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The Future of Work: What does this mean for a CIO?

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  • Definition of GlobalizationGlobalization is the system of interaction among the countries of the world in order to develop the global economy. Globalization refers to the integration of economics and societies all over the world. Globalization involves technological, economic, political, and cultural exchanges made possible largely by advances in communication, transportation, and infrastructure.There are two types of integration—negative and positive. Negative integration is the breaking down of trade barriers or protective barriers such as tariffs and quotas. In the previous chapter, trade protectionism and its policies were discussed.You must remember that the removal of barriers can be beneficial for a country if it allows for products that are important or essential to the economy. For example, by eliminating barriers, the costs of imported raw materials will go down and the supply will increase, making it cheaper to produce the final products for export (like electronics, car parts, and clothes).Positive integration on the other hand aims at standardizing international economic laws and policies. For example, a country which has its own policies on taxation trades with a country with its own set of policies on tariffs. Likewise, these countries have their own policies on tariffs. With positive integration (and the continuing growth of the influence of globalization), these countries will work on having similar or identical policies on tariffs.Effects of GlobalizationAccording to economists, there are a lot of global events connected with globalization and integration.It is easy to identify the changes brought by globalization.1.   Improvement of International Trade. Because of globalization, the number of countries where products can be sold or purchased has increased dramatically.2.  Technological Progress. Because of the need to compete and be competitive globally, governments have upgraded their level of technology.3.  Increasing Influence of Multinational Companies. A company that has subsidiaries in various countries is called a multinational. Often, the head office is found in the country where the company was established.An example is a car company whose head office is based in Japan. This company has branches in different countries. While the head office controls the subsidiaries, the subsidiaries decide on production. The subsidiaries are tasked to increase the production and profits. They are able to do it because they have already penetrated the local markets.The rise of multinational corporations began after World War II. Large companies refer to the countries where their subsidiaries reside as host countries. Globalization has a lot to do with the rise of multinational corporations.4.   Power of the WTO, IMF, and WB. According to experts, another effect of globalization is the strengthening power and influence of international institutions such as the World Trade Organization (WTO), International Monetary Fund (IMF), and World Bank (WB).5.   Greater Mobility of Human Resources across Countries. Globalization allows countries to source their manpower in countries with cheap labor. For instance, the manpower shortages in Taiwan, South Korea, and Malaysia provide opportunities for labor exporting countries such as the Philippines to bring their human resources to those countries for employment.6.   Greater Outsourcing of Business Processes to Other Countries. China, India, and the Philippines are tremendously benefiting from this trend of global business outsourcing. Global companies in the US and Europe take advantage of the cheaper labor and highly-skilled workers that countries like India and the Philippines can offer 7. Civil Society. An important trend in globalization is the increasing influence and broadening scope of the global civil society.Civil society often refers to NGOs (nongovernment organizations). There are institutions in a country that are established and run by citizens. The family, being an institution, is part of the society. In globalization, global civil society refers to organizations that advocate certain issue or cause.There are NGOs that support women's rights and there are those that promote environment preservation. These organizations don't work to counter government policies, but rather to establish policies that are beneficial to all. Both the government and NGOs have the same goal of serving the people.The spread of globalization led to greater influence of NGOs especially in areas of great concern like human rights, the environment, children, and workers. Together with the growing influence of NGOs is the increasing power of multinational corporations. If the trend continues, globalization will pave the way for the realization of the full potential of these two important global actors.
  • Low fertility, with couples now having, on average, fewer than 2.1 children, below the level needed for the population to replace itself. A key question is whether this trend will continue or whether fertility will rise and what, if anything, governments can or should do to influence this.
  • Ipv6 – world is running out of IP addresses (IP V4 running out of steam – 4 billion devices)Golf ball compared to the Sun (Trillion of addresses)14 addresses per person

Transcript

  • 1. The future of work – CIO implications
    Andy Wood
    Head of Communications & Collaboration
    andy.wood@kcom.com 07778335635
  • 2. Overview
    Mega trends
    Future of work
    CIO agenda
    IT consumerisation
    CIO implications
    Conclusion
  • 3. Mega trend - Globalisation
    Drivers
    Improvement of international trade
    Technological progress
    Increasing influence of multi national companies
    Power of WTO, IMF, WB
    Greater mobility of human resources across countries
    Greater outsourcing of business processes to other countries
    Civil Society
    Volatility & uncertainty
    Low cost competition
    Internet – connected economy
  • 4. Mega trend - Economic GDP % change on prior year 2009
  • 5. Mega trend - EconomicGDP % change on prior year 2010
  • 6. Mega trend - Economic GDP % change on prior year 2011
  • 7. BRIC economies
    In US dollar terms, China could overtake Germany in the next four years, Japan by 2015 and the US by 2039.
    India’s economy could be larger than all but the US and China in 30 years.
    Russia would overtake Germany, France, Italy and the UK.
    Of the current G6 (US, Japan, Germany, France, Italy, UK) only the US and Japan may be among the six largest economies in US dollar terms in 2050.
  • 8. Mega trend – UK demographics
    Ageing population
    Median age
    1984 = 35 years
    2009 = 39 years
    2034 = 42 years * projection
    Longer life expectancy
    Men @65
    + 17.6 years / 12.9 years healthy
    Women @65
    + 20.2 years / 14.9 years healthy
    Lower fertility
    Fewer births, marriages & deaths
    Extended retirement ages
    Large pool of skills & experience
    Electronically mediated life styles and relationships
    Blurring of work and home – rising job mobility
    1 in 20 people in the UK work in IT and Telecoms
    Generation Y – Millennial’s
    Future strain on the NHS
  • 9. Mega trend – Universal connectivity
    Data deluge / broadband explosion
    Rising transparency
    Declining privacy
    Business analytics
    Reputation economy
    Networked risks & failure
    Information security
    Location based services & habit trails
    Smart communities & connected cities
    2 billion on line, 5 billion devices – 500m on Facebook 25%
    200m access Facebook via a smart phone
    World is running out of IP addresses – IP V6
    14 IP addresses per person
    16m users in 1995 to 2 billion in 2010 and 5bn devices connected !
    (Cisco report August “the evolving internet report”)
  • 10. Mega trend – IT consumerisation
    Innovation, faster and more disruptive
    Mobile the primary device for web surfing
    IPhone Surpasses Blackberry In World Wide Market Share
    Average of 50 IPhone apps per user
    400,000 IPhone apps available on iTunes
    3 bn hours per week playing games
    25m users on SKYPE
    Users on Facebook 500m, Twitter 110m, LinkedIn 70m
    60 bn instant messages sent a day (40% business)
    90% of all Internet traffic will be video by 2013
    You Tube 2bn viewers per day, 24hrs of video is up loaded per minute
    Half the user base is under 20 years old/ 1000 years to watch it all
    2015 125million will not have electricity but will have a mobile phone
    On planet earth 4 babies born every second / 40 mobiles sold per second
    Mobile internet ramping faster than desktop internet did
    Consumer market surpassed the size of the Enterprise market in 2004
  • 11. Direction of travel ?
  • 12. The future of work
    “Throw away your brief case you are not going to the office.”
    “You can kiss your benefits good bye too.”
    “Your new boss won’t look much like your old one.”
    “There is no longer a ladder and you may never get to retire, but there is a world of opportunity if you figure out a new path.”
    Time – Magazine - May 2009
  • 13. People strategy – the journey
    The Model
    The Structure
    VISION
    TO BE
    AS IS
    VISION
    TO BE
    AS IS
  • 14. Vision of work 2020
    Networked economy
    • Value created by providing relevance
    • 15. Access to expertise
    • 16. Dynamic business model innovation
    • 17. Communities & relationships
    • 18. Democratization of value creation
    • 19. Collaboration and team work
    • 20. Innovation andoperation excellence
    Information economy
    Value created by processing data
    Access to information
    Static business models
    Individuals and processes
    Specific points of value creation
    Command and control
    Innovation or operation excellence
    Work 2015
    Work 2008
  • Information worker of the future - 2020
    Mobile, distributed , globally available
    Gender diversity
    Powerful on line presence
    Physical & avatar
    Personal brand / agent
    Flexible contracts
    Project / program focussed
    Outcome incentivised
    Star rated – crowd recommended
    Collaborative
    Contextual awareness
    With on line passport
    BYOT - BYOC
    Time independent
    Location independent
    Network independent
    Device independent
    Crowd integrated & participative
    On line communities
  • 35. HR as a Service
    Established in 2001
    US based
    Cloud platform
    8 million users
    Service Portfolio:-
    • 360 reviews
    • 36. Performance management
    • 37. Recruitment management
    • 38. Goal management
    • 39. Learning & development
    • 40. Workforce analytics
    Are we ready for this – total transparency ?
    http://www.successfactors.com
  • 41. CIO agenda 2011 – Re imagine IT
    Coming out of recession in to recovery
    Flat budgets – drive innovation
    Focus on and enable growth
    Digitise the organisation
    Recast aspects of ops to the cloud
    Address value from the outside
    Address value from people inside
    Benefits realisation
    Raise the strategic relevance of IT
    Cloud / Virtualisation No.1 & 2
    Mobile technologies No.3
    IT will not be the same as 2008
  • 42. New IT consumption models, apps & devices
    Apps store
    Cloud delivered or hybrid model
    Ad funded?
    As a service:-
    Infrastructure
    Virtual Desktop
    Security
    Communications
    Collaboration
    Telepresence
    Contact
    Composite apps
    Integration API’s
    Any device / any network
    Pay per use / per seat
    Self service / user rated
    Community/ vertically enabled
    Enterprise Social Software – Desktop of the future?
    Social CRM
    Collaboration tablets:- Avaya Flare, Cisco CIUS, Rim Playbook, IPAD2
    Part of the Enterprise Architecture?
  • 43. What information employees are sharing ?
    Financial information
    R & D
    Contracts
    M & A information
    Strategic plans
    Sales forecast information
    Customer information
    Employee information
    Supplier information
    Intellectual property
    You can limit what users can send via email / IM and transfer via USB
  • 44. Consumerisation - policy is key
    Architectural approach required
    Social networking policy
    Company information usage policy
    Supported devices?
    Approved content categories
    Approved application categories
    Forbidden applications
    Service request process - BYOT
    Service support process - BYOT
    What company data is allowed on personal devices?
    Employee:- movers / leavers – data removal policy
    Back up processes / traceability
    Security / identity & access management
    Remote management
    Thinking needs to change from inside out to outside in!
  • 45. Opportunities & risks
    Business value discovery?
    Benefit - Cost – Risk = Value
    Innovation v standardisation
    Increase appetite for risk
    Blend professional v personal
    Providing users with choice?
    Economics?
    Funding model?
    Difference maker for talent acquisition!
    Is this your future customer, supplier or employee?
  • 46. Conclusion – The CIO Challenge!
    The future of work in 2020 will be about:-
    Productivity, Innovation & Value Creation
    Compete v BRIC economies
    Empowered organisations will be :-
    Smart, Hyper-Connected, Federated
    People, Homes, Cities , Planet
    Personalised
    Mobile, Social, Visual, Augmented, Contextual, Virtual & Secure
    Collaborative
    Search, Links, Authoring, Tagging, Embedding, Subscription
    Adaptive
    Flatter Structures, Career Grids, Transparency, Affiliate labour
    Open
    Viral, Crowds, Communities, 1: Many, Many : Many
  • 47. Thank you
    Questions & Answers