Automation the Key to Recession Proof?

I have been reading so many articles on the benefits of #automation and how it helps fight recession. Agree and Disagree with various authors and so have, I decided to jump and share my thoughts as well.

We need to talk of how this recession has been induced. High inflation, Pandemic, supply chain disruptions. We had pandemic and this has induced #VUCA( Volatlity, Uncertainity, Complexity & Ambiguity). This has forced companies to think newer business models and accept and accelerate #automation at unprecedented rates.

Schools, Workplaces, commerce everything was zoomified. We got into #creatoreconomy and #socialcommerce started growing. Newer business models came and #disrupted existing models. we had #carvana for easy shopping of cars. Zillow accelerated and with a click of a button we could buy houses . #subscriptioneconomy accelerated . Use of #ai accelerated for good and at the same time people started depending on models heavily. House prices increased as the models were not in sync with reality .

#convenience and #security came #forefront. #ubereats #doordash were #disruptive models and we could get food at a click of button. Everything was available at a click of button. #Automation came to forefront.

Fed started pumping to keep the markets afloat due to #pandemic and we had markets awash with liquidity. VC's had truckloads of cash to pump into #startups. #unicorns started growing.

Companies have shown record profits and more and more employees were hired to accelerate #automation .

All the benefits of #automation still continued and continues forever. I strongly believe that #automaton is an #evolution and key to #humanprogress .

Fast forward to #2022. Liquidity is so high , supply chain shortages accelerated with #geopoliticalcrisis has accelerated #inflation and affecting the CPI as a whole . Housing prices hit the roof.

To Combat #inflation , Fed has been accelerating interest rates and surprisingly the job market is still high inspite of the massive firings happening across and will take time to settle until the liquidity and supply chain issues are stabilized. In this process a recession is needed to adjust . Recession means no jobs and no liquidity . We just had a record #thanksgiving2022 and saw a record-breaking on-line sales weapon. Again thanks to #automation.

#Automation as a weapon and how it could help shave your #opex during recession is coming out loud and clear . Right, Wrong. Depends on whom you talk.

Let's talk a bit about the layoff's . Zillow blames #ai and writes of millions of dollars .Alexa claims 10 Billon loss. Carvana is struggling to survive. Doordash has laid off and #opex costs are so high. More people were hired than needed . Several companies have started firing not for the sake of #automation but because of #opex costs and to keep #opex costs low , employees are being laid off ?

We had #cloudfirst strategy but now companies are claiming #cloudcosts are high . #opex is very high and need to move to #onprem . was it an #automation problem or a #humanprogress ?

Sure #cloud has helped us in various ways and accelerated the economy but at some point #automation starts staring at #opex costs. We have been automating for ages and why are we still talking about #opex?

We had #automation right but then why are we looking so gloomy . #businessmodels need to change and #automation will absolutely help. #automation for the sake of #automaton creates 3 problems.

1. We have to deal with #legacydebt but now also need to deal with #moderndebt . An absolute nightmare for #enterprisearchitecture.

2 We have been talking of #enterprisedata but now need to address #darkdata

3. #cybersecurity is equally important and pressing need.

As my friend Shail Khiyara puts in , Let’s get past the myths to the reality of automation, automation value, automation tech debt (yes it’s real) and what it takes to really drive tangible, repeatable, scalable automation value - which comes at a cost.

We need newer #businessmodels to survive #recession and #automaton will help drive the #outcomes too.

Let's talk of #automation as #capex rather than #opex.

#digitaltwins #ai #sustainablity #blockchain and newer technologies will converge and will drive new #businessmodels and help us get out of recession too and yes they are part of #automationevolution.

Bottomline ,we need to think of #outcomes rather than pure #automation. Yes we do have a responsibility to save the planet using #automation and reducing #carbon footprint