Perhaps it's because digital transformation has become so ubiquitous or because the change is happening so fast that we are downplaying the people side of the change. Too often, digital transformation is being viewed as a technological issue, while the people aspects of it are much more important.
The effects of technological change on people is not a new issue. Businesses have been adopting new digital technologies since the creation of computers in the 1940s. With the advent of micro-computers, the pace of change grew rapidly. More recently, with the growth of mobile technologies the change took on a breakneck pace. Now, with the development of new Artificial Intelligence and advanced data analytical applications, digital transformation is poised to reach for new previously unattainable heights.
What this means is that the need for traditional jobs will continue to drop and for new skills to rise with increased vigour.
The human impact of this change is well documented and has given rise to a considerable backlash among the populace most affected - those who have lost their jobs, can't find new work and have effectively dropped out of the workforce. This has fed the rise of political populism, growing gaps between the rich and the poor, and a growing questioning of the viability of capitalism.
History tells us that, left unaddressed, the rapidity of change will lead to political unrest, and perhaps civil war. The exponential growth in digital transformation will accelerate these trends. The change can happen quickly and with unexpected force.
The responsibility for dealing with the people effects of digital transformation change rests with government, in terms of broad policy, but mostly with individual companies in terms of the immediate people effects.
Again, this is not a new issue. Implementation of technology has always had this effect. The rash of enterprise systems implementation in the eighties and nineties pointed clearly to the need for companies to carefully deal with the consequent changes in business processes, which means job losses, retraining and restructuring.
It's not good enough for companies to cheerfully go ahead and implement massive job cuts and sit back and watch the earnings per share rise. They need to implement serious programs to help those directly affected. Programs on a much higher scale than we have previously seen. Programs to salvage jobs where possible, programs that involve a commitment that people with their jobs being phased out will be helped with retraining and placement programs. A commitment to defined and effective outcomes is critical.
Such change requires a major change in attitude. Profits are important, but not as important as looking after the people who are hurt in the process. In the long run, a singular focus on profits will inevitably lead to serious economic and political unrest, which, incidentally, can be devastating for profits.
No comments:
Post a Comment