DIGITAL READINESS: HOW COMPANIES ARE PREPARING THEIR WORKFORCE FOR TOMORROW

Christophe Peron, CrossKnowledge

April 5, 2016

Demographics

THE DIGITAL TSUNAMI IS CHANGING THE WAY WE DO BUSINESS

The Tesla Model 3 will have futuristic 'spaceship' steering controls

Elon Musk, Founder and CEO of Tesla Motors Company

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New roles require new skills

A little food for thought…

• 50% less business process workers, 500% more digital business jobs by 20181

• 67% of the jobs we know may be taken by robots within 30 years2

1 Gartner, 20152 Mc Afee / Brynjolfsson, The Second Machine Age, 2014

How prepared are we? • In the U.S., an estimated 60M people are shut off from jobs because of a lack of digital skills: nearly 20% of American adults do not use the Internet at home, work, or at school, or by mobile device. 1

• Nearly 40% of workers in the E.U. lack digital skills and 14% have none. 2

• In the U.K., 6M citizens have never used the internet and 9.5M lack adequate digital skills. 3

1 New York Times Aug. 19, 2013 2 EU Digital Scoreboard 20143 BBC News, Feb. 17, 2015

HOW ARE ORGANIZATIONS GETTING READY FOR THIS?

We found out: how are organizations using training to navigate the hurdles associated with digital readiness?

August to October 2015

168 companies with over

1000 employees

A confidential survey

Demographics

43%

15%

8%

13%

20%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Company size (total number of employees)

1k-5k 5k-10k 10k-20k 20k-50k 50k+

10%

1%

2%

4%

5%

5%

8%

11%

11%

11%

15%

17%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Other

Entertainment/Hospitality

Non-profit

Business Services/Consulting

Utilities

Durable Goods

Government

Education

Health care/Mediacal/Pharma

Manufacturing

Banking/Finance/Insurance

Technology/Telecom

Industries Represented

2%

3%

4%

4%

8%

8%

9%

13%

49%

0% 10% 20% 30% 40% 50% 60%

Other

HR

Finance/Accounting

Sales

Customer service

R&D

Marketing/Advertising

IT

Learning and development

Functional areas represented

2%

2%

3%

8%

11%

19%

35%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Instructional Designer

Instructor

Trainer

Consultant

Associate

Specialist

Manager

Job represented

We have addressed 3 questions:

1. How would you define digital readiness?

2. How are you preparing for the digital readiness?

3. What challenges are you facing?

1. How would you define digital readiness?

Digital readiness is associated with technical literacy

26%

23%

16%

5% 4% 4%

0%

5%

10%

15%

20%

25%

30%

Figure 1: Themes in Digital readiness definitions

Technological literacy Prepared/ready workforce strategy

Ability/upskilling Employees properly/sufficently trained

Digital ressources available Specific software/digital media competency

Digital readiness is a corporate priority for 78 percent of companies

34%

44%

17%

5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Figure 2. How Important is digital readiness?

High priority Moderate Priority Low Priority Not a priority

Insufficient digital readiness is expected to trigger low profitability and competitiveness

45% 43% 41% 40%

34% 32%27%

16% 17%

0%5%

10%15%20%25%30%35%40%45%50%

Figure 4. Expected impact of insufficient digital readiness

Forrester, Digital Transformation In The Age Of The Customer, Oct. 2015

1. How would you define digital readiness?

2. How are you preparing?

Companies are investing in new technology and training their employees to use it

35%

36%

36%

39%

42%

42%

48%

49%

0% 10% 20% 30% 40% 50% 60%

In-depth knowledge/skills training prior to technologyimplementation

Relying on vendors to bridge gaps in digital readiness needs

L&D initiatives are aligned with company's digital strategy

Redesigning workflows to accomodate technological innovations

Sufficient investment/budget is allocated to digital readiness

Innovative methods are used to recruit employees with digitalskills

Investing in new technology rather than hiring for skills

Allowing employees to use new digital tools

Figure 6. Strategies to strengthen digital readiness

1. How would you define digital readiness?

2. How are you preparing for the digital readiness?

3. What challenges are you facing?

Organizations expect digital readiness initiatives to drive business results

68% 67%64%

55%52%

45%

32%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Higher employeeproductivity

Greater companyperformance

Better innovationcapabilities

Bettercompetititve

advantage

Strongerorganizational

agility

Improved workenvironment

Easier extendedentreprise

relationships

Figure 3. Expected impacts of successful digital readiness initiatives

What are the best practices to achieve digital readiness?

Digital readiness is associated with technical literacy

26%

23%

16%

5% 4% 4%

0%

5%

10%

15%

20%

25%

30%

Figure 1: Themes in Digital readiness definitions

Technological literacy Prepared/ready workforce strategy

Ability/upskilling Employees properly/sufficently trained

Digital ressources available Specific software/digital media competency

Digital literacy involves more than the mere ability to use software or operate a digital device; it includes a large variety of complex cognitive, motor, sociological, and emotional skills, which users need in order to function effectively in digital environments.

Eshet-Alkalai, Y. “Digital Literacy: A Conceptual Framework for Survival Skills in the Digital Era”

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Digital skills don’t mean digital literacy

Consider digital readiness as an intersection of several skillsetsConsider digital readiness as an intersection of several skillsets

Digital literacy is a set of 3 different types of skills

Communicating, managing,

delegating…

Behavioral skills

Operating and mastering specific

digital tools

Functional skillsTechnical skills

Organizing, analyzing, promoting…

An example: making a successful virtual meeting

Functional skills

- How to organize and structure an efficient meeting for several

participants

- How to collect ideas in a non face-to-face setting

- How to foster group innovation

- How to manage time& take efficient notes

Technical skills

- How to schedule a meeting for several

participants (Gmail, Google Apps, Doodle, …)

- How to operate software designed to hold online meeting (Webex, Skype,

Gotomeeting, …)

- How to create a collaborative document

(Google doc, …)

Behavioral skills

- How to give feedback at distance in front of others

- How to practice active listening in virtual context

- How to include virtualparticipants

- How to deal with online group conflict

Complementary

Concurrent

Contextualized

Collaborative

Continuous

Technical, functional and behavioral skills work together

These skillsets should be learned together, not separately

Determine in which specific context these skills should be used

Technology supports relationships among individuals rather than individuals

Development plans should keep up with technological change

Remember the 5 C’s for development strategies targeting digital readiness

Badges = motivation

Gamification = engagement

P2P mentoring = learning organization

Establish a baseline that all employees must reach

Being a winner in the digital age demands a digital corporate culture enabling people to continuously adapt, learn, create new solutions, drive relentless change, and disrupt the status quo. In an age where tech is grabbing the limelight, true leaders will, in fact, put people first

Accenture Technology Vision 2016

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Questions?

Thank you!

christophe.peron@crossknowledge