The digitization and automation of processes and delivery vehicles will reduce logistics costs for standardized transport by 47% by 2030, according to a new report from PwC’s Strategy& consultancy.
The Global Truck Study 2018 has found that around 80% of these savings will be attributable to the reduction of personnel in the transport and logistics industry. In addition, there will be enormous increases in efficiency: autonomous lorries, for example, will be able to travel 78% of the time from 2030 onwards, as opposed to 29% of the time since 2030. This will be because there will be no breaks for drivers and idling time will be reduced through the use of algorithms.
“Within just a few years, the commercial vehicle and logistics industries will merge to form an ecosystem that will be managed digitally and efficiently. Robots are already being used in distribution centers and electric vehicles for last-mile logistics,” explains Dr. Gerhard Nowak, Partner at Strategy& Germany.
“The missing piece of the puzzle is currently the automated comparison of freight and available vehicles. In a fully automated supply chain, a product on an Industry 4.0 production line would already be produced with the digital information to book the transport for its own delivery shortly before its completion.”
A consistently digitized supply chain saves administrative overheads, replaces time-consuming inventory, and reduces insurance costs by cutting error rates. In total, savings of up to 41% are possible by 2030 compared to today’s supply chains.
The first-mile delivery of products will become more efficient over the next few years, primarily as a result of the automated assignment of freight to the truck, and platform solutions will replace manual administration tasks, which will release savings potential of 45% by 2030. For last-mile deliveries, data-driven demand analysis, automated deliveries (for example through drones) and reduced administrative overhead could see costs fall by 51%.
“The logistics industry is undergoing massive technological change, changing well-known business models and traditional roles of freight forwarders, truck operators or truck drivers. The change to an autonomous truck is also reducing the importance of equipment features and ride comfort for manufacturers – in the future, it is about offering the better cost balance per kilometer.
“To remain competitive, original equipment manufacturers (OEMs) need to develop business models with mobility services. In this area, they are in direct competition with leasing companies and above all with the big tech players, who are already planning autonomous truck fleets. This ultimately puts them in direct competition with their current customers – a delicate challenge,” concludes Gerhard Nowak.
Huawei case: The HiFi Geostrategic Gambit
In a general, comprehensive, strategic outline of the global scenario we can see that China is being harassed on several fronts by the US: commercial pressures, diplomatic maneuvers to block the progress of infrastructure projects (OBOR/New Silk Road), at technological level, the boycott/ restrictions against Huawei. These are some of the current modalities of strategic competition between great powers, without involving the direct use of hard / military power, which we could well consider a Cold War 2.0.
Analyzing the factors and interests at stake, the events in full development during the last months are not surprising, as the advances of the US government against the Chinese technological giant Huawei. Since the arrest of its CFO, Meng Wanzhou, daughter of the founder of the company, to accusations of espionage, boycotts and diplomatic pressure to annul Huawei’s advances in several countries.
Huawei is the flagship, the spearhead of the Chinese technological advance. This onslaught is not a coincidence. While formally not having direct links with the Chinese government, Huawei has a prominent role in the Chinese strategic technological plan “Made in China 2025”, because of its development and implementation of 5G networks, key part of the plan, which are estimated to be available around soon.
The strategic approach is to change the Chinese productive matrix towards a “High Tech” economy, of design and innovation, to position China in the forefront in the technological advanced sectors of the modern economy (artificial intelligence, biotechnology, robotics, automation, the internet of things, telecommunications, software, renewable energies, and the element that is in the most interest for us to analyze, the 5G). In Washington, they do not feel comfortable with Chinese advances.
The Eurasia Group consulting firm argues that the installation of 5G networks will involve one of the biggest changes in our time, comparing its appearance with major breaks in the technological history such as electricity. Some specialists, websites and the press have coined the term “Sputnik” moment, by comparing the potential impact of competition for the development of 5G technologies with the space race in the Cold War at the time.
The 5G will allow the use of faster network data, as well as the widespread and coordinated use of advanced technologies such as artificial intelligence, the internet of things, smart cities, automation, improvements in health, and in the military field.
The US has put pressure on several of its allies (Australia, New Zealand, Germany, Great Britain, and Canada to name some) to block Huawei’s advances in services and investments in their countries, while restricting the purchase of Huawei’s products and services on North American soil.
While it is true that several countries could give in from the pressure from Washington to “encircle” Huawei and restrict its services and products, so is the fact that many other countries, especially the many that have China as their main trading partner, in addition to all the pleiad of emerging and developing countries that are being seduced by the economic possibilities, and in this specific case, technology offered by China and its companies. What it would imply, a worldwide competition between American diplomatic muscle and Chinese sweet money.
And also in commercial terms, the progress of Huawei into the top of the tech companies is remarkable, due to its production methods and its business model, having surpassed, for example, APPLE among the largest companies that sells mobile phones being only second to Samsung.
Does anyone remember free trade? Competition? What’s up with that? Or was it just a trick? It seems that in the global economic game, the US throws the chessboard away when it loses, and uses the geopolitical muscle, without any problem, following the Groucho’s Marx doctrine: “Those are my principles, and if you don’t like them… well, I have others.”
The fears about Huawei’s technology are hiding a power struggle, a hegemonic dispute over technology. So far the accusations of espionage against this corporation perhaps are valid in theoretical sense, but unprovable in facts, what left them as mere speculations. The accusations by the US against Huawei, through the speech of “the threat of espionage” are unbelievable, and hypocritical in some sense, and the speech is marked by a double standard… Who represents the threat?
is the same US that nowadays “advises” its allies and other countries to “protect” themselves against the “threat” of Huawei’s espionage in favor of its government, the same country that spied on its own allies in a wicked way, if we remember the cases that Assange and Snowden brought to light.
We can also highlight recently the Cambridge Analytica scandal – much of which has been well predicted by prof. Anis H. Bajrektarevic in his influential manifesto about the McFB world of tomorrow. The Cambridge Analytica fiasco plainly showed the unholy relations between the big technological “independent” corporations like Facebook and Google with the political power in the West.
Technological competition is another chessboard of this new multilevel and multidimensional XXI Century Great Game, where the great actors move their pieces.
5G is the focal point for a global rush to dominate the next wave of technological development – a race many policymakers worry the U.S. is already losing, and that’s why they act in this aggressive way. The strategic competition for advanced, high technologies such as 5G, and innovations in the fourth industrial revolution, will mark the “podium” of the great powers of the 21st century.
The technological new cold war between the two largest economies and powers in the world shows no signs of diminishing, either the strategic competition.
Who will win this Great Game on the chessboards? The patience / precaution and forecast of the game of Go, or the strong bets and bluffs of poker.
The geostrategic chessboard is already deployed. Players already have their cards in hand, and have moved their tokens. Prestige is to come.
Youth in the Global South Must Join Forces for Their Future of Work
I believe that the developing world is full of opportunities for young people because many of us have the energy and eagerness to make a difference in the world. In many cases the solutions to problems in communities are simpler than they appear. It just needs someone to push. I know from first-hand experience that there is nothing more rewarding than creating a venture or project that has an impact.
In 2001 I witnessed a foot-and-mouth disease outbreak among cattle that severely damaged the economy of Uruguay, as well as other countries’ in the region. Many years later, in 2012, after graduating as an electrical engineer and working with small satellites, I heard about a competition for young innovators organized by the International Telecommunication Union. They were looking for technological inventions that could solve a problem in a particular region. I immediately thought about the foot and mouth disease outbreak and used my knowledge of space technology to create a system that could monitor anomalies in cattle remotely. I submitted the idea and some months later found out I had won the competition! With the cash prize I founded Chipsafer, a monitoring platform that analyses cattle behaviour using data transmitted from trackers installed in their collars. Besides detecting anomalies in cattle behaviour and combating cattle theft, Chipsafer can also help improve the decisions farmers make relating to the production process.
Countries from the Global South should join forces to surf on the wave of technological revolution and benefit from innovative solutions like these to overcome challenges and to achieve a better and more sustainable future. That’s what we mean by South-South cooperation.
Young people – students, entrepreneurs, professionals, activists – need to play a part in this too because they are drivers of change. Yet, with 65 million young people unemployed globally, they still face many challenges.
In a few weeks I will be part of a panel at an ILO event in Argentina on the future of work for youth, with a focus on developing countries. It will take place on the sidelines of the Second High-level United Nations Conference on South-South cooperation (BAPA+40).
My fellow panellists will include Rebeca Grynspan, who was a member of the ILO Global Commission on the Future of Work, as well as workers’ and employers’ representatives. We’ll look at the issue from three angles; policies for skills development, green jobs, and social dialogue. The aim of the session is to provide recommendations for BAPA+40 participants on the effective integration of youth employment policies into South-South and triangular cooperation (where developed countries or multilateral organizations support South-South cooperation).
I plan to talk about the challenges for youth in the context of the future world of work and discuss the impact of South-South cooperation in promoting decent jobs for youth.
Technology is revolutionising the world, and the world of work is no exception. I believe all stakeholders, whether they are international institutions, governments, employers’ or workers’ organizations, must accept responsibility and take collective action to build the future of work that we want. South-South and triangular cooperation must be part of the answer.
Artificial Intelligence in Knowledge Societies: A ROAM Approach – Open Data and AI
The session “Open Data and AI” organized within the framework of “Principles for AI: Towards a Humanistic Approach?” on 5 March 2019 requested UNESCO to continue leveraging its convening power to increase awareness around artificial intelligence and big data, support development of inclusive policy on Open Data and support upstream and downstream capacity enhancement.
The workshop noted Data as an essential element for the development of artificial intelligence. The availability of large amounts of user data through services on mobile phones and internet of things among other sources, has led to a variety of AI applications and services. However, there remain many challenges. These challenges encompass issues of access, privacy, discrimination and openness. Several of these challenges are within UNESCO’s mandate of building inclusive knowledge societies for peace and sustainable development.
Ms Dorothy Gordon, Chair of the Information for All Programme at UNESCO pointed out that “despite the fact that we have a huge interest from many donors, we do not seem to have done very much systematically to prepare African countries to have useful data … [and] in a searchable format that can be combined with other sources to … yield something [beneficial]”. She stressed the need to bridge gaps in terms of the availability of legacy data, setting policy standards, and enhancing capabilities of people to work with local data sets.
Ms Constance Bommelaer, Senior Director of Global Internet Policy and International Organizations at The Internet Society underlined ‘data commons’ as an interesting solution to explore but one that needs a nuanced discussion around ownership and privacy. She highlighted the need to challenge existing notion of competition and a need for “reconsideration of market values and monopolies”. Stressing the importance of access, she shared the findings of a joint study carried out by ISOC and UNESCO that showed how a combination of local language content and better access policies results in immediate economic benefits at the local level.
As a government representative, Ms Veronika Bošković Pohar, Deputy Permanent Delegate of the Republic of Slovenia to UNESCO discussed ‘regulatory sandboxes’ as a means to provide controlled environment for AI. She hoped that Slovenia’s proposed Category 2 Centre on Artificial Intelligence would be able to make several informed decisions, provide insights into technology and societal interface and create mechanisms for continuous monitoring and reporting to reduce risks posed by AI to vulnerable groups.
Speaking as a panelist representing a knowledge organization, Prof. Maria Fasli, UNESCO Chair in Analytics and Big Data at University of Essex noted the lack of understanding on AI and Big Data and expressed concerns for the difficulty faced by the academic community in accessing data collected by large technology firms for research purpose. She further highlighted the need for high quality representative data to ensure that algorithms are not biased.
Given their experience in tracking innovation trends across the world. Mr Marcus Goddard, Vice President of Intelligence at Netexplo Observatory underlined that “access to data is a necessary but not sufficient condition for innovation. Pointing out the general trends in openness, he mentioned that openness is not Silicon Valley’s top priority and convenience seems to be the norm when it comes to launch of new products and services. He highlighted that even as data is being used in smart cities to improve access and sustainability, it is also increasing the threat of surveillance.
Mr Philippe Petitpont, Co-founder of Newsbridge, a Paris based AI and Media startup, presented the scale of the data problem that the media faces today. He remarked that media companies are gathering 30 million hours of video content every year, a number that does not include social media videos. In this situation, extracting useful insights from these videos is a cumbersome task albeit one that can be performed by AI. They try to leverage AI to help journalists process large amounts of data at lower costs.
The session brought the viewpoints of multiple stakeholders to the discussion table and some of the key concerns included were:
- Urgent need to increase awareness around artificial intelligence and big data;
- Developing strategies to strengthen access to data for training machine learning algorithms;
- Supporting both upstream and downstream capacity enhancement to leverage data for benefit;
- Involving private sector actors in the discussion around access to data and data monopolies; and
- Creating systems for addressing discrimination and biases originating through data and algorithms.
The panel members congratulated UNESCO for facilitating important discussions around issues of rights, openness, access and multistakeholder participation in the governance of data and hoped to engage with the organization for further development of issues around Open Data and AI.
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