Tag Archives: digital

Andi Mann and David Hodgson on the Digital Transformation in IT

IT leaders looking to move beyond reactive troubleshooting need to find the intersection of maintaining existing systems while still driving innovation. Identifying ways to bring existing infrastructure and legacy systems into the modern world of digital transformation can create the business advantage you need.

Digital Transformation How to Run Best in Class IT Operations in a World of Machine Learning banner Andi Mann and David Hodgson on the Digital Transformation in IT

On May 24th, join us for a conversation with Splunk’s Chief Technology Advocate, Andi Mann and Syncsort’s Chief Product Officer, David Hodgson as they discuss the digital transformation taking place in IT and how machine learning and AI are helping IT leaders create a more business-centric view of their world.

In this webcast they’ll cover topics such as:

  • The importance of data sharing and collaboration between mainframe and distributed IT
  • The value of integrating legacy data sources and existing infrastructure into the modern world
  • Achieving an end to end view of IT operations and application performance with machine learning

Find out more information or register for this upcoming webcast

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Syncsort + Trillium Software Blog

Digital Future Council seeks to unite creative, media, and tech industries

 Digital Future Council seeks to unite creative, media, and tech industries

The Digital Future Council, a first-of-its-kind think tank, has been formed by a collection of leaders across the creative industries with the aim of bridging the gap between media and technology.

The council will host quarterly events around the globe, with each event centered on the impact of a different emerging technology. The goal of these events will be to ignite meaningful debate and conversations, formulate tangible advice, and promulgate best practices for the global marketing and advertising communities when integrating new technologies such as artificial intelligence, big data, and blockchain.

Founding members of the Digital Future Council include top media and creative industry executives such as Jason Jercinovic, global head of marketing innovation at Havas Media; Mark Adams, vice president of innovation at Vice Media; Cory Haik, publisher at Mic; Sheel Shah, executive director at Hearst Digital Media; James Poulter, head of emerging platforms and partnerships at the Lego Group; Danni Murray, vice president of media, digital and marketing partnerships at Warner Bros.; Martin Schönberger, vice president of partner development at Sony Music; Joshua Burke, vice president of brand partnerships at Universal Music; Adam Boita, head of marketing at Pernod Ricard; Mary Keane Dawson, founder of Truth Media Agency; Ben Sutherland, chief digital officer at Diageo; Kate Cox, vice president for Europe Middle East and Africa at GoDaddy; and conceptual artist and photographer Kevin Abosch.

Additionally, Rob Dembitz, former global head of innovation at Cannes Lions, has joined as a founding member and advisor to the Digital Future Council.

“The collision of technology and creativity has the potential to drive increasing returns for all stakeholders, but too often this outcome is undone purely because of a lack of understanding on either side of the table,” Dembitz said in a statement. “Bringing together the best of brand communications, media, and technology to expedite this joined-up narrative is an exceptionally exciting prospect.”

GoDaddy’s Cox said in a statement: “GoDaddy is constantly scanning new digital technologies that will both drive our own marketing efforts forward and in turn help power our 17 million-plus small business customers’ online presence and enable their business success. The DFC offers us a chance to keep on top of developments in the industry in order to feed our marketing experimentation and testing program and drive our business growth. It also offers a forum for senior marketing and creative technologists to debate future management frameworks of new technologies.”

The Digital Future Council will officially launch at Cannes Lions, June 18-21, with a series of events focused on blockchain technology, based on demand from creative communities.

Through a series of town hall-style talks, roundtables, and dinners, leading C-suite executives across media, advertising, and consumer brands will explore how blockchain technology will impact audience interaction, distribution of content, and monetization, in addition to advising creative leaders on blockchain’s role in empowering consumers to understand the true value of their data, particularly as it pertains to advertising dollars.

A number of key executives in the blockchain space have also joined as founding members of the Digital Future Council and will help lead the conversations throughout the launch event. These leaders include Jarrod Dicker, CEO of Po.et; Elena Zavelev, founder of New Art Academy; Tom Graham, founder of TLDR; James Tabor, CEO of Media Protocol; Kayla Sanders, founder of Remy.co; Andy Tian, CEO of Gifto; and David Wachsman, founder and CEO of Wachsman, among others.

Tabor at Media Protocol said in a statement: “As someone who’s been heavily involved in both tech and media for nearly a decade, I’ve seen firsthand how eager businesses are to implement essential tech but struggle due to a lack of knowledge in the hands of decision makers. The Digital Future Council is an open forum where creatives and the tech savvy collide to ask the questions that haven’t been asked yet. The names on the roster thus far are incredible, and we can’t wait to see how this quarterly gathering can drive constructive innovation for all involved.”

Additional members of the Digital Future Council will be announced in the coming weeks.

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Big Data – VentureBeat

Why AI-Driven Analytics Will Have the Measure of the Digital Enterprise

iStock 645609968 e1525190912340 Why AI Driven Analytics Will Have the Measure of the Digital Enterprise

As the name succinctly says, Big Data has always been about scope, scale, and volume, a more the merrier ethos when it came to the intelligence suddenly at our disposal.

This sheer volume of insight was considered a prerequisite for accurate decision-making. It brought gigabytes and terabytes to mainstream parlance while signaling a whole new era of data handling and management with greater complexity and opportunity in terms of application.

However, as this data overload became the new norm, our expectations evolved to demand a more strategic approach to how we can derive greater value from the intelligence flooding our systems. Many have learned the hard way that more isn’t always better when it comes to data-driven decision making, as quantity rarely surpasses quality when it comes to more discerning and meaningful interventions.

Perhaps not surprisingly, this realization brings us to a growing trend in the digital enterprise. Defined by a shift in mindset from simply collecting intelligence to the more forensic measures used to drill down into it and extract the specifics, the use of advanced analytics is enabling us to do more with less data. This move increasingly underpins higher operating margins and ultimately creates a competitive advantage.

Fuelled by machine learning technology, this traction is in fact, forcing a re-evaluation of the traditional ‘more is more’ Big Data strategy that has long been a pervasive mantra in the digital environment. In this context, Artificial Intelligence, combined with visual analytics, becomes the game changer. This powerful proposition is perfectly equipped to sift through the reams of information and define the relationships and anomalies between the data sets to uncover actionable intelligence that augments human intelligence for greater business value.

While AI puts in the groundwork, at a speed and scale impossible for a human to compete with, visual analytics provides a more accessible and intuitive approach to data analysis. This can have deeper repercussions for an organization more broadly, specifically in terms of promoting a more entrenched data culture. As a result, a greater section of the workforce can be involved in data-driven decision making, as opposed to a privileged few, a move that far from simply being a ‘nice to do’ will become a fundamental requirement to offset the scarcity of specialist data skills. Figures from McKinsey and Company highlight the extent of the problem, with the US, for example, facing a shortage of 190,000 people with analytical data skills and 1.5 million managers and analysts equipped to understand and make decisions based on the analysis of Big Data.

So how do AI-powered analytical innovation and data democracy translate into tangible gains when applied to the real-world industry environment? Notable proponents such as the health, finance, and manufacturing sectors have been quick to embrace the approach. Healthcare professionals are harnessing the technology to detect abnormalities in X-rays, for example. And banks are using the advanced algorithmic capabilities to drive deep content analysis of a customer’s financial status, objectives, risk aversion and can respond to the nuances of their personality and behavior to best tailor the approach to the user’s needs.

Now we see others playing catch up, such as the oil and gas sector. Here, pressure over ever tighter margins induced by the global drop in oil price has demanded even greater accurate insight to optimize production, as well as to inform continuous monitoring and intervention needed for the smooth and seamless running of critical operations. As a result, a more measurable and quantifiable approach to the enterprise becomes the game changer, as science and business converge ever more closely to keep the business efficient and competitive.

Machine learning is harnessed to provide recommendations and to make predictions over the control and management of assets processing billions of data points in real-time from equipment ratings to thermal gradients. This creates a full picture and level of precision that removes all guesswork from the equation.  

As a result, gut feel is replaced with an augmented human brain, thanks to algorithmic prowess.

*As first appeared on Information Age.

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The TIBCO Blog

Why People Power is Leading the Charge in Digital Security

iStock 482112104 e1522958551701 Why People Power is Leading the Charge in Digital Security

Digital transformation remains reliant on empowered users to come to fruition.

History shows us how implementing technology alone inevitably falls short; meaningful change demands a broader cultural shift. A shift that sees every strand of an organization buying into the innovation and taking responsibility, rather than being just passive recipients of a digital framework imposed upon them.

We see how this plays out to transformational effect when it comes to the use of analytics. Specifically, how more accessible methods of data analysis — notably via easy-to-read visual representations — enables more people to answer key business questions and make decisions to solve their own issues as they see fit. Imbuing a wider sense of ownership drives data democratization, and in turn, greater efficiency and productivity benefits for added value to the bottom-line.

Not surprisingly, the business world is waking up to the merits of applying a similar ethos and approach to digital security. In a fast-paced, continually evolving digital environment, where the threat level rises exponentially with the rise of ever more sophisticated solutions, a more people-centric approach to security is becoming a logical, if overdue, progression.

Businesses now operate against a varied backdrop of big data, cloud, mobile and DevOps, and within a wider ecosystem of external partners and collaborations, which bring additional challenges from a security standpoint. As such, they need to rethink their approach to this fundamental issue. A sole focus on prevention infrastructure, by simply fortifying the boundaries with the traditional reliance on firewalls, can no longer handle these complexities and protect against internal threats once the attacker is inside the network.

In the digital era, we need a shift in mindset to something more sophisticated — something driven by greater trust in the user, which sees them empowered to take responsibility for security throughout the software development cycle. In tandem with detection technologies, which focus on monitoring, pattern matching, and behavioral analysis, the result is the same kind of real-time responsiveness we see thrive in so many strands of the digital operation now used for enhanced stability and resilience.

It’s an approach encapsulated by Gartner’s Continuous adaptive risk and trust assessment (CARTA). This provides a blueprint for how the agility of continual monitoring is now the bedrock of risk management, better aligned with the speed of digital business and a must for staying competitive.

If we apply this to the microservices arena — rightly heralded as the architecture powering the next generation of digital environments — we can see how their inherent flexibility lends itself perfectly to this approach. The modular nature is well-placed to employ service-specific security and monitor configurations. Introduce visual analytics, and we have a potent weapon for identifying anomalies in behavioral patterns that suggest suspicious activity, such as rogue IDs.

In a similar vein, this traction marks the evolution of DevOps. As a process already renowned for giving teams more responsibility for a project, we are seeing this morph into a new portmanteau, DevSecOps. This reflects how security is now afforded equal status with the creation and deployment as an intrinsic part of the development process. By integrating security measures, such as tooling and automation earlier in this cycle, the upshot is enhanced encryption and a framework that enables users to set and receive alerts to track and manage any API security threat. Furthermore, developers are in a better position to identify and address any shortfalls in their code and resolve issues themselves sooner, with less intervention from security teams, providing a more efficient, productive and cost-effective way of working.

Perhaps the final element in this new wave of digital security is to incorporate deception technologies, such as adaptive honeypots. These fake IT assets that can be created and deployed to lure in a would-be hacker and thwart their efforts before the damage is done. Having recently undergone a machine-learning infused makeover, the traditional static iterations that relied on security experts for their configuration are making way for a new breed. This new and improved breed now has the capability to adapt their form after deployment and is better equipped to block suspicious activity.

More adaption and agility, combined with people-centric ownership, undoubtedly hits the sweet spot for digital security.

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The TIBCO Blog

Blockchain: The Heart of Digital Transformation

Posted by Emily Houghton, Industry Marketing Lead

Fifty-two percent of the Fortune 500 firms since 2000 are gone because they failed to see the next set of technologies and understand how they could capitalize on them, warns Ray Wang, Principal Analyst and Founder of Constellation Research Inc.

In the recent webinar, “Blockchain and Cryptocurrency Part 2: Maximize Potential, Minimize Risk,” Wang explains that blockchain will be at the heart of digital transformation for businesses in the next three to five years.

“This is an exponential technology that is changing the way we think about business models and changing the way we engage,” Wang said. “Blockchain is serving a unique role in the market that doesn’t exist yet.”

GettyImages 689271900 Blockchain: The Heart of Digital TransformationDespite the relative immaturity of this technology, a survey put out by Constellation Research, Inc. in late 2017 found that 52 percent of companies are considering or are already experimenting with blockchain. As the various consortia codify standards and use cases grow in number and maturity, Wang expects blockchain to become essential to the technology ecosystem of businesses.

As companies think about the basic requirements for blockchain to scale, Wang explained that it’s also important to consider when an implementation makes sense.

For blockchain to be successful, business must meet several requirements. For example, transactions with a variety of parties, and a high degree of information change and exchange are well suited for a blockchain approach.

Moreover, if there is a low trust factor between these parties, blockchain will go a long way. When trying to drive down the cost or length of a transaction, Wang said, trust is often the first barrier to get past.

“The heart of this is frictionless trust,” Wang said. With blockchain, “you know there is an authenticity to the individual on the other end. You know that they have already been validated or verified by their previous actions; there is a history of their behaviors.”

An interesting use case to consider is with charities and nonprofits. The lack of transparency in fund allocation with organizations is often an issue. With blockchains, Wang said, “We have the ability to understand how donations are being made and how funds are being distributed.”

Other popular blockchain use cases are being driven in the supply chain, where provenance of data is critical. Wang sites food distribution, drug integrity and clinic trial audits as valuable use cases. He also points to distributed storage as another benefit of blockchain that mitigates cost or bandwidth constraint.

“Not all the data needs to be stored in a central location on the blockchain; the content can happen all over the place,” Wang states. “This allows you to make sure that that data is secure, that that data is spread out and not vulnerable to one single point of failure.”

But while blockchain has a significant number of beneficial applications that cut across industries and business models, companies must be aware of the risks associated with the emerging technology.

A key risk to think about, according to Wang, is weak vendor security. As vendors built out platforms for users to choose from, companies must question the security of both credentials and code at full scale. Stress testing will be crucial to ensuring that these platforms can handle inevitable cyber-attacks.

Quoting the Willie Sutton Rule, Wang said “Why do people rob banks? ‘Cause that’s where the money is. Why do people hack blockchains? Because that’s going to be where the money and value exchange is going to be.”

In addition to concerns of security, Wang impressed that the current lack of standards and regulations will continue to be a challenge as these technologies evolve. Early adopters will have to consider how their business supports regulations that will emerge across industries and platforms.

Early adopters will also have to content with the fact that, “there aren’t a lot of people that are blockchain experts,” Wang said. A full-scale adoption of blockchain requires a team of people who fully understand the implications of what happens on the blockchain, not just a group of savvy coders and security experts.

Despite these risks however, Wang encourages companies to dive into blockchain and offers advice on how to approach a successful enterprise adoption.

Rather than build something from scratch, Wang advises companies to choose a platform that is already in production.

“Understand the platform, understand it’s limitations,” he advised.

Once a platform has been chosen, start experimenting to see how blockchain will impact your business model, Wang urged. Set up the right security, build a legal framework and model out your network ecosystem.

Watch the webinar recording to hear more of Wang’s take on the risks and benefits of blockchain, and advice on how to approach a successful adoption. 

Interested in attending the next installment of this four-part series on blockchain? Be sure to register for the next one, “Blockchain and Cryptocurrency: Perspectives from R3” with Carlos Arena, Director of Business Development at R3, to learn more about how blockchain platforms are being built and adopted by forward thinking businesses. It will take place on Tuesday, April 17.

Heading to LendIt USA 2018? So are we! Stop by booth #1225 to speak with a NetSuite representative about other upcoming Blockchain and Cryptocurrency events, as well as how our solutions serve the rest of the fintech ecosystem. In an effort to support local communities, for every badge we scanned at the booth, we will donate $ 5 to Techbridge Girls. Techbridge Girls is an Oakland-based nonprofit that seeks to excite, educate, and equip girls from low-income communities by delivering high-quality STEM programming. Stop by our booth and help us empower young women to explore careers in technology!

Posted on Thu, April 5, 2018
by NetSuite filed under

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The NetSuite Blog

Digital Disruption

Andrew McAfee and Erik Brynjolfesson, who teach at MIT’s Sloan School of Management, started writing about the impact of artificial intelligence and machine learning almost a decade ago. Their early books — The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies and Race Against the Machine: How the Digital Revolution is Accelerating Innovation, Driving Productivity, and Irreversibly Transforming Employment and the Economy — provided deep insights into the way the era we live in would unfold.

A lot of their ideas were on display last week at TrailHeaDX: The Salesforce Developer Conference in San Francisco.

Few executives, even the ones pursuing digital futures for their organizations, have sized up the potential impacts, McAfee said in a recent interview.

Even though they see a lot of disruption coming, I still think that many really smart, well-managed companies are underestimating the scale, scope and speed of disruption this time around.

More Than Money

Perhaps the greatest challenge all leaders face is to do a better job separating threats from mirages, or the things that will and won’t change about running a business in light of advanced technologies. For instance,

“… articulating a compelling vision that will attract talent, customers and stakeholders; being true to that vision; and managing the culture that you’ve created to go tackle those visions. Those are deeply human skills, and leaders who are good at them are going to become even more valuable.”

The clear implication is that machines are doing the rote work and humans have to gravitate to the higher value-add activities. That’s what makes Salesforce and TrailheaDX so interesting. From the outset the founders, Marc Benioff and Parker Harris, intuitively understood the importance of culture-building. They’ve always strived to make the business about something bigger than making money or even building a great company.

There’s the company’s famous 1:1:1 business model, for example, which establishes donations of 1 percent of its profit, product and time to charitable causes. While the fundamentals of the model haven’t changed, perhaps in a nod to Brynjolfsson and McAfee, Salesforce has broadened the culture quest to encompass as much of the outside world that is relevant to its mission as possible.

Salesforce execs now talk about the “Ohana,” a Hawaiian word for “family.” As with any well-functioning family, the success of family members is an important focus. This translates into the vision of Salesforce’s Trailhead as a training vehicle for users — but more broadly as an approach to helping people develop the skills needed to secure good paying middle-class-supporting jobs.

Fundamentally, Salesforce may be a very successful technology company, but it is also a strong culture play. In fact, the company and its products apply McAfee’s digital disruption analysis well. Products like Einstein and the Analytics Cloud help customers to grow into a world of relationships dependent on analysis and statistics rather than gut instinct, while simultaneously offering a vision of a culture focusing on the customer and the employee.

Competency, Please

All of this came into focus at TrailHeaDX conference in San Francisco last week. Trailhead, the product, is a self-paced learning and certification environment that teaches all levels of users about the Salesforce platform, Lightning. The platform offers users ways to develop and maintain systems based on no code, some code, or a lot of code, depending on the task and the user’s ability.

More than this, the digital disruption has enabled app developers to take much of the work out of being a customer. We used to talk a lot about the customer experience until we learned that customers value plain old vanilla competency in their dealings with us and not a grand show.

It was a subtle change, and we discovered we can be really good at the blocking and tackling only if we can anticipate customers’ needs, which exposed the need for artificial intelligence and machine learning. By successfully anticipating customers, we can shorten the interaction time and demonstrate our competency.

Note that this change requires building capabilities into software, which is not a trivial undertaking, and which is, frankly, best done by the software itself and not a coder. That’s why the platform has become such an integral part of any software vendor’s arsenal. It’s also why something like Trailhead has become a vital part of Salesforce’s overall offering.

My Two Bits

It all fits together, but we aren’t at our destination yet. The digital disruption should be considered as the mountain we need to climb before we get to the promised land. Platform technology frees us by generating running code and splicing together analytics, process flow, and quite a bit more.

With our new freedom we can devote more resources to dealing with the interpersonal parts of customer relationships that people are good at and machines are not. It would be a mistake to think that we can reap a technology dividend by simply removing people from all of our processes. That’s why, to do the people part we need a people-focused culture within a business, and this includes the people we call “employees.”

So, in my mind, TrailHeaDX was a lot more than a developers’ conference. It certainly was that, but if that’s all you got from it, next time bring your boss and culture visionaries, because even if they can’t write a line of code, the culture part is large.
end enn Digital Disruption


Denis%20Pombriant Digital DisruptionDenis Pombriant is a well-known CRM industry researcher, strategist, writer and speaker. His new book, You Can’t Buy Customer Loyalty, But You Can Earn It, is now available on Amazon. His 2015 book, Solve for the Customer, is also available there.
Email Denis.

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CRM Buyer

How Restaurants Can Survive Digital Disruption

For nerds, the weeks right before finals are a Cinderella moment. Suddenly they’re stars. Pocket protectors are fashionable; people find their jokes a whole lot funnier; Dungeons & Dragons sounds cool.

Many CIOs are enjoying this kind of moment now, as companies everywhere face the business equivalent of a final exam for a vital class they have managed to mostly avoid so far: digital transformation.

But as always, there is a limit to nerdy magic. No matter how helpful CIOs try to be, their classmates still won’t pass if they don’t learn the material. With IT increasingly central to every business—from the customer experience to the offering to the business model itself—we all need to start thinking like CIOs.

Pass the digital transformation exam, and you probably have a bright future ahead. A recent SAP-Oxford Economics study of 3,100 organizations in a variety of industries across 17 countries found that the companies that have taken the lead in digital transformation earn higher profits and revenues and have more competitive differentiation than their peers. They also expect 23% more revenue growth from their digital initiatives over the next two years—an estimate 2.5 to 4 times larger than the average company’s.

But the market is grading on a steep curve: this same SAP-Oxford study found that only 3% have completed some degree of digital transformation across their organization. Other surveys also suggest that most companies won’t be graduating anytime soon: in one recent survey of 450 heads of digital transformation for enterprises in the United States, United Kingdom, France, and Germany by technology company Couchbase, 90% agreed that most digital projects fail to meet expectations and deliver only incremental improvements. Worse: over half (54%) believe that organizations that don’t succeed with their transformation project will fail or be absorbed by a savvier competitor within four years.

Companies that are making the grade understand that unlike earlier technical advances, digital transformation doesn’t just support the business, it’s the future of the business. That’s why 60% of digital leading companies have entrusted the leadership of their transformation to their CIO, and that’s why experts say businesspeople must do more than have a vague understanding of the technology. They must also master a way of thinking and looking at business challenges that is unfamiliar to most people outside the IT department.

In other words, if you don’t think like a CIO yet, now is a very good time to learn.

However, given that you probably don’t have a spare 15 years to learn what your CIO knows, we asked the experts what makes CIO thinking distinctive. Here are the top eight mind hacks.

1. Think in Systems

Q118 Feature3 img1 Jump How Restaurants Can Survive Digital DisruptionA lot of businesspeople are used to seeing their organization as a series of loosely joined silos. But in the world of digital business, everything is part of a larger system.

CIOs have known for a long time that smart processes win. Whether they were installing enterprise resource planning systems or working with the business to imagine the customer’s journey, they always had to think in holistic ways that crossed traditional departmental, functional, and operational boundaries.

Unlike other business leaders, CIOs spend their careers looking across systems. Why did our supply chain go down? How can we support this new business initiative beyond a single department or function? Now supported by end-to-end process methodologies such as design thinking, good CIOs have developed a way of looking at the company that can lead to radical simplifications that can reduce cost and improve performance at the same time.

They are also used to thinking beyond temporal boundaries. “This idea that the power of technology doubles every two years means that as you’re planning ahead you can’t think in terms of a linear process, you have to think in terms of huge jumps,” says Jay Ferro, CIO of TransPerfect, a New York–based global translation firm.

No wonder the SAP-Oxford transformation study found that one of the values transformational leaders shared was a tendency to look beyond silos and view the digital transformation as a company-wide initiative.

This will come in handy because in digital transformation, not only do business processes evolve but the company’s entire value proposition changes, says Jeanne Ross, principal research scientist at the Center for Information Systems Research at the Massachusetts Institute of Technology (MIT). “It either already has or it’s going to, because digital technologies make things possible that weren’t possible before,” she explains.

2. Work in Diverse Teams

When it comes to large projects, CIOs have always needed input from a diverse collection of businesspeople to be successful. The best have developed ways to convince and cajole reluctant participants to come to the table. They seek out technology enthusiasts in the business and those who are respected by their peers to help build passion and commitment among the halfhearted.

Digital transformation amps up the urgency for building diverse teams even further. “A small, focused group simply won’t have the same breadth of perspective as a team that includes a salesperson and a service person and a development person, as well as an IT person,” says Ross.

At Lenovo, the global technology giant, many of these cross-functional teams become so used to working together that it’s hard to tell where each member originally belonged: “You can’t tell who is business or IT; you can’t tell who is product, IT, or design,” says the company’s CIO, Arthur Hu.

One interesting corollary of this trend toward broader teamwork is that talent is a priority among digital leaders: they spend more on training their employees and partners than ordinary companies, as well as on hiring the people they need, according to the SAP-Oxford Economics survey. They’re also already being rewarded for their faith in their teams: 71% of leaders say that their successful digital transformation has made it easier for them to attract and retain talent, and 64% say that their employees are now more engaged than they were before the transformation.

3. Become a Consultant

Good CIOs have long needed to be internal consultants to the business. Ever since technology moved out of the glasshouse and onto employees’ desks, CIOs have not only needed a deep understanding of the goals of a given project but also to make sure that the project didn’t stray from those goals, even after the businesspeople who had ordered the project went back to their day jobs. “Businesspeople didn’t really need to get into the details of what IT was really doing,” recalls Ferro. “They just had a set of demands and said, ‘Hey, IT, go do that.’”

But that was then. Now software has become so integral to the business that nobody can afford to walk away. Businesspeople must join the ranks of the IT consultants. “If you’re building a house, you don’t just disappear for six months and come back and go, ‘Oh, it looks pretty good,’” says Ferro. “You’re on that work site constantly and all of a sudden you’re looking at something, going, ‘Well, that looked really good on the blueprint, not sure it makes sense in reality. Let’s move that over six feet.’ Or, ‘I don’t know if I like that anymore.’ It’s really not much different in application development or for IT or technical projects, where on paper it looked really good and three weeks in, in that second sprint, you’re going, ‘Oh, now that I look at it, that’s really stupid.’”

4. Learn Horizontal Leadership

CIOs have always needed the ability to educate and influence other leaders that they don’t directly control. For major IT projects to be successful, they need other leaders to contribute budget, time, and resources from multiple areas of the business.

It’s a kind of horizontal leadership that will become critical for businesspeople to acquire in digital transformation. “The leadership role becomes one much more of coaching others across the organization—encouraging people to be creative, making sure everybody knows how to use data well,” Ross says.

In this team-based environment, having all the answers becomes less important. “It used to be that the best business executives and leaders had the best answers. Today that is no longer the case,” observes Gary Cokins, a technology consultant who focuses on analytics-based performance management. “Increasingly, it’s the executives and leaders who ask the best questions. There is too much volatility and uncertainty for them to rely on their intuition or past experiences.”

Many experts expect this trend to continue as the confluence of automation and data keeps chipping away at the organizational pyramid. “Hierarchical, command-and-control leadership will become obsolete,” says Edward Hess, professor of business administration and Batten executive-in-residence at the Darden School of Business at the University of Virginia. “Flatter, distributive leadership via teams will become the dominant structure.”

Q118 Feature3 img3 rock How Restaurants Can Survive Digital Disruption5. Understand Process Design

When business processes were simpler, IT could analyze the process and improve it without input from the business. But today many processes are triggered on the fly by the customer, making a seamless customer experience more difficult to build without the benefit of a larger, multifunctional team. In a highly digitalized organization like Amazon, which releases thousands of new software programs each year, IT can no longer do it all.

While businesspeople aren’t expected to start coding, their involvement in process design is crucial. One of the techniques that many organizations have adopted to help IT and businesspeople visualize business processes together is design thinking (for more on design thinking techniques, see “A Cult of Creation“).

Customers aren’t the only ones who benefit from better processes. Among the 100 companies the SAP-Oxford Economics researchers have identified as digital leaders, two-thirds say that they are making their employees’ lives easier by eliminating process roadblocks that interfere with their ability to do their jobs. Ninety percent of leaders surveyed expect to see value from these projects in the next two years alone.

6. Learn to Keep Learning

The ability to learn and keep learning has been a part of IT from the start. Since the first mainframes in the 1950s, technologists have understood that they need to keep reinventing themselves and their skills to adapt to the changes around them.

Now that’s starting to become part of other job descriptions too. Many companies are investing in teaching their employees new digital skills. One South American auto products company, for example, has created a custom-education institute that trained 20,000 employees and partner-employees in 2016. In addition to training current staff, many leading digital companies are also hiring new employees and creating new roles, such as a chief robotics officer, to support their digital transformation efforts.

Nicolas van Zeebroeck, professor of information systems and digital business innovation at the Solvay Brussels School of Economics and Management at the Free University of Brussels, says that he expects the ability to learn quickly will remain crucial. “If I had to think of one critical skill,” he explains, “I would have to say it’s the ability to learn and keep learning—the ability to challenge the status quo and question what you take for granted.”

7. Fail Smarter

Traditionally, CIOs tended to be good at thinking through tests that would allow the company to experiment with new technology without risking the entire network.

This is another unfamiliar skill that smart managers are trying to pick up. “There’s a lot of trial and error in the best companies right now,” notes MIT’s Ross. But there’s a catch, she adds. “Most companies aren’t designed for trial and error—they’re trying to avoid an error,” she says.

Q118 Feature3 img4 fail How Restaurants Can Survive Digital DisruptionTo learn how to do it better, take your lead from IT, where many people have already learned to work in small, innovative teams that use agile development principles, advises Ross.

For example, business managers must learn how to think in terms of a minimum viable product: build a simple version of what you have in mind, test it, and if it works start building. You don’t build the whole thing at once anymore.… It’s really important to build things incrementally,” Ross says.

Flexibility and the ability to capitalize on accidental discoveries during experimentation are more important than having a concrete project plan, says Ross. At Spotify, the music service, and CarMax, the used-car retailer, change is driven not from the center but from small teams that have developed something new. “The thing you have to get comfortable with is not having the formalized plan that we would have traditionally relied on, because as soon as you insist on that, you limit your ability to keep learning,” Ross warns.

8. Understand the True Cost—and Speed—of Data

Gut instincts have never had much to do with being a CIO; now they should have less to do with being an ordinary manager as well, as data becomes more important.

As part of that calculation, businesspeople must have the ability to analyze the value of the data that they seek. “You’ll need to apply a pinch of knowledge salt to your data,” advises Solvay’s van Zeebroeck. “What really matters is the ability not just to tap into data but to see what is behind the data. Is it a fair representation? Is it impartial?”

Increasingly, businesspeople will need to do their analysis in real time, just as CIOs have always had to manage live systems and processes. Moving toward real-time reports and away from paper-based decisions increases accuracy and effectiveness—and leaves less time for long meetings and PowerPoint presentations (let us all rejoice).

Not Every CIO Is Ready

Of course, not all CIOs are ready for these changes. Just as high school has a lot of false positives—genius nerds who turn out to be merely nearsighted—so there are many CIOs who aren’t good role models for transformation.

Success as a CIO these days requires more than delivering near-perfect uptime, says Lenovo’s Hu. You need to be able to understand the business as well. Some CIOs simply don’t have all the business skills that are needed to succeed in the transformation. Others lack the internal clout: a 2016 KPMG study found that only 34% of CIOs report directly to the CEO.

This lack of a strategic perspective is holding back digital transformation at many organizations. They approach digital transformation as a cool, one-off project: we’re going to put this new mobile app in place and we’re done. But that’s not a systematic approach; it’s an island of innovation that doesn’t join up with the other islands of innovation. In the longer term, this kind of development creates more problems than it fixes.

Such organizations are not building in the capacity for change; they’re trying to get away with just doing it once rather than thinking about how they’re going to use digitalization as a means to constantly experiment and become a better company over the long term.

Q118 Feature3 img6 CIOready How Restaurants Can Survive Digital DisruptionAs a result, in some companies, the most interesting tech developments are happening despite IT, not because of it. “There’s an alarming digital divide within many companies. Marketers are developing nimble software to give customers an engaging, personalized experience, while IT departments remain focused on the legacy infrastructure. The front and back ends aren’t working together, resulting in appealing web sites and apps that don’t quite deliver,” writes George Colony, founder, chairman, and CEO of Forrester Research, in the MIT Sloan Management Review.

Thanks to cloud computing and easier development tools, many departments are developing on their own, without IT’s support. These days, anybody with a credit card can do it.

Traditionally, IT departments looked askance at these kinds of do-it-yourself shadow IT programs, but that’s changing. Ferro, for one, says that it’s better to look at those teams not as rogue groups but as people who are trying to help. “It’s less about ‘Hey, something’s escaped,’ and more about ‘No, we just actually grew our capacity and grew our ability to innovate,’” he explains.

“I don’t like the term ‘shadow IT,’” agrees Lenovo’s Hu. “I think it’s an artifact of a very traditional CIO team. If you think of it as shadow IT, you’re out of step with reality,” he says.

The reality today is that a company needs both a strong IT department and strong digital capacities outside its IT department. If the relationship is good, the CIO and IT become valuable allies in helping businesspeople add digital capabilities without disrupting or duplicating existing IT infrastructure.

If a company already has strong digital capacities, it should be able to move forward quickly, according to Ross. But many companies are still playing catch-up and aren’t even ready to begin transforming, as the SAP-Oxford Economics survey shows.

For enterprises where business and IT are unable to get their collective act together, Ross predicts that the next few years will be rough. “I think these companies ought to panic,” she says. D!


About the Authors

Thomas Saueressig is Chief Information Officer at SAP.

Timo Elliott is an Innovation Evangelist at SAP.

Sam Yen is Chief Design Officer at SAP and Managing Director of SAP Labs.

Bennett Voyles is a Berlin-based business writer.

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Digitalist Magazine

How Grocery Retailers Can Survive Digital Disruption

In a future teeming with robots and artificial intelligence, humans seem to be on the verge of being crowded out. But in reality the opposite is true.

To be successful, organizations need to become more human than ever.

Organizations that focus only on automation will automate away their competitive edge. The most successful will focus instead on skills that set them apart and that can’t be duplicated by AI or machine learning. Those skills can be summed up in one word: humanness.

You can see it in the numbers. According to David J. Deming of the Harvard Kennedy School, demand for jobs that require social skills has risen nearly 12 percentage points since 1980, while less-social jobs, such as computer coding, have declined by a little over 3 percentage points.

AI is in its infancy, which means that it cannot yet come close to duplicating our most human skills. Stefan van Duin and Naser Bakhshi, consultants at professional services company Deloitte, break down artificial intelligence into two types: narrow and general. Narrow AI is good at specific tasks, such as playing chess or identifying facial expressions. General AI, which can learn and solve complex, multifaceted problems the way a human being does, exists today only in the minds of futurists.

The only thing narrow artificial intelligence can do is automate. It can’t empathize. It can’t collaborate. It can’t innovate. Those abilities, if they ever come, are still a long way off. In the meantime, AI’s biggest value is in augmentation. When human beings work with AI tools, the process results in a sort of augmented intelligence. This augmented intelligence outperforms the work of either human beings or AI software tools on their own.

Q118 ft2 image1 DD How Grocery Retailers Can Survive Digital Disruption

AI-powered tools will be the partners that free employees and management to tackle higher-level challenges.

Those challenges will, by default, be more human and social in nature because many rote, repetitive tasks will be automated away. Companies will find that developing fundamental human skills, such as critical thinking and problem solving, within the organization will take on a new importance. These skills can’t be automated and they won’t become process steps for algorithms anytime soon.

In a world where technology change is constant and unpredictable, those organizations that make the fullest use of uniquely human skills will win. These skills will be used in collaboration with both other humans and AI-fueled software and hardware tools. The degree of humanness an organization possesses will become a competitive advantage.

This means that today’s companies must think about hiring, training, and leading differently. Most of today’s corporate training programs focus on imparting specific knowledge that will likely become obsolete over time.

Instead of hiring for portfolios of specific subject knowledge, organizations should instead hire—and train—for more foundational skills, whose value can’t erode away as easily.

Recently, educational consulting firm Hanover Research looked at high-growth occupations identified by the U.S. Bureau of Labor Statistics and determined the core skills required in each of them based on a database that it had developed. The most valuable skills were active listening, speaking, and critical thinking—giving lie to the dismissive term soft skills. They’re not soft; they’re human.

Q118 ft2 image2 softskills DD How Grocery Retailers Can Survive Digital Disruption
This doesn’t mean that STEM skills won’t be important in the future. But organizations will find that their most valuable employees are those with both math and social skills.

That’s because technical skills will become more perishable as AI shifts the pace of technology change from linear to exponential. Employees will require constant retraining over time. For example, roughly half of the subject knowledge acquired during the first year of a four-year technical degree, such as computer science, is already outdated by the time students graduate, according to The Future of Jobs, a report from the World Economic Forum (WEF).

The WEF’s report further notes that “65% of children entering primary school today will ultimately end up working in jobs that don’t yet exist.” By contrast, human skills such as interpersonal communication and project management will remain consistent over the years.

For example, organizations already report that they are having difficulty finding people equipped for the Big Data era’s hot job: data scientist. That’s because data scientists need a combination of hard and soft skills. Data scientists can’t just be good programmers and statisticians; they also need to be intuitive and inquisitive and have good communication skills. We don’t expect all these qualities from our engineering graduates, nor from most of our employees.

But we need to start.

From Self-Help to Self-Skills

Even if most schools and employers have yet to see it, employees are starting to understand that their future viability depends on improving their innately human qualities. One of the most popular courses on Coursera, an online learning platform, is called Learning How to Learn. Created by the University of California, San Diego, the course is essentially a master class in human skills: students learn everything from memory techniques to dealing with procrastination and communicating complicated ideas, according to an article in The New York Times.

Although there is a longstanding assumption that social skills are innate, nothing is further from the truth. As the popularity of Learning How to Learn attests, human skills—everything from learning skills to communication skills to empathy—can, and indeed must, be taught.

These human skills are integral for training workers for a workplace where artificial intelligence and automation are part of the daily routine. According to the WEF’s New Vision for Education report, the skills that employees will need in the future fall into three primary categories:

  • Foundational literacies: These core skills needed for the coming age of robotics and AI include understanding the basics of math, science, computing, finance, civics, and culture. While mastery of every topic isn’t required, workers who have a basic comprehension of many different areas will be richly rewarded in the coming economy.
  • Competencies: Developing competencies requires mastering very human skills, such as active listening, critical thinking, problem solving, creativity, communication, and collaboration.
  • Character qualities: Over the next decade, employees will need to master the skills that will help them grasp changing job duties and responsibilities. This means learning the skills that help employees acquire curiosity, initiative, persistence, grit, adaptability, leadership, and social and cultural awareness.

Q118 ft2 image4 usingsoftskills DD How Grocery Retailers Can Survive Digital Disruption
The good news is that learning human skills is not completely divorced from how work is structured today. Yonatan Zunger, a Google engineer with a background working with AI, argues that there is a considerable need for human skills in the workplace already—especially in the tech world. Many employees are simply unaware that when they are working on complicated software or hardware projects, they are using empathy, strategic problem solving, intuition, and interpersonal communication.

The unconscious deployment of human skills takes place even more frequently when employees climb the corporate ladder into management. “This is closely tied to the deeper difference between junior and senior roles: a junior person’s job is to find answers to questions; a senior person’s job is to find the right questions to ask,” says Zunger.

Human skills will be crucial to navigating the AI-infused workplace. There will be no shortage of need for the right questions to ask.

One of the biggest changes narrow AI tools will bring to the workplace is an evolution in how work is performed. AI-based tools will automate repetitive tasks across a wide swath of industries, which means that the day-to-day work for many white-collar workers will become far more focused on tasks requiring problem solving and critical thinking. These tasks will present challenges centered on interpersonal collaboration, clear communication, and autonomous decision-making—all human skills.

Being More Human Is Hard

However, the human skills that are essential for tomorrow’s AI-ified workplace, such as interpersonal communication, project planning, and conflict management, require a different approach from traditional learning. Often, these skills don’t just require people to learn new facts and techniques; they also call for basic changes in the ways individuals behave on—and off—the job.

Attempting to teach employees how to make behavioral changes has always seemed off-limits to organizations—the province of private therapists, not corporate trainers. But that outlook is changing. As science gains a better understanding of how the human brain works, many behaviors that affect employees on the job are understood to be universal and natural rather than individual (see “Human Skills 101”).

Human Skills 101

As neuroscience has improved our understanding of the brain, human skills have become increasingly quantifiable—and teachable.

Though the term soft skills has managed to hang on in the popular lexicon, our understanding of these human skills has increased to the point where they aren’t soft at all: they are a clearly definable set of skills that are crucial for organizations in the AI era.

Active listening: Paying close attention when receiving information and drawing out more information than received in normal discourse

Critical thinking: Gathering, analyzing, and evaluating issues and information to come to an unbiased conclusion

Problem solving: Finding solutions to problems and understanding the steps used to solve the problem

Decision-making: Weighing the evidence and options at hand to determine a specific course of action

Monitoring: Paying close attention to an issue, topic, or interaction in order to retain information for the future

Coordination: Working with individuals and other groups to achieve common goals

Social perceptiveness: Inferring what others are thinking by observing them

Time management: Budgeting and allocating time for projects and goals and structuring schedules to minimize conflicts and maximize productivity

Creativity: Generating ideas, concepts, or inferences that can be used to create new things

Curiosity: Desiring to learn and understand new or unfamiliar concepts

Imagination: Conceiving and thinking about new ideas, concepts, or images

Storytelling: Building narratives and concepts out of both new and existing ideas

Experimentation: Trying out new ideas, theories, and activities

Ethics: Practicing rules and standards that guide conduct and guarantee rights and fairness

Empathy: Identifying and understanding the emotional states of others

Collaboration: Working with others, coordinating efforts, and sharing resources to accomplish a common project

Resiliency: Withstanding setbacks, avoiding discouragement, and persisting toward a larger goal

Resistance to change, for example, is now known to result from an involuntary chemical reaction in the brain known as the fight-or-flight response, not from a weakness of character. Scientists and psychologists have developed objective ways of identifying these kinds of behaviors and have come up with universally applicable ways for employees to learn how to deal with them.

Organizations that emphasize such individual behavioral traits as active listening, social perceptiveness, and experimentation will have both an easier transition to a workplace that uses AI tools and more success operating in it.

Framing behavioral training in ways that emphasize its practical application at work and in advancing career goals helps employees feel more comfortable confronting behavioral roadblocks without feeling bad about themselves or stigmatized by others. It also helps organizations see the potential ROI of investing in what has traditionally been dismissed as touchy-feely stuff.

Q118 ft2 image3 automation DD How Grocery Retailers Can Survive Digital DisruptionIn fact, offering objective means for examining inner behaviors and tools for modifying them is more beneficial than just leaving the job to employees. For example, according to research by psychologist Tasha Eurich, introspection, which is how most of us try to understand our behaviors, can actually be counterproductive.

Human beings are complex creatures. There is generally way too much going on inside our minds to be able to pinpoint the conscious and unconscious behaviors that drive us to act the way we do. We wind up inventing explanations—usually negative—for our behaviors, which can lead to anxiety and depression, according to Eurich’s research.

Structured, objective training can help employees improve their human skills without the negative side effects. At SAP, for example, we offer employees a course on conflict resolution that uses objective research techniques for determining what happens when people get into conflicts. Employees learn about the different conflict styles that researchers have identified and take an assessment to determine their own style of dealing with conflict. Then employees work in teams to discuss their different styles and work together to resolve a specific conflict that one of the group members is currently experiencing.

Q118 ft2 image5 talkingtoAI DD How Grocery Retailers Can Survive Digital DisruptionHow Knowing One’s Self Helps the Organization

Courses like this are helpful not just for reducing conflicts between individuals and among teams (and improving organizational productivity); they also contribute to greater self-awareness, which is the basis for enabling people to take fullest advantage of their human skills.

Self-awareness is a powerful tool for improving performance at both the individual and organizational levels. Self-aware people are more confident and creative, make better decisions, build stronger relationships, and communicate more effectively. They are also less likely to lie, cheat, and steal, according to Eurich.

It naturally follows that such people make better employees and are more likely to be promoted. They also make more effective leaders with happier employees, which makes the organization more profitable, according to research by Atuma Okpara and Agwu M. Edwin.

There are two types of self-awareness, writes Eurich. One is having a clear view inside of one’s self: one’s own thoughts, feelings, behaviors, strengths, and weaknesses. The second type is understanding how others view us in terms of these same categories.

Interestingly, while we often assume that those who possess one type of awareness also possess the other, there is no direct correlation between the two. In fact, just 10% to 15% of people have both, according to a survey by Eurich. That means that the vast majority of us must learn one or the other—or both.

Gaining self-awareness is a process that can take many years. But training that gives employees the opportunity to examine their own behaviors against objective standards and gain feedback from expert instructors and peers can help speed up the journey. Just like the conflict management course, there are many ways to do this in a practical context that benefits employees and the organization alike.

For example, SAP also offers courses on building self-confidence, increasing trust with peers, creating connections with others, solving complex problems, and increasing resiliency in the face of difficult situations—all of which increase self-awareness in constructive ways. These human-skills courses are as popular with our employees as the hard-skill courses in new technologies or new programming techniques.

Depending on an organization’s size, budget, and goals, learning programs like these can include small group training, large lectures, online courses, licensing of third-party online content, reimbursement for students to attain certification, and many other models.
Q118 ft2 image6 AIandhumans DD How Grocery Retailers Can Survive Digital Disruption

Human Skills Are the Constant

Automation and artificial intelligence will change the workplace in unpredictable ways. One thing we can predict, however, is that human skills will be needed more than ever.

The connection between conflict resolution skills, critical thinking courses, and the rise of AI-aided technology might not be immediately obvious. But these new AI tools are leading us down the path to a much more human workplace.

Employees will interact with their computers through voice conversations and image recognition. Machine learning will find unexpected correlations in massive amounts of data but empathy and creativity will be required for data scientists to figure out the right questions to ask. Interpersonal communication will become even more important as teams coordinate between offices, remote workplaces, and AI aides.

While the future might be filled with artificial intelligence, deep learning, and untold amounts of data, uniquely human capabilities will be the ones that matter. Machines can’t write a symphony, design a building, teach a college course, or manage a department. The future belongs to humans working with machines, and for that, you need human skills. D!


About the Authors

Jenny Dearborn is Chief Learning Officer at SAP.

David Judge is Vice President, SAP Leonardo, at SAP.

Tom Raftery is Global Vice President and Internet of Things Evangelist at SAP.

Neal Ungerleider is a Los Angeles-based technology journalist and consultant.

cleardot How Grocery Retailers Can Survive Digital Disruption

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Digitalist Magazine

What’s Driving The Adoption Rates Of Digital Tools In Finance?

In a future teeming with robots and artificial intelligence, humans seem to be on the verge of being crowded out. But in reality the opposite is true.

To be successful, organizations need to become more human than ever.

Organizations that focus only on automation will automate away their competitive edge. The most successful will focus instead on skills that set them apart and that can’t be duplicated by AI or machine learning. Those skills can be summed up in one word: humanness.

You can see it in the numbers. According to David J. Deming of the Harvard Kennedy School, demand for jobs that require social skills has risen nearly 12 percentage points since 1980, while less-social jobs, such as computer coding, have declined by a little over 3 percentage points.

AI is in its infancy, which means that it cannot yet come close to duplicating our most human skills. Stefan van Duin and Naser Bakhshi, consultants at professional services company Deloitte, break down artificial intelligence into two types: narrow and general. Narrow AI is good at specific tasks, such as playing chess or identifying facial expressions. General AI, which can learn and solve complex, multifaceted problems the way a human being does, exists today only in the minds of futurists.

The only thing narrow artificial intelligence can do is automate. It can’t empathize. It can’t collaborate. It can’t innovate. Those abilities, if they ever come, are still a long way off. In the meantime, AI’s biggest value is in augmentation. When human beings work with AI tools, the process results in a sort of augmented intelligence. This augmented intelligence outperforms the work of either human beings or AI software tools on their own.

Q118 ft2 image1 DD What’s Driving The Adoption Rates Of Digital Tools In Finance?

AI-powered tools will be the partners that free employees and management to tackle higher-level challenges.

Those challenges will, by default, be more human and social in nature because many rote, repetitive tasks will be automated away. Companies will find that developing fundamental human skills, such as critical thinking and problem solving, within the organization will take on a new importance. These skills can’t be automated and they won’t become process steps for algorithms anytime soon.

In a world where technology change is constant and unpredictable, those organizations that make the fullest use of uniquely human skills will win. These skills will be used in collaboration with both other humans and AI-fueled software and hardware tools. The degree of humanness an organization possesses will become a competitive advantage.

This means that today’s companies must think about hiring, training, and leading differently. Most of today’s corporate training programs focus on imparting specific knowledge that will likely become obsolete over time.

Instead of hiring for portfolios of specific subject knowledge, organizations should instead hire—and train—for more foundational skills, whose value can’t erode away as easily.

Recently, educational consulting firm Hanover Research looked at high-growth occupations identified by the U.S. Bureau of Labor Statistics and determined the core skills required in each of them based on a database that it had developed. The most valuable skills were active listening, speaking, and critical thinking—giving lie to the dismissive term soft skills. They’re not soft; they’re human.

Q118 ft2 image2 softskills DD What’s Driving The Adoption Rates Of Digital Tools In Finance?
This doesn’t mean that STEM skills won’t be important in the future. But organizations will find that their most valuable employees are those with both math and social skills.

That’s because technical skills will become more perishable as AI shifts the pace of technology change from linear to exponential. Employees will require constant retraining over time. For example, roughly half of the subject knowledge acquired during the first year of a four-year technical degree, such as computer science, is already outdated by the time students graduate, according to The Future of Jobs, a report from the World Economic Forum (WEF).

The WEF’s report further notes that “65% of children entering primary school today will ultimately end up working in jobs that don’t yet exist.” By contrast, human skills such as interpersonal communication and project management will remain consistent over the years.

For example, organizations already report that they are having difficulty finding people equipped for the Big Data era’s hot job: data scientist. That’s because data scientists need a combination of hard and soft skills. Data scientists can’t just be good programmers and statisticians; they also need to be intuitive and inquisitive and have good communication skills. We don’t expect all these qualities from our engineering graduates, nor from most of our employees.

But we need to start.

From Self-Help to Self-Skills

Even if most schools and employers have yet to see it, employees are starting to understand that their future viability depends on improving their innately human qualities. One of the most popular courses on Coursera, an online learning platform, is called Learning How to Learn. Created by the University of California, San Diego, the course is essentially a master class in human skills: students learn everything from memory techniques to dealing with procrastination and communicating complicated ideas, according to an article in The New York Times.

Although there is a longstanding assumption that social skills are innate, nothing is further from the truth. As the popularity of Learning How to Learn attests, human skills—everything from learning skills to communication skills to empathy—can, and indeed must, be taught.

These human skills are integral for training workers for a workplace where artificial intelligence and automation are part of the daily routine. According to the WEF’s New Vision for Education report, the skills that employees will need in the future fall into three primary categories:

  • Foundational literacies: These core skills needed for the coming age of robotics and AI include understanding the basics of math, science, computing, finance, civics, and culture. While mastery of every topic isn’t required, workers who have a basic comprehension of many different areas will be richly rewarded in the coming economy.
  • Competencies: Developing competencies requires mastering very human skills, such as active listening, critical thinking, problem solving, creativity, communication, and collaboration.
  • Character qualities: Over the next decade, employees will need to master the skills that will help them grasp changing job duties and responsibilities. This means learning the skills that help employees acquire curiosity, initiative, persistence, grit, adaptability, leadership, and social and cultural awareness.

Q118 ft2 image4 usingsoftskills DD What’s Driving The Adoption Rates Of Digital Tools In Finance?
The good news is that learning human skills is not completely divorced from how work is structured today. Yonatan Zunger, a Google engineer with a background working with AI, argues that there is a considerable need for human skills in the workplace already—especially in the tech world. Many employees are simply unaware that when they are working on complicated software or hardware projects, they are using empathy, strategic problem solving, intuition, and interpersonal communication.

The unconscious deployment of human skills takes place even more frequently when employees climb the corporate ladder into management. “This is closely tied to the deeper difference between junior and senior roles: a junior person’s job is to find answers to questions; a senior person’s job is to find the right questions to ask,” says Zunger.

Human skills will be crucial to navigating the AI-infused workplace. There will be no shortage of need for the right questions to ask.

One of the biggest changes narrow AI tools will bring to the workplace is an evolution in how work is performed. AI-based tools will automate repetitive tasks across a wide swath of industries, which means that the day-to-day work for many white-collar workers will become far more focused on tasks requiring problem solving and critical thinking. These tasks will present challenges centered on interpersonal collaboration, clear communication, and autonomous decision-making—all human skills.

Being More Human Is Hard

However, the human skills that are essential for tomorrow’s AI-ified workplace, such as interpersonal communication, project planning, and conflict management, require a different approach from traditional learning. Often, these skills don’t just require people to learn new facts and techniques; they also call for basic changes in the ways individuals behave on—and off—the job.

Attempting to teach employees how to make behavioral changes has always seemed off-limits to organizations—the province of private therapists, not corporate trainers. But that outlook is changing. As science gains a better understanding of how the human brain works, many behaviors that affect employees on the job are understood to be universal and natural rather than individual (see “Human Skills 101”).

Human Skills 101

As neuroscience has improved our understanding of the brain, human skills have become increasingly quantifiable—and teachable.

Though the term soft skills has managed to hang on in the popular lexicon, our understanding of these human skills has increased to the point where they aren’t soft at all: they are a clearly definable set of skills that are crucial for organizations in the AI era.

Active listening: Paying close attention when receiving information and drawing out more information than received in normal discourse

Critical thinking: Gathering, analyzing, and evaluating issues and information to come to an unbiased conclusion

Problem solving: Finding solutions to problems and understanding the steps used to solve the problem

Decision-making: Weighing the evidence and options at hand to determine a specific course of action

Monitoring: Paying close attention to an issue, topic, or interaction in order to retain information for the future

Coordination: Working with individuals and other groups to achieve common goals

Social perceptiveness: Inferring what others are thinking by observing them

Time management: Budgeting and allocating time for projects and goals and structuring schedules to minimize conflicts and maximize productivity

Creativity: Generating ideas, concepts, or inferences that can be used to create new things

Curiosity: Desiring to learn and understand new or unfamiliar concepts

Imagination: Conceiving and thinking about new ideas, concepts, or images

Storytelling: Building narratives and concepts out of both new and existing ideas

Experimentation: Trying out new ideas, theories, and activities

Ethics: Practicing rules and standards that guide conduct and guarantee rights and fairness

Empathy: Identifying and understanding the emotional states of others

Collaboration: Working with others, coordinating efforts, and sharing resources to accomplish a common project

Resiliency: Withstanding setbacks, avoiding discouragement, and persisting toward a larger goal

Resistance to change, for example, is now known to result from an involuntary chemical reaction in the brain known as the fight-or-flight response, not from a weakness of character. Scientists and psychologists have developed objective ways of identifying these kinds of behaviors and have come up with universally applicable ways for employees to learn how to deal with them.

Organizations that emphasize such individual behavioral traits as active listening, social perceptiveness, and experimentation will have both an easier transition to a workplace that uses AI tools and more success operating in it.

Framing behavioral training in ways that emphasize its practical application at work and in advancing career goals helps employees feel more comfortable confronting behavioral roadblocks without feeling bad about themselves or stigmatized by others. It also helps organizations see the potential ROI of investing in what has traditionally been dismissed as touchy-feely stuff.

Q118 ft2 image3 automation DD What’s Driving The Adoption Rates Of Digital Tools In Finance?In fact, offering objective means for examining inner behaviors and tools for modifying them is more beneficial than just leaving the job to employees. For example, according to research by psychologist Tasha Eurich, introspection, which is how most of us try to understand our behaviors, can actually be counterproductive.

Human beings are complex creatures. There is generally way too much going on inside our minds to be able to pinpoint the conscious and unconscious behaviors that drive us to act the way we do. We wind up inventing explanations—usually negative—for our behaviors, which can lead to anxiety and depression, according to Eurich’s research.

Structured, objective training can help employees improve their human skills without the negative side effects. At SAP, for example, we offer employees a course on conflict resolution that uses objective research techniques for determining what happens when people get into conflicts. Employees learn about the different conflict styles that researchers have identified and take an assessment to determine their own style of dealing with conflict. Then employees work in teams to discuss their different styles and work together to resolve a specific conflict that one of the group members is currently experiencing.

Q118 ft2 image5 talkingtoAI DD What’s Driving The Adoption Rates Of Digital Tools In Finance?How Knowing One’s Self Helps the Organization

Courses like this are helpful not just for reducing conflicts between individuals and among teams (and improving organizational productivity); they also contribute to greater self-awareness, which is the basis for enabling people to take fullest advantage of their human skills.

Self-awareness is a powerful tool for improving performance at both the individual and organizational levels. Self-aware people are more confident and creative, make better decisions, build stronger relationships, and communicate more effectively. They are also less likely to lie, cheat, and steal, according to Eurich.

It naturally follows that such people make better employees and are more likely to be promoted. They also make more effective leaders with happier employees, which makes the organization more profitable, according to research by Atuma Okpara and Agwu M. Edwin.

There are two types of self-awareness, writes Eurich. One is having a clear view inside of one’s self: one’s own thoughts, feelings, behaviors, strengths, and weaknesses. The second type is understanding how others view us in terms of these same categories.

Interestingly, while we often assume that those who possess one type of awareness also possess the other, there is no direct correlation between the two. In fact, just 10% to 15% of people have both, according to a survey by Eurich. That means that the vast majority of us must learn one or the other—or both.

Gaining self-awareness is a process that can take many years. But training that gives employees the opportunity to examine their own behaviors against objective standards and gain feedback from expert instructors and peers can help speed up the journey. Just like the conflict management course, there are many ways to do this in a practical context that benefits employees and the organization alike.

For example, SAP also offers courses on building self-confidence, increasing trust with peers, creating connections with others, solving complex problems, and increasing resiliency in the face of difficult situations—all of which increase self-awareness in constructive ways. These human-skills courses are as popular with our employees as the hard-skill courses in new technologies or new programming techniques.

Depending on an organization’s size, budget, and goals, learning programs like these can include small group training, large lectures, online courses, licensing of third-party online content, reimbursement for students to attain certification, and many other models.
Q118 ft2 image6 AIandhumans DD What’s Driving The Adoption Rates Of Digital Tools In Finance?

Human Skills Are the Constant

Automation and artificial intelligence will change the workplace in unpredictable ways. One thing we can predict, however, is that human skills will be needed more than ever.

The connection between conflict resolution skills, critical thinking courses, and the rise of AI-aided technology might not be immediately obvious. But these new AI tools are leading us down the path to a much more human workplace.

Employees will interact with their computers through voice conversations and image recognition. Machine learning will find unexpected correlations in massive amounts of data but empathy and creativity will be required for data scientists to figure out the right questions to ask. Interpersonal communication will become even more important as teams coordinate between offices, remote workplaces, and AI aides.

While the future might be filled with artificial intelligence, deep learning, and untold amounts of data, uniquely human capabilities will be the ones that matter. Machines can’t write a symphony, design a building, teach a college course, or manage a department. The future belongs to humans working with machines, and for that, you need human skills. D!


About the Authors

Jenny Dearborn is Chief Learning Officer at SAP.

David Judge is Vice President, SAP Leonardo, at SAP.

Tom Raftery is Global Vice President and Internet of Things Evangelist at SAP.

Neal Ungerleider is a Los Angeles-based technology journalist and consultant.

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Digitalist Magazine

What’s Driving The Adoption Rates Of Digital Tools In Finance?

In a future teeming with robots and artificial intelligence, humans seem to be on the verge of being crowded out. But in reality the opposite is true.

To be successful, organizations need to become more human than ever.

Organizations that focus only on automation will automate away their competitive edge. The most successful will focus instead on skills that set them apart and that can’t be duplicated by AI or machine learning. Those skills can be summed up in one word: humanness.

You can see it in the numbers. According to David J. Deming of the Harvard Kennedy School, demand for jobs that require social skills has risen nearly 12 percentage points since 1980, while less-social jobs, such as computer coding, have declined by a little over 3 percentage points.

AI is in its infancy, which means that it cannot yet come close to duplicating our most human skills. Stefan van Duin and Naser Bakhshi, consultants at professional services company Deloitte, break down artificial intelligence into two types: narrow and general. Narrow AI is good at specific tasks, such as playing chess or identifying facial expressions. General AI, which can learn and solve complex, multifaceted problems the way a human being does, exists today only in the minds of futurists.

The only thing narrow artificial intelligence can do is automate. It can’t empathize. It can’t collaborate. It can’t innovate. Those abilities, if they ever come, are still a long way off. In the meantime, AI’s biggest value is in augmentation. When human beings work with AI tools, the process results in a sort of augmented intelligence. This augmented intelligence outperforms the work of either human beings or AI software tools on their own.

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AI-powered tools will be the partners that free employees and management to tackle higher-level challenges.

Those challenges will, by default, be more human and social in nature because many rote, repetitive tasks will be automated away. Companies will find that developing fundamental human skills, such as critical thinking and problem solving, within the organization will take on a new importance. These skills can’t be automated and they won’t become process steps for algorithms anytime soon.

In a world where technology change is constant and unpredictable, those organizations that make the fullest use of uniquely human skills will win. These skills will be used in collaboration with both other humans and AI-fueled software and hardware tools. The degree of humanness an organization possesses will become a competitive advantage.

This means that today’s companies must think about hiring, training, and leading differently. Most of today’s corporate training programs focus on imparting specific knowledge that will likely become obsolete over time.

Instead of hiring for portfolios of specific subject knowledge, organizations should instead hire—and train—for more foundational skills, whose value can’t erode away as easily.

Recently, educational consulting firm Hanover Research looked at high-growth occupations identified by the U.S. Bureau of Labor Statistics and determined the core skills required in each of them based on a database that it had developed. The most valuable skills were active listening, speaking, and critical thinking—giving lie to the dismissive term soft skills. They’re not soft; they’re human.

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This doesn’t mean that STEM skills won’t be important in the future. But organizations will find that their most valuable employees are those with both math and social skills.

That’s because technical skills will become more perishable as AI shifts the pace of technology change from linear to exponential. Employees will require constant retraining over time. For example, roughly half of the subject knowledge acquired during the first year of a four-year technical degree, such as computer science, is already outdated by the time students graduate, according to The Future of Jobs, a report from the World Economic Forum (WEF).

The WEF’s report further notes that “65% of children entering primary school today will ultimately end up working in jobs that don’t yet exist.” By contrast, human skills such as interpersonal communication and project management will remain consistent over the years.

For example, organizations already report that they are having difficulty finding people equipped for the Big Data era’s hot job: data scientist. That’s because data scientists need a combination of hard and soft skills. Data scientists can’t just be good programmers and statisticians; they also need to be intuitive and inquisitive and have good communication skills. We don’t expect all these qualities from our engineering graduates, nor from most of our employees.

But we need to start.

From Self-Help to Self-Skills

Even if most schools and employers have yet to see it, employees are starting to understand that their future viability depends on improving their innately human qualities. One of the most popular courses on Coursera, an online learning platform, is called Learning How to Learn. Created by the University of California, San Diego, the course is essentially a master class in human skills: students learn everything from memory techniques to dealing with procrastination and communicating complicated ideas, according to an article in The New York Times.

Although there is a longstanding assumption that social skills are innate, nothing is further from the truth. As the popularity of Learning How to Learn attests, human skills—everything from learning skills to communication skills to empathy—can, and indeed must, be taught.

These human skills are integral for training workers for a workplace where artificial intelligence and automation are part of the daily routine. According to the WEF’s New Vision for Education report, the skills that employees will need in the future fall into three primary categories:

  • Foundational literacies: These core skills needed for the coming age of robotics and AI include understanding the basics of math, science, computing, finance, civics, and culture. While mastery of every topic isn’t required, workers who have a basic comprehension of many different areas will be richly rewarded in the coming economy.
  • Competencies: Developing competencies requires mastering very human skills, such as active listening, critical thinking, problem solving, creativity, communication, and collaboration.
  • Character qualities: Over the next decade, employees will need to master the skills that will help them grasp changing job duties and responsibilities. This means learning the skills that help employees acquire curiosity, initiative, persistence, grit, adaptability, leadership, and social and cultural awareness.

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The good news is that learning human skills is not completely divorced from how work is structured today. Yonatan Zunger, a Google engineer with a background working with AI, argues that there is a considerable need for human skills in the workplace already—especially in the tech world. Many employees are simply unaware that when they are working on complicated software or hardware projects, they are using empathy, strategic problem solving, intuition, and interpersonal communication.

The unconscious deployment of human skills takes place even more frequently when employees climb the corporate ladder into management. “This is closely tied to the deeper difference between junior and senior roles: a junior person’s job is to find answers to questions; a senior person’s job is to find the right questions to ask,” says Zunger.

Human skills will be crucial to navigating the AI-infused workplace. There will be no shortage of need for the right questions to ask.

One of the biggest changes narrow AI tools will bring to the workplace is an evolution in how work is performed. AI-based tools will automate repetitive tasks across a wide swath of industries, which means that the day-to-day work for many white-collar workers will become far more focused on tasks requiring problem solving and critical thinking. These tasks will present challenges centered on interpersonal collaboration, clear communication, and autonomous decision-making—all human skills.

Being More Human Is Hard

However, the human skills that are essential for tomorrow’s AI-ified workplace, such as interpersonal communication, project planning, and conflict management, require a different approach from traditional learning. Often, these skills don’t just require people to learn new facts and techniques; they also call for basic changes in the ways individuals behave on—and off—the job.

Attempting to teach employees how to make behavioral changes has always seemed off-limits to organizations—the province of private therapists, not corporate trainers. But that outlook is changing. As science gains a better understanding of how the human brain works, many behaviors that affect employees on the job are understood to be universal and natural rather than individual (see “Human Skills 101”).

Human Skills 101

As neuroscience has improved our understanding of the brain, human skills have become increasingly quantifiable—and teachable.

Though the term soft skills has managed to hang on in the popular lexicon, our understanding of these human skills has increased to the point where they aren’t soft at all: they are a clearly definable set of skills that are crucial for organizations in the AI era.

Active listening: Paying close attention when receiving information and drawing out more information than received in normal discourse

Critical thinking: Gathering, analyzing, and evaluating issues and information to come to an unbiased conclusion

Problem solving: Finding solutions to problems and understanding the steps used to solve the problem

Decision-making: Weighing the evidence and options at hand to determine a specific course of action

Monitoring: Paying close attention to an issue, topic, or interaction in order to retain information for the future

Coordination: Working with individuals and other groups to achieve common goals

Social perceptiveness: Inferring what others are thinking by observing them

Time management: Budgeting and allocating time for projects and goals and structuring schedules to minimize conflicts and maximize productivity

Creativity: Generating ideas, concepts, or inferences that can be used to create new things

Curiosity: Desiring to learn and understand new or unfamiliar concepts

Imagination: Conceiving and thinking about new ideas, concepts, or images

Storytelling: Building narratives and concepts out of both new and existing ideas

Experimentation: Trying out new ideas, theories, and activities

Ethics: Practicing rules and standards that guide conduct and guarantee rights and fairness

Empathy: Identifying and understanding the emotional states of others

Collaboration: Working with others, coordinating efforts, and sharing resources to accomplish a common project

Resiliency: Withstanding setbacks, avoiding discouragement, and persisting toward a larger goal

Resistance to change, for example, is now known to result from an involuntary chemical reaction in the brain known as the fight-or-flight response, not from a weakness of character. Scientists and psychologists have developed objective ways of identifying these kinds of behaviors and have come up with universally applicable ways for employees to learn how to deal with them.

Organizations that emphasize such individual behavioral traits as active listening, social perceptiveness, and experimentation will have both an easier transition to a workplace that uses AI tools and more success operating in it.

Framing behavioral training in ways that emphasize its practical application at work and in advancing career goals helps employees feel more comfortable confronting behavioral roadblocks without feeling bad about themselves or stigmatized by others. It also helps organizations see the potential ROI of investing in what has traditionally been dismissed as touchy-feely stuff.

Q118 ft2 image3 automation DD What’s Driving The Adoption Rates Of Digital Tools In Finance?In fact, offering objective means for examining inner behaviors and tools for modifying them is more beneficial than just leaving the job to employees. For example, according to research by psychologist Tasha Eurich, introspection, which is how most of us try to understand our behaviors, can actually be counterproductive.

Human beings are complex creatures. There is generally way too much going on inside our minds to be able to pinpoint the conscious and unconscious behaviors that drive us to act the way we do. We wind up inventing explanations—usually negative—for our behaviors, which can lead to anxiety and depression, according to Eurich’s research.

Structured, objective training can help employees improve their human skills without the negative side effects. At SAP, for example, we offer employees a course on conflict resolution that uses objective research techniques for determining what happens when people get into conflicts. Employees learn about the different conflict styles that researchers have identified and take an assessment to determine their own style of dealing with conflict. Then employees work in teams to discuss their different styles and work together to resolve a specific conflict that one of the group members is currently experiencing.

Q118 ft2 image5 talkingtoAI DD What’s Driving The Adoption Rates Of Digital Tools In Finance?How Knowing One’s Self Helps the Organization

Courses like this are helpful not just for reducing conflicts between individuals and among teams (and improving organizational productivity); they also contribute to greater self-awareness, which is the basis for enabling people to take fullest advantage of their human skills.

Self-awareness is a powerful tool for improving performance at both the individual and organizational levels. Self-aware people are more confident and creative, make better decisions, build stronger relationships, and communicate more effectively. They are also less likely to lie, cheat, and steal, according to Eurich.

It naturally follows that such people make better employees and are more likely to be promoted. They also make more effective leaders with happier employees, which makes the organization more profitable, according to research by Atuma Okpara and Agwu M. Edwin.

There are two types of self-awareness, writes Eurich. One is having a clear view inside of one’s self: one’s own thoughts, feelings, behaviors, strengths, and weaknesses. The second type is understanding how others view us in terms of these same categories.

Interestingly, while we often assume that those who possess one type of awareness also possess the other, there is no direct correlation between the two. In fact, just 10% to 15% of people have both, according to a survey by Eurich. That means that the vast majority of us must learn one or the other—or both.

Gaining self-awareness is a process that can take many years. But training that gives employees the opportunity to examine their own behaviors against objective standards and gain feedback from expert instructors and peers can help speed up the journey. Just like the conflict management course, there are many ways to do this in a practical context that benefits employees and the organization alike.

For example, SAP also offers courses on building self-confidence, increasing trust with peers, creating connections with others, solving complex problems, and increasing resiliency in the face of difficult situations—all of which increase self-awareness in constructive ways. These human-skills courses are as popular with our employees as the hard-skill courses in new technologies or new programming techniques.

Depending on an organization’s size, budget, and goals, learning programs like these can include small group training, large lectures, online courses, licensing of third-party online content, reimbursement for students to attain certification, and many other models.
Q118 ft2 image6 AIandhumans DD What’s Driving The Adoption Rates Of Digital Tools In Finance?

Human Skills Are the Constant

Automation and artificial intelligence will change the workplace in unpredictable ways. One thing we can predict, however, is that human skills will be needed more than ever.

The connection between conflict resolution skills, critical thinking courses, and the rise of AI-aided technology might not be immediately obvious. But these new AI tools are leading us down the path to a much more human workplace.

Employees will interact with their computers through voice conversations and image recognition. Machine learning will find unexpected correlations in massive amounts of data but empathy and creativity will be required for data scientists to figure out the right questions to ask. Interpersonal communication will become even more important as teams coordinate between offices, remote workplaces, and AI aides.

While the future might be filled with artificial intelligence, deep learning, and untold amounts of data, uniquely human capabilities will be the ones that matter. Machines can’t write a symphony, design a building, teach a college course, or manage a department. The future belongs to humans working with machines, and for that, you need human skills. D!


About the Authors

Jenny Dearborn is Chief Learning Officer at SAP.

David Judge is Vice President, SAP Leonardo, at SAP.

Tom Raftery is Global Vice President and Internet of Things Evangelist at SAP.

Neal Ungerleider is a Los Angeles-based technology journalist and consultant.

cleardot What’s Driving The Adoption Rates Of Digital Tools In Finance?

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