Sections

Digital Transformation: Reimagining The World, Industry By Industry

Pat Bakey

The world as we know it is continually changing, and one of the fundamental drivers is digital transformation. Person by person, company by company, and industry by industry, a new reality is evolving.

The global economy is undergoing a digital transformation as well, and it’s happening at breakneck speed. Consequently, established business models no longer work, and previously successful business networks are rapidly disintegrating while industry boundaries evaporate. New, powerful players are emerging and shaking up the status quo as products get smart and consumers get even smarter.

What does that mean to the everyday person like you and me? It means imagining the world differently—because we must, and because we can.

Re-imagining industry

To see how the world can be imagined, let’s look at the agricultural industry—one that we can relate to because we all need food to survive.

One of the ambitious objectives of the United Nations Sustainable Development Goals (SDGs) is to eliminate hunger by 2030. However, with an estimated 9 billion people living on earth by 2050, this goal will not be possible unless we start re-imagining how food is produced today. In fact, a report from the Food and Agriculture Organization of the United Nations says that to feed the entire world population in 2050, food production must increase by 70%.

That means that the soybean farmer in Iowa as well as the cashew farmer in Africa must do things differently. And they can, thanks to digital transformation and new business models, such as precision farming, which combines a variety of technologies to enable farmers to increase production, optimize investments, and maximize returns.

Feeding the world is an attainable reality

For the agricultural industry—which consists of more than one billion workers worldwide—precision farming is a bold step. But now, farmers in even the most remote parts of the world can maximize yields like never before. They can also minimize irrigation, labor, and energy usage while intelligently using fertilizers, herbicides, and pesticides that may cause harm to the environment. They can produce better food, more economically and more efficiently.

It’s advancements like this that will end world hunger. In fact, the International Food and Policy Research Institute recently reported that agricultural technologies could increase global crop yields by as much as 67% percent while cutting food prices nearly in half by 2050.

Precision farming in action

Big Data, mobile, supply chain, and cloud technologies are key enablers for precision farming. Here are a few examples of how these tools are helping farmers around the globe.

  • Gaining new insights. Farmers are using Big Data from the Precision Agriculture Hub, which connects the world’s biggest agricultural businesses, farmers, and suppliers to farm smarter. Through technology solutions and the supply chain and network of F4FAgriculture, farmers can gain insights on which crops to plant where and when. They can also learn what pesticides and fertilizers to use; how upcoming weather patterns will affect their crops; and where the best market prices are. With this critical data, they can maximize their yields, optimize sales, and help feed more people.
  • Learning new ways to farm. The African Cashew Initiative works to help over 300,000 small-scale farmers increase cashew productivity and income in five African countries (Benin, Burkina Faso, Côte d’Ivoire, Ghana, and Mozambique). By offering training programs, materials, and access to mobile business applications, these farmers are learning the best way to bring their product to market too. They can more efficiently forecast and plan, connect to the best buyers, and implement advanced marketing strategies.
  • Increasing sustainability. In northern Ghana, the StarShea Network is helping rural women learn more efficient ways to harvest and process shea nuts and butter. The network, with more than 15,000 members, provides information technology, education, and microfinancing to its members so they can conduct business independently and sustainably. For instance, through mobile technology, these women have access to the current market prices so they can sell their products competitively to global customers. They also have the technology to scan personalized barcode labels on each shea nut sack to track individual production and storage details. 

SAP is helping the world re-imagine itself

The vision and purpose of SAP is to help the world run better and improve people’s lives. We are committed to accelerating our customers’ digital transformation and we challenge them to reimagine their operational processes, business models, and the way they interact with the world.

We are also committed to the United Nations SDGs, including improving the health of the world by ending hunger – because we must, and we can.

To learn more about precision farming initiatives from SAP, visit here.

Comments

Pat Bakey

About Pat Bakey

Pat Bakey is the president of Industry Cloud for SAP. He is responsible for the industry cloud footprint, which covers 25 industries globally, the finance and extended supply chain lines of business and the go-to-market execution of SAP Business Suite 4 SAP HANA (SAP S/4HANA). By offering prescriptive cloud road maps by industry and lines of business, the Industry Cloud organization serves every customer in every cloud model (private, public, and hybrid), for any business size, anywhere in the world, enabling SAP’s customers to approach their digital transformation through an industry lens.

Why Youth Will Determine ASEAN’s Success In The Digital Revolution

Michael Zipf

Don’t let the European Union and all of its troubles fool you. At least one regional integration has a lot to celebrate: The Association of Southeast Asian Nations (ASEAN) turns 50 this year.

Indonesia, Malaysia, Philippines, Thailand, and Singapore founded the association in 1967 to facilitate economic and political collaboration among its members and to accelerate economic growth and social progress. Five more countries joined ASEAN in the 1980s and 1990s, helping to make it an economic powerhouse with a combined GDP of US$2.5 trillion. (If it were a single country, ASEAN would be the seventh-largest economy in the world.)

But ASEAN is in the middle of the same digital revolution as the rest of the world. Technologies such as artificial intelligence, robotics, machine learning, 3D printing, autonomous vehicles, and nanotechnology, along with accelerating progress in genetics, automation, and materials science, are shaking up the planet’s economies.

ASEAN taking over as the world’s factory

We are at “an inflection point in the history of our economies and societies because of digitization,” according to economists Erik Brynjolfsson and Andrew McAfee in their latest book, The Second Machine Age. “It’s an inflection point in the right direction – bounty instead of scarcity, freedom instead of constraint – but one that will bring with it some difficult challenges and choices … The choices we make from now on will determine what kind of world that is.”

Brynjolfsson and McAfee are optimistic about the future, but they argue that technology may “leave a lot of people, organizations, and institutions behind.” They point out that especially workers with only “ordinary skills and abilities to offer” will suffer since “computers, robots, and other digital technologies are acquiring these skills and abilities at an extraordinary rate.”

The low cost of labor in Indonesia, Laos, Myanmar, and Vietnam is a competitive advantage for multinational firms – and for ASEAN. Experts from ANZ Bank believe “Southeast Asia will take up China’s mantle of the world’s factory over the next 10 to 15 years.”

Preparing the next generation

Much of what lies ahead for ASEAN will depend on how the younger generations will handle digitalization – and the challenges described in the 17 United Nations Sustainable Development Goals. Almost half of the region’s population will be younger than 30 by 2020. It will be a young, diverse, and digitally savvy population – so ASEAN could be in a good position to benefit from the digital transformation.

But getting into that good position will not be easy. Youths need to be prepared for the digital economy and be sensitized for what’s needed to ensure prosperity in a sustainable way. The challenges ahead are so fundamental that ASEAN will need help from all its stakeholders: public and private sectors, academia, and civil society.

Global partnership for sustainable development

The ASEAN Foundation is rolling out three initiatives in 2017 to address ASEAN’s economic, environmental, and societal issues. The projects are based on three focus areas:

  • Education: The data analytics competition “ASEAN Data Science Explorers“ (ADSE) is already underway. University students across all 10 ASEAN member states from any discipline are invited to deliver data-driven insights for ASEAN across six U.N. Sustainable Development Goals cloud-based analytics.
  • Volunteerism: In collaboration with the United Nations Volunteers (UNV) program and the German Federal Ministry for Economic Cooperation and Development, ASEAN Secretariat, ASEAN Foundation, SAP, and other partners have launched the Youth Volunteering Innovation Challenge (YVIC) in ASEAN. Under the theme “Impact ASEAN,” the initiative supports young volunteers throughout the ASEAN countries in their journey to catalyze youth-led innovation for social impact and sustainable development.
  • Entrepreneurship: Through social sabbatical programs, employees from companies such as SAP are supporting social impact intermediaries through mentoring and pro-bono consulting. The program, in association with several partners, will impact close to 20 social enterprises across Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Singapore, Thailand, and Vietnam in 2017.

These and other collaborative efforts will help many of ASEAN’s young people excel alongside Brynjolfsson and McAfee’s “computers, robots, and other digital technologies.” Beyond justifying the two economists’ optimism, these efforts will help equip youth in the 10 ASEAN countries with the skills they need to meet the United Nations Sustainable Development Goals – and to thrive in the digital economy.

Applying artificial intelligence (AI) to complex decisions has clear benefits. But it also increasingly means automating ethical choices that can alter human lives. Learn more about how scientists are Teaching Machines Right from Wrong.

Comments

What To Do About The Youth Unemployment And STEM Skills Gap

Marita Mitschein

Today, half the people on the planet are under the age of 30. Millennials are the first “always connected” generation and the best-educated people in history, but are affected by high unemployment rates, according to the International Labour Organization (ILO).

At the same time, organizations around the world are increasingly reliant on advanced technical skills in the emerging digital economy. By 2020, economies will face a shortage of the skilled talent needed to drive prosperity and social security. Forty million high-skilled workers – especially with science, technology, engineering, and math knowledge – are needed globally, according to McKinsey.

What role can the private sector play in solving these issues?

The situation presents organizations of all kinds with a major challenge, but also with a huge opportunity. Although there are many public and private sector initiatives supporting employment-related education, companies also must take seriously their social responsibility here. By supporting students and recent graduates on their way into employment and bridging the gap from academic into professional life, companies can impact the lives of 1 million people each year.

A best-in-class practice is the creation of a training and development institute (TDI) that puts the upskilling of local talent at the core of the growth strategy. The concept supports local unemployed youth by offering a host of programs tailored to bring business skills to those who already understand a region’s culture and society.

A unique approach to inspire youth and jointly tackle today’s challenges

TDI’s approach not only trains and enables the most talented local millennials, but also supports them in entering a corporate workforce or establishing their own businesses. For example, our program, designed for the Middle East and North Africa (MENA) region, has already helped more than 1,070 talented university graduates across 12 countries shape their careers, with 98% of participants placed into employment, largely in our ecosystem, after completion of the training program. Technology has the power to transform the lives of many people worldwide, and building strong public-private partnerships is key to ultimately shaping a better future for individuals, companies, and economies at scale.

True to a corporate vision of higher purpose, TDIs can help the world run better and improve people’s lives and expand that mission into additional fast-growth markets with significant skills shortages such as Brazil and Mexico. Moreover, its best practices have been adopted to support skills for Africa and a U.S. nonprofit organization that supports veterans.

As efficient solutions to the youth unemployment challenge are needed globally, this knowledge transfer inspires organizations across the globe to start looking into ideas and solving one of the most pressing issues of our time.

The urgency of the youth unemployment is a challenge, as indicated by the World Economic Forum. But a TDI centered on public-private partnerships canempower youth, create jobs, and, ultimately, drive economic growth in regions that need it.

By hosting these programs, the SAP Training and Development Institute has built skills and knowledge reflecting an in-country value of over US$110m to date. Read more about the SAP Training and Development Institute.

Comments

Marita Mitschein

About Marita Mitschein

Marita Mitschein is Senior Vice President Strategic Investments (MENA) and Managing Director of the SAP Training and Development Institute and Member of the SAP Global Executive Leadership Team. Marita is responsible for leading the SAP investment strategy across the Middle East and North Africa (MENA) and the operations of the SAP Training and Development Institute.

Taking Learning Back to School

Dan Wellers

 

Denmark spends most GDP on labor market programs at 3.3%.
The U.S. spends only 0.1% of it’s GDP on adult education and workforce retraining.
The number of post-secondary vocational and training institutions in China more than doubled from 2000 to 2014.
47% of U.S. jobs are at risk for automation.

Our overarching approach to education is top down, inflexible, and front loaded in life, and does not encourage collaboration.

Smartphone apps that gamify learning or deliver lessons in small bits of free time can be effective tools for teaching. However, they don’t address the more pressing issue that the future is digital and those whose skills are outmoded will be left behind.

Many companies have a history of effective partnerships with local schools to expand their talent pool, but these efforts are not designed to change overall systems of learning.


The Question We Must Answer

What will we do when digitization, automation, and artificial intelligence eject vast numbers of people from their current jobs, and they lack the skills needed to find new ones?

Solutions could include:

  • National and multinational adult education programs
  • Greater investment in technical and vocational schools
  • Increased emphasis on apprenticeships
  • Tax incentives for initiatives proven to close skills gaps

We need a broad, systemic approach that breaks businesses, schools, governments, and other organizations that target adult learners out of their silos so they can work together. Chief learning officers (CLOs) can spearhead this approach by working together to create goals, benchmarks, and strategy.

Advancing the field of learning will help every business compete in an increasingly global economy with a tight market for skills. More than this, it will mitigate the workplace risks and challenges inherent in the digital economy, thus positively influencing the future of business itself.


Download the executive brief Taking Learning Back to School.


Read the full article The Future of Learning – Keeping up With The Digital Economy

Comments

Dan Wellers

About Dan Wellers

Dan Wellers is founder and leader of Digital Futures at SAP, a strategic insights and thought leadership discipline that explores how digital technologies drive exponential change in business and society.

Tags:

Why Millennials Quit: Understanding A New Workforce

Shelly Kramer

Millennials are like mobile devices: they’re everywhere. You can’t visit a coffee shop without encountering both in large numbers. But after all, who doesn’t like a little caffeine with their connectivity? The point is that you should be paying attention to millennials now more than ever because they have surpassed Boomers and Gen-Xers as the largest generation.

Unfortunately for the workforce, they’re also the generation most likely to quit. Let’s examine a new report that sheds some light on exactly why that is—and what you can do to keep millennial employees working for you longer.

New workforce, new values

Deloitte found that two out of three millennials are expected to leave their current jobs by 2020. The survey also found that a staggering one in four would probably move on in the next year alone.

If you’re a business owner, consider putting four of your millennial employees in a room. Take a look around—one of them will be gone next year. Besides their skills and contributions, you’ve also lost time and resources spent by onboarding and training those employees—a very costly process. According to a new report from XYZ University, turnover costs U.S. companies a whopping $30.5 billion annually.

Let’s take a step back and look at this new workforce with new priorities and values.

Everything about millennials is different, from how to market to them as consumers to how you treat them as employees. The catalyst for this shift is the difference in what they value most. Millennials grew up with technology at their fingertips and are the most highly educated generation to date. Many have delayed marriage and/or parenthood in favor of pursuing their careers, which aren’t always about having a great paycheck (although that helps). Instead, it may be more that the core values of your business (like sustainability, for example) or its mission are the reasons that millennials stick around at the same job or look for opportunities elsewhere. Consider this: How invested are they in their work? Are they bored? What does their work/life balance look like? Do they have advancement opportunities?

Ping-pong tables and bringing your dog to work might be trendy, but they aren’t the solution to retaining a millennial workforce. So why exactly are they quitting? Let’s take a look at the data.

Millennials’ common reasons for quitting

In order to gain more insight into the problem of millennial turnover, XYZ University surveyed more than 500 respondents between the ages of 21 and 34 years old. There was a good mix of men and women, college grads versus high school grads, and entry-level employees versus managers. We’re all dying to know: Why did they quit? Here are the most popular reasons, some in their own words:

  • Millennials are risk-takers. XYZ University attributes this affection for risk taking with the fact that millennials essentially came of age during the recession. Surveyed millennials reported this experience made them wary of spending decades working at one company only to be potentially laid off.
  • They are focused on education. More than one-third of millennials hold college degrees. Those seeking advanced degrees can find themselves struggling to finish school while holding down a job, necessitating odd hours or more than one part-time gig. As a whole, this generation is entering the job market later, with higher degrees and higher debt.
  • They don’t want just any job—they want one that fits. In an age where both startups and seasoned companies are enjoying success, there is no shortage of job opportunities. As such, they’re often looking for one that suits their identity and their goals, not just the one that comes up first in an online search. Interestingly, job fit is often prioritized over job pay for millennials. Don’t forget, if they have to start their own company, they will—the average age for millennial entrepreneurs is 27.
  • They want skills that make them competitive. Many millennials enjoy the challenge that accompanies competition, so wearing many hats at a position is actually a good thing. One millennial journalist who used to work at Forbes reported that millennials want to learn by “being in the trenches, and doing it alongside the people who do it best.”
  • They want to do something that matters. Millennials have grown up with change, both good and bad, so they’re unafraid of making changes in their own lives to pursue careers that align with their desire to make a difference.
  • They prefer flexibility. Technology today means it’s possible to work from essentially anywhere that has an Internet connection, so many millennials expect at least some level of flexibility when it comes to their employer. Working remotely all of the time isn’t feasible for every situation, of course, but millennials expect companies to be flexible enough to allow them to occasionally dictate their own schedules. If they have no say in their workday, that’s a red flag.
  • They’ve got skills—and they want to use them. In the words of a 24-year-old designer, millennials “don’t need to print copies all day.” Many have paid (or are in the midst of paying) for their own education, and they’re ready and willing to put it to work. Most would prefer you leave the smaller tasks to the interns.
  • They got a better offer. Thirty-five percent of respondents to XYZ’s survey said they quit a previous job because they received a better opportunity. That makes sense, especially as recruiting is made simpler by technology. (Hello, LinkedIn.)
  • They seek mentors. Millennials are used to being supervised, as many were raised by what have been dubbed as “helicopter parents.” Receiving support from those in charge is the norm, not the anomaly, for this generation, and they expect that in the workplace, too.

Note that it’s not just XYZ University making this final point about the importance of mentoring. Consider Figures 1 and 2 from Deloitte, proving that millennials with worthwhile mentors report high satisfaction rates in other areas, such as personal development. As you can see, this can trickle down into employee satisfaction and ultimately result in higher retention numbers.

Millennials and Mentors
Figure 1. Source: Deloitte


Figure 2. Source: Deloitte

Failure to . . .

No, not communicate—I would say “engage.” On second thought, communication plays a role in that, too. (Who would have thought “Cool Hand Luke” would be applicable to this conversation?)

Data from a recent Gallup poll reiterates that millennials are “job-hoppers,” also pointing out that most of them—71 percent, to be exact—are either not engaged in or are actively disengaged from the workplace. That’s a striking number, but businesses aren’t without hope. That same Gallup poll found that millennials who reported they are engaged at work were 26 percent less likely than their disengaged counterparts to consider switching jobs, even with a raise of up to 20 percent. That’s huge. Furthermore, if the market improves in the next year, those engaged millennial employees are 64 percent less likely to job-hop than those who report feeling actively disengaged.

What’s next?

I’ve covered a lot in this discussion, but here’s what I hope you will take away: Millennials comprise a majority of the workforce, but they’re changing how you should look at hiring, recruiting, and retention as a whole. What matters to millennials matters to your other generations of employees, too. Mentoring, compensation, flexibility, and engagement have always been important, but thanks to the vocal millennial generation, we’re just now learning exactly how much.

What has been your experience with millennials and turnover? Are you a millennial who has recently left a job or are currently looking for a new position? If so, what are you missing from your current employer, and what are you looking for in a prospective one? Alternatively, if you’re reading this from a company perspective, how do you think your organization stacks up in the hearts and minds of your millennial employees? Do you have plans to do anything differently? I’d love to hear your thoughts.

For more insight on millennials and the workforce, see Multigenerational Workforce? Collaboration Tech Is The Key To Success.

Comments