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Physical Productivity Place-Shifting Technology

“Reach Beyond Your Grasp”

“Tangible Telecommuting”

“Anyone, Anywhere, Any Work”

Impact

Economic

Social

Political

Areas of Disruption

Utility & Value

  1. Freedom of location
    • No longer required to reside close to workplace.
  2. Labor rate arbitrage
    • Remotely replace workers in higher cost labor markets with those in lower cost labor markets. The amortized cost of a remote work system is ~$2/hour and say the cost of labor is $5-$7/hour. Total cost is $7-$9/hr. If local cost of labor is $15, the system is saving $6-$8/hr, which is about half! And there are no ancillary employment costs.
    • Technologically neutralize competitive disadvantages created by government policy.
  3. Skill deployment
    • People with unique/rare/in demand skills who are flown out to diagnose and solve problems.
  4. Health & Safety
    • Operation in harsh environments that pose risks to human health.
    • E.g. respirator required… personal protective equipment.
    • Avoid training, certification, insurance, liability costs
  5. Productivity multiplication
    • Record movements for repetitive tasks and playback
    • One person’s controlled movements can be mimed by any number of machines
  6. Gateway to mass automation
    • Quickest solution
    • Programming automation represents a barrier to entry. No programming here. Remote control until fully automated, if possible. The transition can be seamless.
  7. Retain local access and control over fixed capital
    • Eliminate the need to relocate plant and equipment overseas, and incur associated costs/delays/risks.
    • Increase organizational agility, reduce “barriers to retreat”. If offshoring does not work out as planned, too often managers are “in too deep” to admit the mistake and walk back or undo the error, so good money goes in after bad or the diminished state of affairs is swept under the rug with accounting gimmickry to make the offshoring decision appear beneficial. By offshoring labor alone, the “barriers to retreat” are significantly reduced, and rationality restored to otherwise self-deceptive thinking.
    • Slow depreciation, reduce downtime, maintain productivity. Often, the level of support and maintenance of plant and equipment moved overseas cannot match what is provided domestically, causing it to depreciate faster, malfunction, or otherwise not be as productive.