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.
Spotify hits sweet spot
Streaming has shifted the music industry away from ownership and towards customer experience, writes ARTHUR GOLDSTUCK
Last week marked the end of the beginning of the streaming music revolution. Apple announced the closing of iTunes, the 18-year-old platform that helped shift the music industry from physical to digital. At its height, in 2014, close to a billion people were using it.
However, the business model was still based on traditional ownership of music. Users either converted their physical music into digital tracks, or bought songs from iTunes. Apple founder Steve Jobs said back in 2003, when the iPod music player was launched, that consumers “don’t want to rent their music… They don’t want subscriptions”.
History proved him spectacularly wrong, and when streaming subscriptions services like Spotify and Pandora began taking off, even as iTunes hit the 800-million user mark, the company launched Apple Music in a dramatic acknowledgment that subscriptions were the future. It was also an admission that iTunes, which had also become a download service for movies and TV shows, had become top-heavy and frustrating to use.
Apple’s late arrival in the streaming world has cost it: In January this year, Apple Music reached 50-million subscribers – exactly half the number paying monthly subs to Spotify.
Spotify took South African music by storm when it launched here in March 2018, thanks to close collaboration with local artists. It has a dedicated South African team that creates playlists for South Africans, in genres that appeal to local audiences. It also has a local ad sales team, and achieved early success with automotive brands like BMW and Mini using the platform extensively.
The company does not break down user statistics by country but, says Claudius Boller, managing director for Middle East and Africa, uptake exceeded all expectations.
“It’s been an amazing year,” he told Business Times. “Engagement in South Africa has crossed the world average. Users are extremely active, lean forward, and engage with playlists on a daily basis. We are not running many campaigns to move people from our free service to the Premium offering, but people do it right away.
“The metric we look at is how often and how long people use Spotify on average per day, and we have already seen those on premium subscriptions using Spotify much more than Facebook per day.”
The South African audience has another key differentiator, says Boller: “The market is extremely loyal. We know other music services have been in the market for many years. But when people make up their minds to try Spotify, they fall in love with it and continue to use it. The drop-off rate of people using our service is one of the lowest of all the markets in which Spotify operates.”
One of the secrets of Spotify’s success is the close relationship it builds with what it calls “the creative community” – both artists and labels.
“They are extra engaged, because of the data they are able to get. We give them a huge amount of data in a way that is very easy to digest. Through Spotify for Artists, they can see in real time how many listeners they have, their demographics, where they are listening, and where their audience is growing. If Jeremy Loops is doing very well in Australia, he can adjust where to promote his music and how to plan his touring schedule.
“We also use that data to work more closely with the creative community. We bring artists, labels and managers together for educational events so that they can get to know how to use the data. We give them practical advice, for example that they should release music on the same day on all platforms, including radio and streaming services, to maximise monetisation.”
Music entrepreneur Siya Metane agrees that audience data is one of the greatest benefits of streaming music. Better known as Slikour, founding member of the legendary hip hop group Skwatta Kamp, he now runs SlikourOnLife, an online urban music site and community with well over a million regular users. Understanding user trends has been at the heart of the growth of the platform, and he believes Spotify and its competitors add yet another dimension.
“The analytics that the streaming platforms provide give artists more insight of where their music is being consumed,” he says. “It is therefore giving the artists and their managers insight on where to invest nationally or globally. Such information has not been readily available to artists and managers before. Historically, everything was based on the physical purchase of a copy in a region – most of the time locally.”
But there is a downside, he says: “The cost of the streaming sacrifice is losing a whole R100 per album to a streaming company that pays you based on their pro rata plays on their service. Therefore only a few people can benefit. But streaming has definitely shifted the business from music alone to everything else music can influence.”
Both Vodacom and MTN have recognised the potential of streaming music to add value to their services, which are becoming increasingly commoditised. MTN late last year bought the local music streaming service Simfy Africa, and Vodacom in April this year launched its own streaming music service, called My Muze. The latter invites aspiring musicians to upload their music, with the possibility of being discovered and signed to a music label.
“The music industry has changed rapidly in recent times in that everything now lives digitally,” says Rehana Hassim, portfolio manager for music at Vodacom. “We also hope to attract new young consumers, to whom music remains one of the biggest passion points, providing various ways to engage with and consume the music they love.”
AI reveals SA domestic abuse trends
Digital abuse, infidelity, and alcohol abuse are emerging as common conversation topics between victims of domestic violence in South Africa and rAInbow, an artificial intelligence-powered smart companion.
Developed with funding partner, Sage Foundation, and social justice organisation, The Soul City Institute, rAInbow allows users to ‘chat’ to a non-human over Facebook Messenger. It provides a safe space for domestic violence victims to access information about their rights, support options, and where they can find help – in friendly, simple language.
When we launched rAInbow in November last year, we didn’t expect that it would facilitate over 200,000 conversations with 7,000 users – 150,000 of those within the first three months of launch. One of the reasons we believe Artificial Intelligence (AI) can fill a gap in victim support is because many victims are uncomfortable talking to another person about their experience – due largely to social and cultural taboos, embarrassment, and shame.
The data gathered from anonymised rAInbow conversations** providesinvaluable insight into this complex issue; insight that we can use to improve our communication and prevention strategies.
Digital abuse: Behind the screens
Around 30% of rAInbow users believe it’s acceptable for their partners to check their phones and to insist on knowing who they’re talking to at all times.
Yet this constitutes a form of verbal and/or emotional abuse because abusers exploit technology and social media to monitor, control, shame, stalk, harass, and intimidate their victims. In conversations with rAInbow, many victims reveal that they don’t know what constitutes digital abuse because they can’t recognise the signs.
You could be a victim of digital abuse if your partner demands to know your passwords and who you’re talking to, reads your messages, and dictates who you can be friends with on social media.
The bottom line is, when you’re in a relationship, all communication with your partner – be it digital or face-to-face – should be respectful. You should never feel pressured into doing anything you’re uncomfortable with.
Infidelity: Is cheating really abuse?
Infidelity emerged as one of the main challenges facing rAInbow users in abusive relationships. In such cases, the cheating partner usually blames you for his/her cheating, does it intentionally to hurt you, or threatens to cheat again to control you. Infidelity is often accompanied by lying, manipulation, and blame-shifting – all recognised abusive behaviours.
Technology has exacerbated the problem. It’s now easier to access dating sites, pornography, and chat platforms, facilitating behaviour like ‘sexting’, which some people may consider infidelity.
‘Alcohol made me do it’
Alcohol and drugs are common triggers for violent episodes, with rAInbow users saying their partners were more likely to lash out at them verbally or physically after they’d been drinking. While alcohol itself doesn’t cause domestic violence, it can aggravate already tense situations.
Alcohol impairs people’s judgement and behaviour, to the point where they may lose control and become aggressive, short-tempered, and abusive. In most situations, the abusive partner will blame the alcohol for their actions and may not remember what they did or said the next day. The abused partner, however, has to live with the memories and after-effects of the abuse.
In his State of the Nation Address earlier this year, President Cyril Ramaphosa said violence against women and children has reached “epidemic proportions” and that ending abuse would be made an urgent national priority. Corporates, NGOs, and ordinary citizens also have a responsibility to end the scourge.
Technology like rAInbow provides the vital information needed to start driving radical change – at policy and societal level. The conversations that rAInbow is having with users is making us think differently about how to approach this issue. It’s apparent that we need targeted, personalised education drives that help victims identify abuse and explain how and where to get help. It’s also apparent that there’s a strong need for information that can be accessed in a safe, anonymous, and non-judgemental space.
We need to use the aggregated data that’s available to us to make better decisions about action plans and strategies. Solutions like rAInbow can provide governments with the information they need to tackle abuse.
To find out how you can contribute to the rAInbow project, e-mail firstname.lastname@example.org.
** All conversational data is anonymised. It is used to improve rAInbow and help organisations make better decisions about where to focus their efforts to combat abuse.