Future of Work - Implications for Technology Majors
1. The Future of Work:Implications for Technology Students March 23, 2011 University of Vermont Mark Greenlaw, Vice President, Sustainability & Educational Affairs, former CIO, Cognizant
2. Cognizant Profile 1 Global IT Services Company Fastest Growing in Industry Founded in 1994 as D&B Spin-off 104,000+ Employees $4.59 B Revenues for 2010 (up 40% year over year) Headquartered in New Jersey, with Global Operations 570+ customers Member of S&P 500, Fortune 1000 Our single-minded passion: dedicating our global resources, industry intelligence and systems expertise to working with our clients to make their businesses stronger
3. Global Project Footprint* Amsterdam Atlanta Bangkok Boston Buenos Aires Chicago Dallas Shanghai Singapore Sydney Teaneck Tokyo Toronto Zurich Boston Bentonville Bridgewater Budapest Buenos Aires Canary Whart Manila Gurgaon Hyderabad Kolkata Mumbai New Delhi Pune Argentina Australia Austria Belgium Brazil Canada China Czech Republic Sweden Switzerland Taiwan Thailand Turkey UAE UK USA Regional Offices Development Dubai Frankfurt Geneva Hong Kong Kula Lumpur Los Angeles London Manila Melbourne Minneapolis Norwalk Phoenix Paris San Raman Phoenix Shanghai Toronto Bangalore Chennai Cochin Coimbatore Denmark Finland France Germany Greece Guam Hungary Ireland Italy Japan Malaysia Mexico Netherlands Nigeria Norway Poland Portugal Romania Russia Saudi Arabia Slovakia South Africa South Korea Spain *Countries spanned by clients operations Client-Focused Global Delivery Network 2
4. The confluence of Technology, Demographics, and Globalization are changing the fundamental nature of organization and work itself Something truly big is underway
5. 4 Four Forces shaping the Future of Work The Millennial generation is reshaping how everything from communication to innovation occurs both inside and outside the organization Globalization means companies can now leverage expertise anywhere and everywhere it lives Virtualized platforms of collaboration are enabling real-time teamwork between project members regardless of time or place The cloud, mobility, social tools and broadband evolution are creating a transformative new computing model
7. Scale of Globalization Today, there are nearly 5 Billion participants – 3.3 Billion coming from BRIC Nations 6 Photo by Randy Olson/National Geographic Before the Berlin Wall fell in 1989, there were 600 Million participants in the Global Economy
12. 11 Demand Side: Economic Growth Brazil, Russia, India and China Bric countries will soon contribute over half the world’s economic growth… Share of Global GDP growth (%, based on purchasing power parity $ terms) 2008 – 2014 (forecast) 1990 - 2000 2000 - 2008 61.3% 46.3% 32.2% Bric countries 41.1% 19.8% 12.8% G7 Countries (US, UK, Japan, Germany, Canada, France and Italy) Source: 1. IMF 2. Brics: The changing faces of global power, By Alan Beattie, Financial Times, January 17 2010
13. Demand Side: Economic Growth 12 In China last year: Apple iPhone sales increased 9-fold; 800 Distribution Centers were added Buick sold its 2 Millionth car
28. Soon to be the majority of corporation’s employees and customers
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30. “Millennials are… How are Millennials important and different? John Della Volpe, Harvard University fierce multi-taskers digital natives, who crave collaboration, travel in packs, and don’t mind status.”
31. Cloud Internet PC2001 - 2008 Distributed PC1992 - 2001 Minicomputer1976 - 1992 Mainframe1960 - 1976 The Major IT Waves Cloud = virtually hosted environments + broadband + mobility + social computing
43. Transaction time: 300 milliseconds21 Cloud Performance and Cost:Challenging antique IT presumptions
44. 22 Four Forces shaping the Future of Work The Millennial generation is reshaping how everything from communication to innovation occurs both inside and outside the organization Globalization means companies can now leverage expertise anywhere and everywhere it lives Virtualized platforms of collaboration are enabling real-time teamwork between project members regardless of time or place The cloud, mobility, social tools and broadband evolution are creating a transformative new computing model
45. Why is this good for you? Future of Work Forces Driving High Demand for Tech-Savvy Workers The Work is Exciting and Rewarding 23
47. The Sunday Night Experience The Monday Morning Experience PC: $800 iPhone: $300 Social apps: Free Experience: Priceless Pressure to Innovate within Corporate IT
48. But Wait!!!! Didn’t I hear that politician say “all IT jobs were going offshore?” 26
54. The Work is Exciting and Rewarding 29 “The first step in winning the future is encouraging American innovation. None of us can predict with certainty what the next big industry will be or where the new jobs will come from. Thirty years ago, we couldn’t know that something called the Internet would lead to an economic revolution. What we can do -- what America does better than anyone else -- is spark the creativity and imagination of our people. We’re the nation that put cars in driveways and computers in offices; the nation of Edison and the Wright brothers; of Google and Facebook. In America, innovation doesn’t just change our lives. It is how we make our living.” -- President Barack Obama, 2011 State of the Union Address
55. How Do You Get Ready to Participate in The Future of Work? 30 Image source: The Bethesda Blog
56. Take Advantage of What You Already Have “Respondents said the advantages of hiring U.S. engineers were strong communication skills, an understanding of U.S. industry, superior business acumen, strong education or training, strong technical skills, proximity to work centers, lack of cultural issues, and a sense of creativity and desire to challenge the status quo.” -- Survey of 58 US Corporations engaged in Outsourcing engineering jobs Source: “Where the Engineers Are” by Vivek Wadhwa, Gargy Gereffi, Ben Rissing, Ryan Ong, Duke University, Center on Globalization, Governance and Competitiveness. 31
57. It takes a “Whole New Mind” to Succeed 32 Not just function but also DESIGN Not just argument but also STORY Not just focus but also SYMPHONY Not just logic but also EMPATHY Not just seriousness but also PLAY Not just accumulation but also MEANING Recommended Reading: “A Whole New Mind” by Daniel H. Pink
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61. EQ and CQ > IQCopyright Global Integration, Ltd.
62. Find your Place to Contribute & Innovate 36 Infrastructure & Technology Applications & Software Business Processes Business Models Cloud and mobile will increase demand for skills in networking, hardware, virtualization, storage, mobile devices and infrastructure. The network is essential for delivering cloud-based services. Security and privacy issues will drive continued demand for security experts. Organization Customers, Vendors, Partners
63. Find your Place to Contribute & Innovate 37 Infrastructure & Technology Applications & Software Business Processes Business Models Corporate Apps need to be upgraded to be “social” and to close the gap between the Sunday Night and Monday Morning experiences. Architecture, design and usability skills are critical. Performance engineering and integration skills are essential for large SaaS applications. Organization Customers, Vendors, Partners
64. Find your Place to Contribute & Innovate 38 Infrastructure & Technology Applications & Software Business Processes Business Models Strong business analysis, modeling, six sigma / lean skills essential to help companies understand core vs. context. Industry or business function domain knowledge becomes more critical. Analysts must be savvy at designing processes that can be executed virtually and globally. Organization Customers, Vendors, Partners
65. Find your Place to Contribute & Innovate 39 Infrastructure & Technology Applications & Software Business Processes Business Models Those with leadership and entrepreneurial skills and who can help envision the future will help companies shift from outdated business models to newer sustainable ones. Visionaries will understand how to create globalized, virtualized, and cloud-based business models catering to a new generation of customers and employees. Organization Customers, Vendors, Partners
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67. Analytics, as processes become more digitized and instrumented, a wealth of performance data will be created, which must be analyzed and synthesized to enable improved decision-making.Infrastructure & Technology Applications & Software Business Processes Business Models Organization Customers, Vendors, Partners
71. “Where the Engineers Are” by Vivek Wadhwa, Gargy Gereffi, Ben Rissing, Ryan Ong, Duke University, Center on Globalization, Governance and Competitiveness.
72. “Houston, we’ve had a problem…offshoring, IS employment and the IS discipline: perception is not reality” by Rudy Hirschheim, Mike Newman, Journal of Information Technology, 2010
74. “Moving beyond the fluff in intercultural training” by David Livermore http://www.management-issues.com/2011/2/7/opinion/moving-beyond-the-fluff-in-intercultural-training.asp
Hinweis der Redaktion
How many of you are studying Technology, either in MIS, IS, Computer Science, or Electrical Engineering, or other majors? (Show of hands). Well, I want to congratulate you – you made a great choice, since there is tremendous opportunity waiting for you once you graduate, and you will be entering the workforce at one of the most exciting times. It is Cognizant’s contention that we’re currently living at an unprecedented “shift point,” a time where key megatrends are reshaping the rules of markets, how work is conducted and value is created.In this presentation, we will discuss three things:This unprecedented shift point, how it will benefit you as Technology majors, and what you can do to ready yourself to enter the workforce in a world impacted by this shift.
We’re a leading provider of information technology, consulting and business process outsourcing services, headquartered in Teaneck, New Jersey, just a few minutes from Manhattan. In the marketplace, Cognizant competes with the likes of Accenture, IBM Global Services and Indian firms such as Tata, Infosys, and Wipro. Our global technology expertise, industry knowledge and worldwide resources enable us to help some of the world’s largest companies solve their toughest business problems. To date, we’ve worked in more than 40 different countries on over 12,000 projects—and we’re just getting started. Even in today’s economy, Cognizant is one of the fastest-growing companies in the history of modern business. Fortune, Forbes, the Harvard Business Review and other respected publications have taken notice, adding to our list of impressive achievements.
Something truly big is underway, as the confluence of Technology, Demographics, and Globalization are fundamentally changing the nature of organizations and work itself.
We call this the Future of Work, and it is being shaped by Four Forces:Globalization, since companies can tap into knowledge and expertise, wherever it exists in the world, allowing Knowledge work, of ALL forms, to migrate to its right location worldwideMillennials: As customers and employees, Driving New Social and Operating NormsVirtualization of Organization, Processes and Technology enabling new structures and methods for collaborationNew Technologies: Cloud X Social X Broadband X Mobility = New Computing model, Tapping into the Collective IntelligenceCognizant is experiencing this today in our business…and we feel we are uniquely positioned to help our clients adapt and take advantage of these future of work forces.
Initially, Globalization focused on manufacturing, and hard goods.
Today, its much more focused on the knowledge-based industries. The Internet was often referred to as the “Information Superhighway”. Now we see it as a “Work Transport Highway”, since digits don’t recognize political boundaries. Knowledge work will find its proper location around the globe, with great efficiency. So Knowledge work will be done by people all over the globe. This has an impact both on the Supply Side of Labor, and Demand Side for Products and Services
Supply Side (Labor Markets) Implications: While US population growth rates are slowing, Europe has already started a decline in population, but the growth in the BRIC nations continues strong. The implication is that the global labor supply will be increasingly dominated, in volume, by the BRIC nations.
Additionally, there is a large variation in the number of engineering graduates being produced by the US, India and China.Note, however, that researches, such as Vivek Wadhwa feels these statistics are skewed and we are not comparing apples to apples; we should be careful that we do not focus on quantity over quality.
On the demand side of things, this is creating entirely new markets for goods and services. In addition to having 5 billion workers in the global economy, we now have 5 billion consumers. The GDP Growth of the BRIC nations is staggering, which will fuel new markets that US Companies can pursue.
Two examples of this are Buick and Apple, both having phenomenal success in selling their products into China.
The Second Future of Work force is Virtualization.Compared to Globalization, Virtualization of work is much less hyped, but may be equally important.This is the age of “the great decoupling,” during which tightly coupled physical environments — such as supply chains or office environments — are collapsing under their financial weight and sluggishness, moving to a more virtualized model. Why? There are Two reasons:CostInformation Revolution around Social Networks, Telepresence, and Mobility are enabling new levels of collaboration, and how the organization itself.
Virtualization occurring at many levels: in Technology, in Business Process, and the Organization itself.Virtualization of Technology is still an leading issues with CIOs. While this has an important impact, virtualization of process and organization has a more significant impact.Virtualization of Process and OrganizationUp till now many companies would have tightly coupled knowledge workers, where all people working on a knowledge process would be in one physical placeRunning a company this way is akin to using Facebook only with members of your household – it defeats the purposeWork is no longVirtualization of Human Work ExperienceToday, 16% of the workforce works from homeOver half the employees of IBM and HPBest Buys Results Only Work EnvironmentCustomer service agents from JetBlue, Hilton, or 1-800-Flowers work from home.er a place, its an activity.
In the early 1900s, companies focused on become vertically integrated and owned much of their supply chain. The communication, command and control costs to rely on others were just too great.Today, the hierarchical, vertically integrated company is coming to an end. Companies are not going from being vertically integrated to being virtually coupled.Think back to your last e-shopping experience. You were on your social network (company #1) when you heard about a new offer that intrigued you, so you searched (company #2) to get more information about it. (I’m a cyclist, so the example I’ll use is the Cyclops Indoor Trainer). That sent you to a site (company #3) that had a cool video (company #4) that motivated you to buy the product. Once you clicked to pay (company #5), you received an e-mail explaining when your order would be shipped (company #6), and subsequently you were alerted on your mobile phone (company #7) that it was arriving later that day. Seven highly specialized companies seamlessly integrated their business processes to enable this everyday experience. And the exciting thing about this is that all this is enabled by IT!
The third major Future of Work Force is the Millennial Generation.Those of you between 18 and 35 are the Millennial Generation, sometimes called Gen-Y. You are the first generation to grown up online, and are sometimes called “Digitial Natives” (where as I am a digital immigrant). This is changing the social and operating norms of the corporation. Soon, Millennials will be a majority of both the customers and employees of the corporation and you will become a significant force in how a company is managed, how its products and services are sold, and how technology is deployed.
So let’s understand who they are…
We are seeing incredible adoption rates ….
And amazing cost and performance levels, challenging our assumptions about what was possible.
In Summary, these are the four forces shaping the future of work. On their own, they would have significant impact on any organization. But Together, their impact is enormous and is already shifting the floor under entire industries, such as the publishing and pharmaceuticals industry.
So why is this good for students in the MIS, IS, Computer Science, Electrical Engineering, and other IT disciplines?There are two reasons:FOW forces will continue to drive high demand for People skilled in IT, and its only going to increaseThe work you will do is going to be exciting and critical to companies. Technology will take center stage in this shift.
First, let’s talk about the demand side for technology skilled people.Technology is essential to organizations who want to move into this new way of operating. As it is, Technology is everywhere. With the consumerization of IT, we now see IT in almost every product or its supply chain. We used to see technology primarily in large organizations, who were the real innovators 20 years ago. Then, with the growth of the internet, digitally based business, the increase in use and sophistication of mobile devices and smart phones, gaming, etc, IT is now at the heart of so many products. This has driven up the overall need for technology-skilled workers.
Additionally, Corporate IT organizations face increasing pressure to become more innovative again, and to bring the attributes of from consumer technologies back into the enterprise. We like to describe this as the Sunday Night / Monday morning experience in the Corporate World. You may even feel it hear at UVM.Sunday night, workers (and students) have all the tools they need easily enable them to get things done. Monday morning they walk into our offices, and deal with tools like ERP systems with a horrible user interface and legacy phone systems. They get frustrated.This is putting tremendous pressure on Corporate IT functions to adopt many of the same technologies that consumers use at home, and to make the work experience far more rich , rewarding and efficient. Companies need people like you to help them do this.
But some of you may have concerns about the demand for IT workers. You may see the numbers of engineers being produced by China and India, and have heard Politicians talk about “how all jobs are being outsourced to India”. While the India IT Outsourcing business is certainly booming, Outsourcing represents only actually a very small percentage – about 2% -- of IT work. Additionally, some believe that this actually creates growth in the US economy, although not necessarily in IT jobs. One study indicates that for every dollar of outsourcing to India, the use economy gains 12-14 cents (Mankiw and Swagel; 2006).
But don’t take my word for it, here are some data points from the US Bureau of Labor Statistics: Overall IT employment is near an all-time high; has grown from 2.6M to 3.3M between 1999 and 2007 (27% growth)Only category to drop is Programmers, went from 520K to 394KBut Computer Software Engineers, Application grew by 72%Computer Software Engineers, System Software, grew 67%Network and Computer System Administrators grew 51%Network System and Data communications Analysts grew 120%They project a 23.3% growth in IS Jobs through 2018, twice the average for all occupations. By 2014, there will be 1.3 million job openings in IT.IT unemployment was 2.4% in 2008 (which is essentially full employment during a tough economy) And finally, Cognizant will be hiring over thousands of workers in the US this year alone.
On the other side, there has been a 66% drop in IS majors between 2001 and 2005. While the number of people entering Computer Science increased for the first time in the last 2 years, there is still a real shortage of people pursuing the IT fields. And, there is a broader crisis in the US around STEM Education. The US continues to fall behind the rest of the world is now ranked 23rd in Science and 31st in Math compared to other developed nations. And the number of students going into the STEM fields overall is not sufficient. In fact, this is such a big problem that Cognizant, and many other companies, are investing significantly to help young people in the US become more interested and perform better in the STEM fields. So, no matter how you slice it, there will be great demand for talented IT people.
But not only will there be strong demand, but the work is going to be interesting in rewarding. Not only will IT erect the foundational infrastructure for Enterprise 2.0, but it will also act as the company’s central nervous system, once it’s up and running. The keys to this transition will come from focusing finite IT resources on virtualization of the organization and bringing consumer IT technologies and principles to the enterprise. Tremendous Innovation is required, and you there is a great opportunity to make an impact on the organizations you will join. And, this innovation is essential to continued leadership of the US economy.
So there will be tremendous demand for talent IT workers. But how do you make sure you fall into the category of “Talented”? As a former CIO who ran a truly global IT organization of over 1000 people, let me share what I think are some of the most important aspects to succeed in this rapidly changing world.
The first thing you need to understand is that you are in a great place. Companies need people like you who are attending the best universities in the world.
A second important lesson is that we need to embrace globalization. Many people I meet suffer either from fear of the unknown of working in the global economy, or they have feelings of superiority about the US’s capabilities. Both these sentiments can be harmful. I have to admit early in my career, when I had only worked for Domestic companies, I had similar fears and it took a leap of faith to overcome them. I’m very glad I did.
Learn as much as you can about globalization, both by reading, and by studying or traveling abroad.
Daniel Pink Statistic:IQ accounts for only 4 – 10 % of career success. Emotional Intelligence, defined by work of Daniel Goleman, shown much more critical in career success. (Whole New Mind, page 58).New research also shows Cultural Intelligence (CQ) is extremely critical. In fact, its so important that in our Campus Entry Level Training program, we teach a module called “Working Globally” which uses this framework, from Global Integration, called the Cultural Abacus. Our training program graduates found this to be one of the most interesting and beneficial modules in the training program.“The research on cultural intelligence also demonstrates that employees with higher levels of CQ are better able to meet the challenges of serving a diverse customer base at home and abroad and they do better effectively working with diverse colleagues. More specifically, the higher the CQ, the better the employees were at negotiating, networking, innovating, and leading multicultural teams.Individuals with higher levels of CQ are less likely to experience fatigue, stress and burn out from the constant demands of working in multicultural situations. Higher levels of CQ both enhance an employee's own personal well being while simultaneously making them more productive and engaged in their work.In light of these other findings, it's no surprise that individuals and organizations that more successfully adjust cross-culturally, do their jobs better, and have a better level of personal well being, save and earn more money. One study found that 92 percent of 100 companies that assessed and developed cultural intelligence saw an increase in their profit margins. All the companies credited the attention upon CQ as a significant correlating factor to increased revenues, cost-savings and efficiencies.”[Source David Livermore. Additional description of the research findings cited in this article cited and explained in the upcoming book, The Cultural Intelligence Difference: Master the One Skill You Can't Do Without in Today's Global Economy (AMACOM, May 2011 release).] Source: http://www.management-issues.com/2011/2/7/opinion/moving-beyond-the-fluff-in-intercultural-training.asp
At some point in time, not today, but maybe in 3 – 5 years, you will want to zone in and pick your place in the stack for where you want to add value and drive innovation.Implications for those interested in Infrastructure.
Implications for those interested in Software.
Implications for those interested in business process.
Implications for those interested more interested being entrepreneurs or leaders in companies.
Two other places where we need people are: Project Management and Analytics.
One thing certain…things are going to be constantly changing, and the skills needed to be successful today maybe very different in as little as 3 years from now.To keep pace with change, and always to ensure you have the skills to play a relevant and important role in society, you need to commit to lifelong learning. I am constantly reading, surfing and exploring new ideas, talking to people, and finding ways to understand what is going on the world around me.Take time to play and have some fun, but if you can learn to enjoy learning, then it will help you ensure lifelong learning and a much better and more prosperous life.Thank You!