Digital Transformation and Skills in Japan & Germany ... · Public Libraries as ICT Support Centers ... ICT Impact 25Source: Data from FRI Survey of 1200 Japanese & German Employees

Digital Transformation and Skills

in Japan & Germany

Fujitsu Research Institute

Dr. Martin Schulz

2018.06.25

Copyright 2018 FUJITSU RESEARCH INSTITUTE


1 Copyright 2018 FUJITSU RESEARCH INSTITUTE

Digital opportunities vs transformation challenges

Skill development becomes key to digital transformation

From workstyle reforms to a “Learning Economy”

Industry Interconnectivity Reaches “Industry 4.0” Levels

From Factory Automation to Cyber Physical Systems (CPS)

Moxa Ethernet Switches (2009) L’Oreal - ABB Real TPI (2001), Moxa Virtual Machine - Pajic (2012)

Intelligent Automated System: Controlled

Service Platforms Solution: ERP, Humans

Technology: “Inside-Out” Integration “Outside-In”

Semantics Interfaces Standards: Networks

Legacy Systems IoTS Technologies

MES PLM

Copyright 2018 FUJITSU RESEARCH INSTITUTE 2

0

10

20

30

40

50

60

70

80

90

My company has apositive business outlook.

My company is quiteinternational

My company is innovative

My company is fast atdecision making

My company’s IT systems are up-to-date (2-year

updates)

My company is among thedigital leaders in its field

My company’s IT systems are easy to use

Different Challenges for Japanese & German Companies?

Source: Data from FRI Survey of 1200 Japanese & German Employees

Germany

Japan

Note: Percent of employee answers who either ‘agree’ or ‘strongly agree’.


0

50

100

150

200

250

Collaboration withpartners is most

important

Crowdsourcing for digitaltransformation

Business operationtransformation is most

important

Employee upskilling isimplemented

Company-wide skillsharing

Collaboration betweenage groups

Digital shadow projectsfor innovation

Transformation projectsalready delivered results

Transforming customerrelationships is most

impotant

Digital Transformation – Different Corporate Strategies

Source: Data from Fujitsu (2017) – PACT Survey.

Note: Percent of positive replies; Levels in the graph normalized to US=100 because of different question types. Percent numbers show the percent levels for Japan.

For Japan percent of answers “agree”/”strongly agree” or “most relevant”.

Germany Japan

US=100 52%

57%

67%

6% 29%

24%

32%

32%


65%

Business Case: ‘MA-Industrie’ Packaging Transformation

1988

2017

13 Employees; South of Munich;

less than 2 Mill. Euro turnover

Copyright 2018 FUJITSU RESEARCH INSTITUTE 5 Image Source: MA-Industry

Foam

Packaging

‘MA-Industrie’ Packaging -> ‘Foam24’ Eco-System

https://foam24.com/de/

Image Source: MA-Industry; https://viberenthq.com/wp-content/uploads/customer-service-resume.png

?

Customer needs

stapler packaging

Foam24 Online Design Tool Order Processing Automated

Direct Cutter Control Quality/Maintenance Logistic Provider


https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwiG74L8wd7bAhWIupQKHZEdD88QjRx6BAgBEAU&url=https://viberenthq.com/deal-frequently-changing-customer-requirements/&psig=AOvVaw2jej1BVN4qeLuNjnW_wUSE&ust=1529456060879326

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwik-5Lewt7bAhXJH5QKHar5AeEQjRx6BAgBEAU&url=http://www.madehow.com/Volume-1/Stapler.html&psig=AOvVaw2qRvZNkaBcPX9_YVDxX0nk&ust=1529456238642812

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Digitalization has apositive impact on my

company

My company is amongthe digital leaders in its

field

My company supportsfurther (life-long)

learning at all levels

I have high ICT skills atwork

ICT improves mywork/life balance

Digitalization supportscollaboration withexternal partners.

Bridging the Gap to Digital Leaders?


Germany

Japan (all replies)

? ?



0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Digitalization has apositive impact on my

company

My company is amongthe digital leaders in its

field

My company supportsfurther (life-long)

learning at all levels

I have high ICT skills atwork

ICT improves mywork/life balance

Digitalization supportscollaboration withexternal partners.

Bridging the Gap can be “Easy” – User-Friendly ICT


Germany

Japanese

Companies with

“Easy to Use”

ICT Systems

Japan (all replies)

! !



All Companies in the Employee Survey

What Makes a “Digital Leader” in Japan & Germany?

9

User-Friendly

ICT System

NK R2: 0.61 / 0.40

+8.0


+2.4

+3.4

+3.8

+2.8

+1.6

Up-to-date

ICT System

External ICT

Collaboration ERP System

E-Learning

System Company-wide

Skill Sharing

Company is “Among the Digital Leaders” in its sector

+X.X increasing of the odds (probability)

to be among “Digital Leader” companies

+2.5 +1.8

+1.9

+2.7 +1.9

+2.1


Japan

Germ

any

Japan “ICT Leaders” build on easy-to-use, up-to-date ICT platforms

External collaboration, e-learning, and internal skill sharing are important



Skill development becomes key to digital transformation

Source: OECD (2013) - Work Skills in technology-rich environments.

Lifelong Skill Development is Key – OECD Survey

Note: Percent of Top-2 proficiency levels.

0

10

20

30

40

50

60

Germany Japan US

16-24

25-34

35-44

45-54

55-64

Employee Problem Solving Skills

1

1.2

1.4

1.6

1.8

2

2.2

2.4

Germany Japan US

16-24 ICT at Work

16-24 ICT at Home

25-54 ICT at Work

25-54 ICT at Home

ICT Use at Work/Home

Japan/Germany

Outdated skills

Life-long use

of technology


0

10

20

30

40

50

60

70

80

90

100

I regularly usesmartphones privately

I use the Internet forlearning and getting new

skills

I am satisfied with mycurrent job.

I regularly use socialmedia, engage in social

networking

I am skilled at using digitaldevices and networks (ICT)

ICT improves my work/lifebalance

I regularly engage in non-digital social life (clubs

etc.)

I privately use e-leraning(English conversation

class, iTunesU, andBenesse Udemy, etc.)

I am using internationalinformation and networks

well outside of work.

Employees - Digital Skills and Engagement Japan/Germany


Germany

Japan (all replies)



Management:

Working mother & father (often absent)

Team: Yui (Year-5 kid and IT specialist)

Granny (83 year old technology deconstructor)

Lifelong Learning – Platform Opportunities

Tokyo Household Challenge: Digitalize Granny

Technology: Apple iPhone family account

Solution:

Family photo account with active posting

Regular, short “hackathons”


Learning Economy – AI Leverages Skills

Artificial Intelligence is what humans can do, but computers can’t ... yet

When computers can do it, it’s not AI anymore … it’s what grannies are using

Humans learn context,

machines learn details

Individualization (products,

operations, services, learning)

drives platform complexity

Platform management and

interfaces require AI

Chart Source: Fujitsu Journal (2017).

Note: The “AI Effect”




Work/life transformation – Sharing the gains of digitalization

88%

77% 73%

50% 54%

31%

73% 67%

55%

30%

40%

50%

60%

70%

80%

90%

100%

Mobile Work Flex Work Freelancer

Digital Workstyles - Flexibilization of Work


External Flexibility - Outsourcing / Crowdsourcing

- Tempstaff / Contractors

- Consultants

Internal Flexibility - Worktime Accounts

- HRM (internal sourcing)

- Agile Work Methods

Location Flexibility - Crowdsourcing

- Mobile Work

- Co-Working / Virtual Teams

Digital Work

Flexibilization https://journal.jobspotting.com/wp-

content/uploads/2016/01/7-800x600.jpg

Photo Source: IW 2018

28<->35 hour/week

CoWorking<->Temp. Creative Sector Workstyles Softw.

Average

Architec. Art

Art

Note% company replies and sub-sectors..

Source: ZEW 2017 Survey

Digital Transformation – ZF Automotive Case

17 Copyright 2018 FUJITSU RESEARCH INSTITUTE Source: Graphic from ZF drive Magazine 2015.01

Mobility Trends

Efficiency (electro mobility)

Safety (active systems)

Assistance (autonomous systems)

Digital Transformation

Production digitization

Vehicle digitization

Connected systems

Globalization

Margins - Scale

OEM - Supplier integration

Closed platforms - Open systems

ZF Motion & Mobility

230 locations, 40 countries

29 billion (TRW 9 bill) euro sales

138,000 employees (Germany 50,000; TRW 64,000)

Electric

Drives

Chassis

Components

Electronics Axle Systems

Transmissions

Active Chassis

Systems

Axle Drive

Units

Damping

Systems

Fasteners

Braking

Systems

Body Controls

Steering

Systems

Occupant

Safety

Driver

Assistance

ZF Work and Learning Transformation

18 Copyright 2018 FUJITSU RESEARCH INSTITUTE Image Source: ZF Homepage; Drive Magazine 2015.01.

Education 4.0: Academies, Visualization, Analytics

(Visual Support, Feedback, Benchmarking)

Office 3.0: Skype for Business

(Telephones, Meeting Rooms,

Mobile Workplaces)

Work 4.0: Worker Guidance to Assistance

(PTC Windchill PLM, ThingWorx IoT)

External Integration: Aftermarket, Supplier Services

(Platforms, Academies for Workshops & Partners)



Learning Economy – New ways to connect work, life, and learning

ICT Skills and “Connectivity” Basis for Work Transformation

Source: EuroStat (2017) – DESI, EuroStat (2017) – E-business integration.

Note: Percent of companies.

20

30

40

50

60

70

80

90

1

2

3

4

5

6

7

8

10 12 14 16 18 20 22

EU Connectivity Index (Scale)

EU

Basic

Dig

ital S

kills

(% P

op.)

EU

IC

T S

pecia

lists

(%

Em

p.)

DE

DK

SP

DE

DK

SP

EU Country Connectivity and ICT Skills


Denmark – Government a Digital Forerunner


Digital

Collaboration

Internal

Digitization

-E-invoicing

-Secure e-mail -Digital signature

-Gov. e-mail

Common

Infrastructure

-EasyID

-EasyLogin

-EasySMS

-Mandatory ICT

Infrastructure

Digital

Communication

-Mandatory

Digital Comm.,

Self-Service

-Digital Welfare

-EasySMS

-Data Store

Digital

Transformation

-User-friendliness

-Data for

efficiency, quality

-Cyber security

-Interoperability

-ICT Strategy

Mandatory

Digitalization

2001

2004

2007

2011

2016

E-money

296 Mill. Euro

cost-saving 126 Mill.

Messages (2017)

91% of 6 Mill.

Population (2017)

Integrated

Digitalization

Digital Driver:

MOF

Public Libraries

as ICT Support

Centers

“Burden Hunters” (690 proposals / 505 adopted / 260 implemented)

“Digital Proof Legislation” (Simple, communication focus)

“Agile Legislation” (simple, purpose-based, user-friendly)

Learning Economy – Opportunities throughout the Lifecycle


Chart Source: BIBB (2015) – Toolbox berufliche Weiterbildung in Betrieb; Fraunhofer (2011) - Karrieresysteme

Performance

Time

Study

Training Master

Certificate

Career Change

Part-time

Integration

Parenting

Re-Integration On-the-job

training

Retaining

Employees

Continuous

Qualification

pment Professional Development

College<->Business

Cooperation

Certification

Training Centers

Online MBAs

Vocational Univ.

Telecommuting

Part/Flex Time

Skill

Management

IoTS Learning

Services

Open

Universities

Part-time

Consultants

Training

Individualization

10% Formal 20% Informal 70% Professional Development

Corporate HRM

Learning Platform

Learning Economy – University Transformation

Research Education

Workplace

Problem/Project

Learning

“Third Way” for Universities: Education, Research, and Work

University/Certification Boom USA:

+200% 35+ years old students

38% Students older than 25

Germany:

+630% Private Univ. Students

18,044 Different MAs/BAs

Online Learning Boom USA:

71% colleges have online strategy

+8% yoy e-learning growth rate

Germany:

42% see online advantages

36% use “blended” learning

Photos: www.flickr.com/photos/ufv/17073989196; www.flickr.com/photos/o_0/9335063228

Oracle Taleo (2012), SAP SuccessFactors (2012),

WorkDay Learning (2016)


Universities open up to regional corporate/community integration

Companies integrate more closely with universities and education institutions

http://www.flickr.com/photos/ufv/17073989196

https://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwiJ7MKIpYTbAhWBfLwKHRpZBwAQjRx6BAgBEAU&url=https://www.flickr.com/photos/o_0/9335063228&psig=AOvVaw3gSmzXQ-xXznifQ-EUF3nH&ust=1526355634597112

Case: ZF University Integration

4,000 Students,

1,200 Partners

Zeppelin University Private University

ZF-DHBW InnoLab (for ZF Students)

ZF-Denkfabrik (Internal Startup)

Mobility Research/Solutions

Source: DHBW, ZU, ZF. Copyright 2018 FUJITSU RESEARCH INSTITUTE 24

Executive Masters

Executive Programs

DHBW Cooperative

State University

Education/Training

FRI Survey – Corporate HRM & Skills Drive ICT Success


ICT

Impact

25

Skill

Development

E-Learning

ICT

Systems HRM

Platform

Employee

Sentiment

No impact in Japan


Note: Partial Least Square Model. Arrow width proportional to factor impact; independent factor bubble width proportional to R2.

Innovativeness

Business Outlook

Innovativeness

Business Outlook

Innovativeness

Business Outlook

Innovativeness

Business Outlook No impact in Japan

Low impact in Japan No impact in Japan

Low impact in Japan

Low impact in Japan Low impact in Japan

High impact in Japan

Use of E-Leaning

Positive Impact

Individualized

Up-to-date

Easy to Use

Effective

Feedback

Team-building

Prof. Development

Skill Sharing

Older Emp. External Talent

+ Partner int. + Mobility

+ Flexibility

+ Efficiency

Engaged

Satisfied

Want to stay

Events

Digital Learning Economy – Digital Talent Management

Universities

Consultants

Partners

Co-Working

Corporate HRM

Learning Platform

E-Learning

Lifecycle

Intelligence


https://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwiJ7MKIpYTbAhWBfLwKHRpZBwAQjRx6BAgBEAU&url=https://www.flickr.com/photos/o_0/9335063228&psig=AOvVaw3gSmzXQ-xXznifQ-EUF3nH&ust=1526355634597112



Digital transformation depends on the USE of new digital platforms

Effective transformation leverages the skills of all employees and

shares the gains from digitalization

A “Learning Economy” integrates government reforms with private

lifelong learning and corporate skill development

Fujitsu Technology & Service Vision “Learning Enterprise”



Documents

Digital Transformation and Skills in Japan & Germany ... · Public Libraries as ICT Support Centers ... ICT Impact 25Source: Data from FRI Survey of 1200 Japanese & German Employees