Lecture 2 Slides (1950)

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Technology and Digitalisation I:

Workplace Automation, Big Data, and


Cyber Security
Overview
• The Digital Economy and Workplace
• Workplace Automation
• Artificial Intelligence (AI)
• Big Data
• Cyber Security
The digitalisation of the economy

(Source: Statista)
The digitalisation of the economy

(Source: LEAP Australia)


The
digitalisation of
the Australian
economy
Some examples of leading companies
in a digital world
• Disrupting the • Influencer
corporate recruitment marketing
market

LinkedIn Instagram

Airbnb Telstra

• It’s not about what you • Crowd support


own but what you do transforming
service
through the
crowd
The digitalisation of the workplace
• What is digital workplace like?
The digital workplace encompasses all the technologies
people use to get work done in today’s workplace. It
ranges from HR applications and core business
applications to e-mail, instant messaging and enterprise
social media tools and virtual meeting tools.
What are the digital tools available at workplace?
Workplace Automation
Four Fundamentals of Workplace Automation
1) The automation of activities
– At least 45% of work activities could be automated using
already demonstrated technology
– In many cases, automation technology can already match, or
even exceed the median level of human performance
required
 Narrative Science’s Quill
 Amazon’s fleet of Kiva robots
 Amazon Go grocery store
 IBM’s Watson

From: Mckinsey & Company


Four Fundamentals of Workplace Automation

2) The redefinition of jobs and business processes


– Fewer than 5% of occupations can be entirely automated
using current technology, but 60% of occupations could have
30% or more of their constituent activities automated
– As roles and processes get redefined, the economic benefits
of automation will extend far beyond labour savings
 Lawyers using text-mining techniques to review legal documents
 Sales organisations use automation to improve quality of offers

From: Mckinsey & Company


Four Fundamentals of Workplace Automation

3) The impact on high-wage occupations


– A significant percentage of the activities performed by even
those in the highest-paid occupations (for example, financial
planners, physicians, and senior executives) can be automated
by adapting current technology.
– For example, activities consuming more than 20% of a CEO’s
working time could be automated using current technologies.
These include analysing reports and data to inform
operational decisions, preparing staff assignments, and
reviewing status reports.
From: Mckinsey & Company
Four Fundamentals of Workplace Automation
4) The future of creativity and emotions
– Capabilities such as creativity and sensing emotions are core to
the human experience and also difficult to automate. The
amount of time that workers spend on activities requiring these
capabilities, though, appears to be surprisingly low. Just 4% of
the work activities across the US economy require creativity
and only 29% of work activities require sensing emotion.
– The potential to generate a greater amount of meaningful work
could be achieved as automation replaces more routine or
repetitive tasks, allowing employees to focus more on tasks
that utilise creativity and emotion.
From: Mckinsey & Company
Workplace Automation
• Challenges and risks
– Job losses and economic inequality
– Privacy concern as automation increases the amount of
data collected and dispersed.
– The safety risks arising from automated processes, e.g.,
who is responsible if a driverless school bus knocks down a
pedestrian?
From: Mckinsey & Company
Artificial Intelligence

“…the field of computer science dedicated to


solving cognitive problems commonly associated
with human intelligence, such as learning,
problem solving, and pattern recognition.”
- Amazon
Types of Artificial Intelligence (AI)
• Weak AI or Narrow AI:
– Focused on one narrow task
– Example: poker game machine in which
all rules and moves are fed into the
machine
– Each and every weak AI will contribute to
the building of strong AI.
• Strong AI:
– Machines that can actually think and
perform tasks on its own just like a human
being
Types of Artificial Intelligence (AI)
• Reactive Machines:
– Basic forms of AI
– Doesn’t have past memory and cannot use past information for future actions
– Example: IBM chess program that beat Garry Kasparov in the 1990s
• Limited Memory:
– Can use past experiences to inform future decisions
– Decision-making functions in self-driving cars have been designed this way
– Observations used to inform actions happening in the not so distant future, but
these observations are not stored permanently
• Theory of Mind:
– Able to understand people’s emotions, belief, thoughts, expectations
– Able to interact socially
– Not fully achieved
• Self-awareness:
– Has its own conscious, super intelligent, self-awareness and sentient
– Not fully achieved
Managing Big Data

“You can’t manage what you don’t measure.”

- Peter Drucker

Big data is so voluminous, but it can be used to


address business problems.
- Oracle
Managing Big Data
• What is big data?

Big data is a collection of data from traditional


and digital sources inside and outside your
company that represents a source for ongoing
discovery and analysis.
Source: McAfee & Brynjolfsson (2012), Harvard Business Review
Managing Big Data
• Features of big data
– Volume: Amount of data
– Velocity: Rate at which data is received and
acted on
– Variety: Types of data that are available
Source: McAfee & Brynjolfsson (2012), Harvard Business Review
Managing Big Data
• Benefits of big data
– The more companies are characterised as data-driven, the
better they performed.
– Companies in the top third of their industry in the use of
data-driven decision making were, on average, 5% more
productive and 6% more profitable than their competitors.
– Big data makes it possible for people to gain more
complete answers/solution as it provides more information.
Source: McAfee & Brynjolfsson (2012), Harvard Business Review & Oracle
Big Data Applications
Companies like Netflix and Procter & Gamble use big data to anticipate customer demand. They build predictive models for
Product new products and services by classifying key attributes of past and current products or services and modeling the relationship
Development between those attributes and the commercial success of the offerings. In addition, P&G uses data and analytics from focus
groups, social media, test markets, and early store rollouts to plan, produce, and launch new products.

Factors that can predict mechanical failures may be deeply buried in structured data, such as the year, make, and model of
Predictive equipment, as well as in unstructured data that covers millions of log entries, sensor data, error messages, and engine
Maintenance temperature. By analyzing these indications of potential issues before the problems happen, organizations can deploy
maintenance more cost effectively and maximize parts and equipment uptime.

Customer The race for customers is on. A clearer view of customer experience is more possible now than ever before. Big data enables
you to gather data from social media, web visits, call logs, and other sources to improve the interaction experience and
Experience maximize the value delivered. Start delivering personalized offers, reduce customer churn, and handle issues proactively.

Fraud and When it comes to security, it’s not just a few rogue hackers—you’re up against entire expert teams. Security landscapes and
compliance requirements are constantly evolving. Big data helps you identify patterns in data that indicate fraud and
Compliance aggregate large volumes of information to make regulatory reporting much faster.

Machine Machine learning is a hot topic right now. And data—specifically big data—is one of the reasons why. We are now able to
Learning teach machines instead of program them. The availability of big data to train machine learning models makes that possible.

Operational Operational efficiency may not always make the news, but it’s an area in which big data is having the most impact. With big
data, you can analyze and assess production, customer feedback and returns, and other factors to reduce outages and
Efficiency anticipate future demands. Big data can also be used to improve decision-making in line with current market demand.

Big data can help you innovate by studying interdependencies among humans, institutions, entities, and process and then
Drive Innovation determining new ways to use those insights. Use data insights to improve decisions about financial and planning
considerations. Examine trends and what customers want to deliver new products and services. Implement dynamic pricing.
There are endless possibilities.
Big Data Challenges
• First, big data is…big. Although new technologies have been developed for
data storage, data volumes are doubling in size about every two years.
Organizations still struggle to keep pace with their data and find ways to
effectively store it.
• Data must be used to be valuable and that depends on curation. Clean data, or
data that’s relevant to the client and organized in a way that enables
meaningful analysis, requires a lot of work. Data scientists spend 50 to 80
percent of their time curating and preparing data before it can actually be used.
• Big data technology is changing at a rapid pace. Keeping up with big data
technology is an ongoing challenge.
Big Data

Take the Put pieces


problem apart back together
into pieces to conclude
Big Data Human Brain

Two pillars of solving complex problems


Big Data Solutions
1. First, data is ingested. Which means, it is gathered from a
variety of sources like a CRM or log files like a social media
feed. Data can be gathered, either in batches or in real-time
by live-streaming.
2. After ingestion, data is naturally stored. Data can be stored
either in HDFS or HBase, which is the NoSQL database.
HDFS is best if you want to grant sequential access to data.
For non-sequential or random access, HBase is better.
3. The final stage in the development of a big data solution is
data processing. Spark, MapReduce, Pig are programs that
are handy in this phase.
Cyber Crimes in Australia

Source: Accenture -
https://www.accenture.com/au-en/insights/security/2018-state-of-cyber-resilienc
e-index
Cyber Security Disasters
2018-2019
Managing Cyber Security
• Digital transformation calls for cyber security
• Cyber security myths
– We have invested in a high-end security tool
– A third-party provider manages our security
– We only need to protect our internet-facing applications
– We have never been attacked, so our security is good enough
– Security is well-managed by the IT department
– We have completed our security project
Managing Cyber Security
The four steps of managing for cyber security
References and Reading List
• Chui, M, Manyika, J. & Miremadi, M. “
Four fundamentals of workplace automation ”, McKinsey & Company, November
2015.

• Cyber Security: Empowering the CIO. Report from Deloitte.

• McAfee, A & Brynjolfsson, E 2012, ‘Big data: The management revolution ’,


Harvard Business Review, vol. 90, no. 10, pp. 60-68.

• Taking Leadership in A Digital Economy . Report by Telstra Corporation Limited


and Deloitte Digital, November 2012.

• The Digital Workplace: Think, Share, Do. Report from Deloitte.

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