Category Archives: Trends

7 Key Technology Trends Emerging in the Travel Industry for 2019 (Videos)

Via Refine.com, a revenue management blog | No date

For businesses in the travel industry, as well as their customers, technology plays a vital role. It has the capacity to increase the efficiency of business operations and also improve the customer experience, but it is critical that hotels and other companies keep up-to-date with the emerging technology trends so they do not fall behind competitors. In this article, you will find details about seven of the most important tech trends in today’s tourism industry.

1. Internet of Things (IoT)

One of the most exciting emerging technology trends is the Internet of Things (IoT), which involves internet-based inter-connectivity between everyday devices, allowing them to both send and receive data. Already, we are seeing examples of its role within the travel and tourism industry and this is only going to increase.

For instance, IoT technology can be used in hotel rooms to provide customers with a device that connects to everything from the lights, to the heaters and air conditioning, allowing all to be controlled from one place. In airports, meanwhile, luggage cases can be installed with sensors that will alert passengers when they pass by.

Example: Smart technology smarter airports

 

Find more detailed information about the ‘Internet of Things’ in the travel industry in the article “How the Internet of Things (IoT) can Benefit the Travel Industry”.

2. Recognition Technology

Finally, recognition technology is especially interesting within this list of key tech trends, due to its potential for removing friction from purchases and making interactions seamless. The technology itself includes finger print recognition, facial recognition, retina scanning and various other biometric identifiers.

Such technology is already being used in some hotels to allow access to rooms via finger prints, or to allow for semi-contactless check-outs. However, in the future, it is hoped that this technology may be able to allow for customers to pay for meals in the hotel restaurant simply by walking through the exit.

Example: Facial Recognition Check-in in Marriott China

 

Find more detailed information and examples about facial recognition use cases in the travel industry in the article “4 Ways Facial Recognition Can Be Used in the Travel Industry”.

3. Virtual Reality (VR)

Virtual reality has exploded in recent years, with increased availability of virtual reality headsets as home entertainment products. While much of the excitement has focused on video games, businesses and marketers have also made use of the technology, especially in terms of interactive 360 degree images and videos.

It is one of the most promising tech trends for tourism-related companies, because it allows them to digitally transport customers to a virtual recreation of a specific place. This affords hotels the opportunity to showcase their rooms, reception areas and even local tourist hotspots on their website, in order to encourage bookings.

Example: The world’s first Virtual Reality travel search and booking experience

 

Find more detailed information and examples about how virtual reality can benefit your business in the article “How Virtual Reality is Transforming the Travel Industry”.

4. Augmented Reality (AR)

Augmented reality is similar to virtual reality, but involves augmenting a person’s real surroundings, rather than replacing them. One of the major plus points of this particular technological trend is that it is cheaper than VR, with users requiring only a smartphone or tablet device which has access to the internet.

Through graphical overlays, those in the tourism industry can greatly enhance the customer experience, providing customers with valuable information or even pure entertainment. For instance, apps can allow for photographs to be augmented through filters and effects. Details about local destinations can also be displayed as a customer points their smartphone at them, providing information at the exact time that it is most relevant.

Example: Augmented reality within the hospitality industry

 

Find more detailed information and examples about how augmented reality can benefit your business in the article “How Augmented Reality is Revolutionising the Travel Industry”.

5. Robotics

Even a decade ago, the idea of robots being deployed regularly within the travel industry would have seemed like the work of a science fiction writer. Yet, it is becoming increasingly prevalent, with artificially intelligent robots, often equipped with speech recognition technology, being used in place of information points by chains like Hilton.

Robots are also utilised for a variety of other reasons. For example, in airports, they can be used to detect concealed weapons, while some manufacturers are also using robotics to create luggage cases that intelligently follow you. Moreover, travel agents are using robots for pre-screening, making waiting times more productive for customers.

Example: Autonomous Security Robots

 

Find more detailed information and examples about robot use cases in the travel industry in the article “Robots in the Travel Industry: 8 Real-World Examples”.

6. Artificial Intelligence (AI)

Away from robots, artificial intelligence is being used in other ways too. Perhaps the most obvious use within the travel industry is for customer service purposes, with chatbots possessing the ability to deliver rapid response times to problems or queries. It is also able to continuously learn from interactions with customers.

In addition, hotels and other companies operating in the tourism industry can make use of artificial intelligence to accurately and continuously sort through data. It will be able to draw conclusions about business performance or trends associated with customer satisfaction, and even intelligently manage inventories.

Example: Create Your Bot Booking Travel

 

Find more detailed information and examples about artificial intelligence use cases in the travel industry in the article “How Artificial Intelligence is Changing the Travel Industry”.

7. Big Data

In the modern tourism industry, big data is a fact of life, and almost all companies that are successful employ their own data collection techniques. One of the biggest uses for this data is to improve personalisation, with travel companies using the information they gather to make specific adjustments to their offerings.

Another valuable use for data is to analyse current business performance. In particular, hotel owners can use big data for revenue management purposes, using historic occupancy rates and other past trends to better anticipate levels of demand. When demand is predictable, pricing and promotional strategies can also be optimised.

Example: Big Data and predictive analysis

 

Find more detailed information and examples about big data in the travel industry in the article “5 Ways Big Data Can Benefit the Travel Industry”.

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Innovation reboot: Small, practical digital transformation initiatives preferred

 

By Tim Scannell, Director of Strategic Content, CIO Executive Council | NOV 29, 2018 2:30 AM PT

Innovation remains one of the key drivers of digital transformation, but today’s initiatives may be smaller and more targeted.

While corporate-wide innovation labs and blue-sky hack-a-thons were all the rage over the past few years, the coming trend for many companies might be innovation with intent and smaller, more pragmatic projects that have significantly less glitz and glamour but a better chance of success.

Innovation plays a key role in driving digital transformation in business today. Everyone knows that, right?

Nearly 90 percent of the IT leaders who took part in the 2018 State of the CIO Survey, released earlier this year, admit the CIO role is becoming more focused on both digital initiatives and innovation. Dig a little deeper into the study, and you’ll find that 37 percent of the top IT heads point to innovation as a way to identify which parts of the business can be transformed using digital technologies.

No doubt the results of the coming 2019 State of the CIO research, to be presented in a January CIO Executive Council webcast, will show similar and more supportive figures when it comes to the adoption and use of innovative technologies and tactics in the enterprise. Clearly, innovation is a top line item when it comes to technology and business investments.

Before you carve out a piece of your 2019 budget for innovative activities, however, you should be aware of one thing: The definitions for innovation, as well as the scale of projects, have changed considerably over the past couple of years. Those show-stopping company-wide epics that were exemplified by such companies as Toyota Financial Services (TFS) and its hack-a-thons, internal competitions, and dedicated innovation lab have shifted somewhat south in favor of smaller single-spotlight productions.

Where before the effort was to innovate to the max, today’s initiatives are more likely to be more modest and lean toward innovating with intent. In short, a lot of the smart budget money will be spent on projects that are framed with a more thoughtful and even surgical approach to innovation.

“I tend to take a more pragmatic view and try not to get bogged down in big initiatives that get your name in the paper, but nothing ever happens,” notes Ed Winfield, who has been the CIO for Maricopa County, Arizona, for little less than a year and is a passionate advocate for small and more meaningful approaches to innovation.

ed winfield photo Maricopa County, Arizona
Ed Winfield, CIO for Maricopa County, Arizona

While he may sound a bit folksy at times, Winfield is no rube when it comes to digital transformation and the ins and outs of championing IT initiatives in state and local governments. Previously, he was CIO for Wayne County, Michigan, the 19th-most populous county in the nation that includes the city of Detroit. While there, Winfield orchestrated an upgrade from an aging legacy system to cloud-based systems and deployed more data analytics to help state services run more efficiently — all under the cloud of tight budgets and economically challenged environment. In fact, these efforts and results were acknowledged when Winfield was recognized as a 2016 Top 25 Doer, Dreamer and Driver by a respected government IT online publication.

The challenges at his new post are no less daunting, since Maricopa County is the fourth largest U.S. county by population and one of the fastest-growing areas in the country. Rather than jumping on the smart cities bandwagon and pitching high-speed fiber and pervasive wireless connections for every nook and cranny of the county, Winfield prefers to take a breath, listen closely to his constituents, and focus on small projects that are scaled to deliver positive but sometimes less dramatic results.

“I don’t view what we’re trying to do in becoming a digital county as some type of massive endeavor,” Winfield explains. “We can make significant forward progress with small innovation projects.”

However, the county does have a range of ongoing projects that look at such things as smart highways, smart traffic light management, and other smart initiatives that are interesting. There is a group called the Institute for Digital Progress that looks at innovation from a regional business perspective as it tries to position the county and surrounding areas as a “smart region.”

Even before the ink had a chance to dry on his new business cards, Winfield mapped out a plan for an all-digital county that serves as an umbrella over a series of small and more-targeted projects that will be rolled out over the next few years that will collectively move the entire county from the restrictions of paper-based tangibility to a more flexible digital world.

“At the end of a three-year period, I would rather look back and say we knocked out a lot of small projects that really made a difference to the way we operate and potentially the way people interact with the county via web services or mobile tools,” he says.

That is exactly what Winfield is doing as he connects with different departments to plan for internal productivity improvements that include eliminating paper forms and moving toward digital signatures and online approvals. He also wants to improve the online services available to the residents of Maricopa County. In addition, plans are in the works to revamp the court system, both to eliminate paper and create an online dispute resolution system and totally automate case management.

Practical innovation

The trend toward more practical innovation is apparently catching on. In its 2019 predictions for enterprise digital transformation, Forrester Research notes that while business leaders championed large-scale initiatives in 2018, many of which focused on customer experience, efforts this coming year will shift to more pragmatic and smaller surgical initiatives. Purpose will become strategic priority, given the complexity and cost of larger and more expansive projects.

IT organizations and business stakeholders should strive to embrace the minimum viable product when it comes to innovation projects, says Mihai Strusievici, director of information technology, North America for Colliers International, a global real estate services company, in an earlier Digital Divide column. He advises other leaders not to pitch one or two large and expensive innovation initiatives that typically eat up a significant chunk of a budget due to their complexity and scope. Instead, spend money on a variety of smaller innovation efforts that are more focused and may have a higher chance for success or conversely have far less of a negative impact should one or two fail.

“Don’t only look for the big idea,” adds Pradip Sitaram, senior vice president and CIO at Enterprise Community Partners, an organization that brings together people and resources to create affordable housing and thriving communities for low- and moderate-income people. Instead of always looking for the home run, he says, making use of a baseball analogy, “you keep hitting a bunch of singles and doubles, and with the runs you get from those, you can achieve the amazing results.”

pradip sitaram photo Enterprise Community Partners
Pradip Sitaram, SVP and CIO at Enterprise Community Partners

A few years ago, for example, the business team and Pradip decided to automate the way people in the organization checked the performance parameters in their real estate portfolio to ensure compliance and efficiency. The tools used were able to quickly identify exceptions to the established parameters that fell outside established business rules that dictated a certain level of risk tolerance and boil the results down to a much more manageable subset of properties. While a great innovative first step, Pradip and team decided to piggyback on that success and take it a step further to see what innovation possibilities might be lurking outside the fancy technology and algorithms.

The solution was to empower the business stakeholders to proactively change the rules used by the tools to check against the parameters, without having to rely on IT to field suggestions and then make the changes. To do this, a system was designed that allowed business to insert rule updates into the system, which then created new logic to check against performance parameters across the company’s real estate portfolio.

“We didn’t set out to do something innovative,” explains Pradip. “All we did was empower people to use these tools more efficiently, with a different mindset.”

While he doesn’t see anything wrong with large-scale innovation labs from a culture-building and even a marketing standpoint, Pradip does not think highly visible efforts like this really drive grassroots innovation. For him, the recipe is simple: When things get tough, the tough get innovative.

The key to innovation is your mindset, he adds. It’s your willingness to think differently, to take a risk and try some new process or technology, and to see the world differently and not simply conform to established practices.

“I think some of the great motivating factors for innovation are constraints,” Pradip points out. “When you have budget constraints, when you have resource constraints, when you have time constraints.”

Constraints are not restrictions or barriers, but a gift, he says. “If you have constraints, you’re forced to think out of the box, to think innovatively and say, ‘How can I best make use of the limited resources that I have in time, money, and people to come up with good solutions?’”

To encourage, foster, and sustain an innovation culture, organizations and executives must understand and accept that every experiment will not succeed; every innovation exercise will not result in a revenue generating product or operating efficiencies, Pradip points out, adding that you will likely fail more than you succeed. Every exercise will deliver valuable learnings.

“As long as there is a culture that accepts that it’s OK to test and learn — to fail fast and learn quick — then teams will be more likely to venture out of their safe zone and the magic can happen,” he says.

Technology and the changing business and consumer cultures

While more restrictive budgets and the push to do more with less has a lot to do with the emphasis on more surgical and pragmatic approaches to innovation, the shift in business and consumer cultures due to the pervasive use of technology has also played a key role.

People, in general, have a different posture and cultural understanding of technology and what it can do, since it saturates their public and private lives, explains Winfield. Years ago, conversations on technology adoption and use around the topic might center on the impact — good or bad — on a person’s life or continued employment. Today, it is all about leveraging technology in small and incremental ways — whether it is cyber banking, online shopping, or eliminating a tedious task in the office.

“People are able to converse and maybe see how something might work and I think that’s the spirit of it,” Winfield says.

In this new world of practical “baby steps,” is there still some wiggle room for larger-scale projects and maybe a hack-a-thon or two as part of the overall innovation effort? Absolutely, says Winfield.

“We’re just getting underway, and I’m starting on the fringes, so we’ve got enough to do here in the short-term,” he says. However, “I’m not close-minded about the idea of some type of gathering or larger effort, but we’ve got to consider how it would move us forward.”

Pradip agrees, noting that hack-a-thons are useful because they usually establish constraints in time and the number of team members, which are great motivators. However, you won’t find more-structured corporate-led innovation labs and internal think tanks on his to-do list.

 

[ Learn the 6 secrets of highly innovative CIOs and how your CIO peers are defining and driving innovation today. | Get the latest leadership advice by signing up for CIO Leader newsletter. ]

What to Expect: Top 2019 HR Tech Trends

By Dave Zielinski, Contributing Writer – January 8, 2019

 

In 2019 HR will see growing adoption of “nudge-based” technology designed to encourage productive employee behaviors, more scrutiny of artificial intelligence tools and increased use of specialized “point” systems, according to technology industry experts who spoke with SHRM Online.

The new year also will see organizations continue to transition their core HR systems to the cloud and employ more AI-driven technologies to automate communication between HR and employees.

[SHRM members-only online discussion platform: SHRM Connect]

Here are the top technology trends experts expect to continue or emerge as HR turns the page to 2019:

‘Show Me’ Approach to Artificial Intelligence (AI)

HR technology leaders will become more diligent about keeping tabs on vendors’ AI tools, experts believe. The increased scrutiny will be due in part to highly-publicized cases like that at Amazon, where a home-grown recruiting algorithm was found to discriminate against women.

“We will see some push back on machine learning and AI next year [such as] testing its effectiveness and searching for potential bias,” said Stacey Harris, vice president of research and analytics for Alpharetta, Ga.-based HR research firm Sierra-Cedar. “With more organizations leveraging machine learning next year, there’ll be more data and examples on how any biases might be showing up.”

Sarah Brennan, founder and chief advisor of Milwaukee, Wis.-based HR consulting and research firm Accelir, said it’s important that buyers of AI tools look beyond vendor promises to ensure they’re getting products that do what they claim they can do.

“Don’t get caught up in the marketing hype,” Brennan said. “Make sure you ask vendors about their validation studies and use cases, because those with legitimate AI applications won’t hesitate to provide them.”

Sea Change in Engagement Measurement

Organizations are transforming how they measure employee engagement, and technology will continue to evolve to support that shift, experts say.

“We expect 2019 to be the first year that more organizations use nontraditional, technology-based listening techniques than they do the companywide annual survey to measure engagement,” said Brian Kropp, group vice president of the HR practice at research and advisory firm Gartner.

That development represents a significant change from just three years ago. In 2015 a Gartner study found 89 percent of medium-to-large organizations were using an enterprisewide annual survey to assess engagement, while only 30 percent were using nontraditional methods like analyzing employee movement data—tracking where employees spend their time via technology embedded in ID badges—or computer usage data that tracks how employees use e-mail, internal collaboration networks, websites and more.

“Companies have become more comfortable with scraping across employees’ calendars and e-mails to get a better understanding of current sentiment and organizational culture with the goal of improving engagement levels,” Kropp said.

Brennan believes engagement platforms will see the highest adoption rates among all HR technology categories next year. “For the first time there are good engagement technologies available for companies of all sizes and at all price points,” she said.

Rise of ‘Nudge-based’ Technologies

Kropp said HR technologies that suggest certain behaviors will grow in popularity in 2019. One such technology can monitor employee activity at a computer workstation. “It might send a message saying, ‘You have been at your desk for X amount of time and it appears you’re losing focus, so now might be a good time to get up and go for a short walk,’ ” Kropp said.

An example is Cultivate, software works as a digital coach for managers. It analyzes data from e-mail, internal collaboration systems and calendars to assess how managers spend their time interacting with direct reports. The tool then uses machine learning to give managers suggestions for how they might improve their team’s performance, such as spending more time with certain employees.

Rachel Ernst, vice president of employee success at vendor Reflektive, said there’s also an ongoing movement to embed performance management within the flow of daily work.

“The technology can now send automatic nudges to managers to remind them to give feedback to employees as well as deliver short videos to provide guidance on how to conduct review discussions or give effective recognition,” she said. “This keeps HR from having to send regular e-mail to managers to remind them of these essential tasks.”

Growing Importance of the HRIT Role

Sierra-Cedar’s 2018-2019 HR Systems industry survey found the role of the human resource information technology (HRIT) specialist is growing in strategic importance and Harris expects that trend to continue. In cloud environments these roles are 1.5 times more likely to be responsible for data security and technology configuration decisions than IT or functional roles, the survey found.

Harris said that it’s important for the HR staff to have specialized IT roles, even as other functions like finance or marketing don’t, “because HR touches everyone in a company and HR deals with more data privacy and integration issues than most other disciplines in the company.”

Faster Migration of Core HR Systems to the Cloud

A 2018 study from PricewaterhouseCoopers (PwC) found that 75 percent of surveyed companies now have at least one HR process in the cloud. Forty percent have core HR systems like an HR management system there, said Dan Staley, a global HR technology leader with PwC. Another 26 percent of respondents said they planned to move a core system to the cloud in the next one to three years.

“Moving a core system to the cloud is a barometer of how serious organizations are about that technology,” Staley said. “Large organizations with complex requirements like international payroll or union populations have resisted moving core systems to the cloud in the past because they felt the technology wasn’t mature enough. But with cloud products having proven themselves over the past decade, companies are now moving there en masse.”

Renewed Interest in ‘Point’ Solutions

More organizations will consider adding “point” or specialized technology solutions to their portfolios in 2019. These systems address individual areas of HR like recruiting, performance management or engagement and are often the target of innovation from small or emerging vendors. Brennan believes popular ones will be talent acquisition systems, chatbot applications for recruiting and answering employees’ HR-related questions, and engagement platforms.

“Few of the full-suite vendors have invested in the talent acquisition portion of their suites in the same manner as point system providers,” she said.

Point systems can now be more quickly integrated with broader talent management suites by using application programming interfaces (APIs). “Integrations that used to take six to nine months now take six to nine days with the right APIs,” Brennan said.

‘Push’ Recommendations from AI

The accelerating application of AI to workforce data will allow relevant information to “find” employees at the point of need, experts say. Cristina Goldt, vice president of HCM products at Workday, said AI will enable simpler navigation of learning and development options as well as easier execution of tasks like onboarding, benefits selection and IT service ticketing.

For example, Goldt said, a newly-promoted sales manager might benefit from this type of AI by being “pushed” recommended learning content for leadership training, suggested workplace connections and a list of potential mentors that went through similar transitions; a set of onboarding tasks that direct her to set up sales targets, enter forecasts and review the pipeline in a customer relationship management system; and a snapshot of team members to help her get to know them better.

Learning, Performance and Career Planning Converge

Vendors in the learning, performance management and career planning markets will “play more in each other’s spaces,” said Dani Johnson, co-founder and principal analyst of Red Thread Research, a HR research and advisory firm in Salt Lake City, Utah.

“We’re seeing more learning vendors get into performance and more performance and career vendors operate in the learning market,” Johnson said. “One reason for the convergence is it’s hard to develop someone effectively unless you already know where they stand in regard to their performance and career plans.”

Johnson said there’s also a growing number of content-based point solutions in the learning market designed to integrate with internal communication platforms like Slack. “It’s about taking learning to employees rather than make them come to the learning,” she said.

Dave Zielinski is a freelance business writer and editor in Minneapolis.

5 Technology Trends Impacting State and Local Governments

Contributed by the Community Editorial Team at Comcast Business
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March 01, 2018

State and local governments stand at the cusp of a technology renaissance, as new offerings and services are available to help agencies serve their constituents faster, more effectively and more efficiently. Technologies that once were thought of as “bleeding edge” now are increasingly ubiquitous, enabling government agencies to become more customer-centric in myriad ways, from answering billing queries to proactively identifying when customer data is being targeted by cybercriminals.

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According to research firm Gartner, government CIOs expect to spend 28 percent of their 2018 budget on digital initiatives designed to increase the value of government to constituents.[1] Technologies such as analytics, automation, artificial intelligence and even autonomous vehicles all have the potential to enable governments to offer services and aid their citizens in ways that not only can improve the customer experience, but also save governments time, money and labor.

Imagine logging on to a government website and being “recognized” through facial recognition, then “telling” the site what you’re looking for in plain English and receiving the results instantly. Or imagine a self-driving maintenance truck that “sniffs out” and automatically fills potholes without human intervention.

On the surface, this may sound like the stuff of science fiction. But these scenarios are coming closer to being reality, as technologies such as artificial intelligence and autonomous vehicles are moving closer to the mainstream. And their effect on state and local governments would be transformational in providing services and keeping citizens safe from physical and cyber perils.

TECHNOLOGIES TO WATCH

The scope of technologies that can impact government services—and, in turn, our lives—is far-reaching, from robots that clean parks to systems that can create personalized cybersecurity by observing and learning from users’ behaviors. Some technologies are still more bleeding-edge than leading-edge, while others have the potential to be in service—and of service—today.

Five technologies in particular—artificial intelligence and robotics, autonomous vehicles, digital government, automation, and efforts to increase cybersecurity—demonstrate value to state and local government initiatives.

ARTIFICIAL INTELLIGENCE AND ROBOTICS

Of all the technologies that can reap the largest benefit for governments, artificial intelligence is perhaps the one most likely to have the biggest impact. In fact, a number of agencies already are using AI to handle tasks quickly that otherwise would take much longer for humans to do, such as sorting through massive amounts of paperwork to find relevant information.

Law enforcement agencies are looking at artificial intelligence as a weapon to help fight crime by improving video surveillance, spotting criminals in crowds through facial recognition, and even helping reduce the amount of time police officers spend writing reports.

Beyond artificial intelligence, robotics is becoming a way for agencies to spend less and do more. Consultancy firm Deloitte highlights the coming of process robotics, which it describes as “… computer-coded, rules-based software that uses ‘bots’ to automate repetitive, rules-based tasks otherwise performed by humans. Requiring minimal system integration, bots can be deployed in as little as a few weeks depending on the complexity of the process.”[2] Any high-volume, rules-based work can be performed by process robotics, which helps free employees to focus on more valuable customer-facing activities.

Bots are already being used by agencies to help improve customer service. Chatbots in particular are being used to answer questions via the web without the need for customer service agents—a technology especially useful for agencies that are understaffed and don’t have dedicated customer-facing employees.

Deloitte estimates that employing AI technology in the government space could free up as many as 1.2 billion working hours every year, saving $41.1 billion.[3]

AUTONOMOUS VEHICLES

While much of the conversation around government and autonomous vehicles has focused on legislating such technology, governments can benefit from the use of autonomous vehicles in multiple ways. Another Deloitte study notes that, as end users, agencies not only can improve their government-operated fleets, but also further the concepts of shared mobility and “other new types of travel through their procurement decisions.”[4]

The federal government operates a fleet of more than 600,000 vehicles, including U.S. Postal Service trucks and General Services Administration vehicles leased to various agencies.[5] In 2016, USPS vehicles were involved in about 30,000 accidents nationwide, resulting in about $67 million in repair and legal costs.[6] As a result, the agency is considering autonomous vehicles for its fleet, not only to help improve safety but also to increase productivity of letter carriers, who could ready the mail for deliveries during transit.

At the state and local level, highway maintenance departments could dispatch autonomous trucks to repair road damage such as potholes or broken curbs, clean debris from roads following a collision or events such as a parade, or clear snow and ice from roadways during inclement weather. Public transportation can also be a potential target for autonomous vehicles to help municipalities save on labor costs while keeping their fleets moving.

While autonomous vehicles can have the ability to negatively impact state and local budgets—the amount of revenue generated by traffic tickets is certain to decrease due to anticipated safer driving by autonomous vehicles—governments potentially have more to gain than lose from the technology, including decreased labor costs, increased productivity and lower legal costs related to vehicle accidents.

DIGITAL GOVERNMENT

The term “digital government” is an umbrella term used to describe technologies such as mobile services, common online identities and crowdsourcing—all designed to streamline services and improve the end-user experience.

Mobility in particular is an area where governments at all levels can increase the quality of their services and the efficiency of their employees. Apps can be used to access information quickly and easily, enabling citizens to, for example, see in real time where tree-trimming crews are slowing traffic or virtually check in to the local DMV office to avoid waiting in line. Mobile apps also can help government employees working offsite and in the field. Building inspectors can get instant access to building plans, permit applications and more, for example. Parks and recreation department workers can see the location and working status of every water fountain connected to an internet of things (IoT) sensor. And transportation department employees can remotely change the status of digital signage to alert motorists of changing traffic conditions.

Back-office systems that facilitate common identities for constituents also can help improve the user experience, especially when dealing with multiple agencies. Much like users can log on to various websites by connecting with social media sites such as Facebook, government agencies can use common identity systems to help simplify the process of accessing various agency sites to accomplish tasks, such as checking on the status of a request filed with the zoning commission or filing a police report for a hit-and-run traffic accident.

Crowdsourcing, once the purview of sites that harness user opinions to make recommendations on restaurants, hotels and more, is now joining the government fray, as more agencies are depending on the “wisdom of the crowd” to help collect and disseminate information. The federal government has established a site, citizenscience.gov, to help agencies encourage public participation to accelerate innovation. It features federal citizen science efforts in climatology, ecology and disaster response, among others, to help “engage the American public in addressing societal needs and accelerating science, technology, and innovation,” according to the site. At the state and local level, crowdsourcing can be used by agencies to gather real-time traffic information, monitor power outages and collect other data important to citizens, providing facts to the minute and on the fly.

AUTOMATION

Consultancy firm KPMG pegs automation as “the next step in government’s digital transformation,”[7] and with good reason: Automation is perhaps the most useful technology in terms of impacting government services from both the agency and the constituent perspectives. In particular, process automation can free employees from mundane tasks such as filing paperwork to concentrate on more meaningful projects or tasks that require their full attention, such as addressing constituent issues.

Automation is one step below artificial intelligence on the technology ladder; however, interest in “intelligent automation” is growing as a way to further enhance productivity while improving accuracy. Chatbots are a simple example of intelligent automation, while IBM’s Watson with its cognitive analytics, which has the ability to learn and solve problems, offers a prime example of more complex intelligent automation.

Automation is not a new concept in government or other industries, for that matter. However, as advances in artificial intelligence and robotics continue, automation will take on a much more important role in helping governments run efficiently and providing more valuable citizen services.

EFFORTS TO INCREASE CYBER SECURITY

As more processes and constituent interactions occur digitally, governments must do more to protect sensitive and valuable data from cyber threats. No longer should agencies worry about whether their systems will be breached; rather, they should worry about when their systems will be breached.

Researchers estimate damages from cyber crime will amount to $6 trillion worldwide annually by 2021.[8] Included in that amount are damage and destruction of data, embezzlement, stolen money, restoration and deletion of hacked data and systems, lost productivity, theft of intellectual property, forensic investigation, theft of personal and financial data, fraud, post-attack disruption to the normal course of business, and reputational damage.

As cyber threats continue to surge, so does the demand for qualified cyber security talent. However, a recent study by the Center for Cyber Safety and Education predicts there will be a worldwide shortage of 1.8 million skilled security workers by 2022.[9] Agencies must look for new and innovative ways, then, to secure their data and keep their systems safe from breaches and malicious activity.

The cloud is emerging as one tool in the fight against cyber crime, as technologies such as cloud workload protection platforms show promise in keeping data protected no matter where data resides—on-premises, in virtual machines or in cloud environments. Deception technologies, which are designed to throw off a would-be attacker, also can help, as well as endpoint detection and response solutions and network traffic analysis capabilities.

Artificial intelligence shows the biggest promise in improving cyber security, and is the technology upon which many of the new security solutions are based. It is evident that artificial intelligence will serve as the backbone for many, if not most, of the technologies powering the next generation of government services.

HOW THE NETWORK MATTERS WITH NEW-GENERATION TECHNOLOGIES

State and local governments are quickly reaching the point where adoption of new technologies is inevitable. Indeed, the efficiency and effectiveness of any government agency is dependent on the technologies it uses to provide services and protect the health and welfare of its citizens.

In preparing for their impending technology renaissance, agencies first must prepare their networks to certify they are able to handle the increase in demand. Artificial intelligence, cognitive computing, mobility and other technologies can stress the bandwidth of traditional networks and impact performance.

Agencies need to ascertain if they have the right foundation for both customer-facing and back-office operations, as well as new opportunities yet to be imagined. Today’s efficient networks comprise multiple technologies and platforms all chosen to ensure the solutions they support operate at peak performance without issue.

In building a network for the next generation of government services, agencies should consider an environment that includes both on-premises, cloud, and networking technologies such as SD-WAN and high-speed broadband to make certain traffic is handled efficiently over any type of network. And networking components such as WiFi and unified communications can ensure users of the network—employees and constituents—interact with each other using their preferred method of communication.

To help ease stress on an agency’s current network—not to mention the daily burden on IT managers—managed services can be utilized to offer certain constituent services, such as bill payments, without further impacting the network. Managed services can be used to help tie disparate systems together and “fill in the gaps” as agencies update their current infrastructure, and can prove useful even after networks have been upgraded.

Working with a network service provider can help ease the burden associated with building and maintaining a network capable of handling the bandwidth-intensive needs of the next generation of government services. By working with a third-party network services provider, agencies can leverage virtual and physical private Ethernet connectivity to assure critical applications perform as expected. They also can receive all or some of their most critical connectivity functions as a managed service, including managed connectivity, WiFi, security, voice and business continuity, among others.

CONCLUSION

New technologies loom on the horizon to help government agencies better serve their constituents, from answering billing queries to protecting sensitive data from cyber threats. The network on which these technologies run must be robust and flexible enough to handle the traffic and bandwidth demands of today and beyond.

View the PDF.

View the infographic: Trends in Government

 


[1] “Gartner Survey Finds Government CIOs Spend 21 Percent of Their IT Budget on Digital Initiatives,” press release, Gartner, April 25, 2017 https://www.gartner.com/newsroom/id/3693017

[2] “Process robotics in the federal government,” Public Sector Solutions web page, Deloitte, https://www2.deloitte.com/us/en/pages/public-sector/solutions/federal-government-process-robotics.html

[3] William D. Eggers, David Schatsky, Dr. Peter Viechnicki, “How artificial intelligence could transform government,” executive summary, Deloitte, April 26, 2017, https://dupress.deloitte.com/dup-us-en/focus/cognitive-technologies/artificial-intelligence-government-summary.html?_ga=2.17808368.871295872.1509472479-881865455.1507121216

[4] RJ Krawiec, Vinn White, “Governing the future of mobility,” Deloitte, Aug. 3, 2017, https://dupress.deloitte.com/dup-us-en/focus/future-of-mobility/federal-government-and-transportation-of-the-future.html

[5] Ibid

[6] “Autonomous Vehicles for the U.S. Postal Service,” report, USPS Office of the Inspector General, Oct. 2, 2017, https://www.uspsoig.gov/sites/default/files/document-library-files/2017/RARC-WP-18-001.pdf

[8] “Official 2017 Annual Cybercrime Report,” Cybersecurity Ventures, October 2017, https://cybersecurityventures.com/hackerpocalypse-cybercrime-report-2016/

[9] “Global Cybersecurity Workforce Shortage to Reach 1.8 Million as Threats Loom Larger and Stakes Rise Higher,” news release, Center for Cyber Safety and Education, June 7, 2017 https://www.isc2.org/News-and-Events/Press-Room/Posts/2017/06/07/2017-06-07-Workforce-Shortage

 

Five Predictions for How Technology Will Change Sports in 2019

Might the NFL launch an esports league in 2019? (Photo by Otto Greule Jr/Getty Images)

By , Senior Writer – SportTechie /December 28, 2018

If 2018 were the year that sports betting was legalized, major deals were reached across mobile ticketing and biometric verification, and sports streaming services launched at an unprecedented pace, threatening to dethrone cable TV, 2019 will be the year they all hit a stride.

In 2019, niche sports will continue to grow in popularity as streaming services gain steam, sports betting will become accessible at venues, biometric IDs will be used to buy beer at games, esports will create further inroads in traditional sports, and athletes will further embrace wearable technology, digital video, and virtual reality to enhance their skills and marketability.

Sports Betting at Venues

States across the U.S. are working to adopt sports betting following the U.S. Supreme Court’s ruling in May that opened up the legalization of gambling. One thing is for certain as we head into 2019: sports betting will be more commonplace and more widely accepted.

More states will move to embrace betting while regulators start to pass laws that protect athletes, leagues, and gamblers. But another thing fans might come to expect in 2019 is access to sports betting terminals at the venues themselves. In November, MGM Resorts CEO Jim Murren hinted at this possibility at a conference. Murren said that MGM, which owns the Vegas Golden Knights’ T-Mobile Arena alongside AEG, was eyeing plans to test sports betting kiosks at the venue during Knights games. Murren shortly thereafter hedged that statement, saying that it wasn’t in the cards just yet. But his intention has been set.

Elsewhere in the sports world teams and leagues will continue to work sports betting capability into new and existing apps. Interactive mobile game maker Xperiel is currently working with MGM Resorts and the New York Jets to build sports betting into the Jets’ existing in-app prediction game, “I Called It.”

“Sports gambling becomes less of a gamble,” said Xperiel cofounder and CEO Alex Hertel in a note on 2019 tech predictions. “We will see a rift between the desires of the gambler and the regulating bodies that could end up driving some sports betters away. Immersive technology that engages fans will help make them stay.”

Mobile Ticketing and Biometrics

In 2019, mobile ticketing might not just become commonplace to pass through many venue gates, but it may become required. Meanwhile fans will be increasingly incentivized to use their biometrics for verification.

In 2018, major ticketing companies, from Ticketmaster to Seatgeek, moved to couple together the primary and secondary ticketing markets to help teams maintain control over prices and attendance data. After the NFL expanded its partnership with Ticketmaster in 2017 in an attempt to control more secondary-market sales, in 2018 a number of teams started to embrace a mobile-first ticketing strategy. This will continue into the new year, but with the added integration of biometrics.

In the MLB, biometric verification company Clear (which has a presence alongside TSA Pre✓ at airports) entered into a multi-year deal this past year with the league and its ticketing partner Tickets.com to do just that. As part of the deal, Clear agreed to leverage Tickets.com’s API to enable members to link their Clear profile with their MLB.com account to gain entry into games with a fingerprint scan. In the near future, facial recognition is expected to be added as well. The partnership was piloted at select MLB ballparks this past season, with a broader roll-out planned for 2019.

Also next year, biometric verification will expand beyond the gates and into venues. Clear was approved in the state of Washington this year to use its services to verify identities of people looking to purchase beer at Seattle Seahawks, Mariners and Sounders games. The company has since been in talks with regulators in other states to expand this elsewhere in the U.S.

Streaming and Consolidation

A number of streaming services offering extensive live sports programming launched in the U.S. this year, from ESPN+ to DAZN. This has created a fragmented market for sports streaming, while enabling fans to reduce their dependence on traditional cable. In 2019, streaming brands will scoop up new digital rights at a rapid pace, spanning not only major sports but niche ones as well.

We’ve already started to see this, with NBC adding a number of niche sports (from skiing to motocross) on its paid streaming service NBC Sports Gold. ESPN+ has similarly emphasized lesser-known sporting events, while DAZN has entered the U.S. market with a focus on combat sports.

In the new year, digital rights will continue to find their way into the hands of these major players, which will help to tighten their hold on the market. This might also give some of these streaming companies the fuel to begin trouncing (and potentially even scooping up) some rivals, igniting a more mature wave of consolidation within the industry.

Wearables and Privacy

In 2018, Whoop, the wearable company that partnered with the NFL Players Association last year to track player strain and recovery, secured a $25 million Series C funding round led by UAE71 Capital with participation from the NFLPA, Kevin Durant, and former NBA Commissioner David Stern.

In 2019, wearables and RFID trackers will continue to be pushed onto athletes to meet the insatiable appetite of fans and coaches for data. But with this proliferation of wearable devices in professional sports, innovation will continue to push against privacy.

The NFL’s CBA is set to expire in 2020. The next wave of negotiations between the league and NFLPA will likely begin in 2019, bringing many of these issues to the forefront. Under the terms of the NFLPA’s deal with Whoop, NFL players maintain ownership of their health data, and are also able to commercialize that data through the NFLPA’s licensing program.

According to Sean Sansiveri, the NFLPA’s vice president of business and legal affairs, if a market for athletes’ biometric data should ever arise, the union will have an established mechanism in place to ensure that professional football players are not only protected but also well-positioned to profit off their private data if they choose to do so. The Supreme Court’s ruling on sports betting in May, and the expanding state-by-state legalization of sports betting, might well create exactly that market.

NFL Launches an Esports League

While esports and traditional sports merged at an unprecedented rate this year with the launch of the NBA 2K and investments in esports teams by sports franchises, this trend will accelerate in 2019. NASCAR has already announced that it is hopping on the esports league bandwagon heading into the new year. The NFL has been slower to adopt esports, however the league earlier this year posted a job looking for a “head of gaming and esports” that would be based in its New York headquarters and lead the “strategic planning, partner management and execution of the League’s gaming efforts.” Perhaps 2019 is the year that Madden NFL gamers can go pro.

3 Employment Screening Trends to Know Before You Hire in 2019

Roy Maurer
By Roy Maurer, Online Manager/Editor, Talent Acquisition – SHRM Online
January 23, 2019

This is the first article in a two-part series. The next installment will examine how employers can ensure data security in the screening process and what to expect with forthcoming artificial intelligence technology.

Employers are ramping up their use of social media screening and real-time employee monitoring in 2019. And the demand for workers in a tight labor market will push more companies to consider applicants they may have once ignored: those with criminal records.

[SHRM resource page: Background Checks]

Social Media Checks

Employers have shown increasing interest in screening candidates’ online presence.

In 2019, more background-check providers will offer online and social media searches as part of their suite of products, but employers must ensure that these searches protect candidate privacy and don’t run afoul of the federal Fair Credit Reporting Act (FCRA) or standards set by the Equal Employment Opportunity Commission (EEOC).

“Social media screening presents opportunities for recruiters to find candidates and to reduce risk, but at the same time, these searches can create a legal minefield of potential liability,” said Les Rosen, founder and CEO of Employment Screening Resources, a background-screening firm in Novato, Calif.

Interest in social media screening has grown significantly over the last few years, said Bianca Lager, the president of Santa Barbara, Calif.-based Social Intelligence Corp., a leading provider of social media screening reports. “We now see almost daily news stories of someone getting into trouble with their employer over what they’ve written online,” she said. “Hiring companies know they can’t get away with ignoring social media as part of the background-screening process any longer, but the DIY approach is incredibly troubling for candidates in terms of privacy, accuracy and discrimination.”

If HR professionals are conducting their own online searches on job candidates, they need to stop, said Montserrat Miller, an attorney with Arnall Golden Gregory, based in Atlanta. “The potential for a discrimination claim far outweighs the cost of adding a social media screening option from a vendor.”

Rosen said that employers should be wary of discovering too much information—or “TMI”—on social media. ” ‘TMI’ means by looking at [an applicant’s] social media site or perhaps a photo or something that they have blogged about, you are going to learn all sorts of things as an employer you don’t want to know and [that] legally cannot be the basis of a decision,” he said. Job applicants can sue employers for discrimination if they believe they were not hired due to protected characteristics covered by Title VII of the Civil Rights Act of 1964, including race, color, religion, sex or national origin.

“Even the appearance of a decision not to hire someone based on a negative impression related to race, gender, religion, or other protected classes could subject [employers] to a discrimination lawsuit,” said Christine Cunneen, CEO of Providence, R.I.-based background-check company Hire Image.

Experts agree that if employers decide to screen an applicant through social media, the best way to reduce legal risk is by having a third-party vendor perform the search instead of doing it in-house. Background-check providers that perform social media screening must comply with the FCRA and produce accurate reports scrubbed of protected characteristics.

“Social media reports won’t show whether or not someone is Muslim or gay or a military veteran, to protect the employer from a discrimination claim,” Miller said. “They will only provide instances of actionable, offensive information, for example relating to criminal activity, violent behavior or making racist comments.”

Cunneen added that employers need to be careful not to violate candidate privacy. Social media screens should be drawn only from user-generated, publicly available information and not from third-party content or password-protected sites. “If the applicant’s social media settings are set to public, that information is open for anyone, including potential future employers, to review,” she said. “However, if their profile is set to private, the employer cannot try to bypass those settings without risking exposure to potential liability down the road.”

Continuous Monitoring

New technology lets companies go beyond pre-employment checks and rescreens to real-time monitoring of current employees for warning signs of illegal or other concerning behavior.

“Employee monitoring is one of the biggest trends I’m seeing,” said Jason Morris, an employment screening consultant and industry expert with Morris Group Consulting in the Cleveland area.

“Justifiably, employers will always want to know who is working for them—not just [during] hiring but throughout their employment relationship,” Cunneen said. “A current employee can engage in illegal behavior as much now as he or she could have before they were an employee.”

Uber announced plans last year for ongoing monitoring of arrest and conviction data on their drivers. “These tools have been around for a while, but end users are finally seeing the benefits, and the data is getting better,” Morris said.

Uber teamed with San Francisco-based screening firm Checkr to get continuous updates about drivers’ records, including new criminal violations and license suspensions. The technology will notify Uber, for example, when a driver is charged with driving under the influence.

“It is a subscription that listens to a candidate’s data over time, looking for and identifying changes in their background to mitigate risk for companies,” said Tomas Barreto, vice president of product and engineering at Checkr. If new information triggers a full background check, the worker is also notified, he said.

“While there are some industries whose regulations have mandated continuous or some form of periodic screening, such as health care, we are seeing more industries embrace the idea,” said Melissa Sorenson, executive director of the National Association of Professional Background Screeners. “Like any background-screening program, it’s important for employers to ensure they follow both federal and state law related to background screening—including following disclosure and authorization requirements before conducting a background check, as well as adverse action processes in the event that the results of the background check lead the employer to consider not hiring, promoting or retaining the individual.”

Hiring People with Criminal Records

Research shows a majority of HR professionals find little difference in quality of hire between applicants with and without a criminal record.

“The fact that employers cannot find workers due to the current labor shortage has caused them to turn to an untapped and underutilized source of labor: ex-offenders and [former] inmates from the approximately 20 million Americans who have been convicted of a felony,” Rosen said.

The Prison Policy Initiative calculated the ex-offender unemployment rate to be 27 percent, higher than the total U.S. unemployment rate at any time, including during the Great Depression.

Alonzo Martinez, associate counsel for compliance at background-screening company HireRight, said that with the number of unfilled positions now exceeding the labor pool, employers are recognizing the potential in this previously untapped group of candidates.

“While a criminal record should never be an automatic deal breaker—especially for candidates who have misdemeanors on their records, have served their time or have been rehabilitated—in the current market, employers are increasingly considering candidates with criminal records and redefining policies and requirements to lower some of the barriers to employment that ex-offenders face,” he said.

“Companies recognize that hiring from this population is the right thing to do, but it’s also good business,” said Richard Bronson, the founder and CEO of 70MillionJobs, the first for-profit job board specifically for job seekers with criminal records.

“Companies are motivated by the bottom line, and they recognize that unfilled jobs are costly. Every single company I talk to says they are facing a staffing shortage or they have trouble retaining their workers, particularly at the lower end of the wage scale. Perhaps they would not have been eager to consider this population before, but I think they generally recognize that they can ill afford to ignore any large pool of talent out there, and this is arguably one of the largest. One in three adults have a record of some kind.”

The industries most hospitable to people with criminal records have been call centers, construction, health care, manufacturing, retail, and transportation and warehousing. “The technology sector has been woefully reticent to take action,” Bronson said. “They talk a good game but don’t deliver when it comes to actually hiring.”

Martinez said HR must be cognizant of the challenges involved with screening the ex-offender population, such as a longer turnaround time to ensure a complete assessment.

“Companies should continue to perform thorough background checks and conduct individualized assessments of candidates with criminal history, per EEOC guidance,” he said. “It would also benefit companies to review their hiring requirements to determine the types and depth of screening that is necessary for each job position. This can reduce the volume of acceptable hires that are unnecessarily flagged for additional review for reasons that are not related to the role’s responsibilities.”

Rise of the Drones – Managing the Unique Risks Associated with Unmanned Aircraft Systems


Report – Allianz Global Corporate & Specialty

Drones or unmanned aircraft systems (UAS) used to be primarily associated with military operations. Today, compact versions are increasingly operating in everyday life and the UAS industry is fast becoming a multi-billion dollar business, as the benefits to be gained from utilizing such innovative technology become apparent.
This Allianz Global Corporate & Specialty (AGCS) report examines the key issues and trends underpinning rapid growth in usage of UAS and provides insight into the potential risk exposures related to their deployment in the private, public and commercial realms.

> Download the full report Rise of the Drones – Managing the Unique Risks Associated with Unmanned Aircraft Systems

> Download the Executive Summary of the report

 

UAS have the potential to both solve problems and save costs in the future across a number of industries, throughout the developing world and in disaster relief scenarios. Growth projections for the sector are significant as UAS become cheaper to purchase, smaller in size and easier to operate. In fact, the UAS industry is regarded by many as the most dynamic growth sector of the global aerospace industry.

However, as civilian and commercial use of UAS rapidly increases and continues to evolve, the potential for misuse of this technology needs to be considered. Advances in technology are inevitably accompanied by a host of new and little understood risks. There have already been enough incidents and near-misses to date involving UAS to generate concern that the likelihood of collisions and other loss events will grow as UAS numbers multiply.

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Photo: microdrones.

The landscape today

Use of drones or unmanned aircraft systems (UAS) in public airspace is increasing dramatically. In the US, the Federal Aviation Administration (FAA) projects that by the end of 2016 over 600,000 UAS will be deployed for commercial use – three times the amount of manned general aviation aircraft. In addition, 1.9 million UAS are expected to be in recreational use. The number of UAS is set to triple by 2020. (1)

Globally, UAS market volume is forecast to reach 4.7 million (2) units by 2020 (other estimates are even higher), with the market for commercial application of UAS technology estimated to soar from $2bn to $127bn (3). Such projections are driven by UAS becoming cheaper, smaller and easier to use, as well as regulatory progress.

> Read more

UAS – The nuts and bolts: Types of UAS

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Graphic in German

Uses and benefits

Piloted remotely on the ground via control stations, UAS are increasingly used for menial or dangerous tasks, potentially solving problems and overcoming challenges across numerous countries and industries, improving the safety of thousands of workers every year and significantly reducing costs.

UAS are commercially used in a variety of situations, the most popular of which are industrial inspections, aerial photography, agriculture (surveying crops) and law enforcement. As UAS technology penetrates further, a decline in workers compensation losses can be anticipated, particularly related to building inspections. Insurers are also increasingly utilizing UAS to survey loss damage from floods and other catastrophic events, to help alleviate distress and damage to victims and property more quickly.

Emerging UAS usage includes delivering blood and vaccines to remote locations in Africa, as monitoring tools to prevent the exploitation of slave labor in Brazil, fighting grass fires and even delivering pizza and coffee. Subsidiary UAS industries are also being created, such as the emergence of third party “drone for service” vendors, who rent UAS to commercial operators.

> Read more

UAS – The nuts and bolts: Featured Technology
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(Click to enlarge)
Graphic in German

The risk landscape

As recreational and commercial UAS usage increases, new risk exposures are emerging. More incidents likely will occur once regulations are finalized that encourage more widespread use. Such incidents could result in multi-million dollar claims against businesses, operators and manufacturers.

Hobbyists account for the majority of UAS owners yet remain largely unregulated in many countries, raising safety concerns, as many can be untrained and inexperienced. Insurers have already seen loss activity resulting from novice control of UAS. Regardless of technological sophistication or operator skill, however, accidents happen.

UAS raise two priority safety concerns: mid-air collisions and the loss of control. A collision can occur if the pilot cannot see and avoid manned aircraft in time. Most at risk are manned aircraft which fly below 500 feet, such as helicopters, agricultural planes and aircraft landing or departing from airports.

Loss of control can result from system failure or flying beyond signal range; a major risk that has already caused incidents involving injuries. A scenario involving a pilot losing control of a UAS during a building inspection could result in a loss easily in excess of $5m. Damage from “foreign objects”, such as bird strikes for example, is already an issue for the aviation sector, as it is the fifth largest generator of insurance claims (6). A collision involving a UAS striking the engine of an airliner could cause $10m in physical damage alone.

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As with manned aircraft there are concerns UAS may be used for malicious acts. An emerging peril is the potential threat from UAS being used to target critical infrastructure. There have been a number of incidents of drone overflights at power stations. There are also concerns that UAS could be utilized to attack sports stadiums or other events where large crowds gather.

Other risk scenarios include the prospect of hackers “spoofing” a UAS radio signal, potentially leading to a crash, the potential loss or theft of valuable recorded data when the device is transmitting information to the control station or after the flight by cyber-attack when the data has been stored. In addition to data protection, there are also many public concerns around such issues as privacy and trespass and nuisance.

Increasing use of UAS is also altering the risk profile of many industries. For example, a real estate agent has little bodily injury exposure but this changes if it engages UAS to take aerial photographs.

> Read more

Regulation

Regulations have been a significant barrier to more widespread use of UAS. Standards differ remarkably around the world, as evidenced by the hundreds of working groups trying to harmonize rules. Another challenge is posed by the fact that regulations cannot keep pace with technological advancement.

In most cases, the designation between commercial and recreational UAS use is the starting point. Other common standards exist such as visual line of sight (VLOS) requirements for pilots, size restrictions (usually <55 lbs/25 kg.), and restrictions against operating UAS near airports or outdoor venues.

New rules for commercial use in the US (effective August 2016) represent a milestone as they lower the barrier to entry for new commercial users and are expected to significantly increase the number of units in operation. These new regulations will likely influence other countries to adopt similar laws. The European Union (EU) is also working towards UAS rules.

> Read more

Improving UAS safety: insurance and risk mitigation

As UAS ownership grows so will expectations around safety education. Operators should make this a top priority and obtain the necessary training and experience to competently pilot their UAS.

Training is crucial to reducing the number of incidents and operators should focus on flight time calculation, meteorology, security checks for aircraft navigation systems, emergency instructions, and air traffic law. For businesses, additional training should include on-board camera image uses, flight communications and planning, system maintenance and a host of other technological issues. Even basic safety checklists can help.

In many countries UAS registration is not required, causing problems for insurers and claimants. Identification of both UAS and operator will be essential for maintaining proper liability in future. Introduction of car registration-style schemes will help.

Insurance can protect both operators and the public from risk of mid-air collision, as well as physical or property damage or injury to others. Manufacturers, owners and operators of UAS are exposed to a number of risks, as are businesses which sell and service UAS.

If growth projections for the commercial UAS industry in the US materialize, there is potential for the drone insurance market to be worth $500m+ by end of 2020. Globally, its value could be approaching $1bn (7).

> Read more

###

(1) FAA Aerospace Forecast FY2016-2036
(2) Unmanned Aerial Vehicles Market, By Value and Volume Analysis and Forecast 2015-2020 – Research and Markets
(3) Drones will take $127bn worth of human work by 2020, PwC says. Clarity from above – PricewaterhouseCoopers
(4) New Era for Aviation: Opening the Aviation Market for Civil Use of Remotely Piloted Aircraft Systems In A Safe and Sustainable Manner – European Commission, 2014
(5) Allianz Global Corporate & Specialty
(6) Global Claims Review, Allianz Global Corporate & Specialty
(7) Allianz Global Corporate & Specialty

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