Welcome to the age of the industrial internet
It Creates New Demand, New Jobs
Marco Annunziata | TED | YouTube
The Chief Economist at General Electric, Marco Annunziata, examines the impact of the Industrial Internet on Jobs and the Economy
Summary: Over the past 200 years, the world has experienced two major waves of innovation.
First, the Industrial Revolution brought us machines and factories, railways, electricity, air travel, and our lives have never been the same.
Then the Internet revolution brought us computing power, data networks, unprecedented access to information and communication, and our lives have never been the same.
Now,the Industrial Internet. It brings together intelligent machines, advanced analytics, and the creativity of people at work. It's the marriage of minds and machines. And our lives will never be the same.
So what is this industrial Internet?
Industrial machines are being equipped with a growing number of electronic sensors that allow them to see, hear, feel a lot more than ever before, generating prodigious amounts of data.
Sophisticated analytics then sift through the data, providing insights that allow us to operate the machines in entirely new ways, a lot more efficiently.
Electronic sensors have been around for some time, but something has changed:
a sharp decline in the cost of sensors and, thanks to advances in cloud computing,
a rapid decrease in the cost of storing and processing data.
So we are moving to a world where the machines we work with are not just intelligent; they are brilliant. It's a world where information itself becomes intelligent and comes to us automatically when we need it without having to look for it.
Changing the way we work.
There is always a fear that innovation will destroy jobs. And innovation is disruptive.
First, we've already lived through mechanization of agriculture, automation of industry, and employment has gone up, because innovation is fundamentally about growth. It makes products more affordable. It creates new demand, new jobs.
Second, just as a child can easily figure out how to operate an iPad, so a new generation of mobile and intuitive industrial applications will make life easier for workers of all skill levels.
This technological revolution is as inspiring and transformational as anything we have ever seen.
Human creativity and innovation have always propelled us forward.
Innovation has created jobs.
Innovation hasraised living standards.
Innovation has made our lives healthier and more rewarding.
And the new wave of innovation which is beginning to sweep through industry is no different. In the U.S. alone, the industrial Internet could raise average income by 25 to 40 percent over the next 15 years, boosting growth to rates we haven't seen in a long time, and adding between 10 and 15 trillion dollars to global GDP. That is the size of the entire U.S. economy today.
Obstacles to overcome. We will need:
to invest in the new technologies.
to adapt organizations and managerial practices.
a robust cybersecurity approach that protects sensitive information and intellectual property and safeguards critical infrastructure from cyberattacks.
an education system that will evolve to ensure students are equipped with the right skills.
When I see how humans and brilliant machines are becoming interconnected, I'm not just optimistic, I'm enthusiastic.