Sections

Future Cities: Jobs And Social Capital

Brian Lee-Archer

If work isn’t the cornerstone of our society, then why is there so much focus on the jobs of the future and the impact of the digital economy?

Labor mobility is a characteristic of a modern thriving economy. Jobs might attract people to a community, but livability makes them stay. Bill Clinton’s famous slogan from the 1992 U.S. presidential election, “It’s the economy, stupid,” is a poignant reminder that sustainability within our communities is contingent on a level of economic activity.

Jobs and livability go hand-in-hand. Economic activity within a community underpins investment in social capital-related initiatives. Strong social capital is a stabilizer to the negative effects of economic cycles. Improving livability and economic activity can trigger a virtuous circle effect leading to sustainable communities.

On the other side of the coin, if economic activity slows and jobs disappear, investment in livability may decline and put community sustainability at risk. Communities often have limited capacity to influence the macroeconomic issues that determine labor markets and attract jobs.

However, they have a level of control over livability factors such as open space, public safety, and recreational activities.

In periods of economic slowdown, the focus on social capital-related initiatives contributes to resilience, thereby increasing capacity to influence economic activity.

The new economy is putting a spotlight on the concept of tradable and non-tradable jobs, as Enrico Moretti explains in his book, The New Geography of Jobs. A tradable job creates goods or services that can be exported to other regions—for example, knowledge or manufacturing jobs.

Non-tradable jobs are usually local jobs that support people in tradable jobs—for example, retail, health services, and education. According to Moretti, “A healthy traded sector benefits the local economy directly, as it generates well-paid jobs, and indirectly, as it creates additional jobs in the non-traded sector.”

At the macro level, attracting traditional tradable industries such as manufacturing is beyond the reach of many communities. While communities may offer incentives to attract investment, it comes with risk.

However, the new economy provides opportunities to attract or upskill to a new class of tradable jobs at a lower investment risk – the knowledge workers. Knowledge workers have higher average incomes, are mobile and well-educated, and have a life perspective beyond the community they live in. Knowledge workers create the potential to leverage existing social capital assets of the community to enable innovation, leading to new jobs with higher levels of job satisfaction.

Increasing the pool of knowledge workers within a community lifts demand for local services in the non-tradeable sector – the multiplier effect.

By virtue of their mobility, knowledge workers have the opportunity to exercise choice in where they live. Communities can leverage livability factors to retain newly upskilled workers and attract new knowledge workers.

A three-year study (2010-12) conducted by Gallup and the Knight Foundation of 26 communities across the United States, The Knight Soul of the Community, examined the factors that bond residents to their communities and the role of community attachment in an area’s economic growth and well-being.

This study revealed three dominant factors: aesthetics, openness, and social offerings.

Kick-starting a virtuous circle of growth in employment and livability is contingent upon a rich source of data and the capability to turn data into information for business insight.

Information informs community leaders in making targeted investment decisions addressing social capital factors proven to have a positive impact on tradable job prospects.

Community leaders face a unique challenge: The levers they have most control over are not necessarily the most direct in terms of creating jobs. However, the livability levers they do control can have a significant impact on creating the environmental conditions for innovation among knowledge workers.

The economic value created will empower communities to invest further in social capital initiatives.

For more on how technology drives social capital, see Smart Investments Create Smart Cities.

This article was originally published on InnovationAus.com.

Comments

Brian Lee-Archer

About Brian Lee-Archer

Brian Lee-Archer is director of the SAP Institute for Digital Government Global (SIDG). Launched in 2015, SIDG is a global think tank that aims to create value for government by leveraging digital capability to meet the needs of citizens and consumers of government services. In collaboration with government agencies, universities and partner organizations, SIDG facilitates innovation through digital technology for deeper policy insight and improved service delivery.

Removing Bias From Digitization Brings Economic Opportunity For All

Shelly Dutton

Conventional wisdom tells us that all of us encounter change. Some people fully embrace it as a new beginning and use it to create something positive or even life-changing. Others fight it along the way. And a vast majority accept the change – but only on their terms.

No matter where you fall, it is increasingly difficult to ignore how various faction of our global society views change.

Populist movements are emerging all over the world, fueled by populations that are not economically uplifted by the opportunities of the digital economy. And one look at news headlines over the last decade justifies such sentiments. For example, many companies are focused on simplifying and shortening supply chains. Automation is making production location and outsourcing decisions no longer dependent on labor costs. The possibilities of 3D printing could potentially decrease the need to ship goods across long distances.

In a recent interview with Handelsblatt Global, Bill McDermott, CEO of SAP, acknowledged that more must be done to show how everyone – of any level of education, industry, and demographic – can fit in a world of globalization and digitization.

“Governments can no longer ignore them,” he observed. “Countries need to consider how to usher a large chunk of the workforce into a modern economy.”

Even though businesses are investing in technology to automate tasks that were formerly carried out by workers, McDermott believes that some jobs can never be improved by a machine or robot. However, political and business leaders still need to do more to alleviate fears of job loss and an unemployable future.

“Clearly, we are going need new forms of training and education, and companies can play an important role in that process,” McDermott shared.

Employees have a right to understand how technology will power a progression present work situation to a future of opportunity, promise, and prosperity. Businesses have an obligation to impart knowledge and guidance to their employees and a clear, sustainable, and achievable road map of their digital strategy. Ultimately, leadership teams need to side with their workforce and do everything in their power to help ensure their success.

Once the executive team and its employees of all levels and responsibilities are engaged in the business’ digital direction, the future is full of immense potential. McDermott uses his own workforce as an example of the possibilities, “We have 22,000 brilliant developers, the greatest in the world. We just needed to unleash their potential and set them on the topics that matter most. We don’t need to buy any small startup to reach our goals.”

For the entire interview with Bill McDermott, read the Handelsblatt Global article, “Computers Don’t Have a Bias.”

Comments

Refugee Code Week: Programming A Future Perspective

SAP News Center

Refugee Code Week opens up new perspectives for refugees and displaced youth throughout the Middle East.

“Come in!” Nisreen’s father says cheerfully, as he invites us in from the dusty street. Inside his small house, the air is cool and smells of fresh tea. The tiny rooms are clean and lovingly decorated. Grandmother and niece are already waiting for us in the living room. It looks almost like their home in Syria did before the war, they tell us. Outside, laughing children play tag. It’s a little paradise they have created for themselves here.

But not all is as it seems at first glance: Nisreen Abu-Salou, 37, is a Syrian refugee, and the walls of the house are made of sheet metal. She and her father live there alone, her mother having since returned to Syria to Nisreen’s brothers and sisters. They have no idea how the rest of the family is doing. Contact with the outside world is only possible sporadically. Nisreen’s new “home” is Al Zaatari, a refugee camp in Jordan. It is the largest refugee camp in the Middle East, and with 80,000 inhabitants, the second largest in the world.

hh9c6100

Nisreen Abu-Salou with her family

Back in Syria, she worked as a teacher and taught children from grade five up to graduation. Her curiosity for all things new was her constant companion. Her eyes light up just reminiscing about it. And now she has the chance to learn programming.

Nisreen has been taking part in Refugee Code Week, an initiative sponsored by SAP in collaboration with the United Nations Commission for Refugees (UNHCR) and Galway Education Center. The aim of the project is to introduce refugees in the Middle East to the basics of computer programming. The courses were held in Jordan, Egypt, Lebanon, and Turkey.

Skills for now and the future

There are currently millions of refugees of all ages stuck in camps throughout war zones and hosting countries. Despite their wide range of skills and qualifications, most of these people have no choice but to idle away the day. For children, the biggest issue is the lack of access to education, especially beyond the elementary level.

The IT industry in this region, on the other hand, needs highly trained specialists to drive digital transformation and help secure the region’s long-term economic growth. Saudi Arabia alone already had a shortfall of some 30,000 IT professionals. Meanwhile, it is estimated that businesses and governments will invest around $260 billion in IT in the Middle East and Africa (MEA) in 2016 alone.

So what could be more obvious than to tap that tremendous motivation of the refugees – especially of the girls – and invest in a better future, right here and now?

The results

capture_500

Together with 33 partners, this event was able to equip 10,200 participants with coding skills. This infographic gives a detailed overview of the achievements during Refugee Code Week 2016.


The impact of the initiative is particularly evident in the camps nearest the Syrian border in Jordan. Take Amnah, for example, a 12-year-old girl also from the Al Zaatari camp. She says that learning with the special Scratch software is very easy “and a lot of fun, too.”

Some women in the program are students; others are teachers, such as 21-year old Rana. She sees this project as a unique opportunity for girls to shape their future and to develop a perspective, even in a seemingly hopeless environment such as theirs. Participants were taught in groups aged 8 to 11 years and 12 to 17 years. Free online courses were also offered to those who were unable to attend on-site.

Training for hundreds of teachers

The students didn’t just benefit from the pedagogical and didactical quality of the Scratch teaching program, which is very practice-oriented and thus capable of maintaining the learners’ enthusiasm even through the phases of dry theory. They also benefited from the high level of motivation of their teachers. 2,439 teachers have been trained by experts and supported by numerous volunteers. And they are not only coming from the refugee communities; volunteers also come from the host countries who will also forward their new digital knowledge to local youth.

“Hence the importance of ‘Train-the-Trainer’ events, where master instructors empower both refugees and local youth to become the next expert coding teachers,” explains Claire Gillissen-Duval, director of SAP Corporate Social Responsibility for EMEA and global lead of Africa and Refugee Code Weeks. “Leveraging freely accessible materials and teaching tools, Train-the-Trainer events provide a sound, replicable structure for inter-group knowledge sharing, unlocking the potential of people to serve as resources for each other.”

hh9c5627

Children living at Al Zaatari

The entire model builds on the success of Africa Code Week. In its second year now, the event, together with hundreds of partners, passed on coding skills to 427,000 children, teenagers, and young adults in Africa. Many of those participants now have career perspectives they never would have dreamed possible before. This is also the experience of the 10,200 participants of Refugee Code Week: Whether as employees in companies or as freelancers: their skills are in demand and can be used anywhere in the world – especially, of course, in their home countries, where they hope to be soon able to return and support economic recovery.

Direct from school to career

For some of the Refugee Code Week participants, the dream of a career becomes true even sooner. The 90 best “Master Class” students are selected to participate in a special “bootcamp” training program from non-profit partner RBK (formerly ReBootKamp). Of these, at least 30 can look forward to a job offer from the partner network upon completion.

Fatima Himmamy has already participated in a RBK training. The 26-year-old from Aleppo, who has already completed a four-year computer studies program, describes the initiative as one of the best experiences of her life. Being a teacher in the project is much more than just a job to her, though. It has given her a different perspective and has changed her life in the camp.

fatima

Fatima Himmamy

The project has given her new drive, and lots of satisfaction, because passing her knowledge to other women and girls is a cause that’s particularly dear to her heart. “I love what I’m doing here,” she says.

Refugee Code Week demonstrates how people – even those in need – can turn potential opportunities into a better future. In the end, it all comes down to determination. And when it comes to determination, the participating girls and women are in a class of their own.

For more stories of how technology education can turn young lives around, see Bringing New Educational Opportunities To Rwandan Youth.

Comments

The Future of Cybersecurity: Trust as Competitive Advantage

Justin Somaini and Dan Wellers

 

The cost of data breaches will reach US$2.1 trillion globally by 2019—nearly four times the cost in 2015.

Cyberattacks could cost up to $90 trillion in net global economic benefits by 2030 if cybersecurity doesn’t keep pace with growing threat levels.

Cyber insurance premiums could increase tenfold to $20 billion annually by 2025.

Cyberattacks are one of the top 10 global risks of highest concern for the next decade.


Companies are collaborating with a wider network of partners, embracing distributed systems, and meeting new demands for 24/7 operations.

But the bad guys are sharing intelligence, harnessing emerging technologies, and working round the clock as well—and companies are giving them plenty of weaknesses to exploit.

  • 33% of companies today are prepared to prevent a worst-case attack.
  • 25% treat cyber risk as a significant corporate risk.
  • 80% fail to assess their customers and suppliers for cyber risk.

The ROI of Zero Trust

Perimeter security will not be enough. As interconnectivity increases so will the adoption of zero-trust networks, which place controls around data assets and increases visibility into how they are used across the digital ecosystem.


A Layered Approach

Companies that embrace trust as a competitive advantage will build robust security on three core tenets:

  • Prevention: Evolving defensive strategies from security policies and educational approaches to access controls
  • Detection: Deploying effective systems for the timely detection and notification of intrusions
  • Reaction: Implementing incident response plans similar to those for other disaster recovery scenarios

They’ll build security into their digital ecosystems at three levels:

  1. Secure products. Security in all applications to protect data and transactions
  2. Secure operations. Hardened systems, patch management, security monitoring, end-to-end incident handling, and a comprehensive cloud-operations security framework
  3. Secure companies. A security-aware workforce, end-to-end physical security, and a thorough business continuity framework

Against Digital Armageddon

Experts warn that the worst-case scenario is a state of perpetual cybercrime and cyber warfare, vulnerable critical infrastructure, and trillions of dollars in losses. A collaborative approach will be critical to combatting this persistent global threat with implications not just for corporate and personal data but also strategy, supply chains, products, and physical operations.


Download the executive brief The Future of Cybersecurity: Trust as Competitive Advantage.


Comments

Tags:

Unleash The Digital Transformation

Kadamb Goswami

The world has changed. We’ve seen massive disruption on multiple fronts – business model disruption, cybercrime, new devices, and an app-centric world. Powerful networks are crucial to success in a mobile-first, cloud-first world that’s putting an ever-increasing increasing amount of data at our fingertips. With the Internet of Things (IoT) we can connect instrumented devices worldwide and use new data to transform business models and products.

Disruption

Disruption comes in many forms. It’s not big or scary, it’s just another way of describing change and evolution. In the ’80s it manifested as call centers. Then, as the digital landscape began to take shape, it was the Internet, cloud computing … now it’s artificial intelligence (AI).

Digital transformation

Digital transformation means different things to different companies, but in the end I believe it will be a simple salvation that will carry us forward. If you Bing (note I worked for Microsoft for 15 years before experiencing digital transformation from the lens of the outside world), digital transformation, it says it’s “the profound and accelerating transformation of business activities, processes, competencies, and models to fully leverage the changes and opportunities of digital technologies and their impact across society in a strategic and prioritized way.” (I’ll simplify that; keep reading.)

A lot of today’s digital transformation ideas are ripped straight from the scripts of sci-fi entertainment, whether you’re talking about the robotic assistants of 2001: A Space Odyssey or artificial intelligence in the Star Trek series. We’re forecasting our future with our imagination. So, let’s move on to why digital transformation is needed in our current world.

Business challenges

The basic challenges facing businesses today are the same as they’ve always been: engaging customers, empowering employees, optimizing operations, and reinventing the value offered to customers. However, what has changed is the unique convergence of three things:

  1. Increasing volumes of data, particularly driven by the digitization of “things” and heightened individual mobility and collaboration
  1. Advancements in data analytics and intelligence to draw actionable insight from the data
  1. Ubiquity of cloud computing, which puts this disruptive power in the hands of organizations of all sizes, increasing the pace of innovation and competition

Digital transformation in plain English

Hernan Marino, senior vice president, marketing, & global chief operating officer at SAP, explains digital transformation by giving specific industry examples to make it simpler.

Automobile manufacturing used to be the work of assembly lines, people working side-by-side literally piecing together, painting, and churning out vehicles. It transitioned to automation, reducing costs and marginalizing human error. That was a business transformation. Now, we are seeing companies like Tesla and BMW incorporate technology into their vehicles that essentially make them computers on wheels. Cameras. Sensors. GPS. Self-driving vehicles. Syncing your smartphone with your car.

The point here is that companies need to make the upfront investments in infrastructure to take advantage of digital transformation, and that upfront investment will pay dividends in the long run as technological innovations abound. It is our job to collaboratively work with our customers to understand what infrastructure changes need to be made to achieve and take advantage of digital transformation.

Harman gives electric companies as another example. Remember a few years ago, when you used to go outside your house and see the little power meter spinning as it recorded the kilowatts you use? Every month, the meter reader would show up in your yard, record your usage, and report back to the electric company.

Most electric companies then made a business transformation and installed smart meters – eliminating the cost of the meter reader and integrating most homes into a smart grid that gave customers access to their real-time information. Now, as renewable energy evolves and integrates more fully into our lives, these same electric companies that switched over to smart meters are going to make additional investments to be able to analyze the data and make more informed decisions that will benefit both the company and its customers.

That is digital transformation. Obviously, banks, healthcare, entertainment, trucking, and e-commerce all have different needs than auto manufacturers and electric companies. It is up to us – marketers and account managers promoting digital transformation – to identify those needs and help our clients make the digital transformation as seamlessly as possible.

Digital transformation is more than just a fancy buzzword, it is our present and our future. It is re-envisioning existing business models and embracing a different way of bringing together people, data, and processes to create more for their customers through systems of intelligence.

Learn more about what it means to be a digital business.

Comments

Goswami Kadamb

About Goswami Kadamb

Kadamb is a Senior Program Manager at SAP where he is responsible for developing and executing strategic sales program with Concur SaaS portfolio. Prior to that he led several initiatives with Microsoft's Cloud & Enterprise business to enable Solution Sales & IaaS offerings.