What is The Fourth Age of Humanity?

What is The Fourth Age of Humanity?

I’ve been musing for a while about inclusivity, and find that the world is truly being transformed as everyone joins the network. It is the theme I present all the time right now, and discussions around M-Pesa, Saldazo, Paytm and Ant Financial are great ways to illustrate the change. I could say a lot more, but the stunning figure from McKinsey who estimate that emerging economies will release $3.7 trillion a year in new productivity by 2025 sums it all up well.

For my friends who have noticed my leaning towards inclusivity, they may like to know that it’s also the theme of my new book. I finished the draft of the book in August and has the title:

Digital Human: The fourth revolution of humanity includes everyone 
 

Here’s a brief overview of what it’s all about and, for those who have seen my recent presentations, you’ll know where I’m coming from.

ABSTRACT
 

We are in the fourth age of humanity. The first phase was becoming human, as homo sapiens created language and beliefs.  The second was becoming civilized, when we created money; and the third was becoming commercial, when we created banks during the industrial revolution.

In this fourth age of humanity, technology is proving to be so pervasive in our lives that we are changing behaviors and becoming digital humans.  The way digital humans relate to each other is a revolution. It is changing the way in which we talk, trade and transact and changing the way in which we make business, make friends and make love. This book explores the way in which human and business relationships are changing in this digital age, and provides clear lessons in how to evolve existing businesses to be digital businesses relating to their digital human customers. Specifically, Digital Human explores what the fourth age of humanity means for business, banking, society and government.

Related: The New Status Quo in the Financial Services Ecosystem

The themes explored include how bitcoin and the network are altering and challenging government and control mechanisms; the rise of global digital giants, and how the Chinese giants are far more imaginative than their American counterparts; the rise of the most fundamental innovations being notable in Sub-Saharan Africa, the Philippines and other emerging markets, and how these markets will educate those of Europe and America over time; and the challenge to govern a globalized world when we live in nation states.

The book concludes with the world’s first in-depth English case study of Ant Financial and Alipay, the largest payments processing company on Earth. The company has a stated ambition of bringing onboard all of those people excluded from financial services today. That’s two-thirds of the world’s population, around 4.5 billion people. This is the core of the change we are seeing in the Digital Human age: that everyone can be included in a network thanks to low-cost mobile coverage. As a result, everyone on the planet can not only talk, trade and transact digitally, but they can be raised out of poverty through inclusion.

Chris Skinner
FinTech
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Chris Skinner is one of the most influential and prolific thought leaders on the future of banking, finance and technology. The Financial Brand awarded him best blog and ... Click for full bio

China's Push Toward Excellence Delivers a Global Robotics Investment Opportunity

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.

Related: Smooth Tomorrow's Market Volatility With a Smart Approach to Robotics & AI

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.

Want all the details? Download the ROBO Global Investment Report - Summer Brings Best ROBO Earnings in Six Years or visit us here.

ROBO Global
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ROBO Global LLC is the creator of the ROBO Global® Robotics and Automation Index series, which provides comprehensive, transparent and diversified benchmarks representing the ... Click for full bio