{"id":63,"date":"2019-10-09T11:20:46","date_gmt":"2019-10-09T11:20:46","guid":{"rendered":"https:\/\/www.arthurlawrence.net\/blog\/?p=63"},"modified":"2024-06-20T10:45:30","modified_gmt":"2024-06-20T10:45:30","slug":"how-the-talent-economy-gets-a-surge-from-industry-4-0","status":"publish","type":"post","link":"https:\/\/www.arthurlawrence.net\/blog\/how-the-talent-economy-gets-a-surge-from-industry-4-0\/","title":{"rendered":"How The Talent Economy Gets A Surge From Industry 4.0"},"content":{"rendered":"\r\n
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– Benefits are distributed, and still very generous for all<\/p>\r\n

– Technology talent opportunities won\u2019t reach a saturation point<\/p>\r\n

– The highest value gains from technology services are yet to come<\/p>\r\n<\/blockquote>\r\n\r\n\r\n\r\n

From Fixed Asset To Growing Equity<\/strong>
Traditional labor economics (in practice, if not in theory) treated labor like any other fixed asset: Fully depreciable over a fixed period of time, expected to yield diminishing returns\u2014and like all fixed assets\u2014something that could be disposed of at nominal junk value. Labor economics also assigned an unscientific book value to this resource that became a strong determinant of its future market value.<\/p>\r\n

 <\/p>\r\n\r\n\r\n\r\n

In retrospect, this encouraged tunnel-vision, operational thinking, conformity, and treating creativity as a form of altruistic expression. For jobseekers—particularly highly skilled and ambitious jobseekers who sought work in delivering IT transformation, advisory services and the like, this was a prison sentence their potential had no choice to serve.<\/p>\r\n

 <\/p>\r\n\r\n\r\n\r\n

 <\/p>\r\n\r\n\r\n\r\n

Enter the age of the Talent Economy<\/b><\/p>\r\n\r\n\r\n\r\n

Towards the second half of the 20th century, services started consistently outperforming manufacturing in terms of profitability, and investors started to notice. How could a firm with no oil (or any natural resources), little to no land, and a miniscule workforce\u2014overtake established giants in energy, financial services and infrastructure? But it happened. And continues to happen. This gave a boost to healthy market competition, and consumers\u2014emboldened by the new power of choice\u2014responded positively. Human creativity, resourcefulness and skills were finally given the dollar premium they deserved.<\/p>\r\n

 <\/p>\r\n\r\n\r\n\r\n

Thanks to this recognition of human talent as an appreciable asset, with an assignable value, a new class of technocratic elite came into the spotlight.<\/p>\r\n

 <\/p>\r\n\r\n\r\n\r\n

 <\/p>\r\n\r\n\r\n\r\n

The talent economy was formally born<\/b><\/p>\r\n\r\n\r\n\r\n

What If The Talent Economy Is Just A New Monopoly In Disguise?<\/p>\r\n\r\n\r\n\r\n

In the aftermath of the dotcom bubble, and Silicon Valley making headlines for all the wrong reasons, it\u2019s easy to understand why the talent economy gets so much bad press: Detractors mainly argue on three points:<\/p>\r\n\r\n\r\n\r\n

1- The Talent Economy is widening the income equality gap
2- Automation and Industry 4.0 will saturate demand for talent
3- The best is behind us.<\/p>\r\n

 <\/p>\r\n\r\n\r\n\r\n

 <\/p>\r\n\r\n\r\n\r\n

Widening Income Inequality:<\/b><\/p>\r\n\r\n\r\n\r\n

Let\u2019s start with the first: It is true, skilled professionals will earn more than the unskilled. Tax structures will be redesigned to favor top talent<\/a>, allowing such individuals to keep more of their earned income. And the unskilled will carry a disproportionate burden of the income safety net. Why is this good news?<\/p>\r\n

 <\/p>\r\n\r\n\r\n\r\n

We\u2019re living in an age where basic skill acquisition is free, and where it\u2019s the application of the skill that earns individuals a premium. In other words, investing in themselves is quantifiably the most profitable, risk-free financial decision human beings can make today. What\u2019s stopping them?<\/p>\r\n

 <\/p>\r\n\r\n\r\n\r\n

Skills are also mobile. Unlike sculpting or music, which require considerably larger investments of time, innate gifts and physical commitment, responding to the demand curve of the talent economy requires none of the above. From entry level java developer jobs to those seeking amazon web services jobs, the talent economy literally has room for everyone ready to learn and work, anywhere in the world.<\/p>\r\n

 <\/p>\r\n\r\n\r\n\r\n

 <\/p>\r\n\r\n\r\n\r\n

But will this crowd out the technology job market? <\/b><\/p>\r\n\r\n\r\n\r\n

Some dissent focuses on how organizations will be at the mercy of a small, technological elite\u2014who will drive their own value at the expense of the organization. In other words\u2014a new kind of monopoly. Not true. The kind of technological skills needed in the talent economy have a low shelf-life, so a monopoly, if any, will be short-lived. According to The Digital Talent Gap<\/a>, 29% of respondents believed their skillset would be redundant in less than 3 years.<\/p>\r\n

 <\/p>\r\n\r\n\r\n\r\n

Arthur Lawrence has been in the middle of this monopoly-breaking action: Less than 5 years ago, coding was king, and IT consultants with even basic development skills were very much in demand. Now, our clients demand blockchain analysts, and technology consulting assignments have started to include IoT projects.<\/p>\r\n

 <\/p>\r\n\r\n\r\n\r\n

In other words, the gains from IT transformation are economically distributed, and generous to all stakeholders. Perfect competition may be achievable at last.<\/p>\r\n

 <\/p>\r\n\r\n\r\n\r\n

 <\/p>\r\n\r\n\r\n\r\n

Talent Saturation Point<\/b><\/p>\r\n\r\n\r\n\r\n

In his article of the same name<\/a>, Bernard Marr makes several important points on why \u2018data is not the new oil.\u2019 Revisited, these points apply as much to our approach to human potential.<\/p>\r\n

 <\/p>\r\n\r\n\r\n\r\n

#1 \u201cOil is finite, data is infinitely durable and reusable\u2026and hoarding them will reduce their usefulness\u2026. Data \u2013 particularly Big Data \u2013 also has far more variety than oil.\u201d: Machines are finite, human ideas are infinitely durable and reusable.<\/p>\r\n

 <\/p>\r\n\r\n\r\n\r\n

#2 \u201cData can be replicated indefinitely and moved around the world\u201d: As can human output<\/p>\r\n

 <\/p>\r\n\r\n\r\n\r\n

#3: \u201cData becomes more useful the more it is used\u2026Once processed, data often reveals further applications\u201d: The evolution of business intelligence into business analytics is a case in point. When standard business reports were ushered into the era or query drill-down (OLAP), naysayers saw it as the end of management information systems. But the opposite happened: to close the chasm between IT strategy services and business requirements, the demand for both– IT professionals with sound management training, and traditional management consulting service providers with a strong grasp of technology concepts grew.<\/p>\r\n

 <\/p>\r\n\r\n\r\n\r\n

We have seen this firsthand in Arthur Lawrence\u2019s data science consulting and big data projects as well, where predictive modelling and optimization assignments have created\u2014rather than eliminated\u2014opportunities for statisticians and other \u2018traditional\u2019 experts.<\/p>\r\n

 <\/p>\r\n\r\n\r\n\r\n

 <\/p>\r\n\r\n\r\n\r\n

Is The Best Behind Us?<\/b><\/p>\r\n\r\n\r\n\r\n

Digital disruption does not mean jobs will disappear, or that machines will replace the human workforce in its entirety.<\/p>\r\n\r\n\r\n\r\n

 <\/p>\r\n\r\n\r\n\r\n

As one expert put it, \u201cJobs are not disappearing, tasks are.\u201d<\/b><\/p>\r\n\r\n\r\n\r\n

The compression of menial human work into autonomous, self-driven machine work actually means markets are ready to absorb skillsets which currently don\u2019t exist or are in short supply, digital skills taking the front seat.<\/p>\r\n

 <\/p>\r\n\r\n\r\n\r\n

The global average reporting of digital skill shortage is 55%<\/a>, with 70% of respondent organizations in USA citing a widening talent gap. Even for \u201chard\u201d digital skills, like cybersecurity and cloud computing, the demand-supply gap is at least 25% per skill.<\/p>\r\n

 <\/p>\r\n\r\n\r\n\r\n

Unaddressed, talent shortage could reach $8.452 trillion in unrealized annual revenue by 2030 worldwide<\/a>, of which $1.748 trillion would be in the US alone. Automation and data-centricity, therefore bring good tidings for organizations and the people who make them.<\/p>\r\n

 <\/p>\r\n\r\n\r\n\r\n

 <\/p>\r\n\r\n\r\n\r\n

Value Gains<\/b><\/p>\r\n\r\n\r\n\r\n

Much is to be said of how businesses can unlock the full potential of their people. It does help, however, to treat skills as a self-perpetuating starting point for more to come. The talent economy is an acknowledgement of the abundance of human possibility. Our responsibility lies in identifying ways to make its universal accessibility a reality.<\/p>\r\n\r\n\r\n\r\n

 <\/p>\r\n","protected":false},"excerpt":{"rendered":"Traditional labor economics (in practice, if not in theory) treated labor like any other fixed asset: Fully depreciable over a fixed period of time, expected to yield diminishing returns\u2014and like all fixed assets\u2014something that could be disposed of at nominal junk value. ","protected":false},"author":1,"featured_media":2660,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,2,190],"tags":[],"class_list":["post-63","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-home","category-talent-acquisition"],"yoast_head":"\nHow The Talent Economy Gets A Surge From Industry 4.0 – Blogs<\/title>\n<meta name=\"description\" content=\"The talent economy gets a surge from Industry 4.0. 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