Partnering with SMEs The Future of Work

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Léon Benjamin, Ecademy Consulting - April 2005 Partnering with SMEs: The Future of Work (aka 15 Dimensions of eWork) > Background Ecademy > Work Landscape End of careers Globalisation Social software revolution > People on Demand Knowledge work Structured work > Summary Title Partnering with SMEs: The Future of Work – PSL, Foreign Office, London Léon Benjamin, Ecademy Consulting - April 2005 About Ecademy Community Assets No of Members (over 130 countries) No. of Geographic Communities No. of Trusted Networks No. of Branded Communities Paying subscribers (three levels) No. of Sub-communities (Clubs) Total No. messages of member-to-member private 52,000 (80% UK), Doubling every year 5 7 (acquired 5,000 member DTI community, 2002) 2 6,000 1391 1.08 million, recent average 70,000 per month 15,000 per month Average number of member generated articles, comments, club messages Statistics (Averages) Membership growth Page views Unique visitors Unique logins Events Ecademy TV Main monthly London event attendance 2,000 per month (4,000 in March 05) 5.4 million per month (6.8m peak) 120,000 per month 10,000 per month 80 per month (in the UK) 30,000 viewing hours 200 people Title Partnering with SMEs: The Future of Work – PSL, Foreign Office, London Léon Benjamin, Ecademy Consulting - April 2005 Work Landscape > At a recent Strategy Forum in December 2004, a simple framework for understanding this new era of globalisation was defined by the following business phases; Business 1.0: 1492-1800 countries globalised Business 2.0: 1800-2000 companies globalised Business 3.0: 2000-2040 individuals globalised > Business 3.0 Era of lifetime employment is over • Expertise can be globally sourced > 60 million PhD’s in India by 2010 Individuals are migrating to geographies that support lifetime employability • Soon we’ll see Scottish call centres agents working in India for US companies, in the same way we have Nigerians issuing parking tickets in London, for French owned service companies? Outsourcing phenomenon Unsuitability of ‘old world’ organisation > Workplace stress & Redundancy Individuals are adapting • • Title Partnering with SMEs: The Future of Work – PSL, Foreign Office, London Léon Benjamin, Ecademy Consulting - April 2005 Work Landscape > Careers are dead. Long live careers. Traditional job is killing people • • • Over 1 million people on long term sickness > Due to workplace stress (Source: UK Work Foundation) 80% of men and 71% of women are unhappy with the number of hours they work. (source: Economic and Social Research Council, 2001) (source: Institute of Management) 72% of managers are criticised by family and friends for overwork. Up to 70% of interactions inside large companies are totally unproductive (Source: Mckinsey & Co) Customers suffering from “work rage” > Gallup 2001 surveyed 1.4 million workers via 100,000 divisions in North America and Europe: • • • Command & control organisation no longer effective • • • > One in five chance of interacting with “very cross” staff Talent is being forced out of big companies 17% found work satisfying 63% were not committed and actively looking elsewhere 20% were disenchanted, disaffected and often militant in expressing dissatisfaction Title Partnering with SMEs: The Future of Work – PSL, Foreign Office, London Léon Benjamin, Ecademy Consulting - April 2005 Behavioural Landscape > Spectacular success of social software (Connected Age) Peer-to-peer • Napster, KaZaa & Skype > Where people spend most of their time online (Nielsen) Online communities & search • Glue that’s connecting Business 3.0 people RSS, FOAF, “TAGS & Folksonomies” > Change in behaviour Profound • Sharing, Trust > Linux success In business world > Network based > Non-hierarchical In politics & ‘consumerism’ > Recent FEC ruling in the US on blogs & political activism > Pepsi, Mountain Dew, HabboHotel & Sweden Ageing population 40% UK households single by 2010 Creating new organisational forms • • Demographic changes • • Title Partnering with SMEs: The Future of Work – PSL, Foreign Office, London Léon Benjamin, Ecademy Consulting - April 2005 Social software - an industry in its own right > Blogs - Stats > > > > > 4 million being tracked 400,000 posts everyday – 16,000 per hour 8 times bigger now than in June 2003 Yahoo project Mingle & Flickr acquisition MSN Spaces > Neopets > Multi-player fantasy game • • > 23 million members, globally 8 to 80 year olds 11 million active > Ezboard > 4.2 billion page views per month > Forums > 14 million registered users > 500,000 paying subscribers (Est) > Online business contact network – referrals, connections > Over 2 million registered members > $20m VC backed > Micro-businesses > LinkedIn > Ecademy, Ryze, OpenBC, SoFlow Title Partnering with SMEs: The Future of Work – PSL, Foreign Office, London Léon Benjamin, Ecademy Consulting - April 2005 What does “The Future of Work Look Like?” > Expertise on demand (Knowledge work) Subscription based communities • • • MediaBistro (US), ExpertSources (UK) Telecom Team – Ecademy Chargeable Clubs Interim & recruitment business > Networking is killing their business models Demand for expertise in fractions of an hour > “Just want to pick your brains, and meet your mates” Subscription economics > Lower transaction costs IBM Trust Report • Coordination costs – Benkler (Yale Law School) • Why? • • > Higher margin ‘Trivial’ software/hosting costs • E.g. Telco Vs Ecademy (servers 80:4) • Title Partnering with SMEs: The Future of Work – PSL, Foreign Office, London Léon Benjamin, Ecademy Consulting - April 2005 What does “The Future of Work Look Like?” > Expertise on demand (Structured work) Distributed home working • Corporates > JetBlue, Home Depot > Smaller travel sales • Future Travel, Kwik Travel Ki work • • RDA (HIE) sponsored research > Reaction to the onslaught of the offshore model > Third year of development Home based agents > Platform for deriving multiple sources of work • • Work is the killer app for broadband PowerPoint, Directory Enquiries > Negotiating pilots & venture funding • New organisational form > Membership based (VISA) Title Partnering with SMEs: The Future of Work – PSL, Foreign Office, London Léon Benjamin, Ecademy Consulting - April 2005 Summary & Conclusions > SMEs: Creating value by any means necessary • Social software, online networks > Changing behaviour > Modern ‘water cooler’ spots New types of intermediary emerging • • • Trust, Subscription based Collapsing search & discovery times Partnering > Work • • • Seek out relevant networks > Stop guessing, start participating (E.g. Networking Live) Most people will have to go through a transition More change in work over next 10 years than in the last 200 years SMEs are individuals $2 trillion of general admin work already outsourced (SG&A) > IBM predicts all $19 trillion could be outsourced People ‘on demand’ Title Partnering with SMEs: The Future of Work – PSL, Foreign Office, London Léon Benjamin, Ecademy Consulting - April 2005 > Winning by Sharing “News from the front” April Launch > The Future of Work Unit of work is no longer a whole job HR stands for Hardly Relevant > The Network Economy Trust is the killer app Powerless leaders rule ok? > The Future of Brands Dancing with the Customer A word to the wise - decentralise Title Partnering with SMEs: The Future of Work – PSL, Foreign Office, London

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