By ANTONY BOURNE, IFS Global Industry Director for Manufacturing
Amazon recently announced record profits of $3.03bn, breaking its own record for the third consecutive time. However, Amazon appears to be at a crossroads as to where it heads next. Beyond pouring additional energy into Amazon Prime, many have wondered whether the company may decide to enter an entirely new sector such as manufacturing to drive future growth, after all, it seems a logical step for the company with its finger in so many pies.
At this point, it is unclear whether Amazon would truly ‘get its hands dirty’ by manufacturing its own products on a grand scale. But what if it did? It’s worth exploring this reality. What if Amazon did decide to move into manufacturing, a sector dominated by traditional firms and one that is yet to see an explosive tech rival enter? After all, many similarly positioned tech giants have stuck to providing data analytics services or consulting to these firms rather than genuinely engaging with and analysing manufacturing techniques directly.
If Amazon did factories
If Amazon decided to take a step into manufacturing, it is likely that they could use the Echo range as a template of what AI can achieve. In recent years,Amazon gained expertise on the way to designing its Echo home speaker range that features Alexa, an artificial intelligence and IoT-based digital assistant.Amazon could replicate a similar form with the deployment of AI and Industrial IoT (IIoT) to create an autonomously-run smart manufacturing plant. Such a plant could feature IIoT sensors to enable the machinery to be run remotely and self-aware; managing external inputs and outputs such as supply deliveries and the shipping of finished goods. Just-in-time logistics would remove the need for warehousing while other machines could be placed in charge of maintenance using AI and remote access. Through this, Amazon could radically reduce the need for human labour and interaction in manufacturing as the use of AI, IIoT and data analytics will leave only the human role for monitoring and strategic evaluation. Amazon has been using autonomous robots in their logistics and distribution centres since 2017. As demonstrated with the Echo range, this technology is available now, with the full capabilities of Blockchain and 5G soon to be realised and allowing an exponentially-increased amount of data to be received, processed and communicated.
Manufacturing with knowledge
Theorising what Amazon’s manufacturing debut would look like provides a stark learning opportunity for traditional manufacturers. After all, wheneverAmazon has entered the fray in other traditional industries such as retail and logistics, the sector has never remained the same again. The key takeaway for manufacturers is that now is the time to start leveraging the sort of technologies and approaches to data management that Amazon is already doing in its current operations. When thinking about how to implement AI and new technologies in existing environments, specific end-business goals and targets must be considered, or else the end result will fail to live up to the most optimistic of expectations. As with any target and goal, the more targeted your objectives, the more competitive and transformative your results. Once specific targets and deliverables have been considered, the resources and methods of implementation must also be considered. As Amazon did with early automation of their distribution and logistics centres, manufacturers need to implement change gradually and be focused on achieving small and incremental results that will generate wider momentum and the appetite to lead more expansive changes.
In implementing newer technologies, manufacturers need to bear in mind two fundamental aspects of implementation: software and hardware solutions. Enterprise Resource Planning (ERP) software, which is increasingly bolstered by AI, will enable manufacturers to leverage the data from connected IoT devices, sensors, and automated systems from the factory floor and the wider business. ERP software will be the key to making strategic decisions and executing routine operational tasks more efficiently. This will allow manufacturers to keep on top of trends and deliver real-time forecasting and spot any potential problems before they impact the wider business.
As for the hardware, stock management drones and sensor-embedded hardware will be the eyes through which manufacturers view the impact emerging technologies bring to their operations. Unlike manual stock audits and counting, drones with AI capabilities can monitor stock intelligently around production so that operations are not disrupted or halted. Manufacturers will be able to see what is working, what is going wrong, and where there is potential for further improvement and change.
Knowledge for manufacturing
For many traditional manufacturers, they may see Amazon as a looming threat, and smart-factory technologies such as AI and Robotic Process Automation (RPA) as a far off utopia. However, 2019 presents a perfect opportunity for manufacturers themselves to really determine how the tech giants and emerging technologies will affect the industry. Technologies such as AI and IoT are available today; and the full benefits of these technologies will only deepen as they are implemented alongside the maturing of other emerging technologies such as 5G and Blockchain in the next 3-5 years. Manufacturers need to analyse the needs which these technologies can address and produce a proper plan on how to gradually implement these technologies to address specific targets and deliverables. AI-based software and hardware solutions will fundamentally revolutionise manufacturing, yet for 2019, manufacturers just have to be willing to make the first steps in modernisation.
ME and Africa Consumer tech spending to hit $149bn
Reaching $130bn this year, consumer spending on technology in the Middle East and Africa is expected to grow just 4% a year.
Consumer spending on technology in the Middle East and Africa (MEA) is forecast to total $130.8 billion this year, a year-on-year increase of 4.1%. According to the latest Worldwide Semiannual Connected Consumer Spending Guide from International Data Corporation (IDC), consumer purchases of traditional and emerging technologies will remain strong over the 2019–2023 forecast period, increasing at a five-year compound annual growth rate (CAGR) of 3.5% to reach $149.4 billion in 2023.
86.3% of all consumer technology spending in 2019 will be on traditional technologies such as mobile phones, personal computing devices, and mobile telecom services. Mobile telecom services (voice and data) will account for 68.7% of this amount, followed by mobile phones which will account for 26.6%. Spending growth for traditional technologies will be relatively slow, with a CAGR of 2.4% for the 2019–2023 forecast period.
“Faster connectivity, combined with declining data service costs from telecom service providers and the need for end users to use telecom services for an increasing number of devices, will ensure that consumer spending on traditional technologies will continue to grow,” says Fouad Charakla, IDC’s senior research manager for client devices in the Middle East, Turkey, and Africa.
Emerging technologies, including AR/VR headsets, drones, on-demand services, robotic systems, smart home devices, and wearables, will deliver strong growth with a five-year CAGR of 10.2%. This growth will see emerging technologies account for 17.1% of overall consumer spending in 2023, up from 13.7% in 2019. Smart home devices and on-demand services will account for around 93% of consumer spending on emerging technologies by the end of the forecast period.
“The low penetration of smart home devices in the region, combined with growing efforts from market players to educate home users on the benefits and usage of these devices, will serve as an engine of growth for consumer spending on emerging technologies,” says Charakla. “A large portion of end users are already looking to invest in devices that will improve their productivity and quality of life, two key demands that smart home devices can be positioned to fulfil.”
On-demand services represent a new addition to IDC’s Worldwide Semiannual Connected Consumer Spending Guide. “On-demand services enable access to networks, marketplaces, content, and other resources in the form of subscription-based services and includes platforms such as Netflix, Hulu, and Spotify, among others,” says Charakla. “As connected consumers juggle multiple services across their devices, it is essential for technology providers to understand how the adoption of these various technologies and services will impact their customers’ experiences in the future.”
Communication and entertainment will be the two largest use case categories for consumer technology, representing more than 79% of all spending throughout the forecast. More than 70% of all communication spending will go toward traditional voice and messaging services in 2019. Entertainment spending will be dominated by watching or downloading TV, videos and movies, as well as listening to music and downloading and playing online games. The use cases that will see the fastest spending growth over the forecast period are augmented reality games (49.5% CAGR).
The Worldwide Semiannual Connected Consumer Spending Guide quantifies consumer spending for 22 technologies in ten categories across nine geographic regions. The guide also provides spending details for 23 consumer use cases. Unlike any other research in the industry, the Connected Consumer Spending Guide was designed to help business and IT decision makers to better understand the scope and direction of consumer investments in technology over the next five years.
Could robots replace human tennis players?
While steeped in tradition, tennis has embraced technology on multiple fronts: coaching, umpiring and fan experiences. Since the early 2000s, the Sony-owned Hawk-Eye system has been assisting tennis umpires in making close calls. At Wimbledon, IBM’s Watson AI analyses fan and player reactions in real-time video footage from matches to create highlight reels just minutes after the end of a match.
Meanwhile, at the ATP Finals in London, similar data analysis is being carried out by digital services and consulting firm Infosys.
GlobalData’s Verdict deputy editor Rob Scammell hears the future of tennis discussed at a recent panel discussion about the use of data analytics and technology in the game.
Scammel writes: “Infosys has been partnered with ATP for five years, providing features such as its cloud-based platform, which leverages artificial intelligence to analyse millions of data points to gain insights into the game.
“Players and coaches can also make use of the Infosys’ Players and Coaches Portal, allowing them to “slice and dice” matches on an iPad with 1,000 data analytics combinations. This is data crunching is vital according to Craig O’Shannessy, strategy analyst for the ATP World Tour and a coach for 20 years – including for the likes of Novak Djokovic.
O’Shannessy says: “Video and data analytics is crucial for giving players an edge. It’s about finding out of 100 points, the 10 or 15 that matter the most, and explaining that these are the patterns of play that you want to repeat in these upcoming games to win those matches.”
However, although Chris Brauer, director of innovation at the Institute of Management Studies at Goldsmiths, University of London, asked whether the “inevitable conclusion” of technological innovations in tennis was removing humans from the game entirely. ATP chair umpire and manager Ali Nili suggested that while there could one day be robot players adjudicated by robot umpires, it would be an entirely different sport.
Nili told GlobalData: “At ATP, we’re most proud of our athletes. It’s our athletes which make the tennis exciting. It’s how fast they are, how strong they are being. As humanbeings, we compare them to us and we’re fascinated by the things that they’re able to do. They’re the number one attraction for anyone who comes in, watches tennis, and everything else is secondary, you know, all the data and everything else, because we try to make our athletes more appealing.”
Could robots replace human tennis players?
Raghavan Subramanian, associate vice president and head of Infosys Tennis Platform, says it’s a “very philosophical question” and that we can look to the precedent set by other ‘man vs machine’ face-offs.
“In chess, we had [Garry] Kasparov play against the computer. So I think the natural first transition will not be two robots playing against each other, but one robot, possibly playing against the best player today. That’s the first possible bridge before two robots play.”