Busi­ness mod­els world­wide face rad­i­cal change

The Star (St. Lucia) - - INTERNATIO­NAL -

Global busi­ness mod­els are chang­ing rapidly and rad­i­cally, cre­at­ing a need for pol­icy-mak­ers, busi­nesses and em­ploy­ers’ or­ga­ni­za­tions to in­no­vate, ad­just and be­come more flex­i­ble, ac­cord­ing to new study. The skills gap is a ma­jor is­sue, with 78 per cent of cor­po­rate ex­ec­u­tives say­ing schools are fail­ing to meet fu­ture em­ploy­ers’ needs, ac­cord­ing to the re­search con­ducted by the In­ter­na­tional Labour Or­ga­ni­za­tion’s (ILO) Bureau for Em­ploy­ers’ Ac­tiv­i­ties (ACT/ EMP) and the In­ter­na­tional Or­gan­i­sa­tion of Em­ploy­ers (IOE).

More broadly, the re­port iden­ti­fies five trends that are rad­i­cally al­ter­ing global

busi­ness mod­els re­gard­less of size, sec­tor or lo­ca­tion; tech­no­log­i­cal in­no­va­tion, global eco­nomic in­te­gra­tion, cli­mate change and sus­tain­abil­ity, de­mo­graphic and gen­er­a­tional shifts, and a global short­age of skilled labour. The re­port, Chang­ing Busi­ness and Op­por­tu­ni­ties for Em­ployer and Busi­ness Or­ga­ni­za­tions, stresses that busi­nesses can­not meet the chal­lenges alone and should de­velop col­lec­tive so­lu­tions through Em­ployer and Busi­ness Mem­ber­ship Or­ga­ni­za­tions (EBMOs).

“Tech­no­log­i­cal in­no­va­tion is by far the most in­flu­en­tial trend, and is fun­da­men­tally chang­ing the way com­pa­nies add value to prod­ucts and ser­vices,” said ACT/EMP Di­rec­tor Deb­o­rah France Massin. “At the same time, we find that the greater pen­e­tra­tion of tech­nol­ogy in­creases the de­mand for ‘hu­man’ skills such as cre­ativ­ity, prob­lem solv­ing, com­mu­ni­ca­tion and col­lab­o­ra­tion.”

IOE Sec­re­tary-Gen­eral Roberto Suarez San­tos said: “The re­port con­firms that com­pa­nies, to­gether with busi­ness and em­ployer or­gan­i­sa­tions, that em­brace con­nec­tiv­ity and dig­i­tal­iza­tion will be the win­ners in this com­pet­i­tive land­scape.”

The sur­vey re­sults show:

· 56 per cent of re­spon­dents iden­ti­fied tech­no­log­i­cal in­no­va­tion as the global trend hav­ing the great­est over­all im­pact on busi­ness. · 76 per cent of busi­nesses par­tic­i­pat­ing in the sur­vey rec­og­nized that tech­no­log­i­cal in­no­va­tion gives them ac­cess to new mar­kets.

· Global eco­nomic in­te­gra­tion is in­creas­ing the har­mo­niza­tion of cor­po­rate global gov­er­nance, tax/reg­u­la­tory and busi­ness en­vi­ron­ments, which is hav­ing a large im­pact on com­pa­nies. 40 per cent of busi­nesses re­ported that this has had a large im­pact on their com­pa­nies.

· Some 37 per cent of ex­ec­u­tives men­tioned in­creas­ing ex­po­sure to global eco­nomic and po­lit­i­cal un­cer­tainty as a ma­jor trend.

· 62 per cent of com­pa­nies in Europe and 58 per cent in Asia re­ported that a de­clin­ing work­ing age pop­u­la­tion will have a large im­pact on their busi­ness.

· 45 per cent of busi­nesses in Latin Amer­ica and the Caribbean and 39 per cent in Africa, in­di­cated the youth bulge would have a con­sid­er­able im­pact for them. · 51 per cent of busi­nesses said that pol­icy-mak­ers are in­creas­ingly de­mand­ing com­pli­ance with en­vi­ron­men­tal tar­gets,

· 40 per cent of firms from high-in­come and 45 per cent from up­per-mid­dle-in­come coun­tries re­ported that their work­force and con­sumers are de­mand­ing more sus­tain­able work­ing en­vi­ron­ments and cor­po­rate val­ues.

· 78 per cent of ex­ec­u­tives in­di­cated that up­dat­ing the school and ed­u­ca­tion cur­ricu­lum to match the econ­omy’s needs would pro­vide them with the skilled em­ploy­ees they re­quire. This sen­ti­ment is par­tic­u­larly strong in emerg­ing mar­kets, ris­ing to 79 per cent of re­spon­dents in Latin Amer­ica and 86 per cent in Africa.

· SMEs are the most ac­tive sup­port­ers of changes in the skills agenda, with 84 per cent of small busi­nesses sup­port­ing up­dat­ing ed­u­ca­tion sys­tems to meet skills needs.

The role em­ploy­ers and busi­ness or­ga­ni­za­tions will play in these com­ing changes is a key el­e­ment of the de­bate around the fu­ture of work that is in­cluded in the re­port.

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