F U T U R E O F W O R K A N D I M P L I C A T I O N S F O R S O U T H A U S T R A L I A

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1 F U T U R E O F W O R K A N D I M P L I C A T I O N S F O R S O U T H A U S T R A L I A A I I A N a v i g a t i n g Te c h n o l o g y a n d t h e J o b s o f t h e F u t u r e T h u r s d a y 1 2 t h A p r i l Deloitte Touche Tohmatsu. 2 1

2 What s essential is that we elevate our thinking to see what s possible in Deloitte Touche Tohmatsu. 3 What happens if nothing changes? There are fewer young people in South Australia today than there were in the mid-1980s Australian and South Australian demographic statistics, September % 14% 12% 10% 8% 6% 4% 2% 0% and over South Australia Australia Source: Australian Bureau of Statistics, Australian Demographic Statistics, Sep 2016, cat. no (23 March 2017) Deloitte Touche Tohmatsu. 4 2

3 What happens if nothing changes? Demographics mean natural growth is slower than ever before Natural population growth, South Australia and Australia 8, ,000 7, ,000 6, ,000 5, ,000 4,000 88,000 3,000 66,000 2,000 44,000 1,000 22, South Australia (LHS) Australia (RHS) Source: Deloitte Access Economics Deloitte Touche Tohmatsu. 5 But why has Victoria succeeded where we ve struggled? It s simple: Victoria has a burgeoning services economy, and the fastest growing population in Australia to boot Differences between industry value added per capita - South Australia vs Victoria, 2016 Agriculture, forestry and fishing Health care and social assistance Public administration and safety Mining Electricity, gas, water and waste services Other services Administrative and support services Transport, postal and warehousing Construction Arts and recreation services Accommodation and food services Manufacturing Retail trade Wholesale trade Education and training Rental, hiring and real estate services Information media and telecommunications Professional, scientific and technical services Financial and insurance services -$2,500 -$2,000 -$1,500 -$1,000 -$500 $0 $500 $1,000 $1,500 Source: Australian Bureau of Statistics, Australian National Accounts: State Accounts, , cat. no (18 November 2016) 2018 Deloitte Touche Tohmatsu. 6 3

4 7 AI, Cognitive Computing, Robotics Tsunami of data $500,000 in 2008 $22,000 today Jobs vulnerable to automation W E L I V E I N T I M E S O F U N P R E C E D E N T E D C H A N G E T H AT P R E S E N T S B OT H C H A L L E N G E A N D O P P O RT U N I T Y F O R L E A D E R S. 9 x more in last 2 years Diversity & generational change Disruptive forces 35% UK 47% US 77% China Explosion in contingent work Millennials 50% by 2020 Changing nature of careers 40% contingent workforce (US) by years: Half-life of skills 4.5 years: Average job tenure Deloitte Consulting Pty Ltd

5 Rate of change 4/17/2018 INTELLIGENC E W H AT I S H A P P E N I N G Technology Individuals Businesses Public policy 1970s 1980s 1990s 2000s 2010s Today Source: Deloitte Human Capital Trends, 2017 Future of Work Finance Services 9 T H E F U T U R E O F C O G N I T I V E Systems have evolved from mechanical computation & tabulation devices to intelligent systems that can emulate human cognition. K E Y D R I V E R S Exponential Growth of Data Smarter Algorithms Amplified Intelligence Faster Processing Speed Tabulating Systems Era Programmable Systems Era Cognitive Era 1900s 1950s 2010s 2020s Mechanical devices helped us with tasks such as organizing data and making calculations for tasks such as evaluating the sales performances of a company s employees. Ex. Hollerith Tabulating Machine Deloitte Consulting Pty Ltd 2018 Programmable systems enabled major accomplishments such as Space Exploration and the development of the internet. The programmable systems era will continue indefinitely, and will underpin the era of computing that we are in now. Ex. Windows Desktops / ERP systems WH Y NOW? With the advent of the cognitive era, business face a new paradigm where workers can put their amplified intelligence to work and focus on improving core operations, building new assets, and enabling better outcomes i.e. uncover the Cognitive Advantage Cognitive systems are computer systems that have capabilities to emulate the human brain. Ex. Watson, Cortana, Google s self-driving cars In the future, systems will be able to mimic human intelligence and entirely replicate human interactions TH E COGNITIVE ADVANTAGE Transformation through cognitive insights, automation, and engagement 10 5

6 WORK PLACE WORKER WORK 4/17/2018 I M PA C T O F C O G N I T I V E O N T H E W O R K F O R C E Cognitive technology will exponentially impact the workforce of the future A U T O M A T I O N O F T H E H A N D the programmabl e era A U T O M A T I O N O F T H E B R A I N the cogni ti ve era Incremental impact on productivity Robots are doing things humans used to do Exponential impact on the business Robots are doing things humans used to do Robots are doing things humans can t do Robots are augmenting the human brain Release workforce capacity as humans are replaced by robots performing repetitive rulesbased tasks New competencies as Process owners elevated to process transformation leaders and robot designers as production becomes more automated Skills and expertise scale as freed up capacity is available to develop competencies and build expertise Insourcing control with the option to retain cost savings through insourcing and greater control over processes Flexibility that is not resource reliant, changing the partnering mix Release workforce capacity impacting roles that are humancentred and analytically driven Smarter Workforce as people are provided with enhanced decision making information and augmented processing Insight driven organization as all decisions will have some element of cognitive computing intelligence input Overhauled operating model whereby once critical functions will have been entirely replaced by bots Commoditisation of tenure in which history and expertise derived over time will be superseded by the vast amounts of computable data T h e q u e s t i o n t o a s k n o w i s n o t h o w d o I e m p l o y t h i s t e c h n o l o g y b u t h o w d o I p r e p a r e f o r t h e e xpo ne ntial impact Future of Work Finance Services 11 Deloitte Consulting Pty Ltd 2018 R E T H I N K I N G T H E F U T U R E O F W O R K What was Work of the Hands Analog / Data light Profit Driven Hard skills What will be Work of the Minds and Hearts Digital / data insights Purpose Driven Soft skills Hot bodies Big permanent, homogeneous workforce Focus on technical expertise Ad-hoc training Overwhelmed Hot warm and cold bodies Big contingent, diverse workforce Focus on uniquely human skills Life-long learning Well being 1 2 Hierarchical, siloed Positional power Slow to adapt Traditional office Networks of high performing teams Personal power Nimble and innovative culture Smart, frictionless work spaces Future of Work Finance Services 12 Deloitte Consulting Pty Ltd

7 W O R K What Was Work of the Hands What Will Be Work of the Hands and Minds Analog / Data light Digital / Data Insights Profit Driven Purpose Driven Hard Skills Soft Skills W h a t i s t h e n a t u r e o f t h e s h i f t s y o u a r e s e e i n g i n S o u t h A u s t r a l i a? W h a t i s t h e l i k e l y i m p a c t o f r o b o t i c s, a u t o m a t i o n a n d a r t i f i c i a l i n t e l l i g e n c e o n t h e t y p e s o f w o r k a n d r o l e s i n S A s k e y i n d u s t r y s e c t o r s? W h a t j o b s a r e b e i n g m o s t i m p a c t e d? H o w a r e w e r e s p o n d i n g t o t h e s e s h i f t s? Future of Work Finance Services 13 Deloitte Consulting Pty Ltd 2018 W O R K E R What Was Hot Bodies What Will Be Hot warm and cold bodies Big permanent, homogeneous workforce Focus on technical expertise Ad-hoc training Big contingent, diverse workforce Focus on uniquely human skills Life-long learning W h a t i s t h e n a t u r e o f t h e s h i f t s y o u a r e s e e i n g i n S o u t h A u s t r a l i a? W h a t c a p a b i l i t i e s w i l l b e r e q u i r e d i n t h e f u t u r e f o r e m p l o y e e s i n S A s k e y i n d u s t r y s e c t o r s t h a t a r e d i f f e r e n t t o t o d a y? H o w a r e w e r e s p o n d i n g t o t h e s e s h i f t s? Future of Work Finance Services 14 Deloitte Consulting Pty Ltd

8 W O R K P L A C E What Was Hierarchical, siloed What Will Be Networks of high performing teams Positional power Personal power Slow to adapt Nimble and innovative culture Traditional office Smart, frictionless work spaces W h a t i s t h e n a t u r e o f t h e s h i f t s y o u a r e s e e i n g i n S o u t h A u s t r a l i a? W h i c h t y p e s o f o r g a n i s a t i o n s a r e r e s p o n d i n g w e l l t o t h e s e t y p e s o f c h a n g e s? Future of Work Finance Services 15 Deloitte Consulting Pty Ltd 2018 A R E Y O U R E A D Y, W I L L I N G A N D A B L E? 1 Awareness People understand how work is changing and its implications 2 3 Attitudes People feel positive about the future of work Attributes People / the culture have the attributes to succeed in the future 16 Deloitte Consulting Pty Ltd

9 JOB ACTIVITIES REQURING EMOTIONAL INTELLIGENCE 4/17/2018 Humans will always matter Figure 2: Future Job Activities - Automation VS Augmentation HUMAN EDGE TECHNOLOGY EDGE JOB ACTIVITIES REQURING CREATIVE/COGNITIVE INTELLIGENCE Future of Work Finance Services Deloitte Touche Tohmatsu Our industries: our competitive advantages with strong global demand International education Energy and gas 2018 Deloitte Touche Tohmatsu. Tourism Agribusiness 18 9

10 Our industries: strategically important to South Australia Defence industries Creative industries 2018 Deloitte Touche Tohmatsu. Health and medical research Professional and IT services 19 Opportunities City Deloitte Deloitte Touche Touche Tohmatsu. 10

11 Opportunities City Deloitte Deloitte Touche Touche Tohmatsu. Opportunities Suburbs and regions Deloitte Deloitte Touche Touche Tohmatsu. 11

12 Opportunities Suburbs and regions Deloitte Deloitte Touche Touche Tohmatsu. Opportunities State and government policy Deloitte Deloitte Touche Touche Tohmatsu. 12

13 Opportunities State and government policy Deloitte Deloitte Touche Touche Tohmatsu. Tohmatsu Deloitte Deloitte Touche Touche Tohmatsu. Tohmatsu. 13

14 Population Deloitte Deloitte Touche Touche Tohmatsu. Tohmatsu. The future of work is now And it s all about people. And it s about making it in Adelaide Deloitte Touche Tohmatsu. 14

15 2018 Deloitte Touche Tohmatsu. 29 About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. This publication is for internal distribution and use only among personnel of Deloitte Touche Tohmatsu Limited, its member firms, and their related entities (collectively the Deloitte Network ). None of the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication. Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Touche Tohmatsu Limited 2018 Deloitte Touche Tohmatsu. 15