Automation enhances efficiency tenfold. Automating jobs and processes allow us to live the lives we have today. You don’t just have to look at robots or machines to see how revolutionary automation is. All you have to do is take a trip to McDonalds.
The story of McDonalds’ success generally goes unappreciated. There is a reason why many small businesses fail, and why the McDonald’s franchise lives on.
In 1937, the McDonald’s family opened ‘The Airdrome’, a food stand on Huffington Drive (Route 66). They sold hotdogs and hamburgers to those passing by. Then, in 1940, the McDonald brothers moved and renamed the restaurant ‘McDonald’s Bar-B-Que’.
They were more successful than any other restaurant. And it was because of the streamlined system they had put in place. Then, in 1954, a milkshake machine salesman by the name of Ray Kroc came into the store one day.
The McDonald brothers were using eight of his machines, when most of his customers used only one or two at most. He was amazed with how many customers McDonald’s was able to serve. And he came to believe that the McDonald’s formula was the secret to success. Kroc convince the brothers to franchise their business…and the rest is history.
Penetrating every industry
Just like the success of the Ford motor car, McDonalds’ success was built on their automated system. Going into any McDonald’s restaurant, you’ll see that every job is automated. That’s how they’re able to plug in any kind of human labour — even teenagers — and produce results.
Automation has now become so advanced that we no longer need to plug human capital into a job. Instead we can just program a robot or machine to do the work for us.
The construction industry, specifically, could soon be revolutionised by automation. There are companies now building robots that can build structures all by themselves. Of course, they need to be programmed and told what structure to build. But once you’ve given them the inputs, they can build 24/7 until the job is done.
And it’s not just in construction. We already have robot vacuum cleaners, automated factory floors, and could soon have driverless cars, too.
In Perth, Australia’s fist driverless shuttle bus is being trialled. The shuttle bus shown below is considered ‘level 4’ automation. Levels of automation are ranked out of five, with a four symbolising a fully autonomous vehicle.
Source: RAC, WA
The bus can carry up to 11 passengers traveling up to 45kmph. The systems within the bus include front and rear cameras, GPS, autonomous breaks and an emergency stop button. The bus is worth around $250,000, and is loaded with technology expected to significantly reduce road accidents.
In 2014 the automation market had an estimated worth of US$100 billion. This included everything from automated robots to connected home appliances. Between 2014 and 2021, it’s predicted that this market could quadruple.
An investment in automation could end up beneficial for your portfolio. But, along with adding automation to your portfolio, why not invite it into your life as well?
Buying back your most precious commodity
Nothing is more discouraging than getting home after work to find a mountain of chores. Cooking dinner, washing your clothes, cleaning up, getting ready for the next day…the list goes on. By the time you’re done, it’s already 11:00pm.
I’m sure we’ve all said it at one point, but there just aren’t enough hours in the day. However, there would be many who’d disagree. Of course, there is the option of sleep deprivation or cutting down on TV time.
But Tim Ferris, author of bestselling book ‘The Four Hour Work Week’, believes you can have your cake and eat it too. How? By automating your life.
Tim has become a success in the business world, and now consults other start-ups to achieve greater things. He is one of the biggest advocates of automation, and lives by the 80/20 principle.
Let’s say you hate doing chores. Not a problem, there are many companies that will do them all for you. What about if you get bogged down by work? Too easy; personal assistant companies can come to your rescue and take on some of the work you can’t.
So automation is not just a booming market; it’s about getting back your most precious commodity — time.
Junior Analyst, Money Morning
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