Seeing People as Humans, Rather Than a Client
It’s hard to turn on the news these days. Between partisan politics, random acts of violence, and company scandals, we’re inundated with stories about people and businesses treating each other poorly.
Nowhere was this more evident than when United Airlines visibly dragged a passenger off an airplane this week because he refused to be bumped from an overbooked flight. The man was a doctor and had surgeries scheduled for the next morning. Apparently, United couldn’t get anyone to accept their final offer to give up their seat, so front-line employees decided it would be better to resort to brute force and physically remove a paying passenger from the plane.
Companies spend millions of dollars a year on advertising to attract customers, yet, when they have the chance to embrace relationships with their current customers, they repeatedly fail.
Contrast the actions of these United employees with those of Southwest Airlines. In 2015, they forever changed the lives of Peggy Uhle and her son. Peggy’s Southwest flight from Raleigh-Durham to Chicago was getting ready to take off when the pilot suddenly turned around and headed back to the gate. Peggy was asked to get off the plane, which led her to assume that she had boarded the wrong flight. What she discovered, however, was that her son had been in a terrible accident in Denver and was in a coma.
Not only had the gate attendant re-booked her on the next direct flight to Denver, Southwest employees offered her a private waiting area, rerouted her luggage, let her board first, and gave her a boxed lunch when she got off the plane. They also delivered her luggage to where she was staying, never asked for payment, and an employee even called to ask how her son was doing.
While the press and goodwill Southwest Airlines received from this incident was significant, it was not the driving force behind their actions. The employees were simply demonstrating Southwest’s core purpose to “Connect people to what’s important in their lives through friendly, reliable, low-cost air travel.”
These values empowered key stakeholders (the employees) to do what was right for the customer, without question or hesitation. Contrast this with United who, very generically, aspires to be the “airline of choice.” In fact, the only other reference to core values I could find online was a very legally worded “code of ethics and conduct overview”
There are a few key takeaways from these contrasting stories. The first is that the culture and values we create in our business and homes will lead to specific behaviors by our employees and family – for better or for worse. Therefore, it’s imperative that we be very clear and explicit about what we stand for in terms of each.
The other major lesson is that we need to focus more on seeing people as human beings, not simply as a client, partner, or competitor. If we treat them with respect and/or help them selflessly in a time of need, we will create more positive outcomes all around. United employees decided it was better to drag a passenger off a plane than to up their $800 offer and own their mistake. Southwest just decided to do the right thing. Karma took care of the rest.
China's Push Toward Excellence Delivers a Global Robotics Investment Opportunity
Written by: Jeremie Capron
China is on a mission to change its reputation from a manufacturer of cheap, mass-produced goods to a world leader in high quality manufacturing. If that surprises you, you’re not the only one.
For decades, China has been synonymous with the word cheap. But times are changing, and much of that change is reliant on the adoption of robotics, automation, and artificial intelligence, or RAAI (pronounced “ray”). For investors, this shift is driving a major opportunity to capture growth and returns rooted in China’s rapidly increasing demand for RAAI technologies.
You may have heard of ‘Made in China 2025,’ the strategy announced in 2015 by the central government aimed at remaking its industrial sector into a global leader in high-technology products and advanced manufacturing techniques. Unlike some public relations announcements, this one is much more than just a marketing tagline. Heavily subsidized by the Chinese government, the program is focused on generating major investments in automated manufacturing processes, also referred to as Industry 4.0 technologies, in an effort to drive a massive transformation across every sector of manufacturing. The program aims to overhaul the infrastructure of China’s manufacturing industry by not only driving down costs, but also—and perhaps most importantly—by improving the quality of everything it manufactures, from textiles to automobiles to electronic components.
Already, China has become what is arguably the most exciting robotics market in the world. The numbers speak for themselves. In 2016 alone, more than 87,000 robots were sold in the country, representing a year-over-year increase of 27%, according to the International Federation of Robotics. Last month’s World Robot Conference 2017 in Beijing brought together nearly 300 artificial intelligence (AI) specialists and representatives of over 150 robotics enterprises, making it one of the world’s largest robotics-focused conference in the world to date. That’s quite a transition for a country that wasn’t even on the map in the area of robotics only a decade ago.
As impressive as that may be, what’s even more exciting for anyone with an eye on the robotics industry is the fact that this growth represents only a tiny fraction of the potential for robotics penetration across China’s manufacturing facilities—and for investors in the companies that are delivering or are poised to deliver on the promise of RAAI-driven manufacturing advancements.
Despite its commitment to leverage the power of robotics, automation and AI to meet its aggressive ‘Made in China 2025’ goals, at the moment China has only 1 robot in place for every 250 manufacturing workers. Compare that to countries like Germany and Japan, where manufacturers utilize an average of one robot for every 30 human workers. Even if China were simply trying to catch up to other countries’ use of robotics, those numbers would signal immense near-term growth. But China is on a mission to do much more than achieve the status quo. The result? According to a recent report by the International Federation of Robotics (IFR), in 2019 as much as 40% of the worldwide market volume of industrial robots could be sold in China alone.
To understand how the country can support such grand growth, just take a look at where and why robotics is being applied today. While the automotive sector has historically been the largest buyer of robots, China’s strategy reaches far and wide to include a wide variety of future-oriented manufacturing processes and industries.
Electronics is a key example. In fact, the electrical and electronics industry surpassed the automotive industry as the top buyer of robotics in 2016, with sales up 75% to almost 30,000 units. Assemblers such as Foxconn rely on thousands of workers to assemble today’s new iPhones. Until recently, the assembly of these highly delicate components required a level of human dexterity that robots simply could not match, as well as human vision to help ensure accuracy and quality. But recent advancements in robotics are changing all that. Industrial robots already have the ability to handle many of the miniature components in today’s smart phones. Very soon, these robots are expected to have the skills to bolster the human workforce, significantly increasing manufacturing capacity. Newer, more dexterous industrial robots are expected to significantly reduce human error during the assembly process of even the most fragile components, including the recently announced OLED (organic light-emitting diode) screens that Samsung and Apple introduced on their latest mobile devices including the iPhone X. Advancements in computer vision are transforming how critical quality checks are performed on these and many other electronic devices. All of these innovations are coming together at just the right time for a country that is striving to create the world’s most advanced manufacturing climate.
Clearly, China’s trajectory in the area of RAAI is in hyper drive. For investors who are seeking a tool to leverage this opportunity in an intelligent and perhaps unexpected way, the ROBO Global Robotics & Automation Index may help. The ROBO Index already offers a vast exposure to China’s potential growth due to the depth and breadth of the robotics and automation supply chain. As China continues to improve its manufacturing processes to meet its 2025 initiative, every supplier across China’s far-reaching supply chains will benefit. Wherever they are located, suppliers of RAAI-related components—reduction gears, sensors, linear motion systems, controllers, and so much more—are bracing for spikes in demand as China pushes to turn its dream into a reality.
Today, around 13% of the revenues generated by the ROBO Global Index members are driven by China’s investments in robotics and automation. Tomorrow? It’s hard to say. But one thing is for certain: China’s commitment to improving the quality and cost-efficiency of its manufacturing facilities is showing no signs of slowing down—and its reliance on robotics, automation, and artificial intelligence is vital to its success.
- 1 of 1779