Are Our Organisations Really Succeeding?
Every day, organisations promise to make the world a better place. How do we know they are really succeeding?
The National Health Service we are told is the world’s best healthcare system. Yet the NHS has a poor record on one fairly important indicator – actually keeping people alive.
We often hear that housing associations prevent homelessness , but in the 50 years since Cathy Come Home rough sleeping has increased from about 965 people each night to over 4000.
We have a ‘world class legal system’, but at the end of last year 77 of the 117 prisons in England and Wales were overcrowded. By contrast the Netherlands has a shortage of prisoners , and is turning prisons into boutique hotels and temporary homes for refugees.
Perhaps it’s time to move away from soundbites and spend a little more time at the source of the problem.
Health is an interesting one – there’s a big difference between quality and availability of heathcare and actual outcomes. The UK ranks only 23rd on the Bloomberg Healthiest Countries list. Another report by the Nuffield Trust indicates that, compared with other countries, the UK’s healthcare system is no more than ‘better than average’.
Italy, with plenty of doctors in the country and a diet full of fresh vegetables. fish and lean meats, is the place to be. Maybe it’s easier to solve problems with pasta and olive oil?
The issue of course is that problems like health, housing and offending fall into the category of what Professor Horst Rittel termed ‘wicked problems’.
Wicked problems are difficult to define. Many possible explanations may exist. Individuals perceive the issue differently. Depending on which explanation you choose, the solution takes on a different form.
Tame problems, by contrast, can be clearly written down. The problem can be stated as a gap between what is and what ought to be. There’s usually pretty easy agreement about the problem definition.
Tame problems might still need a high degree of creativity to approach – but they are ultimately solvable – often by one organisation acting alone.
Wicked problems on the other hand aren’t amenable to a single organisation with its top down instinct to define, analyse, dissect and process.
And that’s why more money for the NHS won’t make us any healthier, and more prisons won’t stop reoffending. And if you want to solve homelessness the worst thing you could do is create more housing associations.
Simon Penny (who I’m delighted to say is soon to join Bromford Lab) writes that many of our trickiest social issues can be thought of as wicked problems because of their complex nature – and this means that finding solutions to them often isn’t easy. Especially in a world where organisations and even internal departments act in isolation.
The chance of solving wicked problems whilst acting alone is virtually zero.
The issue we face is that many of our organisations are driven by top down metrics that attempt to solve things through quite a narrow lens. Because we don’t employ a rigorous process for understanding the dimensions of the problem, we miss opportunities to address the underlying strategic issues.
This gives our organisations the illusion of solving problems – but we rarely do. In fact we often create more problems for others.
Wicked problems are forever interconnected. You can’t solve them at organisation or even sector level. The challenge is connecting the various players and closing the gaps.
Perhaps if we stopped thinking of people as problems to be solved we’d turn our organisations upside down.
There are problems in communities but there are even more opportunities. Even if people do need ‘help’ they are just as likely to find what they need from a friend or a neighbour as they are from a ‘professional’.
Oh, and before you pack your bags and leave for Italy, consider that it too has failed to join up problems. Youth unemployment – at a staggering 40.3% – is twice the European average. It’s saddled with one of the world’s highest debt loads and most of those doctors that have kept the country so healthy are nearing, or even past, retirement age. The country is sitting on a time bomb.
The problem you are tackling today doesn’t start with your organisation, and neither – so it seems – does the answer.
Rosie the Robot, Amazon, and the Future of RAAI
Written by: Travis Briggs, CEO at ROBO Global US
It’s tough to find a kid out there who hasn’t dreamed about robots. Long before artificial intelligence existed in the real world, the idea of a non-human entity that could act and think like a human has been rooted in our imaginations. According to Greek legends, Cadmus turned dragon teeth into soldiers, Hephaestus fabricated tables that could “walk” on their own three legs, and Talos, perhaps the original “Tin Man,” defended Crete. Of course, in our own times, modern storytellers have added hundreds of new examples to the mix. Many of us grew up watching Rosie the Robot on The Jetsons. As we got older, the stories got more sophisticated. “Hal” in 2001: A Space Odyssey was soon followed by R2-D2 and C-3PO in the original Star Wars trilogy. RoboCop, Interstellar, and Ex Machina are just a few of the recent additions to the list.
Maybe it’s because these stories are such a part of our culture that few people realize just how far robotics has advanced today—and that artificial intelligence is anything but a futuristic fantasy. Ask anyone outside the industry how modern-day robots and artificial intelligence (AI) are used in the real world, and the answers are usually pretty generic. Surgical robots. Self-driving cars. Amazon’s Alexa. What remains a mystery to most is the immense and fast-growing role the combination of robotics automation and artificial intelligence, or RAAI (pronounced “ray”), plays in nearly every aspect of our everyday lives.
Today, shopping online is something most of us take for granted, and yet eCommerce is still in its relative infancy. Despite double-digit growth in the past four years, only 8% of total retail spending is currently done online. That number is growing every day. Business headlines in July announced that Amazon was on a hiring spree to add another 50K fulfillment employees to its already massive workforce. While that certainly reflects the shift from brick-and-mortar to web-based retail, it doesn’t even begin to tell the story of what this growth means for the technology and application firms that deliver the RAAI tools required to support the momentum of eCommerce. In 2017, only 5% of the warehouses that fuel eCommerce are even partially automated. This means that to keep up with demand, the application of RAAI will have to accelerate—and fast. In fact, RAAI is a key driver of success for top e-retailers like Amazon, Apple, and Wal-Mart as they strive to meet the explosion in online sales.
From an investor’s perspective, this fast-growing demand for robotics, automation and artificial intelligence is a promising opportunity—especially in logistics automation that includes the tools and technologies that drive efficiencies across complex retail supply chains. Considering the fact that four of the top ten supply chain automation players were acquired in the past three years, it’s clear that the industry is transforming rapidly. Amazon’s introduction of Prime delivery (which itself requires incredibly sophisticated logistics operations) was only made possible by its 2012 acquisition of Kiva Systems, the pioneer of autonomous mobile robots for warehouses and supply chains. Amazon recently upped the ante yet again with its recent acquisition of Whole Foods Market, which not only adds 450 warehouses to its immense logistics network, but is also expected to be a game-changer for the online grocery retail industry.
Clearly Amazon isn’t the only major driver of innovation in logistics automation. It’s just the largest, at least for the moment. It’s no wonder that many RAAI companies have outperformed the S&P500 in the past three years. And while some investors have worried that the RAAI movement is at risk of creating its own tech bubble, the growth of eCommerce is showing no signs of reaching a peak. In fact, if the online retail industry comes even close to achieving the growth predicted—of doubling to an amazing $4 trillion by 2020—it’s likely that logistics automation is still in the early stages of adoption. For best-of-breed players in every area of logistics automation, from equipment, software, and services to supply chain automation technology providers, the potential for growth is tremendous.
How can investors take advantage of the growth in robotics, automation, and artificial intelligence?
One simple way to track the performance of these markets is through the ROBO Global Robotics & Automation Index. The logistics subsector currently accounts for around 9% of the index and is the best performing subsector since its inception. The index includes leading players in every area of RAAI, including material handling systems, automated storage and retrieval systems, enterprise asset intelligence, and supply chain management software across a wide range of geographies and market capitalizations. Our index is research based and we apply quality filters to identify the best high growth companies that enable this infrastructure and technology that is driving the revolution in the retail and distribution world.
When I was a kid, I may have dreamed of having a Rosie the Robot of my own to help do my chores, but I certainly had no idea how her 21st century successors would revolutionize how we shop, where we shop, and even how we receive what we buy - often via delivery to our doorstep on the very same day. Of course, the use of RAAI is by no means limited to eCommerce. It’s driving transformative change in nearly every industry. But when it comes to enabling the logistics automation required to support a level of growth rarely seen in any industry, RAAI has a lot of legs to stand on—even if those “legs” are anything but human.
To learn more, download A Look Into Logistics Automation, our July 2017 whitepaper on the evolution and opportunity of logistics automation.
The ROBO Global® Robotics and Automation Index and the ROBO Global® Robotics and Automation UCITS Index (the “Indices”) are the property of ROBO who have contracted with Solactive AG to calculate and maintain the Indices. Past performance of an index is not a guarantee of future results. It is not intended that anything stated above should be construed as an offer or invitation to buy or sell any investment in any Investment Fund or other investment vehicle referred to in this website, or for potential investors to engage in any investment activity.
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