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Trend: Digital transformation

A trend indicates a direction of change in values and needs which is driven by forces and manifests itself already in various ways within certain groups in society.

The digital transformation is causing significant changes in the world of work and society as a whole. New technologies will reshape millions of jobs in the EU  - some jobs are at risk of being lost to machines and new ones are being created. As a result, skill requirements are changing. There is a rapid rise in demand for advanced IT and programming skills, such as software developers or data scientists, with such jobs estimated to grow by 90% between 2016 and 2030. And by 2030, the amount of the time spent using advanced technological skills will increase by nearly 50% in Europe. Yet, the digital skills gap remains wide in society as a whole, and is at risk of expanding in many EU countries.

Technology has been, and will continue to be, linked to progress and change. It allows businesses to enhance new (product or service) offerings, and to simplify existing procedures. AI is already widespread and many believe the biggest risks are not job losses but rather how it will affect workers in their current jobs, or when they apply for new jobs. To be able to promote trustworthy AI and legislations, there are a few key issues that need to be resolved first, such as: consent when AI collects and uses data, bias in algorithms and, accountability.

The implementation of a digital strategy can be a cost/time-savings strategy for a business and can help employees make better decisions and become more efficient. The development of robotics and automation is accelerating, and consequently a large share of work will change. Societal changes brought by automation and increases in inequality will need to be addressed in ways that secure people's livelihood and ensure that society can still function on fewer human interactions, and a reduced income tax revenue.

This Trend is part of the Megatrend Changing nature of work

Manifestations

Developments happening in certain groups in society that indicate examples of change related to the trend.

Digital transformations changes the tasks we perform

Digital tools, such as Augmented Reality, Virtual Reality, collaborative robots, machine learning and Artificial Intelligence (AI) can support workers to carry out some routine tasks more efficiently. Mastery, control and monitoring of machines and algorithms is therfore becoming a main task for workers. However, in many such jobs, AI will likely support humans rather than replace them, thus making their work more efficient.

Digitalisation is creating new jobs directly, (such as data analysts, Internet of Things (IoT) architects), or indirectly, by raising productivity, lowering prices and thereby stimulating demand. Digital jobs require a heterogeneous mix of technical and high-level cognitive skills. Social media skills are also in demand.

The digital transition and use of technologies enable workers to perform new tasks within their organizations, which are not necessarily in line with their job description or skills profile. There is a surging demand for workers who can fill green economy jobs, and roles at the forefront of the data and AI economy, as well as new roles in engineering, cloud computing and product development. This trend is reinforced by the mainstreaming of big data and AI optimisation of processes.

Signals of change: Mercer, Time, Business and Industry

Automation enables process optimization

Automation has brought revolutionary changes to industry, and will continue to do so as it evolves. According to the OECD, 14% of the current jobs today face a high risk that their tasks will be automated, however, in the mid-term, job destruction will most likely be offset by job growth in the 'jobs of tomorrow'.

MIA (Machinery and Industrial Automation), together with advanced analytics, AI, and machine learning are playing a key role in the market’s tilt toward technology improvements, more digital processes, the Internet of Things, and efficiency gains. Universal automation can improve circularity, reduce waste and extend the lifespan of hardware. Industry is yet to unlock these ‘key efficiencies’, estimated at $100 billion in value. Data analytics and automated processes are expected to leverage circular economy adoption to a level of transformation never before achieved, providing, for example, information pertinent to the location, availability, composition and condition of products, components, and materials that allow for the effective cascading or extension of its lifecycle. 

Research shows that up to 65% of the tasks that a manager currently does has the potential to be automated by 2025 (e.g. performance feedback and supporting new peer-to-peer connections), creating space for managers to build more human relationships with employees.

Signals of change: ECERA, BCG, McKinsey, Nasdaq, Digital Journal, OECD, Tech World News, Harvard Business Review

Interesting questions

What might this trend imply, what should we be aware of, what could we study in more depth? Some ideas:

• What if we taxed robots? Will automation reduce jobs to such a point that along with the ageing population, there is no labour tax? How will societies support themselves?
• What if the pace of change is so high, that lifelong learning is extremely time intensive and challenging?
• What if the job-skills mismatch grows and skills shortages challenge competitiveness?