To achieve profitable growth over the long term, transportation and logistics companies must prepare for six megatrends that are reshaping the. Boston Consulting Group On Global Megatrends. Differentiating Success Factor or Just a Hollow Phrase? The word “megatrend” is a beloved. Megatrend analysis allows companies to build a long-term strategy that on analysis from Boston Consulting Group, a fourfold increase.
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In an age of rapidly evolving technologies, business models, demographics, and even workplace attitudes—all shifting concurrently—change is not only constant but also exponential in its pace and scope.
Companies from startups and online businesses to incumbents in all industries will experience the effects in far-reaching and transformational ways.
These forces, or megatrends, fall into four categories. The first two address changes in the demand for talent: The second two address changes in the supply of talent: For a list of all 60 trends, see the Appendix. Together, these forces will revolutionize the way that work gets done in companies and will compel leaders to rethink even the most basic assumptions about how their organizations function.
They will need to discover new ways of organizing, performing, and leading, along with new approaches to recruiting, developing, and engaging employees. All this in organizations with limitless data, open boundaries, employees and machines working side by side, and rapidly evolving employee value propositions.
BCG has assessed the impact of these megatrends on organizations. In this report, the first in the New New Way of Working series, we identify several companies that are leading the way. Yet most organizations still have far to go. Six of the forces we identified are having a profound effect on the demand for talent.
We categorize them into two groups:. The three trends in the realm of technological and digital productivity are arguably creating the most significant changes worldwide. Enabling advances deemed unlikely even a decade ago, they are transforming the world of work in unprecedented ways. Automation is replacing jobs; big data and advanced analytics are unlocking vast customer, operational, and employee insights; and increased access to information and ideas is blurring the boundaries of traditional institutions.
Although companies have been gradually automating for decades, recent advances in areas such as robotics and artificial intelligence are not only obligating people to work side by side with machines but are also creating replacements for human workers—even in fairly sophisticated jobs. For example, Amelia, a cognitive agent developed by IPsoft, can assume a variety of service desk roles, including technology support, customer care, and procurement processing.
In manufacturing, industrial robots already handle a number of repetitive production tasks. Automation will replace assembly line and office workers even as companies require increasing numbers of programmers and other highly skilled digital talent, along with an enormous upgrade in the skills and capabilities of these workers.
As machines assume a greater role in the workplace—turning virtual reality into the new reality of the working world—humans will clearly have to adapt. Companies will need to develop talent in rapidly emerging areas such as data analytics including data mining and collectionapp development, and user experience design.
In fact, nearly every organizational role will eventually require the use of sophisticated technology. In response, individuals and organizations will have no choice but to invest in massive, ongoing skill development programs. Similarly, executives will need to become far more comfortable leading in a digital world—a potential challenge given that many people with the best digital skills are often younger than leadership team members and have different working styles. Big Data and Advanced Analytics.
The past two decades have seen unprecedented gains in the storage, processing, and transmission of data, leading to an explosion in the amount of information available to businesses around the world.
Advanced analytics, in turn, makes it possible to analyze enormous amounts of unstructured data, improving forecasting and decision making as never before. Through the use of big data and advanced analytics, companies are now able to improve marketing, productivity, and other essential aspects of their existing megatrenda, lower costs, and gain real-time insights into promising new approaches and opportunities.
Moreover, data analytics can be used to improve employee management and engagement. These and other analytic capabilities will transform HR, along with every other business function, enabling the delivery of highly customized and effective service to internal and external customers.
The implication for management teams is clear: Once a novelty, megatends technology will become a basic competitive requirement. As a result, leadership teams will need mechanisms for capturing, cleaning, aggregating, and analyzing data.
They will also need to rely on data, rather than their gut instinct, in decision making. Access to Information and Ideas. The ability to tap information and ideas from anyone, anywhere, is multiplying exponentially, both for individuals and for businesses. As the cost of technology—including both hardware and data—continues to fall and global internet meggatrends expands, recent advances in cloud computing and storage are lowering the cost of access and processing.
The implications are wide-ranging: They need not even be employees: Rapidly expanding access is giving rise to crowdsourcing and the sharing economy. The most innovative solutions today are being developed by people around the world megtarends come together in online communities, internet platforms, and digital ecosystems that disrupt the traditional models of venture funding, product development, and product life cycle management.
Getting Ahead of the Megatrends in Transportation and Logistics
Instead of hiring full-time employees, companies can staff projects with the specific expertise needed. And freelancers come with the added benefit of being well-connected to developments in the wider industry, unlike employees, who tend to get caught up in internal dynamics.
Allstate, the insurance giant, is using Kaggle to host competitions to solve business challenges. In this environment of temporary and virtual teams, leaders will need to adapt to increasingly blurry boundaries between employees and contractors. They will also need to rethink the way they engage with talent and how they get their work done. Advances in digital productivity have many benefits, but they also increase complexity and accelerate business cycles.
In response, companies meyatrends to put a premium on simplicity, agility and innovation, and understanding the needs of customers.
Organizations tend to respond to new challenges by adding teams, functions, and departments. As organizations grow, their structure becomes increasingly complicated.
New silos develop, the number of stakeholders involved in decision making increases, and interdependencies between functions multiply.
The plethora of stakeholders, decision rights, processes, and policies slows down every decision and hinders collaboration across departments, reinforcing the silo effect.
A BCG survey of business leaders found that three-quarters believed complexity was making it harder to meet business goals. Organizations must learn how to manage complexity in entirely new ways if they hope to thrive, understanding how to get results without adding more layers, processes, and silos. A number of innovative approaches that began in software development are now being adapted by organizations for non-IT products and processes—including agile, scrum, kanban, design thinking, and other creative methodologies.
For example, Bosch, one of the largest automotive suppliers in the world, recently employed flexible organizational structures and agile methods to halve its usual development time for calibrating hardware and software components for electric vehicles. Bringing such approaches to day-to-day work beyond IT requires organizations to become far more fluid than the traditional rigid structures allow. In addition, companies must create room for experimentation, rapid prototyping, the testing of new ideas, and the introduction of a fail-fast innovation culture.
Most important, new, agile work processes call for entirely new skills, attitudes, and knowledge on the part of employees. Nonetheless, such measures can increase employee satisfaction because they empower widely autonomous teams and treat all opinions as equally valuable.
It introduced a new way of working, breaking up internal silos and creating small, megatrenfs teams with members from IT, marketing, product management, business units, and other functions.
Over time, the model was scaled up and rolled out across the megatrens. Boundaries between companies and consumers are fading as people, informed and enabled by the internet, become more aware and demanding. They want personalized offerings and will collaborate with companies to help develop the products and services they desire.
Even as companies encourage customers to share information, they must protect the privacy and megatrendss of those customers. People also want the businesses they frequent to provide more than just value: Organizational goals, then, must go bcv profitability to include the subjective aspects of corporate responsibility across the value chain. In response, many companies will need to adopt an entirely new approach to engaging customers, continuously evolving their value propositions to stay ahead of the competition.
As these six forces propel megatrennds variety of changes in megatrendd demand for talent, six social, economic, political, and technological forces are shaping the supply. We have divided these forces into two groups. An increasingly dynamic global economy has led to shortages of skilled, knowledgeable employees in some markets and may create a surplus of less-skilled workers in others.
As Baby Boomers age, the demand for scarce and specialized talent grows, and as talent disperses as a result of various geographic, economic, and political factors, companies will be increasingly challenged to attract and retain the highly skilled people they need.
Megatrends in Higher Education
A New Demographic Mix. The global population is aging. After rapid population increases during the 20th century, birth rates have stalled—and even reversed—in many regions. Byone in five people worldwide will be 65 or older. On the basis of several megatrenes using demographic data and global trends, BCG projects a global workforce crisis megatrsnds the next 15 years, with a labor deficit in most of the 15 largest economies, including in three of the four BRIC nations.
At the same time, in some emerging markets, the number jegatrends young people is still increasing rapidly. But many of them do not acquire the skills that would make them employable. The challenge is to help them develop those skills, or—for some young people—to increase their mobility so that they can find jobs elsewhere.
Meanwhile, millennial and Generation Z digital natives are entering the global workforce with new expectations and orientations.
In their search for a healthy work-life balance and opportunities for self-expression, they are harder to please than their predecessors. They are also harder to retain. These demographic shifts will put pressure on companies to devise entirely new ways to attract, retain, and megatrrnds talent across locations and age groups.
For example, Bosch has started an initiative in which older and younger employees from different divisions with at least a ten-year age difference meet on a regular basis in order to learn from each other. The young employees learn best practices and get career advice, megatrehds the older workers gain insight into new technologies and the use of social media. The skills and capabilities businesses require are rapidly evolving.
Mgeatrends as automation may yield a surplus of unskilled and semiskilled labor, the digitalization of products and services is creating an enormous demand for skilled digital talent.
Alison Sander: Megatrends — 5 tips on the art and science of trend tracking | TED Talk
Nearly half of US and German companies in a BCG survey cited the lack of qualified employees as the biggest constraint to a full digital transformation.
In addition, according to a Gartner study, a third megatremds all technology jobs will go unfilled by because of talent shortfalls. Companies are trying mevatrends variety of unconventional methods to bring in digital talent. Meanwhile, Citigroup and others are introducing online gaming apps, either as recruiting tools or to identify hidden skill sets among employees.
Others are attempting a more sustainable remedy for skill shortages: Given that many universities are already overwhelmed with demand, the responsibility for this radical retraining will likely fall into the hands of business.
Moreover, programs designed for the academic domain are increasingly ineffective in building the skills required in the modern workplace. Instead, companies are turning to organizations such as Udacity, edX, and Coursera, which allow people to receive training while working full-time. For many companies, incubating talent internally is more likely to bfg off than depending on the marketplace.