WHY IT MATTERS: Digital Transformation

WHY IT MATTERS: this is a very geeky interview with Elon Musk on autopilot and the future of self-driving cars. Thoughtful, structured and informative it brings to light a very strong point: the value of a car lies in its capacity to self drive and every Tesla has this feature already builtin. Basically it means that cars will soon cross the threshold of autonomy, opening a whole new era for personal transportation. But more importantly I believe for businesses that rely on delivery logistics: ecommerce of course but also groceries, medical supplies, etc.

WHY IT MATTERS: consumer package goods companies (CPGs) are being hit by digital transformation as we disintermediate the retailers with direct delivery (drop shipping), online distribution and the need to continue to serve traditional retailers with warehouses and stores. Moreover, beyond the supply chain, CPGs have a increased need to know their customer, something that is often difficult to do with retailers blocking access to valuable data. This survey by BCG provides useful categorization of the impact to CPGs, along with some %

WHY IT MATTERS: we hear too much about AI with many experts fighting hard to make the difference between AI, machine learning and deep learning. My summary is that AI is a long way in the future but that machine learning impacts will be well within my lifetime - 10 to 25 years from now. This is what I prepare my customers for in my strategic plans.

WHY IT MATTERS: the impact of self-driving cars for cities that were designed and built around cars remains unknown. Phoenix being one of them where Google waymo self-driving taxis is being tested at scale today. This article explores the possible impacts and they are fascinating, going well beyond transportation.

WHY IT MATTERS: it makes perfect sense when you think about it: deploy self-driving cars on private property instead of on the open road. Here, the use case is a retirement community. Next I assume it may be on a vacation resort (think self-driving golf carts) or a remote wilderness fishing property (more self driving all-terrain trucks). And why are businesses with large properties not deploying self-driving vehicles? Oops not true they are: Codelco has 4 fully autonomous copper mines in Chile!. Take a few minutes to watch he Voyage experiment video: https://news.voyage.auto/voyages-first-self-driving-car-deployment-29c7688c6a1 or more on mining automation http://sco.lt/4qCRLV 

1- First, look at the video at the end of the article.

2- Then, read the article to understand what Tesla is doing

3- Then, listen to this other video to understand that self-driving will be part of every new Tesla vehicle but will operate in "shadow mode".

https://www.wired.com/video/2016/10/nasa-s-pumpkin-carving-contest/ 

New Teslas will be self-driving and comparing their driving to what the human drivers did (and presumably learning from them). They will collect huge amounts of data, which will demonstrate that self-driving is safer than human driving.

4- Then, dive into this more complete description of the technology. 

https://www.wired.com/2016/10/teslas-self-driving-car-plan-seems-insane-just-might-work/ 

5- Then, look into this video of a self-driving delivery 18-wheeler that drove 200 miles without human intervention.

https://www.wired.com/2016/10/ubers-self-driving-truck-makes-first-delivery-50000-beers/

6- Realize this is not fiction but 2016 reality.

WHY THIS IS IMPORTANT

Self driving must find its way into every major corporation strategic plan. It will impact how retailers receive their products from factories and distribution centers. It will make eCommerce easier with lower cost delivery (which still accounts for 15 to 25% of the online total) and will enable same-day delivery. It will transform travel between large cities, and school bus for our kids. It will change the way ships carry their loads.

Self-driving will create a shockwave in human resources department and unions, which will fear the replacement of human drivers by machines. It will require appropriate communication, retraining, and investments to ensure a smooth transition into the new reality.

Don't worry this will not affect your 2017 bottom line. It won't even affect 2020's bottom line. So if you manage with a short term vision, life is good, stay the course, and forget everything I just said.

Others, call me!

Article that describes the efforts that Rolls Royces is making to develop autonomous ships in the near future. This appears to be a serious innovation supported by white paper and business case, although no prototypes have yet been built.

http://www.rolls-royce.com/~/media/Files/R/Rolls-Royce/documents/customers/marine/ship-intel/aawa-whitepaper-210616.pdf 

WHY THIS IS IMPORTANT

Although this remains an innovation project, it highlights how important digital transformation will be when applied to the real world, and not just email, websites and eCommerce. The bulk of our lives is spent in the real world and programmes such as this one and others will surely revolutionize transportation industry. And many others.

Companies that are serious about planning for the near term future (5 years out and +) should include these in their plans - which may require some leaders to think outside the box and look at areas they have considered outside the reach of computers and digital technology.

I wrote about Hyundai and Accenture working on connected smart ships in the past also : http://sco.lt/6xza9h

I also wrote about autonomous cars and trucks: http://www.scoop.it/t/digital-transformation-of-businesses/?tag=Automobile