The future of work – CIO implications

Andy Wood Head of Communications & Collaboration

andy.wood@kcom.com 07778335635

Overview

•Mega trends• Future of work• CIO agenda • IT consumerisation• CIO implications• Conclusion

Mega trend - Globalisation

• Drivers1. Improvement of international

trade2. Technological progress3. Increasing influence of multi

national companies4. Power of WTO, IMF, WB5. Greater mobility of human

resources across countries6. Greater outsourcing of business

processes to other countries7. Civil Society8. Volatility & uncertainty9. Low cost competition10. Internet – connected economy

Mega trend - Economic GDP % change on prior year 2009

Mega trend - EconomicGDP % change on prior year 2010

Mega trend - Economic GDP % change on prior year 2011

BRIC economies

• In US dollar terms, China could overtake Germany in the next four years, Japan by 2015 and the US by 2039.

• India’s economy could be larger than all but the US and China in 30 years.

• Russia would overtake Germany, France, Italy and the UK.

• Of the current G6 (US, Japan, Germany, France, Italy, UK) only the US and Japan may be among the six largest economies in US dollar terms in 2050.

Mega trend – UK demographics

• Ageing population• Median age

• 1984 = 35 years• 2009 = 39 years• 2034 = 42 years * projection

• Longer life expectancy• Men @65

• + 17.6 years / 12.9 years healthy

• Women @65• + 20.2 years / 14.9 years healthy

• Lower fertility• Fewer births, marriages & deaths• Extended retirement ages• Large pool of skills & experience• Electronically mediated life styles and

relationships• Blurring of work and home – rising job mobility• 1 in 20 people in the UK work in IT and

Telecoms• Generation Y – Millennial’s• Future strain on the NHS

Mega trend – Universal connectivity

• Data deluge / broadband explosion• Rising transparency• Declining privacy• Business analytics• Reputation economy• Networked risks & failure• Information security• Location based services & habit trails• Smart communities & connected cities• 2 billion on line, 5 billion devices – 500m on

Facebook 25%• 200m access Facebook via a smart phone• World is running out of IP addresses – IP V6

• 14 IP addresses per person16m users in 1995 to 2 billion in 2010 and 5bn devices connected ! (Cisco report August “the evolving internet report”)

Mega trend – IT consumerisation

• Innovation, faster and more disruptive• Mobile the primary device for web surfing• IPhone Surpasses Blackberry In World Wide Market Share• Average of 50 IPhone apps per user• 400,000 IPhone apps available on iTunes• 3 bn hours per week playing games• 25m users on SKYPE• Users on Facebook 500m, Twitter 110m, LinkedIn 70m • 60 bn instant messages sent a day (40% business)• 90% of all Internet traffic will be video by 2013• You Tube 2bn viewers per day, 24hrs of video is up loaded per

minute• Half the user base is under 20 years old/ 1000 years to watch it all

• 2015 125million will not have electricity but will have a mobile phone

• On planet earth 4 babies born every second / 40 mobiles sold per second

• Mobile internet ramping faster than desktop internet didConsumer market surpassed the size of the Enterprise market in 2004

Direction of travel ?

The future of work

• “Throw away your brief case you are not going to the office.”• “You can kiss your benefits good bye too.” • “Your new boss won’t look much like your old one.”• “There is no longer a ladder and you may never get to retire, but there is a world of opportunity if you figure out a new path.”

Time – Magazine - May 2009

People strategy – the journey

The Model

The Structure

AS IS TO BE

VISION

AS IS TO BE

VISION

Vision of work 2020

Information economy• Value created by processing data• Access to information• Static business models• Individuals and processes• Specific points of value creation• Command and control• Innovation or operation excellence

Networked economy• Value created by providing

relevance• Access to expertise• Dynamic business model innovation• Communities & relationships• Democratization of value creation• Collaboration and team work• Innovation and operation excellence

Work 2008• Defined Processes• Corporate Control• Office based• Planned – structured• Device centric• Org defines technology• Internal workers• Context free

Work 2015• Autonomy• Flexibility• Anywhere• Real time – adhocracy• Network – Cloud centric• BYOT• Communities• Contextual

Information worker of the future - 2020

• Mobile, distributed , globally available• Gender diversity• Powerful on line presence• Physical & avatar• Personal brand / agent• Flexible contracts• Project / program focussed• Outcome incentivised• Star rated – crowd recommended• Collaborative• Contextual awareness• With on line passport• BYOT - BYOC• Time independent• Location independent• Network independent• Device independent• Crowd integrated & participative • On line communities

HR as a Service

Established in 2001US basedCloud platform8 million users

Service Portfolio:-• 360 reviews• Performance

management• Recruitment management• Goal management• Learning & development• Workforce analytics

Are we ready for this – total transparency ?http://

www.successfactors.com

CIO agenda 2011 – Re imagine IT

• Coming out of recession in to recovery• Flat budgets – drive innovation• Focus on and enable growth• Digitise the organisation• Recast aspects of ops to the cloud• Address value from the outside• Address value from people inside• Benefits realisation• Raise the strategic relevance of IT• Cloud / Virtualisation No.1 & 2•Mobile technologies No.3

IT will not be the same as 2008

New IT consumption models, apps & devices

• Apps store• Cloud delivered or hybrid model• Ad funded?• As a service:-

• Infrastructure• Virtual Desktop • Security• Communications• Collaboration• Telepresence• Contact• Composite apps

• Integration API’s• Any device / any network• Pay per use / per seat• Self service / user rated• Community/ vertically enabled• Enterprise Social Software – Desktop of the future?• Social CRM• Collaboration tablets:- Avaya Flare, Cisco CIUS, Rim Playbook, IPAD2

Part of the Enterprise Architecture?

What information employees are sharing ?

• Financial information• R & D• Contracts• M & A information• Strategic plans• Sales forecast information• Customer information• Employee information• Supplier information• Intellectual property

You can limit what users can send via email / IM and transfer via USB

Consumerisation - policy is key

• Social networking policy• Company information usage policy• Supported devices?• Approved content categories• Approved application categories• Forbidden applications• Service request process - BYOT• Service support process - BYOT• What company data is allowed on

personal devices?• Employee:- movers / leavers – data

removal policy• Back up processes / traceability• Security / identity & access

management• Remote management

Thinking needs to change from inside out to outside in!

Architectural approach required

Opportunities & risks

• Business value discovery?• Benefit - Cost – Risk = Value• Innovation v standardisation• Increase appetite for risk• Blend professional v personal• Providing users with choice?• Economics?• Funding model?• Difference maker for talent acquisition!

Is this your future customer, supplier or employee?

Conclusion – The CIO Challenge!

• The future of work in 2020 will be about:-• Productivity, Innovation & Value Creation

• Compete v BRIC economies

• Empowered organisations will be :-• Smart, Hyper-Connected, Federated

• People, Homes, Cities , Planet

• Personalised• Mobile, Social, Visual, Augmented, Contextual, Virtual &

Secure

• Collaborative• Search, Links, Authoring, Tagging, Embedding, Subscription

• Adaptive• Flatter Structures, Career Grids, Transparency, Affiliate

labour

• Open• Viral, Crowds, Communities, 1: Many, Many : Many

Thank you

Questions & Answers