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approaches
to automating work
using
cognitive technologies
2 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
Over the next three to five years
cognitive technologies (the technologies
underlying artificial intelligence) are
likely to have a profound impact on
work, workers, and organizations
3 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
Some predict massive unemployment as
cognitive technologies begin to
automate tasks and take on work
formerly done by people
4 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
Others believe that this move towards
automation may increase productivity,
drive economic growth, and create
demand for workers with new skills
5 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
Leaders will face choices
about how to apply
cognitive technologies
6 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
A cost strategy uses technology to
reduce costs, especially by reducing
labor headcount
A value strategy aims to increase value
by complementing labor with
technology or reassigning labor to
higher-value work
To properly evaluate their options,
organizations need to choose between a
cost strategy and a value strategy
7 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
We propose using a
framework of four
automation choices
to help business
leaders understand
the business and
talent implications of
adopting cognitive
technologies
Replace
Atomize/
Automate
RelieveEmpower
8 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
Replace
AUTOMATION APPROACH:
Technology is used to
perform jobs previously
done by a person
1
9 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
Organizations may
produce greater value
by reassigning workers
to new roles, or by
expanding their
existing roles
With the cost strategy,
organizations may
choose to replace
workers with cognitive
computing systems that
perform the same work
Replace
10 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
Atomize/Automate
AUTOMATION APPROACH:
Break up a job into
pieces; automate as
much as possible
2
11 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
A value strategy might
use this approach to
create new lower-cost
offerings that serve
the needs of a new
market segment
Atomizing and
automating work can
reduce labor costs, but
it can also alienate
creative people, the
highly skilled, or artisans
Atomize/Automate
12 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
Relieve
AUTOMATION APPROACH:
Technology takes on
tasks that are dull, dirty
or dangerous
3
13 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
A value strategy might
expand or shift the
focus of newly relieved
workers to higher-value
tasks
A cost strategy might
use technologies to
alleviate routine tasks
by reducing headcount
Relieve
14 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
Empower
AUTOMATION APPROACH:
Technology makes
workers more effective
by complementing skills
4
15 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
A value strategy might
employ a system to
train those lower-skilled
workers and build their
skills, or even enhance
the performance of
highly skilled workers
A cognitive system may
empower lower-skilled
workers to perform
tasks that were formerly
performed by higher-
skilled workers, thereby
reducing labor costs
Empower
16 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
When weighing these four automation
choices, leaders should consider:
Will workers be marginalized or empowered?
Is this choice creating value or merely cutting costs?
17 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
As leaders prepare to
bring cognitive
technologies into their
organizations they
should consider which
set of automation
choices will fit best with
both their talent and
competitive strategies
18 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
Share your thoughts with the hashtag #DeloitteReview
Follow @DU_Press on Twitter
Explore how cognitive technologies are redesigning work
Read more in the latest Deloitte Review article
Download
Subscribe
19 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
DAVID SCHATSKY
Meet the authors
senior manager, Deloitte LLP. David tracks and analyzes emerging
technology and business trends, including the growing impact of
cognitive technologies, for Deloitte’s leaders and its clients. David is
the author of Signals for Strategists: Sensing Emerging Trends in
Business and Technology (RosettaBooks, 2015).
JEFF SCHWARTZ
principal, Deloitte Consulting LLP, and global Human Capital Leader for
talent strategies and marketing, eminence, and brand. Jeff is the co-
author of Global Human Capital Trends 2015: Leading in a New World
of Work (Deloitte University Press, 2015).
About Deloitte University Press
Deloitte University Press publishes original articles, reports and periodicals that provide insights for businesses, the public sector and NGOs. Our goal is to draw upon
research and experience from throughout our professional services organization, and that of coauthors in academia and business, to advance the conversation on a
broad spectrum of topics of interest to executives and government leaders.
Deloitte University Press is an imprint of Deloitte Development LLC.
This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or its and their affiliates are, by means of this
publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such
professional advice or services, nor should it be used as a basis for any decision or action that may affect your finances or your business. Before making any decision or
taking any action that may affect your finances or your business, you should consult a qualified professional adviser.
None of Deloitte Touche Tohmatsu Limited, its member firms, or its and their respective affiliates shall be responsible for any loss whatsoever sustained by any person
who relies on this publication.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a
legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and
its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not
be available to attest clients under the rules and regulations of public accounting.
Copyright © 2015 Deloitte Development LLC. All rights reserved.
Member of Deloitte Touche Tohmatsu Limited
Sign up for Deloitte University Press updates at http://www.dupress.com
@DU_Press

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4 approaches to automate work using cognitive technologies

  • 2. 2 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. Over the next three to five years cognitive technologies (the technologies underlying artificial intelligence) are likely to have a profound impact on work, workers, and organizations
  • 3. 3 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. Some predict massive unemployment as cognitive technologies begin to automate tasks and take on work formerly done by people
  • 4. 4 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. Others believe that this move towards automation may increase productivity, drive economic growth, and create demand for workers with new skills
  • 5. 5 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. Leaders will face choices about how to apply cognitive technologies
  • 6. 6 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. A cost strategy uses technology to reduce costs, especially by reducing labor headcount A value strategy aims to increase value by complementing labor with technology or reassigning labor to higher-value work To properly evaluate their options, organizations need to choose between a cost strategy and a value strategy
  • 7. 7 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. We propose using a framework of four automation choices to help business leaders understand the business and talent implications of adopting cognitive technologies Replace Atomize/ Automate RelieveEmpower
  • 8. 8 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. Replace AUTOMATION APPROACH: Technology is used to perform jobs previously done by a person 1
  • 9. 9 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. Organizations may produce greater value by reassigning workers to new roles, or by expanding their existing roles With the cost strategy, organizations may choose to replace workers with cognitive computing systems that perform the same work Replace
  • 10. 10 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. Atomize/Automate AUTOMATION APPROACH: Break up a job into pieces; automate as much as possible 2
  • 11. 11 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. A value strategy might use this approach to create new lower-cost offerings that serve the needs of a new market segment Atomizing and automating work can reduce labor costs, but it can also alienate creative people, the highly skilled, or artisans Atomize/Automate
  • 12. 12 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. Relieve AUTOMATION APPROACH: Technology takes on tasks that are dull, dirty or dangerous 3
  • 13. 13 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. A value strategy might expand or shift the focus of newly relieved workers to higher-value tasks A cost strategy might use technologies to alleviate routine tasks by reducing headcount Relieve
  • 14. 14 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. Empower AUTOMATION APPROACH: Technology makes workers more effective by complementing skills 4
  • 15. 15 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. A value strategy might employ a system to train those lower-skilled workers and build their skills, or even enhance the performance of highly skilled workers A cognitive system may empower lower-skilled workers to perform tasks that were formerly performed by higher- skilled workers, thereby reducing labor costs Empower
  • 16. 16 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. When weighing these four automation choices, leaders should consider: Will workers be marginalized or empowered? Is this choice creating value or merely cutting costs?
  • 17. 17 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. As leaders prepare to bring cognitive technologies into their organizations they should consider which set of automation choices will fit best with both their talent and competitive strategies
  • 18. 18 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. Share your thoughts with the hashtag #DeloitteReview Follow @DU_Press on Twitter Explore how cognitive technologies are redesigning work Read more in the latest Deloitte Review article Download Subscribe
  • 19. 19 Deloitte University Press | 4 approaches to automating work using cognitive technologies | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. DAVID SCHATSKY Meet the authors senior manager, Deloitte LLP. David tracks and analyzes emerging technology and business trends, including the growing impact of cognitive technologies, for Deloitte’s leaders and its clients. David is the author of Signals for Strategists: Sensing Emerging Trends in Business and Technology (RosettaBooks, 2015). JEFF SCHWARTZ principal, Deloitte Consulting LLP, and global Human Capital Leader for talent strategies and marketing, eminence, and brand. Jeff is the co- author of Global Human Capital Trends 2015: Leading in a New World of Work (Deloitte University Press, 2015).
  • 20. About Deloitte University Press Deloitte University Press publishes original articles, reports and periodicals that provide insights for businesses, the public sector and NGOs. Our goal is to draw upon research and experience from throughout our professional services organization, and that of coauthors in academia and business, to advance the conversation on a broad spectrum of topics of interest to executives and government leaders. Deloitte University Press is an imprint of Deloitte Development LLC. This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or its and their affiliates are, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your finances or your business. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. None of Deloitte Touche Tohmatsu Limited, its member firms, or its and their respective affiliates shall be responsible for any loss whatsoever sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright © 2015 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited Sign up for Deloitte University Press updates at http://www.dupress.com @DU_Press