Work 4.0 _ The Industry 4.0 Digital Transformation

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WORK 4.0 JAYESH C S PAI
FUTURE OF WORK
DIGITAL
TRANSFORMATION.

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“The factory of the future will have only two employees, a man and a dog. The man will be there to feed the dog,
and the dog will be there to keep the man from touching the computer /equipment” Warren G. Bennis

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Drivers of change
Four specific technological advances
Ubiquitous high-speed mobile internet
Smart Phone
Artificial intelligence
Stationary robots,
non-humanoid land
robots and fully
automated aerial
drones, in addition to
machine learning
algorithms and
artificial intelligence
Widespread adoption
of big data analytics;
Big data is expected to
have an even broader
impact on the Financial
Service & Investors and
the Energy Utilities &
Technologies industries
Cloud technology
Has cloud-based and
crowd-based work
become the reality for
many?

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Centre of the
Work 4.0
IT and software
Processor performance is continuing to
grow exponentially and is facilitating the
use of cloud technologies and mobile
applications. Learning algorithms now
justify the term “Artificial Intelligence”
Robotics and Sensors
Systems become smaller and less
expensive, their range of potential
applications and usability are
increasing,
making them interesting for smaller
businesses and individual
manufacturing as well. Then there are
new manufacturing techniques.
Connectivity
This is paving the way for the cyber-
physical systems which are the basis
for Industry4.0 , i.e. networks of
small computers equipped with
sensors and actuators which are
built into objects, devices and
machine components, and which
can communicate with each other
via the internet. Big Data can also
lead to new business models and
customer-oriented services (e.g.
process and sales planning or
predictive maintenance)
New technological foundations and possibilities for
collaboration, production, company organisation and
the sale of goods and services
DIGITALISATION.

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Digitalisation can lower transaction costs and increase efficiency
Larger companies often buy start-ups to drive innovation, or set up their own
departments or subsidiaries as autonomous “labs” to develop and test new ideas.

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DIGITALISATIONASADRIVER
OFGLOBALISATION
Secondwaveofrapidaccelerationin
theworldwideflowsofgoods,services,
capital,andpeoplefromthemid-20th
centuryonwardandinparticularsince
the1980s.
GLOBALISATION
01
Digitalisation is increasing
global interconnectedness
and the international
division of labour in
production and services.
We may see a rise in
cooperation with
international partners –
including in real time,
around the world, i.e. in
different time zones.
02
Supply side -
Global division of
labour
Shorter product life
cycles and smaller lot
sizes
Flexibility and speed,
“Reshoring”
03
Demand side
Values and consumer
attitudes are changing
Digital communication
can result in the rapid
diffusion and
transcending
of regional and
national orientations

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14THE SALES PITCH THE RAMBLE THE ORGANIZATION BORE THE EMPTY STYLE
Common traps to avoid when
building your talk.
Growing shortages in the recruitment of skilled workers are emerging
in certain occupations and regions.
Growing national and international mobility is another factor in

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New
consumer
attitudes.
Services in the
logistics and
distance selling
sector are in
demand
around the clock –
driven by
consumers’
desire to be able to
purchase items 24
hours a day with
the click of a
mouse, and ideally
to receive their
purchases
immediately by
express delivery;
driven by the
competition
between individual
online retailers to
achieve the highest
turnover.
Individualisation
Individuals’
preferences
regarding their own
work are also
changing.
Changed visions of
family life
Security and pay, are
therefore being joined
by the desire for
greater time
sovereignty.
Social cohesion
Many people find it
very challenging
to combine work and
family
commitments in the
way they would
prefer. This is
especially true in life
phases with intensive
caring commitments,
such as when looking
after young children or
caring f or elderly
family members.
GREATER DIVERSITY IN PREFERENCES REGARDING WORK

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SEVEN VALUE SYSTEMS
1. Being able to live comfortably from work - People who share this value system primarily want to be able to lead a normal
life in a secure community without material worries
2. Working within a strong community of solidarity - characterised by mutual loyalty, appreciation for their performance,
and participation in a community of solidarity
3. Working hard for prosperity - everyone who works hard can achieve a certain level of prosperity.
4. Achieving peak performance via dedication - it is up to every individual to get to grips with the new challenges,
for example through lifelong learning
5. Finding fulfilment in work - opportunities for them to constantly reinvent themselves and have many exciting
experiences.
6. Finding a work-life balance - work is ideal if it can be balanced with family commitments, personal fulfilment
and involvement in shaping society
7. Seeking meaning outside work - measure an activity’s value by its contribution to the common good.
Industrial revolutions have never destroyed jobs on a
massive scale. Industry 4.0 won’t either.

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As prosumers or as “suppliers” of data and self-generated content, customers and
users are active participants in the process of innovation and value creation.

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---» The line between
producers
and consumers is becoming
blurred in
the case of prosumers, for
example if
a consumer uses software
to design an
individual piece of
furniture which
is then produced in a
digital factory. «
---» Services in the logistics and
distance selling sector are in demand
around the clock – driven by consumers’
desire to be able to purchase items 24
hours a day with the click of a mouse,
and ideally to receive their purchases
immediately by express delivery; driven
by the competition between individual
online retailers to achieve the highest
turnover. «

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---» Industrial
revolutions
have
never
destroyed
jobs on a
massive scale.
#Industry4.0
won’t either.
«
Impacts on
employment, digital
platforms,
relationship between
humans and
machines, flexibility
in working time and
location, companies,
which are undergoing
a fundamental
transformation.
CHALLENGES
PRESENTED BY
WORK 4.0

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CHALLENGES PRESENTED BY WORK 4.0
a
FLEXIBLE
WORKING TIME
AND LOCATION:
BEYOND
PRESENTEEISM
b
DIGITAL
PLATFORMS:
NEW MARKETS
AND NEW
FORMS OF
WORK
BIG DATA:
THE RAW
MATERIAL OF
THE DIGITAL
ECONOMY.
(
HUMAN-
MACHINE
INTERACTION
Technology
must make
people’s lives
easier.
d

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EMPLOYMENT EFFECTS:
TRANSFORMATION OF
SECTORS AND
ACTIVITIES
The key finding is that, in the baseline scenario,
the number of workers in 2030 will be around
the same as in 2014, whereas in the accelerated
digitalisation scenario, significant positive
impacts on growth and employment can be
expected thanks to productivity gains. For the
labour market, accelerated digitalisation would
mean a continuation of structural change. For
example, an additional 750,000 jobs in total
would be lost in 27 sectors (e.g. retail, paper
and printing, public administration), but this
would be more than offset by employment
growth of a million jobs in total in 13 sectors
(e.g. IT services, research and development).
Overall, the labour force could grow by around
a quarter of a million people by 2030, with a
corresponding fall in unemployment.

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DIGITAL PLATFORMS:
NEW MARKETS AND NEW FORMS OF WORK
---» Already today many self
employed individuals offer their
services online, and this is part o f
their entrepreneurial freedom. «
“Platforms”: New business models

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Social communication platforms
Intermediaries for personal
information, such as
messages, photos, and audio
and video recordings, and
which facilitate
communication between
users.
Digital marketplaces
Offers a virtual location for
providers and consumers to
find each other, without the
platform operators
intervening directly in the
transactions.
Intermediary platforms
Sets rules on prices and the
specifics of the products or
services being traded.
Crowd working platforms
Functions as intermediaries
for clearly defined packages
of digital work, often based
on open r equests.
“Platforms”

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---» The software company Intuit
predicts that freelancers will account for
around 40% of the US labour mark et
in 2020. The share will not be as high in
India, but nor will we escape the
general trend. All stakeholders must
therefore take this trend into account
and develop resilient, flexible and open
models for the organisation of work
which support solo self-employed
individuals even during economic crises. «

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U Monopolies are desirable both in
business terms and for society.
Banning monopolies would
mean preventing technological
progress.
Platform monopolies cannot
be avoided.
0
Greater sharing and joint use of resources
means that ownership is losing
significance, the sharp distinction
between producers and consumers is
becoming blurred, and innovative means
of production are no longer reserved for
large, financially strong companies..
A more sustainable, solidarity-
based and democratic economic order
b Major platform operators are setting
the rules and undermining existing
standards of protection and worker
participation rights.
“Platform capitalism”

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---» New digital forms of work and
contracts are developing in the labour
market. These fall outside the scope of
the labour market institutions which
were, after all, originally created to
offset the imbalance of power in the
market, as individuals would otherwise
be at its mercy if contracts were
negotiated individually. «
Challenges and tensions

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THE RAW MATERIAL OF THE
DIGITAL ECONOMY
The more the economy and
public administration are
digitalised, the
more data that can be related
directly to employees is
collected and stored. The
whole spectrum of human
resources management – from
the application process, to
time and attendance
recordkeeping, to
performance evaluation and
payroll – is administered
digitally in most organisations.
People who work with digital
applications constantly
produce data which enables
almost all behaviour at work
to be observed, recorded or
reconstructed. In the case of
office jobs, it is possible – at
least in theory – to fully
document and analyse every
keystroke, every save or
deletion, every online search,
and all communication, for
example by email.
Challenges and
tensions
Big Data is based on models and
algorithms which analyse past
data, identify connections and
use them to make predictions.
Such complex models are prone
to error; for example, they can
suggest false connections,
interpret variables incorrectly or
imply clarity where none exists.
There is also a danger that the
results can be misinterpreted.
Risks arise as well where people
and social relationships become
the subject of analysis, ratings
and forecasting: firstly, people
can be manipulated more easily
when their preferences are
known and their behaviour can
be predicted, and, secondly,
there can be feedback effects
once people begin to adjust their
behaviour in response to
analysis
tools, for example to receive the
best possible ratings.

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transforming the entire
socio-technical system
of people, process and
technology
Assistance systems can help to
compensate for physical or sensory
impairments.
Older workers can work for longer
and more healthily, and people with
disabilities can take on jobs which
were hitherto closed to them.
Intelligent assistance systems can create
greater scope for decision-making by
ensuring that useful and suitably presented
information is available at all times.
The machines are leaving
the “cage”. Cobots are
also easier to programme
than their predecessors
and are often equipped
with self-optimising
algorithms
INDUSTRY 4.0 AND
THE HUMAN-
MACHINE
INTERACTION

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---» Work 4.0 can be a realistic
opportunity to relieve workers of
physically demanding and dangerous
tasks. This is particularly interesting
in a phase of demographic change
when the average age of workforces is
rising and businesses are increasingly
required to create appropriate jobs
for older workers. «

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If the growing capabilities of autonomous
systems increasingly relegate humans to
the role of overseeing automated
processes, staff have little chance to gain
experience in the working process. The
“irony of automation” is that automation
actually results in the person overseeing
the process becoming less and less
capable of solving problems in the
automated system – problems which,
while increasingly rare, continue
to occur.

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In a highly technology-centric scenario with extensive
automation of many work processes, the “human share”
would be reduced to activities which cannot or should
not be automated for technical, socio-economic or
ethical reasons (e.g. activities in the field of long-term
care). One conceivable consequence would be highly
polarised organisations
A human-centric scenario, in which people remain the
managing and decision-making authority and the
repository of experience, while their role in the working
process is upgraded via smart tools and assistance
systems

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FLEXIBLE WORKING TIME AND LOCATION:
BEYOND PRESENTEEISM
Digitalisation.
Broadband internet, network technologies and
mobile devices mean that tools and content can be
accessed from anywhere, around the clock.
Digitalisation can facilitate flexibility in both
directions: supporting companies’ needs regarding
the organisation of work, but also supporting
workers’ needs and preferences

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Life plans have
become more
individual and
diverse
Length and
scheduling
of their working time
Choice of working
location
Workers’ wishes
01 02 03 04

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Increase or
Intensification in
Work
Flexibility needs of
companies
Polarisation
between groups of
workers
Marginalisation
01
02
03
04
Challenges and
tensions.
The lines between people’s
working and personal lives,
between work and leisure,
between workplace and
home become blurred..

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Widely varying expectations and needs within
a workforce regarding the organisation of
working time and location.
On the one hand, there are groups of workers
who see greater flexibility as an opportunity
for greater self-determination in their work
and would therefore like more individual
options.
On the other hand, there are also many
workers who want clearly defined and reliable
working hours and who do not want to take
their work home with them. In addition, there
are groups of workers for whom flexibility
options are either not feasible or very limited.

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COMPANIES
ORGANISATIONAL
STRUCTURES IN
TRANSFORMATION
---» The biggest opportunities in
connection with the digitalisation o f
value chains can be found in the
improvement of the flexibility and
efficiency of production processes and
a more direct focus on the customer
via customised products and services.
The changes in the world o f work,
especially with regard to skills develop -
ment, greater flexibility and leadership
philosophy, are an important aspect
of digitalisation. «

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The organisational forms and working
contexts shown along the horizontal axis are
focused inward. Certain aspects of
quantitative flexibility in internal labour
utilisation are well known: fixed-term
contracts and part-time work have long been
established elements of this. In particular,
more differentiated working time models
have recently gained in importance, partly in
response to operational flexibility needs, and
partly in light of workers’ wishes and
preferences

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---» Visions of global collaboration
in virtual teams across company
boundaries raise questions about
integration, leadership and oversight,
as well as requiring adjustments in
skills, working time and location.
Collaboration between in-house and
external staff in mixed teams and the
integration of highly skilled service
providers for specific tasks are already
a reality today. «

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JOBS IN THE DIGITAL AGE.
INCOME AND
SOCIAL SECURITY
Potential
productivity
gains of
digitalisation
also lead to
wage increases
ACCESS TO
QUALITY JOBS
Secure work
offering the
possibility of
professional
advancement
VARIETY AS THE
NEW NORMAL
People move,
between
full-time and
part-time work;
RETAINING THE
QUALITY OF WORK
Occupational
Safety and
Health 4.0
CONSIDERING
CO-DETERMINATION,
PARTICIPATION AND
CORPORATE CULTURE
AS A WHOLE

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Workforce Autarkies
Eight Futures of Work

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Steady technological change has led to large-scale automation of manual and routine tasks
but most medium- and high-skilled roles remain relatively untouched by disruption,
particularly those requiring non-cognitive skills and the completion of complex tasks.
However, the pace of learning evolution has also been slow.
Many displaced low-skilled workers have been left competing for fewer roles suited to
their skill sets. Businesses have faced ever-increasing talent shortages. Reacting to the
worries of displaced workers, governments have imposed restrictions on international
labour mobility and sought to fulfil their economies’ talent needs internally. Some local
city and regional governments have created similar policies to protect local jobs in the
short term.
Though these workforce autarkies have provided some relief to lower-skilled workers in
the short term, they have made it harder for employers to find the right on-site talent for
higher-skilled roles. As a consequence, lower-skilled workers continue to depend on state
protectionism for their livelihoods, and some large multinational employers have taken
their higher-skilled roles abroad, to countries with larger, unrestricted talent markets.
The resulting reduction in knowledge transfer and continued talent shortfalls for local
companies has reduced growth and dynamism over time, reducing the capacity of local
labour markets.
Workforce Autarkies

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Mass Movement
Steady technological change has led to large-scale automation of manual and routine tasks,
leaving most medium- and high-skilled roles relatively untouched by disruption, particularly
those requiring non-cognitive skills and the completion of complex tasks. Meanwhile, the
pace of learning evolution has also been slow. This has led to displaced workers competing
for an ever-shrinking number of roles that match their skill sets.
Businesses are facing wide talent gaps. In the absence of barriers to mobility and with
remote online work still a relatively marginal phenomenon, there has been large-scale
movement of workers in search of opportunity.
Displaced lower-skilled workers in advanced economies are heading to the emerging world
in search of better means of making a living, steadier incomes and lower living costs, or
depend on state-sponsored welfare systems.
High-skilled talent flows to wherever the latest and most lucrative opportunities are
situated—often concentrated in large metropolises around the world. This has helped
urban local businesses access the best talent and enhances knowledge transfer, but has
increased competition between workers at all skill levels, and across regions.
Societal cohesion has become harder to maintain.

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Robot Replacement
Accelerated technological change and diffusion means that machines in the workplace have
become capable of performing routine and non-routine tasks, and can perform a range of manual
tasks as well as those requiring non-cognitive skills.
Initially, there was much demand for human workers to complement the machines, managing and
specializing in new kinds of roles. However, the pace of learning has evolved slowly, meaning many
in the workforce have been unable to keep pace with the changes underway. They face a rapidly
shrinking field of opportunities as their skill sets have been deemed largely redundant.
The lack of appropriate talent for emerging new roles has led to increasing pressure to automate
even further, and robotics, algorithms and machine learning, managed by a few, have begun to do
most of the world’s production and distribution. Widening talent gaps continue to dampen
economic growth as businesses have lost faith in human talent.
This ‘hollowing out’ of the labour market has led to deep and growing inequalities, polarized
values and divided views about technology. Attempts to control social unrest have focused on
efforts to keep jobs ‘at home’ via tightly controlled borders between cities, states and countries.
As income accrues to a limited few, the economy of the past has disintegrated and conflict is on
the rise. Governments are increasingly challenged to resort to radical new, often untested, policy
interventions, from nationalization of technology-owning monopolies to far-reaching
redistribution schemes.

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Polarized World
Due to accelerated technological change and diffusion, machines in the workplace have become
capable of performing both routine and non-routine tasks. They can perform a range of manual tasks in
addition to those requiring non-cognitive skills.
Initially there was much demand for human workers to complement machines, managing and
specializing in new kinds of roles. However, the pace of learning has evolved slowly—meaning many in
the workforce with a range of skills were unable to work in tandem with technology and keep pace with
the changes underway. That has led to large swathes of the workforce becoming increasingly
unemployable.
The lack of appropriate talent for emerging new roles has led to increasing pressure to automate even
further. Robotics, algorithms and machine learning—managed by just a handful of human workers—
have begun to do most of the world’s production and distribution, leading to a ‘hollowing out’ of the
labour market, which has resulted in deepening and growing inequalities.
Polarized values and divided views about technology dominate society. There are large-scale
movements of people, within cities, regions and countries and across international borders, in
desperate search for opportunity. High-skilled people from lower-income communities have migrated
to high-income, high-skill enclaves, as a cluster of globally-dispersed urban ‘super-economies’ have
formed and trade ideas, goods and services with each other.
Elsewhere, with the national economies of the past disintegrating, previously affluent left-behind
regions and communities are increasingly reverting to efforts at local self-subsistence while a large
segment of increasingly disenfranchised lower-skilled workers earn a meagre living by catering to the
needs of a privileged few.

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Empowered Entrepreneurs
Steady and constant technological change has led to large-scale automation of manual and
routine tasks, with most medium- and high-skilled roles remaining relatively untouched by
disruption, particularly those requiring non-cognitive skills and the completion of complex tasks.
Deep concerns about the disruptive potential of rapid technological change have led to long-
overdue reforms in education systems. Companies have invested heavily in training systems and
reskilling. There is a new ethos—especially among younger generations—one that embraces
lifelong learning.
The fast pace of evolution in learning has enabled more workers than ever before to contribute a
wider range of skills to society and the economy. Enhanced creativity, dynamism and productivity
have contributed to developments across a range of industries and sectors. With large supplies of
skilled, eager, curious lifelong learners in many geographies, there is a dynamic market for
workers to create opportunities for themselves, attracting steady flows of investment capital.
Having invested heavily in high-skilled talent, many economies have become reluctant to lose it.
Migration has become restricted. With relatively low levels of physical labour mobility within and
across countries, online platforms increasingly offer an additional outlet for accessing local and
global markets.
Many entrepreneurs have also turned to opportunities within their local markets, creating a range
of products and services, ranging from artisanal wares to new ventures in the care economy to
urban farming.

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Skilled Flows
This fast pace of skills evolution has enabled more workers than ever before to bring a wider range
of skills and enhanced creativity, dynamism and productivity to a range of industries and sectors.
With online remote work still a marginal phenomenon, there has been high mobility of workers
between cities, regions and countries.
In light of ample opportunities for both local and migrant skilled populations, labour mobility within
and across borders has become the norm. Credentials, certifications and degrees have increasingly
become internationally standardized.
However, due to steady technological change, labour markets with better local access to technology
have been better able to drive higher value creation with fewer resources, out-competing countries
that have seen lower technological expansion for talent and production capabilities.
Inequality between countries and technological ‘haves’ and ‘have-nots’ continues to increase.

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Productive Locals
This has led to a demand for human workers to complement machines, manage the shifts underway
and specialize in new kinds of roles. A new ethos for pursuing lifelong learning, especially among
younger generations, has contributed to an increased dynamism in the workforce, and technology is
applied broadly, alongside human creativity and productivity, to a range of industries and sectors.
Many economies that have invested heavily in high-skilled talent are now reluctant to lose it, and
have made efforts to resist high levels of migration. With relatively low physical mobility but high
engagement on globally connected online work platforms and large local pools of skilled, eager and
curious lifelong learners, many economies have thrived.
However, talent shortages continue to impact business growth as companies encounter skills gaps
that cannot be met either locally or online.
Further, lower levels of mobility have dampened the exchange of new ideas and expansion of
markets, keeping technologies and livelihoods firmly dependent on local economies.

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Agile Adapters
High talent mobility within countries and across borders, combined with widespread
opportunities for online platform work that crosses borders, has created a global workforce that
is highly agile, productive and globalized, rapidly diffusing values, ideas, technologies, goods and
services around the world. Harmonized workforce and social policies and internationally
standardized credentials, certifications and degrees have contributed to widespread economic
dynamism and growth.
Yet for some, the rapid pace of change has contributed to a wide-ranging feeling of disconnect
and dislocation. With globally hyper-connected systems and a diminished sense of local
belonging, people are continuously challenged to react and adapt to large-scale economic,
technological and societal shocks.

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Future of Jobs
Next Presentation
coming : Skills 4.0
Rest of the
Presentation of
about another 60
slides during actual
lecture.

Work 4.0 _ The Industry 4.0 Digital Transformation

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