Even though the uptake of robots in South Africa has been slow, they are already being used to or the likes of combatting rhino poaching, showing that we are recognising their advantages, writes HANS KUIPERS, Partner & MD at BCG South Africa.
The global market for robotics—the use of computer-controlled robots to do manual tasks—is growing far faster than expected. In 2014, BCG projected that the market would reach $67 billion by 2025. In 2017, we increased that estimate to $87 billion. Much of the accelerated growth will come from the consumer market because of applications such as self-driving cars and devices for the home.
Although uptake of robotics in South Africa has been slower than in developed markets – there is no generally accepted valuation of what the market is worth in the country, for instance – there is growing recognition of the opportunities the field provides and the massive potential for growth moving forward. Already there are examples of South African-produced robotics that are assisting in combatting rhino poaching, as well as in dangerous industrial applications such as in mines or on oil rigs. This indicates that South Africa is increasingly adopting robotics as its value is recognised.
Today’s robots have voice and language recognition, access to large amounts of data, algorithms to process information independently, learning capability, greater mobility and dexterity, advanced sensors, and the ability to interact with their environment. They have gained flexibility, speed, and finesse, clearing the way for a generation of precision robots that can make a difference in diverse industries such as retail, health care, food processing, mining, transportation, and agriculture —far more quickly and accurately than human hands can.
As people become more accepting of robots in their everyday lives, this will attract more investment capital and drive further advances in robotic capabilities.
The impact of these changes will be profound. Differences in labour costs between developed countries and emerging economies will cease to be a critical factor for companies deciding where to set up operations, and new factors will come to the fore.
As falling prices, faster CPUs, improved safety, and easier programming continue to place robots within reach of virtually every sector, and their ability to work side by side with humans opens up an array of new applications, the challenge for forward-looking companies is going to be to figure out how to use robotics to gain a competitive edge.
How to gain a robotics advantage
Gaining robotics advantage involves finding innovative, unexpected ways to leverage technology to differentiate a company from the competition and gain a sustainable edge. This may mean identifying the sweet spot where a hybrid mix of human worker and machine delivers the biggest payback, or it may involve creating an entirely new business model. On the basis of BCG’s experience in a variety of industries, we’ve developed a framework to help companies move forward:
– Identify potential leverage points
Companies should look for areas of the business where robotics might be able to add value by cutting costs, enhancing productivity, improving performance, reducing risk, and addressing skill shortages or workforce variability. Cost savings are likely to be greatest in parts of the world where wages are high and robots could replace labour outright. Areas with highly repetitive or dangerous tasks, or jobs that require flexibility, speed, or precision are also natural fits for robotics. In mining, for example, automated drilling and haulage can reduce the need for workers in remote locations, increase safety, and improve asset utilisation – an area that is already being explored by companies such as Ryonic Robotics in South Africa.
Robots can also be used to take on repetitive, low-skill tasks. Collaborative robots or ‘cobots’ can do heavy lifting and perform precision activities more quickly than human workers can. By liberating workers from tedious, tiresome, or repetitive tasks, robots can improve not only the workers’ productivity but also their job satisfaction. An example of this in South Africa was the introduction of a robot to help sort and collect antiretroviral medication quickly and accurately to dispense to HIV-positive patients at the Helen Joseph hospital HIV clinic in Johannesburg.
– Integrate robotics into strategic decision making
Adding robotics to a business is a strategic decision, not just a capital investment. It requires rethinking and fundamentally altering staffing levels, product mix, manufacturing footprint, and other aspects of the business model. Management must also consider how robotics will affect the company’s brand, operations, and sales. For instance, building robot-enhanced plants closer to local markets may make sense as a way to accelerate response times and to fine-tune products to local tastes – or splitting production into two shifts—a day shift for humans and a night shift for robots—may help to reduce overtime, supervision, and energy costs.
– Think and act now
Where new technologies are concerned, timing is critical to market leadership. When robotics and automation cross certain price, performance, and adoption thresholds, a tipping point may be near. First movers capture a disproportionate share of the high margins that accrue to successful early adopters. That benefit decreases as adoption becomes more widespread. And because it can take a long time to integrate automation into operations, management needs to act now to develop a point of view, test and pilot robotic applications, and invest in infrastructure—including laying the foundation for a digital supply chain on the factory floor. All the while, the company must closely monitor the industry sector it competes in and move decisively when the time is right.
– Analyse whether to buy or to build
Proven, off-the-shelf robotics applications can be put to work quickly, but they’re available to everyone, including the competition. An alternative is to invest in a robotics solution tailored to a company’s particular operations. A customised solution could result in fundamental disruption of an industry’s dynamics and provide a long-term source of differentiation.
The decision about which direction to take may come down to sourcing options. Most companies will need to look beyond traditional equipment suppliers for their robotics needs. But even robotics suppliers may not have solutions on hand that meet the specific needs of individual companies or segments, necessitating a customized solution.
– Develop the workforce
To fully unlock the potential of robotics, countries must retrain or increase the skills of their workforce. Today’s workers generally lack training in robotics installation, programming, operations and maintenance. Few governments, universities, vocational schools, tech leaders and manufacturers around the world are adequately addressing the problem. Despite some progress in early education through STEM initiatives—courses in science, technology, engineering, and mathematics—and in universities with specific degrees related to robotics, an ability gap remains.
Without a pool of qualified applicants to choose from, companies will need to train their own people to install, program, operate and maintain robotics applications. Retaining these people once they have acquired high-demand, high-value skills will be another challenge. As robots take over lower-value and repetitive tasks, the work that remains will be more complex and less structured—and workers will need new skills to perform these tasks successfully.
– Shape public policy
Companies that make or use robotics should work with communities, educators, local governments and policymakers on issues related to safety, liability, social impact and funding for education and training. By gaining a seat at the table, companies at the forefront of robotics can help define the rules, ensure progress and become advocates for the needs of industry and society alike.
Beyond helping to craft policy for robots that operate in public spaces, companies should participate in setting safety requirements at work, especially as cobots become more prevalent. As robots become safer, the certification process should become quicker and less onerous, encouraging further development in the field of automation.
Collectively, the guidelines outlined above can help companies approach robotics in a strategic, disciplined, and pragmatic way—and improve their odds of achieving long-term, sustainable robotics advantage.
Now download a bank account
Absa has introduced an end-to-end account opening for new customers, through the Absa Banking App, which can be downloaded from the Android and Apple app stores. This follows the launch of the world first ChatBanking on WhatsApp service.
This “download your account” feature enables new customers to Absa, to open a Cheque account, order their card and start transacting on the Absa Banking App, all within minutes, from anywhere and at any time, by downloading it from the App stores.
“Overall, this new capability is not only expected to enhance the customer’s digital experience, but we expect to leverage this in our branches, bringing digital experiences to the branch environment and making it easier for our customers to join and bank with us regardless of where they may be,” says Aupa Monyatsi, Managing Executive for Virtual Channels at Absa Retail & Business Banking.
“With this innovation comes the need to ensure that the security of our customers is at the heart of our digital experience, this is why the digital onboarding experience for this feature includes a high-quality facial matching check with the Department of Home Affairs to verify the customer’s identity, ensuring that we have the most up to date information of our clients. Security is supremely important for us.”
The new version of the Absa Banking App is now available in the Apple and Android App stores, and anyone with a South African ID can become an Absa customer, by following these simple steps:
- Download the Absa App
- Choose the account you would like to open
- Tell us who you are
- To keep you safe, we will verify your cell phone number
- Take a selfie, and we will do facial matching with the Department of Home Affairs to confirm you are who you say you are
- Tell us where you live
- Let us know what you do for a living and your income
- Click Apply.
How we use phones to avoid human contact
A recent study by Kaspersky Lab has found that 75% of people pick up their connected device to avoid conversing with another human being.
Connected devices are becoming essential to keeping people in contact with each other, but for many they are also a much-needed comfort blanket in a variety of social situations when they do not want to interact with others. A recent survey from Kaspersky Lab has confirmed this trend in behaviour after three-quarters of people (75%) admitted they use a device to pretend to be busy when they don’t want to talk to someone else, showing the importance of keeping connected devices protected under all circumstances.
Imagine you’ve arrived at a bar and you’re waiting for your date. The bar is busy, and people are chatting all around you. What do you do now? Strike up a conversation with someone you don’t know? Grab your phone from your pocket or handbag until your date arrives to keep yourself busy? Why talk to humans or even make eye-contact with someone else when you can stare at your connected device instead?
The truth is, our use of devices is making it much easier to avoid small talk or even be polite to those around us, and new Kaspersky Lab research has found that 72% of people use one when they do not know what to do in a social situation. They are also the ‘go-to’ distraction for people even when they aren’t trying to look busy or avoid someone’s eye. 46% of people admit to using a device just to kill time every day and 44% use it as a daily distraction.
In addition to just being a distraction, devices are also a lifeline to those who would rather not talk directly to another person in day-to-day situations, to complete essential tasks. In fact, nearly a third (31%) of people would prefer to carry out tasks such as ordering a taxi or finding directions to where they need to go via a website and an app, because they find it an easier experience than speaking with another person.
Whether they are helping us avoid direct contact or filling a void in our daily lives, our constant reliance on devices has become a cause for panic when they become unusable. A third (34%) of people worry that they will not be able to entertain themselves if they cannot access a connected device. 12% are even concerned that they won’t be able to pretend to be busy if their device is out of action.
Dmitry Aleshin, VP for Product Marketing, Kaspersky Lab said, “The reliance on connected devices is impacting us in more ways than we could have ever expected. There is no doubt that being connected gives us the freedom to make modern life easier, but devices are also vital to help people get through different and difficult social situations. No matter what your ‘connection crutch’ is, it is essential to make sure your device is online and available when you need it most.”
To ensure your device lifeline is always there and in top health – no matter what the reason or situation – Kaspersky Security Cloud keeps your connection safe and secure:
· I want to use my device while waiting for a friend – is it secure to access the bar’s Wi-Fi?
With Kaspersky Security Cloud, devices are protected against network threats, even if the user needs to use insecure public Wi-Fi hotspots. This is done through transferring data via an encrypted channel to ensure personal data safety, so users’ devices are protected on any connection.
· Oh no! I’m bored but my phone’s battery is getting low – what am I going to do?
Users can track their battery level thanks to a countdown of how many minutes are left until their device shuts down in the Kaspersky Security Cloud interface. There is also a wide-range of portable power supplies available to keep device batteries charged while on-the-go.
· I’ve lost my phone! How will I keep myself entertained now?
Should the unthinkable happen and you lose or have your phone stolen, Kaspersky Security Cloud can track and protect your device from data breaches, for complete peace of mind. Remote lock and locate features ensure your device remains secure until you are reunited.