Christian Wernberg-Tougaard outlines some of the challenges of Social Welfare with respect to Labor and Unemployment at a conference in December 2009 in Madrid.

1. <Insert Picture Here>
How digitalization is impacting Labour/Employment
Administrations in EMEA
Christian.Wernberg-Tougaard@oracle.com
Director, Social Welfare, Europe, Middle East & Africa
Global Public Sector Industry Business Unit
Presentation at Employment conference in Madrid, December 2, 2009

2. About me ...
• Christian Wernberg-Tougaard
• Leads Social Welfare at Oracle Industry Business Unit
on Public Sector, EMEA
• Nordic Public Sector Industry Lead
• Macro economist – Major in Labor Economics
• Worked with the impact of ICT on Public Sector for the
last 14 years, including being:
• Senior expert for the Danish Government /
Parliament on technology issues
• Expert for the European Commission (eInclusion
Policy Support Program) and the European
Parliament (RFID and Identity Management –
ETAG and STOA).
• Different director roles in EMEA for IT-industry
companies working with Business Development,
Strategic Marketing, Innovation & Transformation.
Worked as a Management consultant
• Head of Sector Danish Ministry of Science
• Chairman of The Danish Board for Greater IT-security

3. Agenda
• Political and economic challenges force transformation
• The current crisis and Labor Market
• Digitalization of Labor Market – best practise and things to
come ...

4. Transformation of Public Sector
Public Sector Public Sector
TRANSFORMATION
Industrial Age Digitised Age
• Paperbased
• Rigid processes
1•More demanding citizens •Digital workflow
• Flexible
• Stiff approval 2•Global Economic and Political Pressures processes
system
• Difficult to
3•Ageing population and shrinking workforce Savings
• Adaptable
processes
change processes •Escalating Social Services budgets • Self-service
• Focus on • Easy extraction
management, not •Welfare, Social and political change of productivity
leadership
Security data
•Care for the Environment
• Focus on ”when, • High
where, who” •Migrating populations transparacy to
rather than ”why, Service processes and
how” privacy protection
•Security threats & Technology
•Low • Value-focus
transparancy •Moving from industrial to knowledge •Homogenous
•Multiple encoun- society and interoperable
ters of data loss

5. The Age Challenge: triple bad news
for Public Sector ... 3
1 • The most experienced employees are
leaving as they retire
2 • There is not so many young people
wanting to join public sector
and the labour pool is decreasing
3 • As the entire labour marked becomes tight
with scare resources, the salary gap
between public sector and private sector
will widen.
3½ • And the increase of elders will challenge
the social systems, the pension systems
and the healthcare systems

6. Trends in Government Transformation
INTEROPERABILITY GROWTH
• Moved beyond system-to-system (S2S) • The Social Sector will grow rapidly – US
integration to ensure Country-2-Country Bureau of Labor Statistics predicts a 22%
(C2C) integration and interoperability. Open growth from 2006-16. Governments needs
Standards and formats Worldwide. to act transformational.
FLEXIBILITY EFIICIENCY
• Governments demands systems to be • By implementing best practise from Social
flexible and with high degree of COTS Service Industry Models, Governments will
(Commercially Off The Shelf). Easy yield better quality for less, knowledge
transformation of business processes and preservation and ability to shift resources
rule interpretation to accommodate best towards care taking.
practises will be demanded.
MATURITY CITIZEN CENTRICITY
• Governments wants to spend tax payers € • The citizens will appreciate the swifter
efficient – solutions (HW+SW) and system services and the reduced case-handling
intergrators (implementation/adaptation) time – especially if self-service capabilities
must be highly mature (CMMI). are implemented.
PERSONAL INTEGRITY TRANSPARANCY
• Governments want to ensure that the • Yield high degree of transparency of the
citizens have trust in digital solutions – as processes as citizens can see how rule
distrust erodes the value creation of interpretation has affected their decisions, while
digitalization, hence privacy needs to be digital case handling yields significant gains in
protected.
productivity to the benefit of the government
and the citizen.

7. Agenda
• Political and economic challenges force transformation
• The current crisis and Labor Market
• Digitalization of Labor Market – best practise and things to
come ...

8. Why change Labor Marked policies ?
Spain: 19.8
Call for
short term actions
Call for
long term actions

9. Sh
or
tR
Labor Marked – recession actions un
Source Employment Working Paper No. 35, ILO 2009

10. Sh
or
tR
Labor Market ecosystem un
Structural and transitional unempl.
Increased supply - Work Sharing Training (Employability)
In employment
(”chômage partiel” – France) PES JSA programs
Recent research has
shown that a 3% Unemployment Benefit Scheme
increase in
Increased supply – Create new Jobs Reduce fear of Unempl.
unemployment leads
Australia – ”Hire a fired” (subsidy) to:
Social Benefits
2% drop in road kills
Japan – Housing / Anti-Homeless
3% increase in suicides
Increased supply – Training
Sweden – 20% time cut unsubsidized 21% increase in alcohol
The Weak / Migrant Workers
can be used for training related deaths
Korea – 250.000 LowIC Jobs granted
Out of employment
teme
os elfar
Which on a family /
ys
re/ al W
Creation of Public Jobs, Wage social welfare holistic
point of view can take
Ec
ctu oci
Subsidizes and lower Social Contribution
10-20-50 years to
tru e S
”repare”
ras Th
Abbrivations:
Inf
PES = Public Employment Services
Job portals, Labor Agencies Matching,
JSA = Job Search Assistance peer networks, weak citizens job
LMP = Labor Marked Policies

11. PES future considerations ...
• The traditional role of PES has been on making citizens
unemployed employed (able). Will this change? What about
securing skills and workability among ”endangered” workers in
case of crisis? How will this impact PES organisationally ?
• Should PES become more active in risk-assesments of citizens –
telling citizens that they should be upgrading their qualifications
as they are in a ”high-risk industry” ? And that kind of proactive
action towards the citizens – what would that demand from a
organisational point of view ?
• The choices done today in PS will remain active in PS for 10-15
years – what choices should be done today to prepare for the
labor marked of tomorrow?

12. Agenda
• Political and economic challenges force transformation
• The current crisis and Labor Market
• Digitalization of Labor Market – best practise and things to
come ...

13. Sh
or
tR
So – how can digitilization help ? un
Citizen-centric
• Make systems that are easier for citizens to use Presentation
• Many citizens that are out-of-job has not been on
forced to use ICT in their job – they are novices on Siebel @ UWV
the ICT requirements... the eWeak!
• Make rules and regulations clear to citizens
Presentation
• Most lay offs are not aware of the complex rules and
on
regulations -> visualizations and guides as well as
screening tools can be beneficial OPA
• Increased turn-around-time – reduce vacancy
time Presentation
• Using skill profiles together with advanced matching on
technology will reduce the ”in between job” waiting
ELISE / WCC
time and provide better citizen service

14. Sh
or
tR
So – how can digitilization help ? un
PES-centric
• Fight Fraud
• As many citizens can see increased utility from Presentation
recieving benefit it might be tempting to claim more on
than you are eligible to. Rules engines and good OPA
metadata can protect you against this.
• Benchmarks Presentation
• To know how to go somewhere, you need to know
on
where you are... remember to have good Business
Intelligence CWI
• Consolidate metadata and establish 360
Presentation
• By having a value-chain based approach to PES
digitilization (360 degree view) and securing on
information consolidation PES’s are able to provide ”Evolución del
much broader services to citizens more efficient. Modelon”

15. So – how can digitilization help ?
• In the long run ...
• Prepare for the flexible future – the amount of policy
changes that the recession has demonstrated will be
”everyday”
• Migrate LEGACY to COTS environments
• Use RULES and BUSINESS PROCESS
ENGINES
• The biggest challenge of 2015 – to maintain Labor
Supply sufficient
• New ways of working – collaborative and utilizing
Web3.0
• Labor-Saving Technologies – Danish Government
invest €500m in joint-venture research to examine
/ POC.
• Training, training and training of workforce to
climb the value-chain (transition towards more and
more knowledge-based economies)
• Interaction with people in work as well as unempl.

16. If you want to learn more ...