We talk a lot about automation – but tend to focus on the less tangible robots. Meaning, we talk about algorithms and AI, quantum computing, and how entrepreneurs can benefit from these new technologies.
However, a significant segment of automation is industrial (and often robotic process automation). Henry Ford and the assembly line revolutionized the world when they took the time to make a car from over 12 hours to just over 90 minutes.
It's interesting to think about more classic automation, and how different it is today from 1913 ... Of course, the level of machinery has grown exponentially, but so have the processes and the capabilities we expect. I flashback to Kanban and Toyota and what that did not only for the automobile industry ... but for corporations and small businesses around the globe.
Who's Winning the Robot Race?
MSCI via visualcapitalist
Unsurprisingly, this is where China thrives.
In 2021, China installed more industrial robots than all other countries combined... Crazy.
Industrially, it's primarily automobiles and electronics that drive those numbers up. Japan also makes massive investments in those two industries.
Interestingly, America is more evenly distributed with metals, plastics, and food, each seeing over 10% allocation.
Something To Think About
One of the fears I often hear is that AI will take our jobs, and what do we do when that happens? Here are my thoughts on that from a blog post called, Will Robots Take Your Job?
New industries are also creating new jobs. With that said, recognize that people are increasingly resistant to doing the work we tend to automate. That is part of why it got automated in the first place. Another reason is that birth rates are dropping globally, and we always strive to do more with less.
Think about countries like Japan - which rely heavily on manufacturing ... but are seeing their already small populations decline. What do they do when their plants sit empty due to labor shortages?
Or, what about agriculture? We've already seen an exodus of youth who don't want to be involved in farming due to the long hours and grueling work... How do you keep up with the production necessary to feed the world?
We often think about robotics as taking our jobs, but the reality underpinning today (and the paradigm that will drive the future) is that automation sustains industries.
When labor can't keep up with demand, robotics fills the gap, whether it occurs in manufacturing, agriculture, or medicine.
As robotics get more capable, it won't be long before that's robotic surgeons are a normal part of a hospital's medical suite.
The same is true for AI. It will supplement gaps in countless industries.
These technologies are coming to your industry. It's inevitable. If you fight it, you'll feel strife and stress about the changing workforce. If you get ahead of it, you'll find endless opportunities to pursue your passions. As society shifts, I hope we see an influx of entrepreneurs to help drive the next era of innovation.
What do you think will happen?
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How To Build A Business 101
My son attended Russell Brunson's annual Clickfunnels conference. They produce some of the most accessible marketing content we've found.
Me and Russell at the Cowboys V. Texans Game in 2016
When attending a conference, the main goal is to extract one key insight and an actionable item to boost your business ... even if you're well-versed in the subject.
After events, we conduct debriefing sessions to distill our most significant takeaways and get alignment.
This year's central theme was integrating disparate elements (in this case, "funnels") into a cohesive system and cyclical approach to drive sustainable growth. Russell made a compelling point: many so-called "businesses" are really just a string of promotions. According to his definition, a true business requires recurring revenue and continuity.
Aspiring entrepreneurs often impulsively shift from one idea or product to the next. They hastily launch their ventures, make a modest profit, and swiftly move on to the next endeavor, trying to stay on top of trends. Unfortunately, they neglect product development and fail to maintain their existing promotions in their haste to get to "next." Consequently, their businesses become incredibly fragile, susceptible to external shocks such as the unexpected disruptions of events like COVID-19, sudden market crashes, or social media platform crackdowns, which can ultimately lead to their demise
Like most great lessons, it's fractal. If you've been paying attention, you'll see how we've shared this idea before. So, I want to tell the same story from those other perspectives.
Selling Picks and Shovels
Most of us have heard the old adage about selling picks and shovels during the gold rush.
During a gold rush, many people rush to the goldfields to strike it rich by finding valuable gold nuggets. However, most gold rush participants do not find gold.
Often, the people who make the most money are the ones selling picks and shovels (goods and services) to the speculators. Said a different way, profits often flow to people who provide the systems and infrastructure that enable others to dream of a bigger and better future.
It's not sexy, but it's reduced risk, consistent demand, and a long-term perspective. When the mine dries up, you move on to the next mine and patiently stack your gold nuggets.
And, there's a plethora of opportunity that isn't selling picks and shovels. You can build temporary lodgings, open a bar, and of course, you can't forget the world's oldest profession ... trading.
Leveraging AI
It's easy to compare the AI race to the gold rush, but it's much more than that. Both the AI race and the gold rush generated significant hype and excitement. In both cases, there's a sense of a potentially life-changing opportunity, which attracts a herd of energized early movers looking for their big break. Just as gold prospecting was a risky and uncertain endeavor with no guarantee of success, the AI race is characterized by uncertainty and fear. Many are afraid, not just of losing their jobs, but of how to best use the technology.
As a result, you see a sea of people adopting every new app they can find, all to continue treading water in their business.
This occurs because people forget that AI is simply a tool – not the goal. They get blinded by the bright shiny objects, those glitters of gold near the top, that they don't do the hard work to find the bigger nuggets below the ground. All those tools are great, just like the promotions Russell mentioned. However, they're often distractions from building or buying something custom to your needs and focused on your bigger future.
To raise the stakes a bit, one of the biggest difference between the AI race and the gold rush, is the lasting impact. While the gold rush did lead to some lasting economic and infrastructural changes in certain areas, the AI race is going to significantly transform entire industries, economies, and societies over the long term.
The Capitalogix Advantage: A Solid Platform For Success
In our office, we think of this idea as the difference between a capability, a prototype, a product, and a platform. Building a platform (and a community) is how you become an institution and a game-changer.
When you start with that mindset, you can be the picks and shovels, you can be the hotels and hospitals, but you can also be the miner looking for the next big thing. That's what Capitalogix does for ourselves and our joint venture partners.
Continuity and recurring revenue create the bandwidth for innovation and ideation.
We have developed a fault-tolerant infrastructure because we have experienced fires, floods, Internet failures, the Snowpocalypse, bad data, missing data, and human error … not to mention Trump Tweets or COVID-19. That means our tools are built on a solid infrastructure supported by extensive experience.
And, while we've pivoted since inception, our vision and our "why" haven't. Joint ventures and new technologies are steps on our journey to our vision, not short-term promotions and distractions.
It's a small distinction with a massive impact.
When you're exploring the Wild West, whether it's in a gold rush, an AI boom, or in the world of e-commerce, your chances of success rise rapidly with a goal, a why, and a plan.
Hope that helps.
Posted at 11:03 PM in Business, Current Affairs, Ideas, Market Commentary, Science, Trading, Trading Tools, Web/Tech | Permalink | Comments (0)
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