Organizations around the world are seeing disruptions in the way they do business. These disruptions are also impacting workforce expectations and their future. According to a recent Mercer study, Global Talent Trends 2019, 73% of executives from companies across geographies and industries predict a significant rise in industry disruption in the coming three years. This is a huge contrast from 2018, when only 26% had predicted so. The sectors likely to be most affected are life sciences, consumer goods and energy.
In our study, more than half of the executives expect artificial intelligence (AI) and automation to replace one in five of their organizations’ current jobs. Meanwhile, another report by the World Economic Forum states that AI and automation will also create 58 million new jobs by 2022. Clearly, there are two sides to the coin.
More important, 75% of executives believe that their companies are ready to lead disruption in their industries. This race to prepare for the future of work is leading to greater human capital risks, such as the inability to close the skills gap and low employee engagement — these are just a couple of the factors impacting the progress of transformation.
Several major conglomerates in Thailand have started investing in technology to drive disruption and transformation. Doing so is also helping them prepare for these phenomena. A few Thai companies have achieved this by creating units that perform outside their organization as a separate office. These offices are also known as “transformation offices,” performing the role of accelerators and investors in technological breakthroughs on behalf of the conglomerate. For example, a major bank in Thailand recently acquired a unicorn through a subsidiary company. Elsewhere in Asia, these models are already prevalent in China. The chief benefit of having standalone units for this purpose is that it helps bypass the slower decision-making process that is often associated with bigger conglomerates. In Thailand, companies from the finance and energy sectors in particular are showing their preparedness in handling disruption being brought about by new and emerging technologies. However, it’s still too early to assess the business value of such units, as many companies are unsure of the effect these technology transformations will have on their businesses in due course.
Career Business Leader, Mercer, Thailand
Principal Consultant, Career Business, Mercer Thailand