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Wednesday, June 7, 2017

The New Economic Development

Model for the Digital Age

Global Strategy

2

Hyper-convergence in AI, Automation & Analytics

Driving a tectonic shift in workforce, business

models and global services

90% of Routine Call center Tasks will

be Automated by Digital Labor by

2025

300%

USD

1.2 Tn

Forrester Predicts Investment In

Artificial Intelligence Will Grow 300%

in 2017

Insights Driven Businesses will Steal

$1.2 Trillion Annually by 2020 From

Traditional Businesses

90%

50% of Fortune 500 companies

actively piloting Automation and

Artificial Intelligence (AI) initiatives50%

3

The acceleration in technological augmentation is significantly impacting the way we work.

Automation is impacting jobs across verticals and roles

• Technology is heavily impacting lower-end service jobs. Restaurant automation is reducing the role of humans in preparation and cooking.

• Ordering and paying via tablets in-store or mobiles out-of-store, is starting to impact labor requirements in traditional service-led establishments

• Robots are increasingly being used in manufacturing and across supply chains, warehousing and transportation, reducing the need for extensive human intervention in processes and operations.

• Self-driving robots and drone technology are starting to impact the staffing requirements for manual labor in factories.

• Natural Language Processing could impact jobs in call centers and report writing, while automated decision support systems are taking over well-scripted tasks.

• RPA and BPM tools are increasing worker productivity and reducing the large numbers of staff previously needed to execute back office tasks.

Retail

Manufacturing

Services

• Chat bots and digital analytics are also impacting employment in the media

and telecom sectors.• Cloud computing is also having a significant impact on IT employment as

centralization and predictive software capabilities are reducing the need for Level 1 and Level 2 resources.

Technology

5

Automation – The Future

Emerging market economies once positioned to leverage

the global trend in outsourcing and offshoring are now

facing a seismic disruption with automation acting as the

tipping point. The acceleration in the deployment and

impact of automation technology are driven by a number of

key factors including:

Costs Associated with Automation have Declined

Significantly

The Scope of services under Automation has

increased manifold

The Current Automation Penetration is Low but

growing at 300% p.a.

New Technologies Make Automation a Necessity

Automation Is A Self-Propelling Transformation

6

There are three key areas where Human jobs will

continue to grow

The Digital Workforce

Originality: "The ability to come up with unusual or

clever ideas about a given situation, or to develop

creative ways to solve a problem”.

Exceptions/Escalations: Tasks requiring more

detailed analysis, reasoning, judgment, experiential

responses

Creative Intelligence

Service Orientation: The Human angle -

• Assisting and caring for others

• Social perceptiveness

• Contextual responsiveness

Social Intelligence

Deep domain expertise: Ability to understand

and align with industry value chains to create

new economic value

Industry Specialization

9

The New Economic Development Model

“Transitioning to a Digital Services Economy”

Upskilling to enable Digital

Workforce

• Enhance the recruitment and training process to embrace Digital skills

• Aligning workforce skill development with

industry needs• Develop Ability to work alongside

Automation and Cloud-enabled services

Regulatory, Cyber Security and

Intellectual Property Protections

for Smart Services Providers

• Developing a globally relevant

sustainable ICT policy and data routes• Building confidence and set

expectations on data sovereignty and privacy

Shift in Positioning towards a Digital

Services Economy

• Positioning as a Digital Nation leveraging local ICT infrastructure and talent

• Enabling Digital Govt, Cloud services, Innovation clusters, Digital services hub

• Promoting investments, development of new Digital businesses

Radically different approach

towards attracting new

Investors, BPO, Digital firms

• Transitioning to a knowledge based value proposition from a low cost delivery model

• Positioning offerings toward technology enablers and digital service providers

• Re-align incentives to focus on these new sectors

Shift to Digital

Services Economy

SS

Digital Talent

Management

Governance and

Regulatory

Change

Investment

Management

Empowering Beyond

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Anupam Govil

anupam.govil@avasant.com

(310) 643-3030