The World Is Flat (part 1)by

Thomas L. Friedman

For the month of July 2003, India announced the creation of 30,000 new outsourced jobs.

In that same month, US firms carried out 2087 a mass layoff actions resulting in the loss of 226,435 American jobs.

Headlines

Since 2000, 150 million educated workers have entered the global workforce.

In India, it cost $700/month to provide wages, medical benefits for an entire family, transportation, lunch and dinner to a worker in a call center.

A Chinese production worker brings home $265 /month or $3195/year

Some Stats

Globalization has evolved Market competition is global Turbo-charged environment Business goes where the talent is Life-time employment replaced by life-time

employability

Defining Globalization in 2006

Creative a collaborative platform for information and relationship that were global:

Berlin Wall, MS Windows Netscape Software that can talk across disciplines

The Flatteners: phase 1

Business are now building upon a common technological interface and infrastructure to create processes that are more efficient and fuel innovation:

Open-sourcing In-sourcing Out- sourcing Supply- chaining Off-shoring Information diving Technology on Steroids

The Flatteners Phase: 2

Decentralized Organizational Structures Collaborative Partnership Leverages technology Common data and process standards Functional view of work processes Open communication Emphasis on knowledge and innovation

How has Business Changed?

Individuals competing against other individuals Workers must possess the knowledge, skills, attitudes

and behaviors to continually adapt to ever changing and escalating labor market requirements

Workers must take charge of their own learning Ability to work in a team environment and work

effectively with coworkers, customers, and supervisors.

A Global Competitive Workforce

Out In Generalists Versatilists Basic Literacy Workplace Literacy Occupancy & Career Skill Cluster & skill

ladder ladder

Employment EntrepreneurLife time employment Life time employability

How does this change jobs?

Out Barrier Assessment Basic Literacy development Service plans Geographical job matching “What local jobs will

match our job seeker’ skills”?

Value- Add Services for Job Seekers

InComprehensive AssessmentWorkplace Literacy developmentCareer plansSkill matching “what global job might match our job

seeker’s skill?”

Value-Add Services for Job Seekers

Out In Taking job orders Higher level skill analysis Job Matching Trend & data analysis to stay ahead

of workforce trend Jobs fairs job development ( how can we

help you find the best workers? Job development Innovative use of technology

( hire our local workers)

Focus on building skills that fill the pipeline

Value add services for business

Look at business and industry differently Look at jobs/occupation differently Change our definition of demand driven

Implications for LMI Analysis

Analyze industries and jobs in terms of their fungibility Become more knowledgeable about impact of

technology and and global markets in key industries and occupations

Become pro-active and focus on developed “anchored” and “value-add” jobs

We need to..

Fungible Jobs Anchored jobs Value-add jobs –To be more competitive you have to be

more than plain vanilla

Work in Global Economy

Repetitive skill based work requiring a minimum of interpretation or decision making

Fungible Jobs

Easily digitized ( can be done on computer) Not tied to a geographic location Processes can be automated Will tend to go where labor costs are the cheapest

Fungible jobs (2)

Bill payment/processing Medical transcription Insurance claims processing Hotels/airline reservations Mortgage loan servicing Tax return preparation

Examples of Fungible Jobs

Turbo tax has replaced your accountant Atms and on line banking has replaced your bank teller E ticket check in has replaced your ticket agent Automation and “do- it –yourself” tests may make med

techs obsolete

Could a computer do it faster or better?

With the internet you can be your own lawyer Wireless healthcare changes how medical professionals

interact with patients. Automotive technology-workers must be able to work

with computerized shop equipment, electronic components and traditional hand tools

How does tech change the job?

What jobs do we want to keep? What jobs do we want to attract? How can we prepare our workers to fill those jobs?

Demand is a two way street

Global market for talent Who are we really competing against? What is their capacity to provide supply?

Global Demographics Impact on industries and demand for product/services Impact on local jobs

Present and Future Impact on Technology Trends

Broaden/Deepen Scope of LMI

Skills at premium Entrepreneurial Engineering Math& Science Specialize skills

The Quiet Crisis Educational gap Numbers gap Motivational gap

How not to leave people behind

Challenges

Global economy not finite Universal interdependence Capitalism doing well America spawns innovation Change brings opportunity Our workforce system has the capacity to address these

changes

In the end