An App Store and Service to Completely Change the World

We are standing in the middle of one of the major turning points in technology history.

We will only know whether that statement is true in retrospect in a few years time but I believe that the developments around the Watson computing model are creating a new wave of innovation possibilities.

ZDNET has reported on IBM setting up a Watson division with $1 billion dollars in funding and 2,000 employees to leverage the investment that has gone into developing the Watson cognitive computing model:

IBM forms Watson Business Group: Will commercialization follow?

Including:

The Watson Business Group will break down into four groups:

  • One focused on research and development on cognitive computing.
  • Another aimed at applying Watson to new industries to “disrupt and transform how business is done.”
  • An implementation group to ensure Watson has services support to keep customers satisfied. 
  • An engagement team to sell and market Watson.

and

Specifically, IBM is launching the following Watson cloud services:

  • IBM Watson Discovery Advisor is aimed at pharmaceutical, publishing and education research. The promise here is that Watson will wade through search results to deliver data and context faster for researchers.
  • IBM Watson Analytics Advisor is designed to be used by enterprises to send questions and raw data sets to Watson and allow the system to deliver insight.

and:

Big Blue said it will invest $1 billion into the Watson division including $100 million to fund startups developing cognitive apps

This follows a story in The Verge in the middle of November announcing that Watson was being opened up to developers through an API that would allow people to build applications on top of its platform:

IBM’s more powerful Watson supercomputer is opening up for public use

The combination of natural language/cognitive computing capability, with the system operating as a platform that others can build new applications on is analogous to the levels of innovation that we have seen in smartphone and tablet application markets in the last few years. The major difference is that the focus will be almost purely on applications that can disrupt whole systems and industries deliberately.

The value in the app development market has been twofold:

  1. The possibilities envisaged by tens of thousands of developers all around the world adds hugely to the perspectives and possible ideas that can be generated compared to keeping things in house.
  2. The fact that all those people are prepared to risk their money and time to try stuff has bypassed the normal “MBA spreadsheet” assessment of ideas and funding so that lots more stuff has been tried. Trying more stuff means more stuff gets to prove it can work.

This has led to a huge flowering of applications, many of them trivial but some of them have been fantastic and world changing.

This can lead to big bang disruption as described by Steve Denning in his review of the book of the same name : Big Business’s Worst Nightmare

If IBM and Watson and the developers involved can get this right then I expect much higher levels of big bang disruption over the next few years. This means that the levels of change experienced by people and business over the next decade might pale into insignificance over the next decade.

As my friend Stowe Boyd would say: “welcome to the post normal!”

Paul Higgins

My job advice to my nephews and nieces for 2025

I spent a few days over the Christmas break down at my parents house near the beach on the Mornington Peninsula and hung out with my brothers, sisters in law, and my nephews and nieces.

During one of our later night discussions which are always willing but friendly one of my sisters in law posed the question of what my view was on what they should be advising their children on their future work prospects and directions. We had a bit of a discussion on that but then I sat down and collated a few thoughts for them and some things I think they should read. This is the gist of that advice:

Bottom line is that I believe that we are at the edge of a technological revolution in robotics and artificial intelligence.

Advances in robotics that include cheaper and better sensors and intelligence capacity will move them beyond manufacturing and into cooperative manufacturing, and assisting and replacing humans in all sorts of physical tasks.

Advances in artificial intelligence due to massive increases in computing power and moves towards much better natural language computers/semantic knowledge/deep machine learning will move computer intelligence out of just replacement of easily routinised jobs due to data crunching capacity, and into many more areas of human work – e.g. computer assisted journalism

There are really two scenarios here – that we will see more changes than we can imagine as in the industrial revolution, and more and more jobs will be created, or large slabs of jobs will disappear for ever and not be replaced, and that will cause significant disruption and competition for work unless we move to a new way of having an economy. Now you can take the Luddite view or you can take an optimistic view but the key to thinking about the future is to create a strategy that deals with multiple possible futures as well as you can, whilst understanding that most of the futures you can think up will probably not go close to mapping what the world will look like.

Just to put this in context my youngest niece will probably not enter the workforce until at least 2025, and more probably 2030 and will then have a working life which is likely to extend to 2080 so we are talking about long time frames here.

So what advice would I give to a parent of a 5-15 year old at the moment.

The key is involvement in :

  • Jobs that are not easily routinised – my brother mentioned plumbing and other trades and he was right– the capacity to carry out a complicated task that is different every time and interact with people will still be highly human centered.
  • Jobs with high levels of manual dexterity – robotics still find that hard to master although some systems of surgery are better than people already.
  • Jobs that require high levels of empathy and capacity to interact with people – e.g. aged care, teaching, although stuff like retail is likely to become more data and network facilitated than through an individual shopping experience.
  • Jobs that require the capacity to coach and facilitate networks to perform rather than the current emphasis on managers and hierarchies – requires empathy as well.
  • Jobs centred around the ability to find insight in data – assisted by AI but value added by people.
  • Jobs that are highly creative and require visions and connection.
  • Jobs that cross the boundaries of the jobs types I have listed above.
  • Jobs centered around the ability to code

In terms of thinking about this more I would recommend looking at the following

Better Than Human: Why Robots Will — And Must — Take Our Jobs – by the fantastic Kevin Kelly

Algorithms, Robots and the Future of Management – a previous post by me with a great addition from my friend and colleague Stowe Boyd

I also recommend you read Stowe’s :Beneath the chatter about the Future Of Work lies a discontinuity which I think is more about the near future than the long future.

The IFTF report on future work skills – details drivers and skills

In the end we can give all the clinical and logical advice we like but the most important thing for them to do is to pursue what they are passionate about with a weather eye out to the fact that you need passion, skills and a market to make a living and:

  • If you have passion and skills but not market you have a hobby
  • If you have skills and a market but no passion you will be mediocre or burnout
  • If you have a market and passion but no skills you will fail in an increasingly competitive world

The great thing about the modern world is that skills are easier and easier to gain, and markets can span the globe for an individual or a small organisation. So passion is the cornerstone.

Paul Higgins

Some readers have requested some further links and reading on these issues. Here are  a a few from our scanning database:
Robots Can’t End Amazon’s Labor Woes Because They Don’t Have Hands

This was written by RACTER, a computer program that can generate original English language prose and poetry at random

SWARM Quadrotors (Aerial Robots): Coordinated Flight of Small Quadcoptors Interacting with Humans

A Mind-Controlled Exoskeleton Will Kick Off the 2014 World Cup

Brainlike Computers, Learning From Experience

Algorithms, Robots and the Future of Management

Over at the HBR Blog network Walter Frick has an interesting article/blog post entitled:

“Algorithms Won’t Replace Managers, But Will Change Everything About What They Do”

Including:

“The labor market is about to be transformed by machine intelligence, the combination of ubiquitous data and the algorithms that make sense of them. That’s according to economist Tyler Cowen, in an argument spelled out in his recent book Average is Over. As Cowen sees it, your job prospects are directly tied to your ability to successfully augment machine intelligence.”

and

” In any company, you need someone to manage the others, and management is a very hard skill. Relative returns to managers have been rising steadily; good managers are hard to find. And, again, computers are not close to being able to do that. So I think the age of the marketer, the age of the manager are actually our immediate future”

I recommend that you go and read the whole thing because I think that the potential disruption from robotics and improved artificial intelligence is huge. Now people have been belabouring that sort of point from way back, including the often quoted Luddites but we have muddled through and adapted, and created new jobs that we had not previously conceived  However there is a real possibility we are moving through a major turning point that we will only really understand in retrospect and it has the potential to rewrite the world far more fundamentally than the industrial or information age.

I think that the interview that Walter has done is interesting but I do not think that it addresses a key point which is that the fundamental nature of management is changing anyway without these advances. Existing changes and disruptions that are enabling connections between people through social media and social business tools are re-ordering the way that work and strategy are carried out. On top of that the capacities we are giving to individuals and small networks mean that many things that required a large organisation to carry out 5 years ago no longer do so.

This means that the role of management is in part being devolved to the network and so existing concepts of the middle manager are already almost obsolete and therefore to look at the future through a frame of disrupting that role is missing the point.

The role of management is moving towards one of coach and facilitator rather than management and the more skills and capacities that individuals in the network gain, the harder that role will become and the lower the number of ” managers” required”.

I have been looking at some of these things from the point of view of the food and agriculture supply chain and in particular the role of the adviser which has traditionally been the interpretation and handing over of the holy tablet of knowledge. As networks take over part of the role the adviser is challenge and we are struggling with thinking through how the business models look. Any thoughts would be gratefully accepted.

Paul Higgins

Update 23rd December 2013:

I think a very useful addition to this viewpoint is one from my friend and colleague Stowe Boyd:

Network performance is the single most important characteristic of successful employees

including:

“I think business leaders and HR departments do not understand this shift, or the fact that this shift is accelerating, so that in a year or two 75% of a peoples’ value will be based on their network performance, their ability to contribute to and accept from others. We will have to totally rethink performance measurement. It may in some sense be unmeasurable, but at the very least it should be some sort of distributed valuation based on all those who benefit from a person’s participation in work activities, weighted by the closeness and frequency of interaction. Today, it is madness to default to a single individual — the supervisor — to assess a person’s performance, if it ever made sense at all”