite in the future

AI is, and will continue to be, a core requirement
for driving both revenue growth and cost efficiency
These capabilities are now table stakes for competing....

Although industry adoption is lumpy at present
Source: McKinsey Global Institute AI adoption and use survey; McKinsey Global Institute analysis
Early adopters
Laggards

Now that we have explored AI, let’s shift to Robotics

Robots doing physical
human work in a new way
Robots doing human
knowledge work “software
robots”
Robotics can take many forms and come in various
colors, shapes, and sizes
Robots doing physical
human work
Medical robots can perform surgery
inside patients with greater precision
than existing methods
“Swallow the surgeon”
The rise of RPA/
Digital Labor in
global enterprises

Drones Consumer IOT Industrial IOT
Traditional robots and sensor devices also
continue to evolve at a blistering pace
According to Gartner, the average household in 2020 will consume ~2 Terabytes
of data per year due to the utilization of AI and Robotics in core technologies

What is “Robotics Process Automation”?
Business friendly, non-disruptive, code-free
“Software Robots”
Procedural Automations & Repeatable Decisions
Robots
Free employees to do higher-value work
People
Relationships, Judgement, Interpretation, Change Management
• 24 x 7 productivity
• Faster process speed
• Trained by business users
• 1/3 the cost of an offshore FTE
• Redistributable for short-term tasks
• Reduce data entry errors
• Improved regulatory reporting & compliance
• Centrally governed & secured within
existing ITlandscape
• Rapid continuous improvement
emulate human activity, using
existing user interfaces. This
“Digital Workforce” is managed
by business operations teams,
and centrally secured byIT.
The new kid on the block is Robotic Process Automation (RPA)
and companies are rapidly adopting it across the enterprise
Source: BluePrism

Potential Paths that AI / Robotics will follow…
Path 3
Transformations
Humans into new species
- We are “upgrading” ourselves into a
new form of “god-like” techno-humans
Path 1
Replaces
Humans
- physical work (advanced
manufacturing / factory robots)
- knowledge work (RPA)
Path 2
Augments
Human Experience
- Machine vision is imperfect; requires
‘human-in-the-loop’
- knowledge work (RPA)
vs
?

Just a few thoughts and perspectives
on the opportunities ahead…

AI’s impact will be deep and wide…will refine society,
commerce and humanity like we have never seen!
Economic, cultural, social,
… endless disruption
Satya Nadella, AI reinforces and
augments human capability and experience
Martin Ford,
Rise of the Robots
Elon Musk, artificial intelligence is an
existential threat….will start WWIII
Yuval Harari,
Homo Deus
”the challenge of Artificial
Intelligence is to define for
ourselves and for society what
is truly human, and to build a
world in which AI reinforces
and augments human
capability and experience
rather than devaluing it”

The shift to the “Experience Economy” will
accelerate and create new category of winners
Source: Pine & Gilmore – Harvard Business Press
Sample Companies Embracing
the Experience Economy

Have a deep understanding of
how your products and services
support “Experience Economy”
end markets
Focus design principles not only for products and
services, but more importantly end user experiences

The need for “clean” integrated data– both
structured and unstructured will be massive
Key take away:
Simple: siloed or dirty data
will lead to ineffective AI
algorithms…or worse
accelerate your entry into the
corporate mortality bucket
Source: Capiot.com

Digital Labor & RPA is transforming how
businesses operate core enterprise functions
Key take away:
The real potential of
RPA/automation lies at the
intersection of core industry-
specific operations and
COGS, not G&A functions.
Focus on opportunities to
aggressively attack the core
business and you will see a
material impact to enterprise
value and EBITDA expansion.
Redefine the rules of competition
and play with an unfair edge...
https://www.horsesforsources.com/rpa-satisfaction-processes_080517

Finally, “Intelligence” is moving to the edge…
Source: a16z website
Movement toward “edge
processing” has created
an innovation cycle for
GPU, FPGA and the chip
industry overall
Self-driving cars perspective:
Paradigm shift in “car computing”
….the car IS the Data Center

So is the Uber driver the new call center agent?
Hi, I’m Mila your virtual
call center agent…
on wheels!
Huh?

Parting thoughts…..
• We are living longer and notion of how and where we work is evolving
• We must find a way to harness the powerful potential of AI/Robotic
technology to enhance and augment our lives
• Embrace the Experience Economy – premium rents will accrue to
those who design products and services that enable these end markets

Thank You!
Contact Information:
Alpesh Kadakia
Co-Founder and Partner
alpesh.kadakia@ckc-partners.com
For more information visit:
www.ckc-partners.com

Alpesh is Cofounder and Managing Partner of CKC Partners, a Palo Alto-based investment and advisory
firm. Alpesh leads the strategic direction of the firm and heads its investment committee. Alpesh brings 25+
years of experience in operations, consulting, and business services across a broad range of industries and
geographies. Prior to cofounding CKC Partners, Alpesh was the Senior Managing Director of PwC’s Business
Transformation Advisory practice based in Silicon Valley. While at PwC, he advised over a third of the Fortune
100 and several leading private equity firms on large-scale operations transformation programs. During his
tenure, he also served as co-chair of the Committee on Service Delivery Innovation leading the firm’s
investment, partnerships, and solutions in areas such as Digital, Cognitive/Machine Learning, Robotic Process
Automation (RPA), and B2B/B2C Enterprise SaaS. Alpesh was also a senior advisor with Deloitte Consulting,
helping clients develop and execute global shared services and outsourcing projects. Prior to Deloitte, Alpesh
cofounded StaffLeader International, a tax and accounting BPO service provider with India-based delivery
centers. He began his career as a financial analyst with IBM and also held various leadership positions at
Hewlett Packard.
Alpesh received his BA degree in Accounting from University of Texas at Austin and an MPA from McCombs
School of Business. He lives in Palo Alto with his wife and their two teenage children.
About the Speaker

AI & Robotics Transforming Work and Lifespans

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

En vedette

En vedette (7)

Similaire à AI & Robotics Transforming Work and Lifespans

Similaire à AI & Robotics Transforming Work and Lifespans (20)

Dernier

Dernier (20)

AI & Robotics Transforming Work and Lifespans

Notes de l'éditeur