Sustaining Employability - Innovation in Lifelong Learning

EDEN | June 14, 20061

sustaining employability – innovation in lifelong learning

© Copyright IBM Corporation 2005

Dr. Richard Straub | President of the European eLearning Industry Group

| Advisor to the Chairman IBM EMEA [email protected]

Sustaining Employability-

Innovation in Lifelong LearningEDEN ConferenceVienna, Austria

June 14 - 17, 2006

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eLIG - 23 COMMERCIAL MEMBERS

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AGH-UST Poland

Austrian Computer Society

C2k

CeLeKT - MSI Växjö University

CEPIS

EFMD

European Computer Driving Licence Foundation

Federation of European Publishers

Henley Management College

IMD

MTA SZTAKI Hungarian academy of Science

Open University, Netherlands

University of Ostrava

University of Reading

University of St. Gallen/SCIL

CONSULTATION GROUP: 15 Members

Internal Use Only © 2006 IBM Corporation4

Skills & Employability – Lifelong Learning as a “Must”

• Employability• Being equipped with valued skills for real-world job roles• Maintaining/Adapting the Skills over ones lifetime

• At the Heart of the Lisbon Agenda• Competitiveness & Jobs• Education levels and Employment Rates

• Key Questions• Role of Technology to support the Lifelong Learning Process ?• Innovation to give new Momentum to e-Learning ?• Measures to be taken by Public Sector and Private Players ?

• Agenda• Changes and what they mean for learning • “Disruptive Learning Innovation” on the Horizon (finally) ?• Actions by Public and Private Players

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Point Solutions

Market/Product Expansion

Product/Manufacturing

The Environment – Accelerating Change

Business

Values

Generations

Organizations

Technology

ToFrom

Economy

Continuity/Predictability

Baby-Boomers

Hierarchy/Horizontal

Knowledge/Services

Growth through Innovation

Disruptive Change BAU

Multi-Generational

Dis-aggregation

Convergence

Real World Virtual World/Synthetic WorldReality

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Key findings and conclusions: e-readiness 2006

World more ready than ever – 1 bn internet users/ 2 bn mobile phone users

All countries improved scores over past year

Europe (West Europe, Nordics) remains dominant

Diminishing divide: - Smaller distance between best from rest

(dvlpmt of IT outsourcing capabilities, increasing use of

open-source software)

- Broadband adoption accelerating in North Asia

Differentiators: innovation, info security, governments’ commitment

to digital development ……measuring the e-bus environment

of the world’s 68 largest economies

Guide Europe Madrid April 2006 | 12 Apr 2023 |7



Worldwide ranking on E-readiness

Source: EIU/IBM e-readiness ranking 2006

2006 Rank 2005 RankChange (Ranks)

CountryE-readiness score

(of 10)

1 1 - Denmark 9.00

2 2 - US 8.88

3 4 ▲ Switzerland 8.81

4 3 ▼ Sweden 8.74

5 5 - UK 8.64

6 8 ▲ Netherlands 8.60

7 6 (tie) ▼ Finland 8.55

8 10 ▲ Australia 8.50

9 12 ▲ Canada 8.37

10 6 (tie) ▼ Hong Kong 8.36

15 14 ▼ Austria 8.19

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© 2006 IBM Corporation

High Value Jobs moving into Services

0102030405060708090

100

1800 1850 1900 1950 2000 2050

Services (Info)

Services (Other)

Industry (Goods)

Agriculture

Estimations based on Porat, M. (1977) Info Economy: Definitions and Measurement,Augmented with recent data and projections from http://www.bls.gov/

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Innovation That Matters

© 2006 IBM Corporation Slide: 9Innovation In Serious Play For Learning and Work

Moving towards a Multigenerational Workforce

81% of the business population age 34 or younger are gamers

Generation X and Y have different Values and Behaviors than Baby Boomers

No “one Size Fits all”Sources: Merrill Lynch 1999, Beck and Wade, Got Game., Prensky, Digital Game Based Learning

Digital ImmigrantsDigital Natives

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“The Web was shifting from being a medium, in

which information was transmitted and

consumed, into being a platform, in which

content was created, shared, remixed,

repurposed, and passed along..” Steven Downes

1. Read WEB2. Top Down3. Instructor Control4. Predefined5. Learning Environment = Island6. One-size fits all7. Closed Learning Group8. Privacy9. Personal Computing

Write WEBBottom UpSelf Directed AdaptiveWindow to the WebIndividualizedOpen Learning EcologySharing with CommunitySocial Computing

Will eLearning 2.0 fulfill the Promise of e-Learning 1.0 ?

Disruptive Innovation – “The Liberation of the Learner” ?

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Not so fast……the new World will be “blended” – the 4 Cs• Content

• High Quality and Open Source/Self-made • Specialized quality content scarce and costly• IP and Copyrights to be reinforced besides “Openness”• Trusted Sources and Wikis, Blogs, Vlogs etc.

• Communities• Chat-communities vs. professionally targeted communities• Consumer-Groups/Lobbies• Closed Groups with high professional specialization• Expert-Advice via IM-based Communities

• Control• Blending of Push and Pull• “Common Core Programs/Content”

• Certified Quality• Quality Standards emerging • EFQUEL• CEL (EMFD)


However – eLearning 2.0 Offers important new Capabilities

• Need to be “tamed” and leveraged• Adaptation for Multiple Generational needs (Yers vs. Baby Boomers)• New Collaborative Work Environments – Collaborative Innovation•

• Enabling the Knowledge Worker/Knowledge Entrepreneur• Specialized Knowledge/Communities/Search Engines• Closed Groups with high professional specialization

• Converging Devices and new Content Options adapted to Learner Needs• Podcasting gaining momentum• Micro-Media and Microlearning emerging (ARC/Research Studios Austria

engaged)

• Virtual Realities/Synthetic Worlds/Simulations• Gaming Generation • MMOG – Potential for Game-Based Learning

IBM…enabling success through learning innovation

© 2005 IBM Corporation13 Guide Europe Madrid April 2006IBM Learning Solutions

An Open ICT Ecosystem – foundation for Interoperability

Teacher / Administrator

Parent

Student

Local Authority

Government

Classroom

BusinessHigher

Education

Connected via an Open ICT Ecosystem

Policies

Strategies

Processes

Technologies

Open Standards

Open Source


How to achieve “Sustained Employability”

• Development of Human Resource Strategies at Country/Region Level• Understanding/Anticipating changing Skills/Needs• Strong Industry Involvement• Early Identifications of Gaps/Shortages• Yearly Action Plans as part of i2010 plans

• Targeted Research Funding and EU and Country Level• Generational Requirements• New Collaborative Work Environments• Adaptive Technologies

• Applied Research in Lifelong Learning• “Living Labs” as opposed to traditional Labs• Co-Creation processes between providers and users• Large Scale Demonstrators – capture learning as you go• Stronger coordination in applied learning research – focus on Outputs• Leverage EU Funding (Structural Funds and CIP) and local programs

•


How to achieve “Sustained Employability” (cont’d)

• Improve Formal Education (Quantity and Quality)• Higher Upper Secondary and Tertiary Education – increase in Employment Rates • Increase focus on “Soft Skills” (Communication, Team, Learning etc.) without neglecting analytical and problem solving skills• Cross-Discipline Skills• Applied Skills as opposed to pure Theory (Gaming/Simulations)• Real World experiences using virtual capabilities• Higher Weight of real-world experiences in formal qualification

• Increase level of e-Skills for the 21st Century• Basic Literacy (Baby Boomer Generation)• Advanced and New Skills – Services Science Discipline (Services Science, Management and Engineering)

• Labor Market Fexiblity and Learning Incentives/Support

• Support and Develop Quality Schemes

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The Challenge – Knowledge Worker Productivity

“The chief economic priority for developed countries is to raise the productivity of knowledge . . . The country that does this first will dominate the twenty-first century economically.”

Peter F. Drucker

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Innovation as the Engine for Growth and Productivity and Jobs

Global

Collaborative

Cross-Disciplinary

Traditional R & DLabs

NewTechnologies

ExistingTechnologies

Complexity OpennessSpeed

Products

Systems

Services

Processes

Business Models

Social

“Living Labs”

Real World Context

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–more critical than ever in the context of a "knowledge based society".

- pays off for all concerned – the state, the employer and the individual.

Investment in Learning

Examples

–- Knowledge-based economy and expansion of the services sector make human

capital central to increasing employment, labour productivity & growth.

- Investment in ICTs, innovation, physical infrastructure etc. cannot be efficient

without well-educated, skilled and adaptable workforce.

- 1960 – 1990: investment in human capital in the EU accounted for

22% of productivity growth and 45% of the productivity differential (sample

average in 1990). Schooling investment has very strong impact on percentages.

Direct economic returns of schooling investment compare very well to

the returns of physical and financial investment.

Source: Europa

Séminaire eLIG / Cisco 24 mars 2005 20

The Lisbon Strategy – Education as a Core Element

“Europe to become a worldwide quality reference in education & training by 2010” Barcelona European Council, March 2002

“Strategic goals for education & training: Quality, Access and Openness to the wider world” Stockholm European Council, March 2001

“…the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion”

Lisbon European Council, March 2000

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Investment in Learning

Examples

–- Better skills - better wages.

Return to investment for one additional year of school or training:

about 6.5% - 9 % increased salary

- Extra year at intermediate level of education increases aggregate

productivity by about 6.2% (by a further 3.1% in long term)

- Investment in human capital is direct source of innovation and

long-term competitiveness

Source: Europa

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Increase in investment in schooling

Education as the key factor for skills and employment

Source: CEPS Policy Brief Nr., 93 - 02/2006, Daniel Gros, Employment and Competitiveness, “The Key Role of Education”

More education Higher employment Higher growth rate

More education

More KN WorkersMore R&D spending

More researchMore innovation

–2006 - Improvement in employment rates due to

–upgrading of skill level: from 62 % to 64-5%

- Employment rate for those with less than upper

secondary skill levels higher than in US

Lisbon target 2000: employment rate from around 62% to 70%

by the year 2010.

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Overview

Change becoming the only constant- Technology “flattening” the world

- Incremental change and disruptive change

Growth and competitiveness through innovation- Innovation in Business, Economy and Society

- Knowledge-intensive Services and new Business Models

Organizations becoming “fluid’- From “free Enterprise” to “Enterprise free”

- Differentiating capabilities vs. Non- Core

- “Hollywood Studios System”

- The Collaboration Imperative

Workforce Skills and Learning- Education levels and employment rates

- Lifelong Learning for different generations

- New working and learning environments for ubiquitous and adaptive learning

Recommendations for Research and Deployment

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Problems

–- Structural change and productivity growth require a continued investment in

–a highly skilled and adaptable workforce.

– - Economies endowed with a skilled labor force are better able to create and

make effective use of new technologies, such as ICT.

–- The share of working population that has completed tertiary education.

–- Educational attainment in Europe falls short of what might be required to

–ensure that skills are available in the labor market and that new knowledge

–is produced that is subsequently diffused across the economy.

Increase Investment in human capital through

better education and skills

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The CIP comprises three sub-programmes:

The Entrepreneurship and Innovation Programme,

the ICT Policy Support Programme

the Intelligent Energy Europe Programme.

SMEsCompetitiveness and Innovation Framework Programme

Innovation activities : Support of poles of excellence and to the provision of services to enterprises. For example through:

-fostering sector-specific innovation, clusters, networks of excellence, public-private innovation partnerships and cooperation with relevant international organisations, and the use of innovation management;

–-supporting national/regional programmes for business innovation;

–-supporting the demonstration of innovative technologies;

–-supporting services for trans-national knowledge and technology transfer and for intellectual and industrial property management;

–-exploring new types of innovation services;

–-facilitating technology transfer through data archiving and relays.

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Actions will aim at:

–- promoting innovation in processes, services and products enabled by ICT,

notably in SMEs and public services, taking into account the necessary skills

requirements;

–- facilitating public and private interaction as well as partnerships for accelerating

innovation and investments in ICTs;

–- promoting and raising awareness of the opportunities and benefits that ICT and

its new applications bring to citizens and businesses, including strengthening

confidence in and openness to new ICT, and stimulating debate at the European

level on emerging ICT trends and developments.

Stimulating innovation through the wider adoption

of and investment in ICTs

Competitiveness and Innovation Framework Programme

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Innovation in Learning – Sharing and CollaborationCommunity Building between CLOs

Corporate Learning Improvement Program – Platform

for Corporate Universities

CEL – Technology Enhanced Learning – Program

Accreditation

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“We will fight our battles not on the low road to commoditization, but on the high road of innovation.”

Howard Stringer, Chairman and CEO, Sony Corporation

Oct. 4, 2005 “Innovation continues to be a key driver in the success of our business.”

Tom Taylor, Executive VP

“Electronics Industry Lacks Innovation, Philips CEO Charges”

EE Times, Sept. 27, 2005"Constant reinvention is the central necessity at GE..“

Jeffrey ImmeltChairman and CEO, GE

“More and more CEOs are adopting an innovation agenda.”

Sam Palmisano IBM Board of Advisors

Oct. 13, 2005

The next big thing: Innovation

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“Economic competition in the flat world will be

more equal and more intense... the most important

attribute you can have is creative imagination.”

- Thomas Friedman

1. One-way customer relations2. Ivory-towered R&D labs3. Organizational silos4. Risk-averse top management5. Unskilled partners6. Limited local talent

Market irrelevant inventionsSlow rate of inventionNo collaborative idea generation Eschews radical innovationFail to keep pace with innovationSlow the innovation cycles

The increase demand for technology innovation can’t be met by firms’ weak supply-side capabilities

A new business model for innovation is needed

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31 Disciplined approaches, proven results © 2005 IBM Corporation

Industry Traditional business model On Demand Business

Insurance Auto insurance rates were based on fixed premiums

Auto insurance rates based on driving and usage patterns

Airlines Passengers waited in line at airport to get boarding pass

Passengers can print their own boarding passes at home

Automotive Lack of collaboration between OEMs, suppliers and dealers slowed processing of warranty claims

Collaboration across entire supply chain accelerates root cause analysis, resolving warranty claims 5 days faster.

Financial Services Launch of new credit product taking up to 7 months

Horizontal integration of processes taking product launch down to 8 weeks

Government It took customs agencies hours to determine the location, origin and contents of containers arriving at their ports

Customs agencies know exact location, origin and contents of containers in a matter of seconds

Retail Stores offered same promotions across all stores, based on a predetermined schedule

Instant, in-store promotions are based on real-time view of customer buying behaviors and inventory levels

Reinventing ways of doing business

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Overview of the rankings, methods and changes E-readiness, now in its seventh year of publication, is defined as in indication how amenable a

national market is to Internet-based opportunities The ranking evaluates the technological, economic, political & social assets of 68 countries and

their cumulative impact on respective information economies The rankings are based upon nearly 100 quantitative and qualitative criteria, organized in six

distinct categories*: Connectivity & technology infrastructure

Availibility, affordibility, quality & reliability of telephony services, personal computers & the Internet Business Environment

Expected attractiveness of the general business environment over the next five years Consumer & business adoption

Prevalence of e-business practices in the country Legal & policy environment

The country’s overall legal framework and specific laws governing Internet use Social & cultural environment

Pre-conditions for applying e-business, like literacy, education, Internet experience, and entrepreneurial attitude

Supporting e-ServicesPresence of intermediaries and ancillary services like standards, consulting & IT services, and back-office solutions

* See appendix for the detailed criteria

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Has e-Learning gone Mainstream ?

E-readiness, now in its seventh year of publication, is defined as in indication how amenable a national market is to Internet-based opportunities

The ranking evaluates the technological, economic, political & social assets of 68 countries and their cumulative impact on respective information economies

The rankings are based upon nearly 100 quantitative and qualitative criteria, organized in six distinct categories*: Connectivity & technology infrastructure

Availibility, affordibility, quality & reliability of telephony services, personal computers & the Internet Business Environment

Expected attractiveness of the general business environment over the next five years Consumer & business adoption

Prevalence of e-business practices in the country Legal & policy environment

The country’s overall legal framework and specific laws governing Internet use Social & cultural environment

Pre-conditions for applying e-business, like literacy, education, Internet experience, and entrepreneurial attitude

Supporting e-ServicesPresence of intermediaries and ancillary services like standards, consulting & IT services, and back-office solutions

* See appendix for the detailed criteria

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pressures and opportunitiesinnovation: why?

revenue

growth

cost

reduction

asset

utilization

risk

management

products/services/markets

operations(processes &

functions)

businessmodel

CEOs said they must achieve... and want to innovate their...

2004

2006

IBM Institute for Business Values (IBV) CEO Study 2004, multiple answers permittedIBV CEO Study 2006, top answer shown

2 out of 3 CEOs said they have to bring about fundamental change in the next 2 years

20% 40% 60% 80% 100%20% 40% 60% 80% 100%

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In 2006, CEOs are looking to innovation to drive fundamental change that enables sustainable growth, but . . .

Extent of Fundamental Change Needed Over the Next Two Years

Past Level of Success at Managing Fundamental Change

. . . their track record for managing fundamental change is not stellar

A lot of change65%

Moderate change22%

Little or no change13%

No change experience5%

Little to no success15%

Some success33%

Successful32%

Very successful15%

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asset-basedservices

applicationhosting

service-orientedarchitectures

...and more

ComponentBusiness

Model

innovation: how?From free Enterprise to “Enterprise Free”

once hype, now reality• “Flat World”-effect – Impact of Networks, high bandwidth

and Skills availability

• Worldwide spending on business process outsourcing is projected to grow 11 percent annually through 2008.

business broken into component pieces• Differentiating Components and non-Differentiating

and Core vs. Non-core• Dynamic Optimizing/Rearranging the components

– bringing in the best capabilities • “Hollywood Studio System”• Knowledge Workers/Knowledge Entrepreneurs

with high specialization

Forrester; IDC; IBM “Building an Edge,” Vol 5, No. 8; Moore & Cabot Capital Markets/Dow Jones; Gartner/Wireless News

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innovation: how?new forms of collaboration

IBM Institute for Business Value, CEO Study 2006

Business partners

Customers

Consultants

Competitors

Associations, trade groups, conference boards

Academia Internet, blogs, bulletin boards

Think tanks

Other

R&D (internal)

Sales or service units

Employees (general population)

5% 15% 25% 35% 45%45% 35% 25% 15% 5%

CEOs: Sources of new ideas and innovation

“We have...today a lot more capability and innovation inthe [competitive] marketplace...than we [could] try to create on our own.”

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Trends in the ONLINE World

Openness

Changing nature of Internet users

• Information meant to be shared-File and Open source Software-Creative Commons licenses-Open Access to scholarly & other works

• Hoarding of content as antisocial• Open society / Open corporation

Source: E-learning 2.0, Stephen Downes, Nat. Research Council of Canada, eLearn Magazine

• “Digital natives” (Marc Prensky)“n-gen” (Don Tapscott)

• Self-government of Internet users – better informed, active, engaged

• “Augmented Learners “ (Jay Cross)• Networked markets

Learner-centered learning • Active learning (emphasis oncreation, participation, communication)

• Distinction between teacher and learner collapsing

Consumer/Client- centered culture

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eLearning Transformation: E-Learning 2.0 – A social revolution

Medium for Social Networking

Platform in which learning content is created, shared, remixed, reused, according to the student’s own needs and interests

• Slow uptake of Communities of practice limited to a given group of learners, as university class

Source: E-learning 2.0, Stephen Downes, Nat. Research Council of Canada, eLearn Magazine

• E-Learning application as apersonal learning center, similar toa blogging tool or an ePortfolio .

• Content more likely to be produced by students than courseware authors

• Learning as a creative activity • Games• Mobile Learning• Workflow learning

“The challenge will not be in how to learn, but in how to use learning to create something more, to communicate”

From

To

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Page 40

Systems & Technology Group

© IBM Corporation 2005

Summary

• Innovation is becoming the critical determinant of success in the information economy

• The economics of the information economy shift the balance towards more and more engagement in collaborative processes such as open communities

• The use of open communities is expanding from software into hardware with communities like Power.Org

• Developing successful models of engagement with open communities will be critical to leverage these new economics of collaboration

• These new business drivers will place demands on the technology

community to deliver innovation

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