Revolutionary Measures

Machine, Platform, Crowds – what it means for marketing

What does the future of business, and by extension the world around us, look like? A recent book by two experts from MIT points to a radically different model that companies need to embrace if they are to survive.machine

Machine, Platform, Crowd: Harnessing our Digital Future by Andrew McAfee and Erik Brynjolfsson focuses on the three emerging trends that are changing how every business operates:

  • Machine – artificial intelligence is replacing the use of the human mind in many areas. While concerns about robots stealing jobs have been raised, this move also brings benefits. Applied correctly, in the right areas, the power of AI far outweighs what the human mind can do, leading to better products and services, better personalised to our needs.
  • Platform – aggregators that own no assets of their own (think Airbnb and Uber), are taking over from those that create products. Essentially they act as gatekeepers, taking a cut of every transaction without physically creating anything themselves.
  • Crowd – ideas and movements now come from the wider crowd, loosely organised, rather than tightly knit internal teams within companies. Wikipedia vs the Encyclopaedia Britannica is the perfect example here.

What does this mean for businesses? Essentially anyone trying to continue as before, or who simply tries to cram these new trends into their existing ways of working is going to fail. The authors give the example of the move from steam to electric power. Those businesses that simply replaced a steam engine with an electric motor quickly found themselves outpaced by those that realised electricity could completely change how a factory operated, enabling innovations such as conveyor belts and assembly lines.

It is also going to mean big changes in marketing, and therefore how marketing agencies (and marketing departments) are structured.

Traditionally agencies have focused on a single marketing discipline – whether it is PR, inbound marketing or SEO. They were built on a pyramid model to maximise efficiency, with lots of junior people doing relatively low value work at the bottom, with strategy coming from higher up. In-house marketing departments were again organised into different disciplines, with many having little cross-over between them.

The trends outlined in the book completely transform this model. Take Machines. You don’t need lots of junior people doing repetitive tasks that can be replaced by automation, and increasingly decisions taken at a middle ranking and senior level will be based on data analysis, rather than gut feel. Whether it is deciding which products to push through online advertising, or which influencers to approach on social media, AI will remove much of the legwork from the process.

Looking at Platforms, that’s where the traditional agency model comes unstuck. Why does a client want to go to multiple different agencies, all with their own specialisms? While the very largest might want the overhead of employing and managing disparate agencies, many more will want to embrace a platform or network model that brings together the skills that are needed, when they are needed, all under the control of one gatekeeper. It won’t matter if people with these skills are contractually employed by that agency or not, it will be more about solving a business problem. The gatekeeper handles the management, quality control and administration, without having the cost of full-time staff.

Finally, the Crowd. Marketing in the past has been top down – company X came up with an idea, developed a product, tried it out on some potential consumers, and if feedback was good, launched it. The whole process took a long time, and there was no real guarantee of success. Marketing now has to be much more of a two way conversation – listening to the crowd and using their insight to inform decisions on everything from product to pricing. The perfect example of this is the recent fidget spinner craze – it came from social media and completely bypassed the marketing machines of the big toy companies, catching them on the hop.

For anyone that thinks I’m being overly pessimistic or that the changes won’t impact them, take a look at other industries. Even 10 years ago electric cars were confined to a tiny niche in the market – and now major economies such as the UK are queuing up to ban petrol and diesel vehicles by the middle of the century. Once industries hit a tipping point, change is extremely rapid. The other point for marketers to note is that brands still need their skills, but at a more strategic level. You need to be agile, knowledgeable and willing to change, but the benefit will be a more interesting and varied role that is at the heart of business success.

Advertisements

October 18, 2017 Posted by | Creative, Marketing, PR | , , , , , , , , , | Leave a comment

The end of work?

The world of work has changed immeasurably over the last ten years, not just in the UK but across all developed countries. Repetitive, process driven jobs have been automated, with technology replacing paper-based workflows. In many cases this has led to a hollowing out of sectors and companies, with the remaining workforce split between menial roles and higher level management.

English: Watt's steam engine at the lobby of t...

And these changes are accelerating. A report in The Economist points to new technological disruption in the workplace, driven by computers getting cleverer and becoming self-learning. Lightweight sensors, more powerful cameras, cloud computing, the Internet of Things, big data and advances in processing power are all contributing to helping computers do brain work. Innovations such as driverless cars and household robots don’t require human intervention to operate, and can do more than traditional machines.

Research from Oxford University suggests that 47% of today’s jobs could be automated within the next 20 years. Many of these roles are in previously ‘safe’ middle class professions such as accountancy, the law and even journalism.

So, this begs two questions. What skills do people need if they are going to thrive in this new world – and are we teaching them to children quickly enough?

The employees of the future will require skills that complement machine intelligence, rather than mirror it. Empathy, the ability to motivate, and being able to think outside the box will all be needed. Essentially soft skills, backed up by specialist knowledge that is based on experience that cannot be replicated by machines. Professions such as therapists, dentists, personal trainers and the clergy are all seen as being relatively safe from replacement by robots. Interestingly entrepreneurs often possess these talents, so expect them to thrive as they use technology such as the cloud to bring their innovations to market quickly.

As a knock on effect, the will be a change in the size of companies people work for. Before the Industrial Revolution most people worked either for themselves or in small organisations (the village carpenter and his apprentice for example). Industrialisation required scale, so vast mega companies grew up. These won’t disappear, but the number of people working for them will shrink dramatically as intelligent machines take over. We’ll move to a larger proportion of the population being self-employed, providing their services on a personal basis. 

Looking at education, schools will also need to change. Pupils need to understand the world around them, so they have to be taught a certain number of facts and dates, but rote learning of what made the British Empire great is going to be useless for a large proportion of people’s careers. What is needed is to teach skills for learning and adapting, thinking for yourself and how to motivate and show empathy to others. Essentially, children starting school today will be going into careers that may not even exist yet – so lifelong learning and flexibility are critical.

The predictions of the havoc that technology will cause to the world of work may be overstated – just because something is technically possible, it doesn’t mean it will quickly become mass market. And governments, worried about massive social change, are likely to step in to mitigate the worst impact through legislation. But changes are coming, and we need to think more like entrepreneurs and less like machines if we’re going to thrive. 

Enhanced by Zemanta

January 22, 2014 Posted by | Creative, Startup, Uncategorized | , , , , , , , , , , , | Leave a comment