FUTURE OF WORK AND IMPLICATIONS FOR SOUTH AUSTRALIA … · Disruptive forces AI, Cognitive...

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FUTURE OF WORK AND IMPLICATIONS FOR SOUTH AUSTRALIAAIIA Nav i ga t i ng Techno l ogy and the Jobs o f the Fu tu re | Thursday 12th Apr i l 2018

© 2018 Deloitte Touche Tohmatsu. 2

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What’s essential isthat we elevate our thinking to see what’spossible in 2027.


There are fewer young people in South Australia today than there were in themid-1980s

What happens if nothing changes?

Australian and South Australian demographic statistics, September 2016

Source: Australian Bureau of Statistics, Australian Demographic Statistics, Sep 2016, cat. no. 3101.0 (23 March 2017).

0%

2%

4%

6%

8%

10%

12%

14%

16%

0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90 and

overSouth Australia Australia

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Demographics mean natural growth is slower than ever before

What happens if nothing changes?

Natural population growth, South Australia and Australia

0

22,000

44,000

66,000

88,000

110,000

132,000

154,000

176,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2002 2006 2010 2013 2017 2021 2025 2029 2033 2037 2041 2045 2049 2053 2057 2060 2064 2068

South Australia (LHS) Australia (RHS)

Source: Deloitte Access Economics


It’s simple: Victoria has a burgeoning services economy, and the fastest growing population in Australia to boot

But why has Victoria succeeded where we’ve struggled?

Differences between industry value added per capita - South Australia vs Victoria, 2016

Source: Australian Bureau of Statistics, Australian National Accounts: State Accounts, 2015-16, cat. no. 5220.0 (18 November 2016)

-$2,500 -$2,000 -$1,500 -$1,000 -$500 $0 $500 $1,000 $1,500

Financial and insurance services

Professional, scientific and technical services

Information media and telecommunications

Rental, hiring and real estate services

Education and training

Wholesale trade

Retail trade

Manufacturing

Accommodation and food services

Arts and recreation services

Construction

Transport, postal and warehousing

Administrative and support services

Other services

Electricity, gas, water and waste services

Mining

Public administration and safety

Health care and social assistance

Agriculture, forestry and fishing

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WE LIVE IN TIMES OF UNPRECEDENTED CHANGE THAT PRESENTS BOTH CHALLENGE AND OPPORTUNITY FOR LEADERS.

Disruptive forces

AI, Cognitive Computing,

Robotics

$500,000 in 2008

$22,000 today

Changing nature of careers

2.5 – 5 years: Half-life of skills

4.5 years: Average job

tenure

Explosion in contingent work

40% contingent workforce (US) by

2020

Jobs vulnerable to automation

35% UK 47% US

77% China

Diversity & generational

change

Millennials 50%by 2020

Tsunami of data

9 x more in last 2 years

Deloitte Consulting Pty Ltd © 2018

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9Future of Work Finance Services

1970s 1980s 2000s1990s Today2010s

Technology

Individuals

Businesses

Public policy

Rate

of change

Source: Deloitte Human Capital Trends, 2017

WHAT IS HAPPENING

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Systems have evolved from mechanical computation & tabulation devices to intel l igent systems that can emulate human cognition.

IN

TE

LL

IG

EN

CE

1 9 0 0 s 1 9 5 0 s 2 0 1 0 s 2 0 2 0 s

Tabulating Systems EraProgrammable Systems Era

Cognitive Era

Amplified Intelligence

Exponential Growth of Data

Smarter Algorithms

Faster Processing Speed

Programmable systems enabled

major accomplishments such as

Space Exploration and the

development of the internet. The

programmable systems era will

continue indefinitely, and will

underpin the era of computing that

we are in now.

Ex. Windows Desktops / ERP

systems

Cognitive systems are computer

systems that have capabilities to

emulate the human brain.

Ex. Watson, Cortana, Google’s

self-driving cars

Mechanical devices helped us

with tasks such as organizing

data and making calculations

for tasks such as evaluating the

sales performances of a

company’s employees.

Ex. Hollerith Tabulating

Machine

In the future, systems will be

able to mimic human intelligence

and entirely replicate human

interactions

With the advent of the cognitive era, business face a new paradigm where workers can put their amplified intelligence to

work and focus on improving core operations, building new assets, and enabling better outcomes i.e. uncover the

Cognitive Advantage

W H Y N OW ? TH E COGN ITIVE A DVA N TA GE

Transformation through cognitive insights, automation, and engagement

KEY DR IVER S

THE FUTURE OF COGNIT IVE


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IMPACT OF COGNITIVE ON THE WORKFORCE

Cognitive technology wi l l exponential ly impact the workforce of the future

A UTOM A TION OF TH E H A N D – t h e p r og r a m m a b l e e r a

A UTOM A TION OF TH E B R A IN – t h e c og n i t i v e e r a

Incremental

impact on

productivity

Exponential

impact on the

business

The q ues t i o n t o a s k now i s n o t “ how d o I em p l o y t h i s t e c hno l o g y ” b u t

“ h o w do I p r e pa r e fo r t h e e x po n e n t i a l i m pa c t ”

• Robots are doing things

humans used to do

• Robots are doing things humans used to do

• Robots are doing things humans can’t do

• Robots are augmenting the human brain

Release

workforce

capacity as

humans are

replaced by

robots

performing

repetitive rules-

based tasks

New

competencies

as Process

owners elevated

to process

transformation

leaders and

robot designers

as production

becomes more

automated

Skills and

expertise scale

as freed up

capacity is

available to

develop

competencies

and build

expertise

Insourcing

control with the

option to retain

cost savings

through

insourcing and

greater control

over processes

Flexibility that

is not resource

reliant, changing

the partnering

mix

Release

workforce

capacity

impacting roles

that are human-

centred and

analytically

driven

Smarter

Workforce as

people are

provided with

enhanced

decision making

information and

augmented

processing

Insight driven

organization

as all decisions

will have some

element of

cognitive

computing

intelligence

input

Overhauled

operating

model whereby

once critical

functions will

have been

entirely replaced

by bots

Commoditisation

of tenure in which

history and

expertise derived

over time will be

superseded by the

vast amounts of

computable data



• Work of the ‘Hands’

• Analog / Data light

• Profit Driven

• Hard skills

• Hot bodies

• Big permanent, homogeneousworkforce

• Focus on technical expertise

• Ad-hoc training

• Overwhelmed

• Hierarchical, siloed

• Positional power

• Slow to adapt

• Traditional office

What was

WO

RK

WO

RK

ER

WO

RK

PLA

CE

What will be

• Work of the ‘Minds and Hearts’

• Digital / data insights

• Purpose Driven

• Soft skills

• Hot warm and cold bodies

• Big contingent, diverseworkforce

• Focus on uniquely humanskills

• Life-long learning

• Well being

• Networks of high performingteams

• Personal power

• Nimble and innovative culture

• Smart, frictionless work spaces

RE THINKING THE FUTURE OF WORK

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2


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Work of the ‘Hands’

W O R K

Analog / Data light

Profit Driven

Hard Skills

Work of the ‘Hands and Minds’

Digital / Data Insights

Purpose Driven

Soft Skills

What Was What Will Be

• W h a t i s t h e n a t u r e o f t h e s h i f t s y o u a r e s e e i n g i n S o u t h A u s t r a l i a ?

• W h a t i s t h e l i k e l y i m p a c t o f r o b o t i c s , a u t o m a t i o n a n d a r t i f i c i a l i n t e l l i g e n c e o n t h e t y p e s o f w o r k a n d r o l e s i n S A ’ s k e y i n d u s t r y s e c t o r s ?

• W h a t j o b s a r e b e i n g m o s t i m p a c t e d ?

• H o w a r e w e r e s p o n d i n g t o t h e s e s h i f t s ?



WORKER

Hot Bodies

Big permanent, homogeneousworkforce

Focus on technical expertise

Hot warm and cold bodies

Big contingent, diverseworkforce

Focus on uniquely human skills

Life-long learning


Ad-hoc training


• W h a t c a p a b i l i t i e s w i l l b e r e q u i r e d i n t h e f u t u r e f o r e m p l o y e e s i n S A ’ s k e y i n d u s t r y s e c t o r s t h a t a r e d i f f e r e n t t o t o d a y ?

• H o w a r e w e r e s p o n d i n g t o t h e s e s h i f t s ?


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WORKPLACE

Hierarchical, siloed

Positional power

Slow to adapt

Traditional office

Networks of high performing teams

Personal power

Nimble and innovative culture

Smart, frictionless work spaces



• W h i c h t y p e s o f o r g a n i s a t i o n s a r e r e s p o n d i n g w e l l t o t h e s e t y p e s o f c h a n g e s ?


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ARE YOU READY, WILLING AND ABLE?


AttitudesPeople feel positive

about the future of work

AttributesPeople / the culture

have the attributes to succeed in the future

AwarenessPeople understand

how work is changing and its implications

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2 3

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Humans will always matter

JO

B A

CT

IV

IT

IE

SREQ

URIN

G

EM

OTIO

NA

LIN

TELLIG

EN

CE

JOB ACTIVITIES REQURING

CREATIVE/COGNITIVEINTELLIGENCE

HUMAN EDGE

TECHNOLOGY EDGE

Figure 2: Future Job Activities -Automation VS Augmentation

© 2018 Deloitte Touche Tohmatsu

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© 2018 Deloitte Touche Tohmatsu.

Our industries: our competitive advantages with strong global demand

International education

Tourism

Energy and gas

Agribusiness

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Our industries: strategically important to South Australia

Defence industries

Health and medical research

Creative industries

Professional and IT services

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Opportunities City


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Opportunities City


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Opportunities Suburbs and regions


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Opportunities Suburbs and regions


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Opportunities State and government policy


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Opportunities State and government policy


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© 2018 Deloitte Touche Tohmatsu.© 2018 Deloitte Touche Tohmatsu.

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Population


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The future of work is now

And it’s all about people.

And it’s about making it in Adelaide

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About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

This publication is for internal distribution and use only among personnel of Deloitte Touche Tohmatsu Limited, its member firms, and their related entities (collectively the “Deloitte Network”).

None of the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication.

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Touche Tohmatsu Limited


FUTURE OF WORK AND IMPLICATIONS FOR SOUTH AUSTRALIA … · Disruptive forces AI, Cognitive...

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Transcript of FUTURE OF WORK AND IMPLICATIONS FOR SOUTH AUSTRALIA … · Disruptive forces AI, Cognitive...