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KEY POINTS: How the convergence of trends is creating an opportunity for us to rethink the future
By sharing the undisputable facts of accelerating and converging changes, we communicate a sense of urgency for customers to embrace change, and view this as a unique opportunity to rethink the future.
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Today, we are in the middle of a once-in-a-generation shift characterized by the most profound and rapid changes unseen so far in the entire history of mankind. There are three types of changes converging -
First, there is an emerging middle class that is resulting in global re-balancing across geographies. This emerging class will create a new segment of customers that represent extensive growth opportunities for businesses. At the same time, this put an enormous pressure on natural resources like water, food, and energy, but also social services like healthcare, and public services. Consequently every aspect of your business strategy and execution such as existing manufacturing, supply chains, employee base will get stretched and overloaded.
Implication: Businesses will need to find a way to manage existing and shared resources better.
Second, More than 1 billion people are engaged in social networks today. By 2013, more than 15 billion devices will be capable of connecting to the Internet, from cars, to washing machines, to the clothes we wear. Both factors are resulting in an explosion in the amount of data – creating a phenomenon called “big data”. More data has been created in the last five years than in the entire history of mankind. Unlocking the secrets inside this data presents breakthrough opportunities for businesses.
Implication: Businesses will need to find a way to manage “big-data” and find ways to use it to their advantage.
Third, the way the information is created and consuming has changed. There are now more mobile phones than people. This combined with social and device connectivity has created an era of “always-on”.
Implication : Business will need to run in “real-time” to facilitate personalized engagement with their end-customers.
Within the technology industry, we are in the middle of a fundamental ―digital transition.‖ Intelligence is being embedded everywhere. The IT stack is being disrupted with software innovation becoming a pervasive priority ( cheap memory, more computing power..)
The collective result of these trends is the unprecedented empowerment of people – as consumers, as employees, as citizens, and as societies. They are fundamentally changing how people work, communicate with each other and how businesses sell to our consumers.
What this means for your business is that we are at an inflection point. We can either be swept away by these changes, or we can view this as an opportunity to rethink the future.
Rethinking the future implies making fundamental transformations to your business. This transformation involves getting closer to your customers on a personalized engagement basis – a “segment of one” with more insights, delivering to their needs with speed ( real-time), while still maintaining the efficiencies of managing your operations and resources better, especially in an increasingly constrained world.
Today’s workforce is more diverse than ever — For the first time in history you have five different generations of workers engaging and collaborating together to help your business execute its strategy. This workforce is also more diverse by gender and ethnicity, providing a new dynamic of culture, language, and views that must also be harnessed. The 21st-century workforce is not only global, but highly connected, technology-savvy, and demanding. Its employees are youthful, ambitious, and filled with passion and purpose. Millenials are a major force and will represent 75% of the workforce in 2025 and transform customer demands and the workplace. Today’s workers work different — Today’s workforce is more social and mobile. They no longer believe in the hierarchical command-and-control structures of the past where information is isolated in the hands of an elite few. They want greater transparency. They are more inclined to collaborate and share information with co-workers, peers, and partners in an effort to execute and evolve your company’s business strategy.
The fundamental structure of the workforce is changing — The increased use of contingent labor is bringing great flexibility to enterprises. Contingent labor represents more than 1/3 of the total workforce at a typical company today (+40% over last 5 yrs) and is growing faster than permanent hires. With the capabilities of Fieldglass, SAP’s recent acquistion, customers can holistically manage their in-house and external, contracted employees. None of our competitors address the contingent workforce from a core HR perspective. As companies increasingly move to more variable operating models, they are embracing new methods of work — outsourcing, crowdsourcing, micro tasking — that are fundamentally changing the definition of what constitutes a workforce. Leaders will begin to view the workforce as pools of talent so they can rapidly assemble the right expertise and skills to execute their business strategy — regardless of whether that talent is an FTE or a contractor.
Simplification and standardization - Business processes need to be slimmed down and sometimes eliminated altogether — “melted” — by taking advantage of process automation and standardization on best practices. HR processes tend to be disparate and non-standardized. Organizations are saying, we can’t afford this any more …One of the big promises we see cloud computing delivering on is standardization. If you can standardize, automate and socially enable your processes, your manual processes just melt away and you can focus on the problems and less on the administrative process issues. With SAP-SuccessFactors, you have the maximum flexibility to create your unique differentiating processes on top of those standardized best practices.
Talent management remains a top priority for executive leaders: CEOs are still saying talent management is not solved. Critical new skills are scarce—and their uneven distribution around the world is forcing companies to develop innovative new ways to find people, develop capabilities, and share expertise. They know that the key to success is a talented, engaged and properly motivated workforce.