To drive the growth in productivity, I wish to cite a recent blog post by GE’s Jeffrey Immelt a portion of which read as follows;
There are four new drivers of productivity, and success in each depends on the technology and talent we develop. The first is how the sheer volume and increased access to shale gas in regions around the globe is changing the energy debate and the balance of energy power. It would require real infrastructure and pipeline integration between Canada, Mexico and the U.S., but North America could achieve energy independence within 10 years. The second driver for dramatically increased productivity is applying the lessons of social media to the industrial world and building what we call the Industrial Internet. By owning and connecting the analytical layers around industrial products – and using real time data to extract real timeknowledge – we can improve asset performance and drive efficiency. The third driver is speed and simplification because the only way to serve our customers better and compete in a complex world is by working faster and smarter. The last productivity driver, and related to the other three, is the evolution of advanced manufacturing. Manufacturing excellence, forgotten for too long, is once again a competitive advantage.
Now when you look at this argument about from where we will get the productivity growth, a problem jumps out. Namely, we have to generate non-population related productivity gains with a population that isn’t geared to Immelt’s productivity drivers. Our younger citizens certainly are better aligned and skilled but as population growth slows, they will be the minority.
So guess what — the knowledge of how to improve services, products and processes is really valuable. Now I’m not talking about how to write a project charter or write up a SIPOC. I’m talking about revolutionizing energy with process innovation in the extraction of natural gas, the development of the cloud so we can jettison underutilized servers from expensive IT budgets and citizen publishing of information so knowledge flows freely and into every nook and cranny of the population instantaneously. Imagine – those have all happened in the last five years. Those are the types of improvements that transform an economy. But there is plenty of room between a project to save an AP process two days and reinventing the extraction of fossil fuels. And every time a new industry is targeted, all the operating processes below the top level change will also be looking to improve.
Can you imagine where these big seismic changes will happen next? How about redesigning education so everyone has access to knowledge inexpensively? Or health care where we can all see an insanely low level of simple IT tools that if applied would eliminate gobs of waste. Or all levels of government where we have constantly rising costs with little measureable gains in services. These trends will continue. They must continue or we, as a nation, will slowly lose our global relative wealth.
There are four new drivers of productivity, and success in each depends on the technology and talent we develop. The first is how the sheer volume and increased access to shale gas in regions around the globe is changing the energy debate and the balance of energy power. It would require real infrastructure and pipeline integration between Canada, Mexico and the U.S., but North America could achieve energy independence within 10 years. The second driver for dramatically increased productivity is applying the lessons of social media to the industrial world and building what we call the Industrial Internet. By owning and connecting the analytical layers around industrial products – and using real time data to extract real timeknowledge – we can improve asset performance and drive efficiency. The third driver is speed and simplification because the only way to serve our customers better and compete in a complex world is by working faster and smarter. The last productivity driver, and related to the other three, is the evolution of advanced manufacturing. Manufacturing excellence, forgotten for too long, is once again a competitive advantage.
Now when you look at this argument about from where we will get the productivity growth, a problem jumps out. Namely, we have to generate non-population related productivity gains with a population that isn’t geared to Immelt’s productivity drivers. Our younger citizens certainly are better aligned and skilled but as population growth slows, they will be the minority.
So guess what — the knowledge of how to improve services, products and processes is really valuable. Now I’m not talking about how to write a project charter or write up a SIPOC. I’m talking about revolutionizing energy with process innovation in the extraction of natural gas, the development of the cloud so we can jettison underutilized servers from expensive IT budgets and citizen publishing of information so knowledge flows freely and into every nook and cranny of the population instantaneously. Imagine – those have all happened in the last five years. Those are the types of improvements that transform an economy. But there is plenty of room between a project to save an AP process two days and reinventing the extraction of fossil fuels. And every time a new industry is targeted, all the operating processes below the top level change will also be looking to improve.
Can you imagine where these big seismic changes will happen next? How about redesigning education so everyone has access to knowledge inexpensively? Or health care where we can all see an insanely low level of simple IT tools that if applied would eliminate gobs of waste. Or all levels of government where we have constantly rising costs with little measureable gains in services. These trends will continue. They must continue or we, as a nation, will slowly lose our global relative wealth.
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