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We live in a day and age where technology is all around us and is advancing at a rapid rate. we’ve witnessed technologies being introduced that have complemented and improved the lives of many, but at what cost? We know that disruptive technologies are are those which displace existing established technologies and that shake up the industry as a result. However, this displacement does not only occur in tech, but also in human labor. This phenomena is known as cannibalization in the value chain, where new technologies alleviate the need for certain forms of human labor. This is nothing new, new processes that have proved to be more effective and efficient than workers have been implemented most notably in the industrial revolution. This technological and information revolution that we are currently in, raises the question whether or not certain jobs and industries will continue to function or be destroyed as whole.

Sure, its a fair to point out that technologies also pose the chance of creating new jobs. In regards to for example maintenance of the machinery, programming etc. however it also stands to do a great deal of damage to the sectors which traditionally never used IT. For instance,. Farmers and ranchers used to make up over 50% of the US workforce; today less than 2.5% are employed in this sector, yet more food than ever is being produced in america due to the automation in agriculture and food production. This is a prime example of how traditional jobs are being swallowed up by IT. This does however overlook the fact that more jobs may be created in the process. Referring back to the previous example of the farmers; although this profession may be less and less necessary over the years with the introduction of IT, it becomes more and more vital to have properly trained operators, technicians, etc. ; for this task, which traditionally had limited variation in job functionality and responsibility.

other areas in which we can see a job functions being replaced by IT, are those such as the following:

• cashier’s being replaced by self-checkout kiosks
• Bank tellers slowly being replaced by online banking /mobile apps and of course
• Surgeons, profession that takes years of training and experience, being eventually replaced by Artificial Intelligence.

“It’s one of the dirty secrets of economics: technology progress does grow the economy and create wealth, but there is no economic law that says everyone will benefit.” In other words, in the race against the machine, some are likely to win while many others lose” – David Rotman (MIT). The implications that can be drawn from this is that in order to “survive”  this future (which may very well be sooner than you think), make sure to brush up on your IT skill set.
PS. Study BIM 😉

 

Sources:  

http://excelle.monster.com/benefits/articles/4983-5-jobs-being-replaced-by-robots?page=3

http://www.businessinsider.com/technology-is-destroying-jobs-and-it-could-spur-a-global-crisis-2015-6?international=true&r=US&IR=T

https://www.technologyreview.com/s/515926/how-technology-is-destroying-jobs/

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The global car rental industry is still a very lucrative one with forecasted Compound Annual Growth Rate (CAGR) of 5.6% from 2016 to 2021 (Lucintel 2016). Nonetheless, the improving public transport infrastructure in developing countries, coupled with high rental prices in the developed countries, have a negative impact on the whole industry. Moreover, the sales by Hertz have declined by 3% in the US, where it is the largest operator, while the value sales in the industry grew by 5% in 2015, mainly stimulated by smaller companies. The sales have been also diminishing due to an increased competition from ride sharing companies such as Uber and Lyft. These companies were able to expand their operations into secondary markets and gain access to a critical market segment for Hertz – the airports (Euromonitor 2016).

The rise of ride sharing services is driving away Hertz’s already hesitant price-sensitive customers. High taxes and insurance costs are starting to scare away even the most loyal corporate customers of the company. In this light, the effective fleet management becomes an even more daunting obstacle for Hertz, considering the new competitors, like Uber, do not own any fleet. Moreover, Avis – a direct competitor of Hertz, has acquired the car sharing service Zipcar back in 2013 for $500 million (Kell 2013). This acquisition has greatly improved Avis’ financial position, with company reporting a record net income of $327 million in 2014, which represented a 35% year-over-year, increase (Avis Budget Group 2015). The aforementioned facts demonstrate that in order for Hertz to remain the global market leader, it has to transform and embrace the new sharing economy.

Considering that IT enables all the operations at Hertz, from ordering to invoicing and payment, the challenge for Hertz is to use IT to create and sustain competitive advantage, given that most IT services run on legacy systems (Thibodeau 2016a). With the company’s new leadership team, Hertz is aiming for ‘a transformative IT agenda’ with over $400 million IT spending annually (Thibodeau 2016b). While the major chunk of this spending is aimed at development and use of cloud-based solutions, Hertz has also researched capacitive virtual keypads to be integrated on the windshields of their vehicles so that the renter has to only tap a code to enter a rented car (O’Neill, 2014).

To conclude, we suggest Hertz to further embrace the trend of the sharing economy. We propose Hertz to create a platform to facilitate P2P car rental while playing the role of mediator. This platform would benefit Hertz in the form of strong positive network effects. Moreover, by expanding into the P2P car sharing industry, Hertz could create and establish a community of travellers, which will further strengthen Hertz’s brand name and reputation. Therefore, Hertz should implement this solution, since it will both result in an expanded customer base as well as increased revenues in the long-term. Lastly, this new technology solution would further enable Hertz in their ultimate goal towards being the number one provider of mobility solutions.

 

– Sources:

Lucintel, (2016). The Global Car Rental Industry 2016-2021: Trends, Forecast, and Opportunity Analysis. [online] Prnewswire.com. Available at: http://www.prnewswire.com/news-releases/the-global-car-rental-industry-2016-2021-trends-forecast-and-opportunity-analysis-300278275.html

Euromonitor, (2016). Car Rental in the US. [online] Euromonitor.com. Available at: http://www.euromonitor.com/car-rental-in-the-us/report.

Kell, J. (2013). Avis to Buy Car-Sharing Service Zipcar. [online] WSJ. Available at: http://www.wsj.com/articles/SB10001424127887324374004578217121433322386

Avis Budget Group, (2015). Avis Budget Group Reports Record Fourth Quarter 2014 Results. [online] Available at: http://ir.avisbudgetgroup.com/releasedetail.cfm?ReleaseID=897071

Thibodeau, P. (2016). At Hertz IT, sheriffs, shock and tough choices. [online] Computerworld. Available at: http://www.computerworld.com/article/3042902/it-careers/at-hertz-it-sheriffs-shock-and-tough-choices.html#tk.drr_mlt

Thibodeau, P. (2016). Hertz cuts IT jobs as it shifts to IBM. [online] Computerworld. Available at: http://www.computerworld.com/article/3032350/it-careers/hertz-cutting-it-jobs-as-its-shifts-to-ibm.html

O’Neill, S. (2014). Hertz gives itself a technology upgrade – Tnooz. [online] Tnooz. Available at: https://www.tnooz.com/article/car-rental-giant-hertz-gives-technological-upgrade/

 

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Most people in Rwanda live in remote rural areas. A country where 10% of the population is still infected with HIV Aids and 10,000 children die each year, partly because of delays in testing, getting results back and receiving the necessary medication.

However, drones are aiming to change just that. Yes, this small East-African country, recognized for being the land of hills may very well be the world’s first drone port by late 2017. Drones which have been widely adopted by children and adult hobbyist “could do for transportation in Africa what mobile phones have done for banking”, as stated by Jonathan Ledgard, a director at the Swiss Federal Institute of technology. Ledgard, who alongside Norman Foster is deeply involved in this initiative, acknowledges that one of the primary aspects which is restraining growth in sub-Saharan economies is the absence of proper infrastructure for transportation. Even in those African nations whose economies are growing to double digits annually, the lack of infrastructure hinders many in the selling and distribution of goods.

Drones may very well be part of the solution. Referring back to Rwanda and the issue at hand within healthcare, drones could potentially solve the logistic issues with swift delivery of medication and blood samples. Blood samples would be inserted into a little box at the bottom of the drone. The current payload would be packages weighing 1kg, but they aim to see drones with a wingspan of 3m (10 ft) which would be able to carry deliveries weighing up to 10kg (22 lb). Drones with a 6m wingspan able to carry payloads of 100kg are intended to follow suit by 2025. In the case of a problem, a parachute would be loaded on the drone so that it could still be landed safely without harming the precious stored goods.

In Malawi a similar initiative is taking place, to have drones that do not require pilots and that fly upon pre-determined routes. These drones would be activated via a mobile app. The drones are being used to transfer blood samples from remote clinics to specialist testing labs, which up until now had been done via motor bikes. processes that would previously take hours would now be significantly reduced and may very well save dozens of lives.

Just like how mobile phones are revolutionizing the healthcare industry in Africa, drones have the potential of one day also doing the same.

 

Sources: 
http://www.ozy.com/fast-forward/this-tiny-african-country-is-leading-the-worlds-drone-race/68048

https://www.theguardian.com/technology/2015/sep/30/rwanda-chosen-for-worlds-first-drone-port-to-deliver-medical-supplies

http://www.metropolismag.com/Point-of-View/July-2016/Norman-Foster-on-Using-Drones-to-Leapfrog-Development-in-Rwanda/

http://www.bbc.com/news/world-africa-35810153