Nowadays, digital technology is at the hub of economic development debate for its wide utilization during the outbreak of COVID-19. While there is no doubt that the pandemic is intensifying the implementation of new technologies, technological advancements and digital transformation consulting were converting the world already over the past two decades, right from standards of living to the very temperament of our work.
Fears of robot-inspired unemployment are on the rise as activities traditionally performed by humans are improvingly executed utilizing artificial intelligence and robots. The lessening cost of machines threatens routine activities and low-skill jobs- those most inclined to offshoring an automation. It has been analyzed that the number of robots operating globally is escalating swiftly by the end of 2020, there will be three new industrial robots in operation, more than double the operational stock over the seven years spanning from 2014 to 2020.
But technology can be a job originator as well. Increases in proficiency brought about by digital technology can assist businesses to extend. Digital platforms can formulate new jobs and occupations. Ventures can get remote markets lacking infrastructure. To reconstruct technology as a job architect, it is vital to perceive what, exactly, the present wave of technology is converting, and how policy creators and businesses can settle in it.
The foundations of change
Even before the pandemic struck, some attributes of the state of technological progress were salient especially.
First, technology was disrupting the process of production already, especially through the swift escalation of digital platforms. Digital technology has been difficult the conventional global value chains and the geography of jobs. After all, technology de-escalates the budgets of doing business, complementing expenditures in infrastructure, free trade agreements, and other liberalization attempts to minimize trade barriers that in turn extend global value chains and change the job layout of jobs. New business models and digital transformation consulting firms can evolve swiftly from local start-ups to global behemoths, often with tangible assets and few employees. Digital platforms have ensured clusters of businesses to produce in underdeveloped rural areas.
Second, technology formulated seismic shifts in the mix of skills needed to be successful in the labour market. While returns to routine, job-specific skills are diminishing, the premium for skills that cannot be reinstated by robots has been scaling-up, these consist of cognitive skills like critical thinking and socio-behavioural skills like administering and identifying emotions that enrich teamwork. Earnings are higher for those who have a blend of these skills. The progressing world of work demands flexible skills that confirm workers to relocate without much of a stretch from one task to another. Since 2001, the employment share in occupations concentrated in non-routine cognitive and socio-behavioural abilities has improved to 23% from 19% in budding economies, and to 41% to 33% in advanced economies.
Third, digital technology converted the terms of work. Rather than standard long-run agreements, digital technologies have costumed a rise to more short-run work, via online work platforms often. These gigs create certain sorts of work more obtainable and flexible. That said, despite the puff, the gig economy as of now has been sluggish to take over traditional occupations.
How will these changes act in the post-COVID-19 world?
It tends that the pandemic will strengthen these pre-existing trends and improve the exigency of corresponding policy responses. Some points already appear apparent. Platform firms are governing markets even more. We are already observing some platforms are even stronger and bigger as brick- and-mortar stores cannot compete. Organizations will expend more in their capability to assemble business over the internet to be more pliant to prospective lockdowns. Some gig jobs will also prolong to scale-up. Also, firms may have more stimulants to spend in automation and reshore production to defend against value chain disruption. Many ventures depending upon imported inputs are confronting deficiency of intermediary goods as value chains are disrupted. They may require enabling that supplies are less vulnerable to rove restrictions.
Digital technology and digital transformation consulting services are also improvising the capability of people to work from home, although the amenability to remote work that relies on the sort of jobs and activities to be accomplished, and digital capacity significantly differ within and across countries. Jobs that are encouraging to remote work are more widespread in rich countries, among workers with higher levels of education, and in salaried full-time jobs. Young workers and women are efficiently less likely to execute remotely. Digital infrastructure is of low quality or scarce in multiple developing countries.
Policies to prepare for the future of work
The swift spread of technology improved by the pandemic has headed to a pressing prerequisite of businesses and governments to acclimatize. Numerous businesses, especially in escalating economies, are digitally detached. They may not have access to employees with the justified skills and confront difficult business environments. Simultaneously, employees have little protection and do not have the adaptability or skills in labour markets to adapt. To experience these obstacles, businesses should embrace technology and improvise training programs to kit out their employees with the best skills. Also, ventures can think about apprenticeships to instrument future workers with effective skill sets.
Governments endure an arsenal of policy alternatives at their disposal, right from infrastructure projects and taxation to incentives and regulations. Core priorities need to be ramping up expenditure in human capital like skills, health, and knowledge, and lifelong learning if employees are to acclimatize for future labour markets, empowering social protections, extending safety net coverage, and restructuring financing arrangements and labour market norms to ease work transitions and to minimize disincentives to the formulation of formal jobs, enabling reasonable access to the internet while settling in regulations to experience the obstacles posed by digital platforms like data protection and privacy and rules of competition, and improving taxation systems to mitigate tax avoidance and to craft fiscal space for universal social protection and human capital development.
Technology and digital transformation strategy consulting can be a bonus to society if ventures and governments adapt and prepare. The pandemic has forced societies to a point of modulation where enduring technology is no longer an alternative but a requirement. Also, it has made employees more vulnerable. With the justified actions and steps, ventures and governments can ensure the crisis an opportunity to establish for the future.
Get in touch with us today to ensure the assistance of our qualified business transformation consultants.
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