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#437236 Why We Need Mass Automation to ...
The scale of goods moving around the planet at any moment is staggering. Raw materials are dug up in one country, spun into parts and pieces in another, and assembled into products in a third. Crossing oceans and continents, they find their way to a local store or direct to your door.
Magically, a roll of toilet paper, power tool, or tube of toothpaste is there just when you need it.
Even more staggering is that this whole system, the global supply chain, works so well that it’s effectively invisible most of the time. Until now, that is. The pandemic has thrown a floodlight on the inner workings of this modern wonder—and it’s exposed massive vulnerabilities.
The e-commerce supply chain is an instructive example. As the world went into lockdown, and everything non-essential went online, demand for digital fulfillment skyrocketed.
Even under “normal” conditions, most e-commerce warehouses were struggling to meet demand. But Covid-19 has further strained the ability to cope with shifting supply, an unprecedented tidal wave of orders, and labor shortages. Local stores are running out of key products. Online grocers and e-commerce platforms are suspending some home deliveries, restricting online purchases of certain items, and limiting new customers. The whole system is being severely tested.
Why? Despite an abundance of 21st century technology, we’re stuck in the 20th century.
Today’s supply chain consists of fleets of ships, trucks, warehouses, and importantly, people scattered around the world. While there are some notable instances of advanced automation, the overwhelming majority of work is still manual, resembling a sort of human-powered bucket brigade, with people wandering around warehouses or standing alongside conveyor belts. Each package of diapers or bottle of detergent ordered by an online customer might be touched dozens of times by warehouse workers before finding its way into a box delivered to a home.
The pandemic has proven the critical need for innovation due to increased demand, concerns about the health and safety of workers, and traceability and safety of products and services.
At the 2020 World Economic Forum, there was much discussion about the ongoing societal transformation in which humans and machines work in tandem, automating and augmenting the way we get things done. At the time, pre-pandemic, debate trended toward skepticism and fear of job losses, with some even questioning the ethics and need for these technologies.
Now, we see things differently. To make the global supply chain more resilient to shocks like Covid-19, we must look to technology.
Perfecting the Global Supply Chain: The Massive ‘Matter Router’
Technology has faced and overcome similar challenges in the past.
World War II, for example, drove innovation in techniques for rapid production of many products on a large scale, including penicillin. We went from the availability of one dose of the drug in 1941, to four million sterile packages of the drug every month four years later.
Similarly, today’s companies, big and small, are looking to automation, robotics, and AI to meet the pandemic head on. These technologies are crucial to scaling the infrastructure that will fulfill most of the world’s e-commerce and food distribution needs.
You can think of this new infrastructure as a rapidly evolving “matter router” that will employ increasingly complex robotic systems to move products more freely and efficiently.
Robots powered by specialized AI software, for example, are already learning to adapt to changes in the environment, using the most recent advances in industrial robotics and machine learning. When customers suddenly need to order dramatically new items, these robots don’t need to stop or be reprogrammed. They can perform new tasks by learning from experience using low-cost camera systems and deep learning for visual and image recognition.
These more flexible robots can work around the clock, helping make facilities less sensitive to sudden changes in workforce and customer demand and strengthening the supply chain.
Today, e-commerce is roughly 12% of retail sales in the US and is expected to rise well beyond 25% within the decade, fueled by changes in buying habits. However, analysts have begun to consider whether the current crisis might cause permanent jumps in those numbers, as it has in the past (for instance with the SARS epidemic in China in 2003). Whatever happens, the larger supply chain will benefit from greater, more flexible automation, especially during global crises.
We must create what Hamza Mudassire of the University of Cambridge calls a “resilient ecosystem that links multiple buyers with multiple vendors, across a mesh of supply chains.” This ecosystem must be backed by robust, efficient, and scalable automation that uses robotics, autonomous vehicles, and the Internet of Things to help track the flow of goods through the supply chain.
The good news? We can accomplish this with technologies we have today.
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#437216 New Report: Tech Could Fuel an Age of ...
With rapid technological progress running headlong into dramatic climate change and widening inequality, most experts agree the coming decade will be tumultuous. But a new report predicts it could actually make or break civilization as we know it.
The idea that humanity is facing a major shake-up this century is not new. The Fourth Industrial Revolution being brought about by technologies like AI, gene editing, robotics, and 3D printing is predicted to cause dramatic social, political, and economic upheaval in the coming decades.
But according to think tank RethinkX, thinking about the coming transition as just another industrial revolution is too simplistic. In a report released last week called Rethinking Humanity, the authors argue that we are about to see a reordering of our relationship with the world as fundamental as when hunter-gatherers came together to build the first civilizations.
At the core of their argument is the fact that since the first large human settlements appeared 10,000 years ago, civilization has been built on the back of our ability to extract resources from nature, be they food, energy, or materials. This led to a competitive landscape where the governing logic is grow or die, which has driven all civilizations to date.
That could be about to change thanks to emerging technologies that will fundamentally disrupt the five foundational sectors underpinning society: information, energy, food, transportation, and materials. They predict that across all five, costs will fall by 10 times or more, while production processes will become 10 times more efficient and will use 90 percent fewer natural resources with 10 to 100 times less waste.
They say that this transformation has already happened in information, where the internet has dramatically reduced barriers to communication and knowledge. They predict the combination of cheap solar and grid storage will soon see energy costs drop as low as one cent per kilowatt hour, and they envisage widespread adoption of autonomous electric vehicles and the replacement of car ownership with ride-sharing.
The authors laid out their vision for the future of food in another report last year, where they predicted that traditional agriculture would soon be replaced by industrial-scale brewing of single-celled organisms genetically modified to produce all the nutrients we need. In a similar vein, they believe the same processes combined with additive manufacturing and “nanotechnologies” will allow us to build all the materials required for the modern world from the molecule up rather than extracting scarce natural resources.
They believe this could allow us to shift from a system of production based on extraction to one built on creation, as limitless renewable energy makes it possible to build everything we need from scratch and barriers to movement and information disappear. As a result, a lifestyle worthy of the “American Dream” could be available to anyone for as little as $250/month by 2030.
This will require a fundamental reimagining of our societies, though. All great civilizations have eventually hit fundamental limits on their growth and we are no different, as demonstrated by our growing impact on the environment and the increasing concentration of wealth. Historically this stage of development has lead to a doubling down on old tactics in search of short-term gains, but this invariably leads to the collapse of the civilization.
The authors argue that we’re in a unique position. Because of the technological disruption detailed above, we have the ability to break through the limits on our growth. But only if we change what the authors call our “Organizing System.” They describe this as “the prevailing models of thought, belief systems, myths, values, abstractions, and conceptual frameworks that help explain how the world works and our relationship to it.”
They say that the current hierarchical, centralized system based on nation-states is unfit for the new system of production that is emerging. The cracks are already starting to appear, with problems like disinformation campaigns, fake news, and growing polarization demonstrating how ill-suited our institutions are for dealing with the distributed nature of today’s information systems. And as this same disruption comes to the other foundational sectors the shockwaves could lead to the collapse of civilization as we know it.
Their solution is a conscious shift towards a new way of organizing the world. As emerging technology allows communities to become self-sufficient, flows of physical resources will be replaced by flows of information, and we will require a decentralized but highly networked Organizing System.
The report includes detailed recommendations on how to usher this in. Examples include giving individuals control and ownership of data rights; developing new models for community ownership of energy, information, and transportation networks; and allowing states and cities far greater autonomy on policies like immigration, taxation, education, and public expenditure.
How easy it will be to get people on board with such a shift is another matter. The authors say it may require us to re-examine the foundations of our society, like representative democracy, capitalism, and nation-states. While they acknowledge that these ideas are deeply entrenched, they appear to believe we can reason our way around them.
That seems optimistic. Cultural and societal change can be glacial, and efforts to impose it top-down through reason and logic are rarely successful. The report seems to brush over many of the messy realities of humanity, such as the huge sway that tradition and religion hold over the vast majority of people.
It also doesn’t deal with the uneven distribution of the technology that is supposed to catapult us into this new age. And while the predicted revolutions in transportation, energy, and information do seem inevitable, the idea that in the next decade or two we’ll be able to produce any material we desire using cheap and abundant stock materials seems like a stretch.
Despite the techno-utopianism though, many of the ideas in the report hold promise for building societies that are better adapted for the disruptive new age we are about to enter.
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