Innovation and creativity: the lasting competitive advantage
06:31I
wrote recently about my last trip to Dubai, and the impact it had on me. Dubai
is unusual because it combines a number of factors - an energetic leadership, a
country and region hungry for growth and transformation, a significant
investment pool, and a real "can do" spirit. Clearly things are changing
quickly there, and everywhere. During the conference where I spoke we had
several other speakers who were futurists, including Matthew May. He and others
talked about what they believe is about to unfold as we move ever more quickly
into the future.
Pause
to acknowledge Daniel Pink
I'd
like to pause here and tip my hat to Daniel Pink, who wrote a really good book
that is becoming ever more prescient. Daniel Pink wrote a book
entitled A Whole New Mind in 2005, and at the time the
book had a nice reception. His key points in that book were that automation
would increase, replacing repetitive labor. Anything that can be reduced to an
algorithm will be described, defined and encoded. If it can be automated, it
will be automated. His further argument was that we needed to be focused on
training people in skills that can't be reduced to algorithms. Dan's book,
published in 2005, deserves a re-read at this time, 12 years later, because a
lot that he talked about is happening. People are being replaced by algorithms,
machines and artificial intelligence.
Where
automation and AI are taking hold
McDonalds,
that trusted first employer of many a teenager, is testing automation and robots
to take orders, make food and complete orders. It's possible within a few years
that many McDonalds restaurants will be fully automated, finally achieving the
original McDonalds brothers goal of speedy, efficient service. Check out the
movie "The Founder" to see how choreographed the original McDonalds were, and
think about how those patterns and repetitive activities can be reduced to
automation, machines and AI.
While
I was in Dubai I was speaking with an executive of a firm that reviewed
intellectual property. 20 years ago the firm had hundreds of US lawyers on
staff, but shifted these jobs to a large Indian location where hundreds of
Indian engineers and lawyers reviewed intellectual property claims and patents.
His belief was that within 5 years algorithms and machine learning would mean
that he would not need many, if any, humans to review patents.
Wall
Street is under attack as well from automation and machine learning. Already
there are stock funds managed almost exclusively by algorithms and machine
learning, and a significant portion of stock trading is already done by
software. Machines can recognize patterns and act far more quickly than humans
can - so you can imagine that a significant amount of trading and money
management will be automated in relatively short order.
What
does that leave for humans?
As
automation, artificial intelligence, machine learning and robotics grow in
capability, humans doing simple, repetitive jobs will be crowded out. Robots
are much more expensive initially but don't strike, don't get sick and do things
exactly the way they are programmed. They don't get overtime. So what's left
for humans? Perhaps this will be a golden age - where increasingly we are
removed from the drudgery of manual labor and repetitive jobs and are finally
freed up to explore the unlimited creativity that we possess but have never been
able to fully harness. There may be far more Faradays and Einsteins in our
midst who can fully recognize their creative potential as we are freed from
boring, mundane and repetitive tasks.
Pink
suggested in his book that the "right brained" people would rule the future.
This is because machines aren't artistic or creative - yet. We humans still
possess far more creativity and the ability to assimilate and create in ways
that can't be reduced to an algorithm. We must take advantage of these gifts
and differences.
But
that doesn't mean that engineers, mathmeticians and scientists are doomed.
Someone will be needed to dream up the next AI, investigate black holes, explore
space and perhaps discover how to travel at the speed of light.
What
needs to change? Everything
All
of these factors mean that our educational system needs to change, to reinforce
creativity and expansive, divergent thinking. When we needed people on
production lines who could do rote work, we taught in rote methods. Now and in
the future we need a completely new way of thinking, that frees up and
encourages creativity and innovation. But it's not just elementary schools,
high schools and colleges that must change.
Our
traditional hierarchical top down management models, first organized around the
military and the railroads, must change and morph as well. We don't need to
pigeonhole people into exceptionally narrow jobs, and we need to eliminate
siloes and accelerate the best and most creative ideas to market as quickly as
possible. I write this on a day when Ford Motor fired its CEO, even after
record breaking sales, because the firm isn't making enough money and its stock
price is tanking. Ford and the automotive manufacturers must shift their
thinking from building cars to financing vehicles to providing
transportation.
Will
we leverage the power and performance of AI and machine learning and automation
and robots to free people up to create even more incredible ideas and products -
to add value where AI and robots can't? Will we prepare our children to compete
in a world where creativity and divergent thinking become more important than
rote memorization? Can we rethink our business structures and processes to
embrace more divergence and creativity?
Innovation
and creativity are the lasting competitive advantage, for individuals, for
cultures and for businesses. The sooner we realize that and act on it, the
better off we all are.
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