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What’s the deal with Industry 4.0?

We’ve seen three Industrial Revolutions pass by, each fundamentally changing the way employment and business operate – for good and for bad. The economic changes of the first Industrial Revolution reshaped policy and laid the groundwork for the welfare state. It raised the standard of living for the middle and upper classes but worsened the living and working conditions of the poor.

Today, another similar revolution is underway, with rapid developments in technology like gene-editing and artificial intelligence (AI) provoking significant changes to our economies, societies and politics. Answers are cheap in the age of the internet; in the age of AI and machine learning, answers are going to be even cheaper. Want to know what’s happening in the world around you? There are matching algorithms that pair people with news updates, song recommendations and even job openings without any user involvement at all. But what effect will this have on the overall economy?

The Fears:

As with most processes of transformation, the introduction of new technology is being met with fear and scepticism. Ever since the discovery of artificial intelligence and its ability to perform some of the same tasks that humans have been doing, people have been worried about losing jobs to a machine. Researchers point out that around 47% of total US employment is at risk of losing ground to computerisation.[1] In a recent survey, 69% of Malaysians believe the rise of automation will lead to a loss of jobs; 45% believe the most impacted would be young Malaysians between the ages of 18 to 24 because as the least experienced group by the time AI would become widely utilised, they would be the most vulnerable to layoffs.[2]

It is this same fear that is currently playing an important role in how AI and digitisation are being represented online and in social media? There are articles like this one that lists the eight types of jobs that are “unlikely to be occupied by robots or machines, at least in the near future”. Another article advises people to prepare for a less-employed future by “training ourselves to care less about our jobs now”.[3] Much like how the first Industrial Revolution was a turbulent time that caused as much harm to people’s lives as it did benefit them, many people today worry that the upcoming technological revolution will usher in the same turbulence as its predecessor did.

The Facts:

Fears aside, embracing new technological developments is the biggest commitment that policymakers and businesses need to make right now. And this commitment needs to be done in the belief that tech is – and will continue to be – a generally positive force for society.

As machines get a little more capable by the day, every inch brings a few more jobs within reach of automation. In most cases, it’s not individual jobs that will be impacted but entire industries as more needs are being met through massively scalable software. And this will have a trickle effect down to our private and social lives. It will be a huge shift in the way society works, but it doesn’t have to be a bad one – we just need to look at the bigger picture.

Even in its current state, technology is doing more than ever. It’s being used in both healthcare and warfare; it’s helping writers publish books and musicians make music. It’s reminding people of birthday engagements and tweaking the photos you take on your phone. It’s helping students write essays, matching jobs to workers, even assessing your credit scores when applying for a loan. In short, it’s making decisions that affect people’s lives right now.

As in the past, technology won’t be a purely destructive force. As some jobs are being automated, new jobs will be created and existing roles redefined. For example, many jobs in agriculture were ‘lost’ due to new advances in technology that automated many of the traditional farming roles. The proportion of the workforce in agriculture decreased from 40% in 1990 to just 10% in 1950; today, this figure is even lower, hovering about 2%.[4] However, these workers didn’t all just become unemployed; instead, they found work in other industries. In China, one-third of the country’s workforce which was in agriculture was absorbed into other sectors such as manufacturing, telecommunications and mining.[5]

The Challenge:

The technical potential for automation differs across sectors and activities. While automation and machine learning will have some effect on almost all jobs, some industries will be more impacted than others depending on the type of work they do. The challenge is preparing industries, businesses and governments to be able to meet this digital transformation. Organisations that fail to anticipate or adapt to new technologies risk being blindsided; either they miss the sudden shift in market perceptions when their customers and stakeholders start demanding or expecting these new innovations or they risk getting left behind. However, those who take note of what’s coming around the tech bend and embrace new technologies gain a first mover-advantage. The ability to react even a few months ahead of the competition can be worth millions or billions of dollars.[6]

Instead, we need to ask ourselves how can technology be used to help people? How can innovations like AI and automation be used to make the most improvements in the best way possible?

For example, in education, new technology will change how we learn. Online courses have changed the “where” of learning from inside classrooms to anywhere with a decent internet connection. In healthcare, the use of technology in diagnostics will transform how resources are deployed, whether it is freeing up more nurses to spend more quality time with patients or how diseases are being treated. More focus could go on prevention and monitoring so that people can live longer, healthier lives.[7]

In consulting, AI and automaton could significantly enhance how consultancy firms tend to operate as well as the quality of services provided to clients. The huge, smarter-than-most-humans, computer AI in science-fiction is still a long way in the future. Machine learning, a sub-field of AI that entails enabling computers to learn, is a lot more viable for use right now. Having a decision-making system learn and teach itself to comb through data to look for patterns to inform transformative strategies for organisations across industries. Naturally, consulting firms have started to take notice; in 2017, Accenture started to offer solutions using tech like data analytics, cloud computing and internet of things to help clients run their business more efficiently under a sub-brand Accenture X.O. Accenture helps their clients look at IT or technology from an implementation standpoint. Others like Wipro Digital started off as part of a software exporter but has since strengthened its consulting business after recognising that consulting and digital expertise have started to overlap in a lot of areas.

Delivery units have also used a tech boost. Delivery units need to analyse a lot of data to ensure that the key performance indicators (KPIs) set prior to implementation remain on track. Using a machine learning system like a dashboard to help track performance allows consultants to have another (digital) eye that can spot patterns that humans might miss or never think of in the first place. Speaking as a delivery unit, one of our top priorities is looking for new ways to innovate in the tools we use so that we can always offer our clients the best analysis and the best solutions.

Moving forward

To get ready for tomorrow’s technological innovations, organisations around the world have challenged themselves to understand the data and automation technologies that are being developed today.

Back in 2012, the Louvre was the first to ditch the outdated handheld audio guide; instead, the museum opted to use the Nintendo 3DS XL console to provide an interactive element in addition to audio content. Developed with help from Nintendo, the specialised 3DS system uses both a GPS and 3D imaging to provide users with an interactive map (thus cutting down the number of lost tourists) as well as high-resolution images, 3D models and video commentary about the artwork.[8] The Louvre hasn’t just stopped there; just this year, the museum launched a mobile app with Accenture Interactive that uses augmented reality for visitors browsing the Petite Galerie.[9]

Such partnerships are valuable as technology evolves faster than any museum – or company – alone can follow. Implemented well, digital transformation can promote a more holistic and collaborative working environment between companies as well as between departments and units. In the words of PTC President & CEO, Jim Heppelmann, “no one company can do it alone”; we’re excited to see more partnerships between organisations and technology vendors and developers moving into the digital age.

  1. Frey and Osborne (2013)
  2. The ASEAN Post (2019)
  3. Quartz (2019)
  4. SkyNet Today (2019)
  5. McKinsey (2017)
  6. Bain & Company (2019)
  7. TechCrunch (2019)
  8. Time (2012)
  9. The Drum (2019)
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Creating tomorrow’s top public transport app

There’s still no sign of flying cars by 2020 but technology has given us a way to make public transport safer, greener, more convenient and more efficient. No longer do we need to go all the way down to a station to buy tickets, obtain travel schedules or be alerted to possible route disruptions; today, all of this can be done quickly and conveniently on a mobile phone.

Who’s winning and how?

One country has brought the convenience of mobile connectivity to public transport with great success. Cheap, frequent, clean and efficient, Vienna has been lauded for having one of the best public transport systems in the world. In 2017, it introduced its WienMobil app that combines both journey planning as well as ticketing in one. Taking the public transport app to the next level, WienMobil allows users to completely plan, book and pay for their journeys on all the different modes of transport in the city. This includes both public transport as well as options like bike sharing, taxis and car-sharing. The app also lets commuters to filter route planning by distance, time and cost as well as by environmental impact, allowing the Viennese public to not only find the route that costs the least number of euros, but also the least amount of CO2.[1]

The situation in Malaysia

Unlike Vienna, there is no similar all-in-one app for public transport in Malaysia. Transport providers like MyRapidKL, which oversees the major railways and bus routes in the Greater Klang Valley, generally communicate through social media – for instance, updating commuters about a delay in the Kelana Jaya LRT line through Twitter.[2]

Previously, there was a mobile app called MeterOn launched about three years ago that allowed passengers to verify and track their journey while taking a taxi or bus. However, general awareness of the app was low as many Malaysians were not aware of this app or its function as a channel allowing interactive and efficient customer feedback, rating and complaints. As of 2019, the app itself does not seem to be available on the Google App Store anymore.

A case for change

MeterOn was a good start but did not allow for commuters to view information about public transport services in real-time. Malaysians have often remarked that public transport in Malaysia, especially the bus service, tends to be inconvenient and tardy. Service information, such as the estimated time of arrival (ETA) of buses, is not publicly displayed so commuters often have no way of knowing how long they would need to wait for a bus or train to arrive without having to go to the platform itself or post a question on social media. This makes planning a trip on public transport (much less one that uses more than one method of public transport) inconvenient.

With easy access to technology like Wi-Fi and GPS systems, public transportation services have been able to upgrade their services to keep up with consumer demands. For instance, mobile connectivity enables real-time, two-way information flow between commuters and transport providers, allowing passengers to get updates or even give feedback on their travel experience on the go. Smart algorithms can process this information rapidly, and tweak schedules and routes of public transport services to provide better and more targeted services. Even artificial intelligence (AI) has a part to play in improving transport services; using AI reduces the need for human intervention, allowing services to be provided quickly and more efficiently.

Recently, more countries have moved toward combining all modes of public transport under one system or app much like Vienna’s WienMobil. Mobility as a service (MaaS) is a consumer-centric model of transportation for people. Instead of using personally owned cars or other means of transport, MaaS seeks to make taking public transport easier for commuters by allowing people to plan, book and track their journeys all on a mobile phone. A growing body of evidence has suggested that providing more infrastructure won’t solve traffic problems – building more is costly, time-consuming and would likely only provide temporary relief.[3] Instead, MaaS builds on what is already there and makes travelling more convenient.

As a consumer-centric model of transportation, MaaS works by providing commuters with an on-demand, real-time platform that can include any combination of transport methods. It allows for easy route planning by letting users plan end-to-end journeys from the moment they leave their front door right up to when they reach their final destination. It allows for simplified payments by allowing users to pay for transport via e-wallets or credit cards before or after their journey. Some MaaS even offer subscriptions. Lastly, MaaS offers a personal touch; as a fully personalised service, it builds relationships between users and transport providers by using big-data, two-way communication and constant user feedback to customise and refine the offered services.

Where is Malaysia at currently?

Malaysia has taken steps in the right direction. MyRapid provides journey planning for all modes of transport under their purview on their website. They’ve announced plans for a journey planner app to be rolled out within the next year. KTM Bhd, which manages the KTM rail network for intercity and commuter trains, recently launched a journey planner app called MyRailtime in May that allows passengers to check for real-time information on train ETAs, departures and delays.[4]

However, all these apps are strictly for their individual services and do not allow for services like booking and paying for tickets which still must be done at the stations themselves or through e-payment options like Touch n Go. There is no one common app that allows commuters to see the schedules or routes of all transportation services in the city.

In addition, the data collected through GPS devices installed on buses and other forms of public transport vehicles tends to be only made available through the individual transport operators when necessary as in the case of a service disruption when it should be communicated in real-time to the public. Malaysia has started using GPS data to track bus fleets as early as 2012; however, providers seem to only do limited monitoring of this data when this data could be used to ensure that all public transport vehicles maintain a certain set of safety and service standards. For example, GPS data could be used to publish real-time estimated time of arrival (ETA) and departure (ETD) on platforms such as a journey planner app or to 3rd party transport service providers like Grab for those who need additional transport to get to where they need to be.

The platform for hosting this data is key. Rather than posting updates on Twitter or hosting the journey planner on a website that may not be optimised for commuters on the go, a mobile app is a perfect platform for this information as it reduces the cognitive effort to sift through route schedules or lists of stations. Studies have shown that mobile apps give users more control over a task which enhances their satisfaction and comfort with the decision-making process.[5] In transport, this means that apps help the user’s sense of being on time and knowledge of when they will arrive. For example, people waiting in line at the bus station who don’t have access to real-time arrival information feel that their waiting time is longer as opposed to those who can track exactly when the bus would arrive.

Having access to real-time data can also be used to help transport authorities refine the routes and modes of public transport. When introducing a new policy or solution, the chances are that implementation won’t go perfectly right out of the gate as at least some of the initiatives will need to be tweaked as problems arise. By creating a platform where users can get real-time updates and report back on problems would help authorities to get a clearer picture of what is happening on the ground, what works and what doesn’t, and to make the changes necessary for a smooth public transport experience that fits public demand.

Opportunities abound. But it’ll take a village to move the needle.

MaaS cuts across different modes of transportation, which are owned and operated by multiple providers, to provide an easy, one-stop-shop to get from point A to point B. It has clear benefits for the public who would be able to choose where they want to go, when they want to go and how to get there. The challenge here will be getting buy-in from transport providers. For trips that include more than one mode of transport, each mode should be adequately compensated for its portion of the trip – this means taking into consideration the different ticketing systems (including fare zones, discounted fares and concessions) of the buses, trains, and e-hailing rides operating within the area.

This is where public-private partnerships come in. This is an opportunity for governments to work with private transportation providers to create MaaS platforms with the true north of increasing the use, productivity and efficiency of transportation within the country. We’re seeing some of this happen already, here in Malaysia as well as in cities around the world, with transport authorities partnering with technology service companies to build mobile apps, or with e-hailing companies to provide short trips to and from public-transit stations. Public private partnerships have great potential for innovation. Working together optimises the use of available knowledge and resources especially for a project like MaaS where there is a need to pool together all relevant data and expertise. Rather than simply building more stations to encourage more people to use public transport, transport authorities can work with private corporations to transform the way people get around in a city. The key is to develop strategic alignment across all stakeholders and build common ground so that everyone is motivated and held accountable to work towards the true north – a safe, convenient, and efficient public transport system for one and all.

  1. Ziptopia (2017)
  2. The Star (2019)
  3. The Conversation (2019)
  4. The Star (2019)
  5. US Department of Transportation (2017)
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Transformation on the Street: From running errands to transforming businesses

With more people running businesses online or from the comfort of their homes, there is a growing demand for short-term help. GoGet Malaysia is a home-grown company that is helping businesses and individuals hire part-timers, re-born as ‘GoGetters’, to help run errands or help with tasks ranging from distributing flyers to data entry.

We speak with Francesca Chia, co-founder and CEO of GoGet Malaysia to get her thoughts on the upcoming digital transformation and how GoGet is redefining the way the gig economy works in Malaysia.

PEMANDU Russia talks humanity at the Skolkovo Startup Village 2019

In the thick of what many call ‘the startup era’, aspirations towards effective and innovative entrepreneurship continue to loom large worldwide. And the buzz at the Skolkovo Startup Village 2019 event held in June, is testament that this is no different in Russia.

Organised by the Skolkovo Foundation, the annual event brings together the most innovative, talented and open-minded individuals from the business communities in Russia and CIS countries. Chris Tan, Managing Director of PEMANDU Russia, was invited by the IPChain Association to share a fresh perspective on delivery transformation – specifically how value creation through human capital and knowledge was instrumental in effecting Malaysia’s socio-economic transformation.

Drawing from a crucial aspect of PEMANDU Associates’ Big Fast Results (BFR) – 8 Steps of Transformation© methodology, Chris remarked, “It is critically important to have a program management framework that constantly aligns planning and implementation actions of the implementation community on the ground with the high-level aspirations of the leadership”.

Speaking on how the methodology can be applied to start-ups, Chris illustrated a condensed three-part checklist comprising a) a detailed program of action with clear accountabilities, timelines, and targets, b) a program management framework that guides the transition from planning to implementation, and c) a problem-solving mechanism to make quick decisions at the numerous inflection points a startup can expect to encounter.

Having covered more of the process and systems-oriented approaches of the firm, Chris went on to elaborate on what the firm calls ‘transformational leadership’ to deliver on a start-up’s business objectives, reminding the audience that, “even though most of you are starting up small technology ventures, you will face the same transformational leadership challenges as CEOs of the largest corporations, if not more so.” This was also a chance for the audience to be taken through the firm’s proprietary 6 Secrets of Transformational Leadership © – a holistic framework to help leaders effect tangible change in any organisation, big or small.

These humanistic insights, which included adopting a “Discipline of Action” and “play[ing] the Game of The Impossible” were a refreshing take for much of the audience. But what perhaps piqued the most intrigue was the mention of the sixth and final point on ‘Divine Intervention’ – the acknowledgment of mankind’s limited control over the outcomes of our actions. Chris quickly followed this up with an exposé on the firm’s counterintuitive belief that a leader who knows that he or she is not in ultimate control over every variable is a leader who is more willing to take bold steps required in pushing ahead in the transformation journey in the pursuit of delivering big fast results.