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Use this title slide only with an image The Future of Work Mike Theaker, Global Executive Advisor, HR Strategy & Transformation Istanbul, October 2015 [email protected] , @TheakerMike

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Use this title slide only with an image

The Future of WorkMike Theaker, Global Executive Advisor, HR Strategy & TransformationIstanbul, October [email protected], @TheakerMike

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Are you ready for the future of work? The nature of work is radically changing, driven by:

Business leaders must take action to prepare their organization and adapt to this shifting environment.

• Transition to knowledge-based economies• Increasing pressure for innovation• Dynamic workforce and technology shifts

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A convergence of forces is pushing businesses to change the way they work

Let’s consider each force and its impact on the future of work.

Technological change

Accelerating globalization

Shifting demographics

Focus on employee engagement

Driving the need to radically simplify the business

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Technological change The expanding reach of computing, mobile, cloud, and connected technologies is rapidly changing the way we live and work.

Average time Americans spend daily on social media1

40 minutes

The IoT Market by 20203

600 billion

Number of active Facebook users2

1.39 billion

Number of worldwide mobile devices that are smart devices4

54% in 2018

88% in 2013

96% in 2018Mobile data traffic originating from smart devices5

1. “The Average American Spends 40 Minutes a Day on Facebook,” NBC News, July 24, 2014. 2. Facebook Newsroom, December 31, 2014.3. “The Internet of Everything: 2015,” Business Insider, 2014.4. “Cisco VNI Global Mobile Data Forecast Update (2013 – 2018),” Cisco, February 5, 2014.5. Ibid.

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21% in 2013

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Accelerating globalizationWork is no longer local – it extends across countries, time zones, and cultures.

6. Linda Yueh, “The Rise of the Global Middle Class,” BBC News, June 18, 2013.7. Pedro Olinto, et. al., “The State of the Poor: Where Are The Poor, Where Is Extreme Poverty Harder to End, and What Is the Current Profile of the World’s Poor?, ” The World Bank, October 2013.

Size of Asia’s middle class by 2020, triple that of 20096

1.7billion

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in 19907

43.1%20.6%Global rate of extreme

poverty in 2013down from

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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 6Internal

Shifting demographics The makeup of the workforce is changing in a variety of ways – and these shifts impact best practices for organizations.

8. “Millennials: Breaking the Myths,” The Nielsen Co., January 27, 20149. “Gen Y Women in the Workplace,” BPW Foundation.10. Christopher J. Dwyer, “The Future of Contingent Workforce Management Webinar Recap,” DCR Workforce Blog, January 5, 2015.11. Linda Yueh, “The Rise of the Global Middle Class,” BBC News, June 18, 2013.

Millennials will comprise

75%of the global workforce by 20259

of the world’s workforce will be contingent workers by the end of 201710

45%Nearly

people are entering the middle class for the first time.10

5 billionApproximately

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Millennials represent

24%of the U.S. population8

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Focus on employee engagement Employees who feel involved and committed to their jobs are more likely to drive business innovation, growth, and revenue.

12. “State of the American Workplace,” Gallup. 2013.

Yet, only

13%of employees

worldwide are actively

Keeping your workforce engaged is critical for business growth and success.

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engaged in work12

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How can companies meet these challenges and prepare themselves for the future of work?

It’s time to radically simplify the business.

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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 9Internal

Create a foundation for simplification Foundation

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Make business trends work to your advantageBusiness trends

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Emergence of the social business

Social applications, social analytics, and collaboration networks

How do you put people at the center of your business strategy and use technology to unleash

the power of their connections to simplify?

Social business

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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 12Internal

Use social working styles to

13. “Workforce 2020,” Oxford Economics, sponsored by SAP, 2014.

 Apply your workers’ social skills to business situations

Connect to customers through social collaboration platforms

Social business

your business

simplify

40%of employees say their company makes it easy for them to collaborate13

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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 13Internal

Development of the connected workplace

Workplace connection and simplification strategy

How do connections and networks enable people to simplify?

Connected workplace

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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 14Internal

Create humanized connections among workers, regardless of location

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Connected workplace

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Setting the stage for change

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Simplify and leadLeadership is the key to simplification. Simplification

and leadership

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Match executive action to intention

 51%

14. “Simplifying the Future of Work Study,” Knowledge@Wharton, sponsored by SAP, 2014.

Simplification and leadership

of surveyed business leaders believe business simplification is of significant strategic importance today14

 74%   say business process complexity and decision-making complexity have inhibited the business’ ability to meet goals14

Yet, only 27% believe the day-to-day actions of senior leaders are strongly aligned with the stated importance of business simplification14

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Apply metrics and incentivesEstablishing appropriate measures helps employees work toward simplification goals.

People aligned to simplificationAre you rewarding complexity or simplification?

Metrics and incentives

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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 19Internal

Metrics and incentives

that add to complexity

Identify conflicting

metrics Each part of the organization must collaborate to create effective metrics and incentives.

Warehouse goal: Reduce overtime

Shipping goal: 100% on-time shipments

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Scrutinize the organization and ecosystem of talentEvaluate your organizational structure and talent ecosystem: Do processes and designs encourage simplicity or complexity?

Talent ecosystems that simplifyDoes your organization structure and ecosystem increase or decrease complexity?

Organization and ecosystem

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Organization and ecosystem

Assess how the organizational structure and talent ecosystem reflect your simplification goals

Organizational model:• Do structures motivate complexity?• Are there heavily matrixed designs?• Are there redundant organizations?• Do processes cross boundaries?

Key questions

Talent ecosystem:• Are only employees focused on simplification? • Are there simplification goals and metrics for contingent workers? • Are outsourcing partners included in simplification initiatives?

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Engage the ecosystem of talentCreate a culture of simplification that encourages engagement.

Culture of simplificationDoes your organization use trust,

engagement, and diversity to create a culture of simplification?

Engagement

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Engagement

Build on qualities that promote engagement

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Engagement

Diversity Trust

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Support knowledge networksEnable people to access the information they need to support simplification.

Simplified ecosystem of knowledgeIs your talent ecosystem learning the skills and methodologies of simplification?

Knowledge networks

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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 25Internal

Knowledge networks

Create knowledge networks that support simplification

15. “Simplifying the Future of Work Study,” Knowledge@Wharton, sponsored by SAP, 2014.

17%of leaders access information through self-service tools to support quicker decision making today14

45%of respondents believe leaders will have access to all information through self-service tools in the next three years15

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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 26Internal

Simplified ecosystem of knowledgeIs your talent ecosystem learning the skills and methodologies of simplification?

People aligned to simplificationAre you rewarding complexity or simplification?

Workplace connection and simplification strategy

How do connections and networks enable people to simplify?

Social applications, Social analytics, and collaboration networks

How do you put people at the center of your business strategy and use technology to unleash

the power of their connections to simplify?

Talent ecosystems that simplifyDoes your organization structure and ecosystem increase or decrease complexity?

Culture of simplificationDoes your organization use trust,

engagement, and diversity to create a culture of simplification?

The future of work

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© 2015 SAP SE or an SAP affiliate company. All rights reserved. 27Internal

How can SAP help you prepare for the

 SAP understands critical trends – such as cloud computing, enterprise mobility, Big Data, and analytics – that are shaping the workplace of the future. We are investing in the technologies you need, now and in the future, that will help you run simply.

future of work?

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 For more information about the future of work, visit us at www.sap.com/futureofwork or join the conversation with #FutureOfWork.

Learn more

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Thank you

Contact information:

Mike TheakerGlobal Executive Advisor, HR Strategy & [email protected]