The Impact Of The 4th Industrial Revolution On Economic .
The Impact of the 4th IndustrialRevolution on EconomicDevelopmentDeveloping A Country AgendaRapelang RabanaMarch 20181The 4th Industrial Revolution1
The Telkom Group is the leading provider of integrated services in the ICT converged market in South Africa,managing a specialised portfolio of companies with R41bn revenues and employing 19 000 ged r ofcommunicationfacilities& infrastructure toISPsDSL, Fibre, ME etc.End-to-end digitalsolutions provider ofICT solutions toenterprise customersConnectivity, voice,IT, cloud etc.Retailcommunicationsservice provider toconsumersBroadband, voice,internet & mobile.The 4th Industrial Revolution22Directory& online servicesLocal advertising andmarketingorganisation providingdigital solutionsDirectory, onlinesearch, e-commerce.PropertymanagementProperty businessmanaging masts andtowers, propertydevelopment andproperty managementservices.
Key messages The fourth industrial revolution is a fundamental shift in the way that technology, communications, data,and analytics impacts almost all aspects of society and the economy This era presents South Africa with significant and interrelated opportunities - Improved access to better services, provided more efficiently across socio-economic and geographic barriers- Increasing transparency, trust and social cohesion through direct communication but also a host of risks to effectively manage- Unequal access to benefits – infrastructure access and training required- Employment displacement as automation and new business models increase need for education and training The government has a critical role to play in securing and enhancing the human capital and technologicalassets required to harness the power of the fourth industrial revolution Telkom is uniquely positioned to drive the foundations of the fourth industrial revolution: investing in thecountry’s largest networks, integrating services and players, forging new business models, developing talent In order to realise the full potential of this moment in history we need multiple stakeholders to work in acoordinated way towards a shared vision in terms of financial investment and target outcomesThe 4th Industrial Revolution3
The fourth industrial revolution is a fundamental shift in the way that technology,communications, data, and analytics impacts society and the economyThe 4th Industrial Revolution4
The proliferation and adoption of these inter-related technologies marks this period asdistinct from those that preceded itCYBER-PHYSICAL TECHNOLOGIES – broad adoption of 3D printing,roboticsPERVASIVE CONNECTIVITY – always connected, everywhere, toeverything with increased sensing and actuatingBIG DATA – collecting more information, about more things, more thanwe ever have before Manufacturing is beginning to see Manufacturing begins to see aability to produce goods at scaleof labour andCOMPUTING POWER – decouplingexponentialaccelerationproductionvolumes due to the Innovations in water / steaminsightsdata in realintroductiontime of electricitytechnologyallow firstfrommechanicalproduction facilities and New power source affordstransportationunprecedented levels of production Computers begin to enable theearliest digitisation in factoriesin ourability to extract Ability to collect, store, and processinformation informs efficiencies inphysical production Decisions can be made at a morehalf thespeed withrapid pace than ever beforeAI – machines ability to do human activities atcontinuous self improvement embed in the technologyThe 4th Industrial Revolution5
We are in the midst of an inflection point, driven by an unprecedented and acceleratingwave of change1PROLIFERATION OFDEVICESCONNECTIVITY: 4X INCREASE IN DEVICESNUMBER OF CONNECTED DEVICES (B)The 4th Industrial Revolution62EXPLOSION OFDATADATA PROLIFERATION:A 40X INCREASE(DATA GENERATED IN ZETTABYTES –1ZB 250B DVDs)3UPSURGE INCOMPUTING POWERCOMPUTING POWER:EXPONENTIALACCELERATION(CALCULATIONS PER SECOND PER 1K)4DECLINE IN COSTSHARDWARE COST DECLINES:EXPONENTIAL DECREASE(COST PER GFLOP – MEASURE OF COMPUTINGPOWER)
How do we deal with the 4th Industrial Revolution? The 4th industrial revolution is not a sectorproblem and must be seen as part ofnational discourse We must understand the economic impactof the 4th industrial revolution onindividual sectors as it has the potentialto improve sustainable and inclusivegrowth or worsen our economicprosperity We must then actively mitigate adverseimpact and leverage opportunities inshort and long-term through acoordinated and agreed nationalframework to deal with the 4th industrialrevolutionThe 4th Industrial Revolution7
For governments, the 4th industrial revolution presents significant and interrelatedopportunities but also a host of risks, which must be effectively managedROLE OF GOVERNMENTPROVIDERof critical services tocitizensSTEWARDof SA’s globalcompetitiveness andinformation economyLARGEST EMPLOYERin the countryBUYER/USERof digital enablingtechnologiesREGULATORof technology andprivacyOPPORTUNITIES Improved access to better services Increasing transparency, trust and socialcohesion Focus on intimacy at scale Reduced cost of service deliveryThe 4th Industrial Revolution8RISKS Civil liberties infringement Regulatory burden Unequal access Accelerating employment displacement
The scale of investment in the 4th Industrial Revolution should have a significant return nthe form of economic developmentGDP Government Spending Investment Consumption Net exports Increase in investmentspend for 4th IndustrialRevolution infrastructure- Cost savings through theprovision of more efficientservices Increasedinvestment inhigh growthtechnologies/companiesin- Declineinvestment inlow growth,less digitisedsectors e.g.miningThe 4th Industrial Revolution9 Increasedexpenditure intechnologiese.g. tablets,smart watches - Decline in cost-of goods dueto moreefficientmanufacturingpractices Increase inexports oftechnologicalservices andproducts toother Africancountries Increase inimports ofparts requiredto build thenecessarytechnology
The strategy should take a “layered” approach to the systems of actors and technologiesEXAMPLE SOLUTIONNational level creating broad “horizontal” applications de-duplicating information simplifying governmental processes increasing coordinationMunicipal level tailoring solutions for local conditions sharing data to refine national models increasing citizen engagement (two-ways)Smart CitiesIndustry level creating ecosystems of actors withdifferent interests / incentives sharing non-proprietary informationacross supply chains creating new business models“Farm of theFuture”The 4th Industrial Revolution10BiometricCloud
Municipalities are using a range of interconnected technologies and solutions to providebetter, more efficient services across citiesBuildingsregulatetemperature,lights & securityCity-widesensorscapture microclimate dataPatient medicalrecords digitizedand accessibleacross hospitalsMotionactivatedstreetlightsFreeWi-Fi en gunshotdetectedEmergencyresponse teamfor cybersecurityincidents oninfrastructureSmart grid thatautomaticallyregulateselectricity flowAutonomousbus fleets runon optimizedroutesVehicles sharereal-time trafficand road infoautomaticallySmartCitiesCitizensreportpotholes etc.through appThe 4th Industrial Revolution11Bus scheduleoptimized basedon analysis ofusage, trafficpatterns etc.Water andsewage systemsadjust valvesbased on flowSatellites trackvehicle trafficand tax roadusageaccordinglyElectricvehicle (EV)chargingstationsTraffic lightsadapt totrafficconditions
Within agriculture, various organisations across the ecosystem are driving towards the“Farm of the Future” to sustainably increase yields and enhance food security“Farm of the Future”Analysis of machine dataallows farmers to predictand prevent maintenanceissues, increasing uptime ofequipmentData is collected in a centralrepository and on the cloud,where it can be accessed foranalysisDrones survey field plotsand identify weeds, yield,and soil qualityFarmers have access totheir data from theirhome control center, orfrom online portalsoffered by precisionagriculture companiesAnalysis of livestockdata allows farmers toidentify sick or in-heatanimalsThe 4th Industrial Revolution12Variable-rate seeders andapplicator are able toapply optimal amount ofinputs to each plot basedon the prescriptionAnalysis of yield mapallows farmers todetermine optimal seedand input prescriptionsfor each plotField sensors collect dataon nutrient quality,moisture, weather, andother factors that impactyieldFarmers can input data,view analysis, and makedecisions from mobiledevices in the fieldAutonomous equipmentnavigates field withlimited or no oversight
4th Industrial Revolution Technologies can deliver and support National DevelopmentPlan’s enabling milestonesAffordable broadband access is the onlycore digital milestone listed in the NDP - butmany others’ delivery will be significantlyenhanced by 4th IR technologiesDelivery enhancementNDP ENABLING DATACOMPUTE ADVANCEDPOWERAIEXAMPLESDeliver affordable broadband accessInternet balloons, other new channels to free spectrumIncrease quality educationResponsive e-learning for customized curricula/testingPromote health / wellbeingRemote health e-monitoring and medication dosingEstablish effective transportGPS enabled minibuses with monthly subscriptionsProduce sufficient clean energyIntegrated home/national power with buy-back to gridBroaden asset ownershipLand access claim evaluation, incl. monitoring / trackingEnsure access to clean waterLive water cycle quality monitoring and interventionEnsure household food securityPrecision farming with live data to reduce wastagePromote continental developmentPowerful new insights from combination of citizen dataIncrease employment to 24MNew efficiencies to improve export competitivenessThe 4th Industrial Revolution13
To successfully harness the power of the 4th Industrial Revolution, we must have the rightapproach to building the required human capital and technological foundationsHUMAN CAPITALJobsSkillsEducationThe 4th Industrial Revolution14Job creation to improveunemployment and createbetter socioeconomicconditionsFundamental transformation ofthe labour market to be moreskilledGood quality education (frombasic level to tertiary) to createa population that can absorb thenecessary skills trainingTECHNOLOGY FOUNDATIONSNetworksConnects everythingCompute and StorageHolds and handles thedataSystem IntegrationPuts it all togetherAnalyticsGenerates the insightsSensors andHardwareGathers data andinputsTechnical LiteracyUnderstands how todo itApplications andSoftwarePerforms the tasksE-KiosksProvides access to it
Telkom Group is gearing up to delivery 3 critical, human capital factors that South Africaneeds to get right to take advantage of the 4th Industrial RevolutionTELKOM GROUP IS INVESTING HEAVILY IN SOUTH AFRICA’S DIGITAL FUTUREJobs SpliceWorks is an online platform where tech businesses can get access toclients who might need their technology or digital innovation, thereforefacilitating growth and employment Creating over 1 000 jobs through Future Makers Through the WeThinkCode programme, the Telkom Group will fund thetraining and assist in the work placement of 450 young coders over a periodof 3 years The CiTiX initiative, in partnership with CapaCiTi and the National JobsFund, aims to train 2,400 learners in intermediate level digital skills includingAI, Geomatics, Operational Technology, CyberSecurity and FinTechSkillsEducation BCX Project 200 is a programme designed in partnership with the NationalLibrary of South Africa to upskill and provide job placement for 200 young,talented persons with disabilities through a Microsoft Systems Engineeringcourse BCX invested in Explore Data Science Academy (South Africa’s first datascience academy) to create 300 new skilled data scientist in the next 3 years,to meet the demand for data analytics in the digital economy Telkom Foundation is spending R85M on education whilst providingsupplementary teaching and educating teachers in ICT BCXLearn provides free e-learning services covering Maths and ScienceThe 4th Industrial Revolution15
Making it happenA COHERENT STRATEGY – SHORT AND LONG TERM Bring together the range of required stakeholders toinput on frameworks and policies and to stimulateinvestment and adoption of 4th Industrial Revolutiontechnologies Include multiple “layers” of implementation with anemphasis on:- Efficient and effective technology roll-out from nationalscale to individual firms- Centralised ways to learn from successes and challenges- Rigorous focus on payback periods for parts and the whole Sketch out the near term requirements to capture thelonger term benefits with specific and measurablemilestonesThe 4th Industrial Revolution16CO-ORDINATED & ACCOUNTABLE LEADERSHIP Establish singular co-ordination and accountability forauthoring and executing the strategy and the measuresby which success will be judged Provide sufficient financial and human capital to matchthe scale of ambition Ensure sufficient autonomy to drive successfuloutcomes on a longer time scale Conduct regular reviews to:- Ensure success and challenges are widely and publiclyunderstood- Enhance transparency- Identify and scale successful repeatable models
The 4th Industrial Revolution 3 Key messages The fourth industrial revolution is a fundamental shift in the way that technology, communications, data, and analytics impacts almost all aspects of society and the economy This era presents South Africa with significant and interrelated opportunities - Improved access to better services
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Le genou de Lucy. Odile Jacob. 1999. Coppens Y. Pré-textes. L’homme préhistorique en morceaux. Eds Odile Jacob. 2011. Costentin J., Delaveau P. Café, thé, chocolat, les bons effets sur le cerveau et pour le corps. Editions Odile Jacob. 2010. Crawford M., Marsh D. The driving force : food in human evolution and the future.
