## Introduction: Embracing the New Industrial Revolution In the midst of a rapidly evolving landscape, where artificial intelligence and automation are no longer futuristic concepts but present realities, it's crucial to understand how these technologies will shape our future. "What To Do When Machines Do Everything" by Malcolm Frank, Paul Roehrig, and Ben Pring offers a compelling blueprint for navigating this transformation. This book is not a doomsday narrative, but rather a vision brimming with opportunities, showing how we can harness the power of intelligent systems to innovate, grow, and thrive. ## The Historical Context: Technology and Job Creation Historically, new technologies have always been a cause for concern, but they have consistently created new jobs as much as they have taken them away. The automation of the industrial workplace over the past few decades is a prime example. Massive factories that were once filled with people are now running on rows of machines, yet this doesn't mean every worker has to worry about losing their job. Studies analyzed by the authors suggest that around 12 percent of US jobs will be automated over the next ten years, displacing around 19 million workers. However, these same studies predict that these technologies will also create 21 million new jobs, keeping unemployment figures relatively stable. This pattern is not new. Just as the Industrial Revolution transformed manual labor into more specialized and skilled work, the current technological revolution will do the same. The key is to prepare for this shift and understand how new technologies can enhance employment rather than replace it. ## The Power of Systems of Intelligence At the heart of this new industrial revolution are "systems of intelligence" – software that learns from massive amounts of data and improves itself over time. These systems are already integral to our daily lives, from Uber connecting us with cars to Facebook populating our feeds with items we're likely to engage with. This self-learning software recognizes patterns and adapts, making it incredibly powerful and efficient. For instance, consider how Uber operates. It connects you with a car, provides a rating, charges your debit card, and emails you an invoice, all in a matter of seconds. This is possible because of the underlying system of intelligence that continuously learns and improves. Similar technologies are driving other industries, from healthcare to finance, making processes more accurate and efficient. ## Transforming Business Models: The AHEAD Framework To succeed in this new era, businesses need to transform their traditional models into digital hybrids. The authors propose the AHEAD framework – Automate, Halos, Enhance, Abundance, and Discovery – as a strategic model for competing in the next phase of global business. ### Automate Automate everything that can be automated. This frees up human resources to focus on more complex and creative tasks. For example, marketing can automate routine tasks such as data analysis and customer segmentation, allowing marketers to focus on strategy and innovation. ### Halos Instrument everything to gather as much data as possible. This data is the fuel for systems of intelligence. By instrumenting every aspect of your business, you can gain real-time insights that drive decision-making and customer-centricity. ### Enhance Enhance every person in your organization. Technology should be used to augment human capabilities, not replace them. For instance, AI can help doctors diagnose diseases more accurately by analyzing vast amounts of medical data, or assist engineers in designing more efficient systems. ### Abundance Drive the price point of your products and services as low as possible. With the efficiency brought by automation and AI, businesses can reduce costs and offer more value to customers. This is particularly relevant in low-cost, high-volume markets where competition is fierce. ### Discovery Focus on discovery and invention. Allocate resources to initiatives that may not pay off immediately but have enormous potential in the future. This includes investing in R&D and exploring new markets and products that can be revolutionized by the new machine. ## Satisfying Millennial Customers and Defending Against Disruption Millennial customers are driving a significant shift in how businesses operate. They expect seamless, digital experiences that are personalized and efficient. To satisfy these customers, businesses must adopt a digital business model that integrates automation and self-learning software. Silicon Valley startups are already disrupting various industries with their digital-first approach. To defend against this disruption, traditional businesses need to get their hands on the same tools – a digital business model that leverages big data and systems of intelligence. This involves understanding how your organization is structured and the processes it oversees to compete and generate revenue. For example, a retail business might use AI to personalize customer recommendations, automate inventory management, and enhance the overall shopping experience. By doing so, they can compete effectively with online retailers and maintain customer loyalty. ## Preparing for the Future: Actionable Advice Many businesses are stuck in a time warp, with employees using modern technology in their personal lives but returning to jobs that haven't changed in decades. To avoid being left behind, businesses need to look for ways to put their current models out of business. This means embracing digital disruption not just for survival but for future growth and relevance. The authors advise businesses to adopt a mindset of continuous innovation. Ask yourself: What areas of your business can be automated? How can you enhance your employees' productivity with AI? What new products or services can you invent using the new machine? In conclusion, the future is not about machines replacing humans but about humans and machines working together to create new opportunities. By understanding the power of systems of intelligence and adopting the AHEAD framework, businesses can thrive in this new era. It's time to embrace the digital revolution and see it as a wave of opportunity rather than a threat. ## Final Thoughts: Riding the Wave of Technological Change The digital world is transforming every aspect of our lives – how we work, live, shop, and interact. It's crucial to understand this transformation and leverage it to gain a competitive advantage. "What To Do When Machines Do Everything" is more than just a guide; it's a roadmap to a future full of possibility and success. By automating routine tasks, enhancing human capabilities, driving abundance, and focusing on discovery, businesses can ride the crest of this technological wave. The choice is clear: be swallowed up by the ongoing technological evolution or use it to drive new levels of efficiency, customer intimacy, and innovation. In this new industrial revolution, the winners will be those who can harness the power of intelligent systems to innovate and grow. So, let's embark on this journey with optimism and a clear vision for the future, knowing that the machines are here to help us, not replace us.

Here are the key insights from "What To Do When Machines Do Everything" by Malcolm Frank, Paul Roehrig, and Ben Pring: ## Embracing the New Industrial Revolution - The book emphasizes that the new industrial revolution, driven by AI and automation, is an opportunity for innovation and growth rather than a threat. ## Historical Context and Job Creation - Historically, new technologies have created new jobs as much as they have displaced them. For example, automation is predicted to displace 19 million US jobs but also create 21 million new ones over the next decade. ## The Power of Systems of Intelligence - "Systems of intelligence" powered by self-learning software and massive data are central to this revolution. These systems, like those used by Uber and Facebook, continuously learn and improve. ## Transforming Business Models: The AHEAD Framework - The AHEAD framework (Automate, Halos, Enhance, Abundance, and Discovery) is proposed as a strategic model for businesses to adapt: - **Automate**: Automate routine tasks to free human resources for complex and creative work. - **Halos**: Instrument everything to gather data, fueling systems of intelligence. - **Enhance**: Use technology to augment human capabilities. - **Abundance**: Drive down costs and offer more value to customers. - **Discovery**: Focus on R&D and new market exploration. ## Satisfying Millennial Customers and Defending Against Disruption - Businesses must adopt digital business models to satisfy millennial customers' expectations for seamless, personalized experiences. This involves leveraging big data and systems of intelligence to compete with Silicon Valley startups. ## Preparing for the Future - Businesses need to adopt a mindset of continuous innovation, looking for ways to automate, enhance productivity with AI, and invent new products and services. ## Automation and Job Roles - Automation will change job roles but not eliminate them entirely. It will free up time for employees to focus on more complex and creative tasks. ## Business Model Innovation - Traditional businesses need to transform their models to integrate automation and self-learning software to remain competitive and relevant. ## Leveraging Technological Change - The future is about humans and machines working together. By embracing this digital revolution, businesses can gain a competitive advantage and drive new levels of efficiency, customer intimacy, and innovation. ## Continuous Innovation - Businesses should continuously look for ways to put their current models out of business to stay ahead in the technological evolution.