What Digital Disruption means for the Future of Work
Fear about technology destroying jobs is not a new idea. The nature of work is changing but according to the Australian Productivity Commission ‘Fears about humans being replaced by machines are overstated’. Digital disruption is not doomsday, it is just an opportunity to adapt, innovate, and work together to create a better future.
The Australian Productivity Commission’s recent report highlighted that ‘digital disruption has the potential to threaten 40 percent of jobs over the next 10 to 15 years’. This does not mean that there will be 40 percent fewer jobs but this ‘threat’ does mean jobs will be changed.
Throughout the Industrial Revolution and Technological Revolution jobs disappeared but new jobs were subsequently created. Tasks which involve human judgement, creativity, and social interaction are beyond robots scope but automation could affect routine, repetitive, and rule-based tasks. Spreadsheets didn’t destroy accounting jobs; Good accountants just learned how to use spreadsheets to help them work more productively.
There will be a greater pressure on educational organisations to adapt to the changing needs of workers upskilling for the digital economy. Educational organisations, particularly Universities, will need to teach students how to adapt and critically think. To keep up with job requirements surfacing from continuous technological change, workers will need to re-skill and learn periodically.
Peter Harris, the Productivity Commission chairman, highlighted that it is important that we maintain a social safety net for the ‘people who will have their lives disrupted as a consequence of this [digital disruption]’. The Government will need to address the inequality between technologically skilled, highly paid employees and those displaced by digital disruption.
Businesses will need to prepare for and adapt to digital disruption and the changing workforce. The Deloitte report revealed that 'less than 10 percent of Australian companies are equipped for the digital future'.
From a business perspective, initially, disruption typically does not make sense. Budgets are based on cost-benefit analysis, often fueled by previous patterns. Benefits from disruptive change are risky and hard to measure. Avoiding these risks can prevent a company from innovating and adapting to the disruption. Kodak thought they had the right technology to lead but failed to innovative, causing them to fall behind.
There is no doubt that digital disruption will change the way we work and the jobs we do. But with adaptation and collaboration across businesses, people, and businesses, we can work towards a better future for all.