Skip to main content

How IOT is causing workforce reduction?

Digital and internet are reinventing many industries, 64% of executives in the large companies believe that their companies will struggle for survival if they fail to leverage the technology (Accenture, 2018a). How can the company leverage digital technologies? By innovation, redesign/re-engineering of its products, personal approach production, and after-sales support (Accenture, 2018a). To do this, the Industrial Internet of Things (IIoT) is one of the forefronts to ease the process. IIoT which sometimes referred to as Industry 4.0, is “a new phase in the Industrial Revolution that focuses heavily on interconnectivity, automation, machine learning, and real-time data,” (Epicor, n.d). Characterized by various sensors, devices, network, APIs, apps and data, IIoT marries physical production and operations with smart digital technology, machine learning, and big data to create a more holistic and better connected ecosystem to drive operational efficiencies, improve products performance, and enable disruptive business environment (Accenture, 2018b; Epicor, n.d.). Some areas which can grasp the most benefit of IIoT are SCM and optimization, predictive analytics, and asset tracking and optimization. With IIoT, the company can increase its competitive advantage, attract younger workforces, increase workforce collaboration, address potential issues since earlier stage, reduce costs, boost profits, and fuel growth (Epicor, n.d).

From a workforce perspective, IIoT will increase job vacancies in some fields and reduce others. Most of the digital related jobs such as digital marketing, cybersecurity, software/app developers, and business analyst will have high demand in the future. On the other hand, some professions such as social workers, surgeons, business leaders, and clergies will still have their own demand, since robots cannot merely replace those professions. Those occupations still need many human interventions which still cannot be copied by robots such as empathy, feeling, guts, intuition, philosophy, and theology.  In opposite, some routine jobs which can be replaced by automation or robot will decrease dramatically. Some of these jobs are factory labor, security guard, telemarketer, loan officer, cashier, and taxi driver (The Guardian, 2018).

What can a company do to reduce employees termination when it applies an IIoT to its business? To help employees who may lose their jobs, a company can give them the training to use the technology or to able them being transferred to other departments which still require manpower. Some talented employees can be trained to manage, control, and operate the IIoT system, while the less talented one can be transferred to do laborious tasks, social/counseling tasks, or leadership tasks. However, this effort for sure will not be able to accommodate all employees. Some employees will need to be released, to reduce the company salary costs.

In conclusion, Digital Industry 4.0 or IIoT will undoubtedly change many industries and personal/employees life. Many companies which can implement the technology will gain the best benefit from it, while many employees will lose their jobs as well.



References

Accenture. (2018a). Discover Your X: Where Industry Meets Innovation. Retrieved from https://www.accenture.com/us-en/service-industry-x0

Accenture. (2018b). Internet of Things. Retrieved from https://www.accenture.com/us-en/service-mobility-internet-of-things.

Epicor. (n.d.). What is Industry 4.0 – the Industrial Internet of Things (IIoT)? Retrieved from https://www.epicor.com/resources/articles/what-is-industry-4-0.aspx.

The Guardian. (2018). What jobs will still be around in 20 years? Read this to prepare your future. Retrieved from https://www.theguardian.com/us-news/2017/jun/26/jobs-future-automation-robots-skills-creative-health.

Comments

Popular posts from this blog

Question and Answer

      * These attacks consist of injecting malicious client-side scripts into a website and using the website as a propagation method is: These attacks consist of injecting malicious client-side scripts into a website and using the website as a propagation method is: XML External Entities Cross Site Scripting (XSS) Security Mis Configuration Injection * A security principle, that ensures that authority is not circumvented in subsequent requests of an object by a subject, by checking for authorization (rights and privileges) upon every request for the object is ____.   A security principle, that ensures that authority is not circumvented in subsequent requests of an object by a subject, by checking for authorization (rights a Complete Mediation Least Privileges Separation of Duties Weakest Link * Unprotected files

What are the challenges Zara face to maintain it's growth?

Notably, Zara has a unique approach to handle changing demand, which has allowed the company to become widely successful and a leading business organization in the fashion retail industry, in which many corporations struggle to deal with fast-changing environments, operations, and inventory costs. The arrival of new trends forces retailers to adapt their collections, causing what James (2011) calls the Forrester or bullwhip effect. Zara relies heavily on outsourced manufacturing, even though most operations and inventory decisions and strategies are still held, taken, and based out on their headquarters in Spain. Every time an order is placed, all items are shipped to Spain for final design adjustments and inventory stocking. With the use of technology and collaboration with its store managers, the company can produce only what is currently trending, which results in a significant reduction of unsold items caused by the rapidly changing tastes of consumers in this fast-changing ind

How Toyota New Global Architecture (TNGA) revolutionize the automobile manufacturing industry?

Toyota New Global Architecture (TNGA) system was created to revolutionize the actual automobile manufacturing systems. TNGA aims to promote a massive transformation in Toyota's development processes by emphasizing in harmony between planning and design, which, when appropriately combined and managed, will increase the company’s efficiency (N.A., 2015). Toyota's TNGA system is revolutionary because it creates an even leaner way of designing and manufacturing its cars and establishes a new era of vehicle design and production. From a different perspective, TNGA is a revolutionary system not because it employs a modular approach; since companies like Nissan and Volkswagen already use modular systems in their production plants (Schmitt, 2015). It is revolutionary because it is disruptive and expands the traditional and legendary Toyota’s lean methodology to a different level (N.A., 2015). This new global architecture system is disruptive to the old Toyota Production System (T