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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.

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