According to an HBR finding 2018, agile adoption has gone beyond IT. As per their survey, about 55% of specific sample organizations have partially implemented agile methodology & processes, and a quarter of the same group has already put it into practice.

The traditional project management method tries to complete the delivery within a stipulated time and budget. It does not allow frequent changes to the business requirements in the middle of the project. Agile project management, on the contrary, fixes time and cost to control the requirements. It heavily relies on the collaboration between the team and the business users to create the right product.

Managing resources is an essential component of project management. They are scarce, expensive, and must be utilized efficiently and effectively. But does resource management play a significant role in the agile development framework? It certainly does, as it is the only way to control project resource costs and complete the delivery satisfactorily.

This article discusses several bottlenecks and their solutions in agile resource planning and management.

What is agile methodology?

Agile methodology is an iterative and incremental approach to project management that involves continuous feedback and adaptation to changing requirements and priorities. It offers a flexible and collaborative approach that helps deliver high-quality products within time and budget.

There are many different agile methods, some of which are Scrum, Kanban, Lean, RAD, and Extreme Programming. Scrum is a robust framework for implementing agile software development processes and other projects. It utilizes short iterations of work, called sprints, and daily meetings, called scrums, to tackle discrete portions of a project until it is completed. Scrum has three key roles: The Scrum Master, Product Owner, and Team members.

The sprint planning meeting is held on the first day of every sprint. After a delivery commitment is made in a sprint planning meeting, the team begins the work and tracks its progress. At the end of each sprint, the stakeholders are invited for a sprint review. The features completed during the sprint are discussed, and feedback is requested.

The product owner keeps track of the feedback and maintains a product backlog with the changes.

In the release-planning meeting, the product owner presents the features they want to be completed in the quarter. Then, the team provides gross-level estimates, which decide the specific features that can be completed in a given sprint. The team also jointly determines how many such features can be completed by the quarter-end.

Release planning can be feature-driven (how many sprints will be required to deliver all the features?), time-driven (how many features can be completed by a specific deadline?), or cost-driven (Important features that must be created within the budget?).

The Scrum methodology requires product backlog (work to be done), sprint backlog, release burndown, and sprint burndown. In addition, the team defines all other forms of documentation as per the specific situation.

The project manager often becomes the scrum master, but this may not always be true. For example, in traditional estimating, all requirements are fully defined, with tasks created and estimated based on their fixed scope. Conversely, agile resource planning and estimation use a top-down method to forecast each sprint.

What are the characteristic traits of agile resource planning?

Agile resource planning is an approach to managing and allocating resources in a flexible and adaptive manner, primarily used in project management and software development contexts. The traits of agile resource planning include:

Flexibility

Agile resource planning emphasizes the ability to quickly respond and adapt to changing project requirements, priorities, and resource needs. It allows for adjustments and reallocation of resources based on evolving circumstances.

Iterative approach

Agile planning is often done in short iterations or sprints, with frequent reassessment and adjustment of resource allocation based on feedback and progress. This iterative nature allows for continuous improvement and optimization of resource utilization.

Collaboration

Agile resource planning encourages collaboration among team members, stakeholders, and resource owners. It involves open communication and close cooperation to ensure that the right resources are available at the right time. Apart from technical and domain knowledge, the following additional skills are also required in an agile resourcing environment. In addition, the following agile characteristics help in delivering high-quality projects.

Prioritization

Agile planning involves prioritizing tasks and resource allocation based on their value and impact. It focuses on delivering high-value features or outcomes early on, enabling stakeholders to provide feedback and make informed decisions.

Continuous monitoring and adaptation

Agile resource planning requires ongoing monitoring of resource usage, progress, and performance. It emphasizes the need to gather data, analyze it, and make necessary adjustments to optimize resource allocation and ensure project success.

These critical traits of agile resource planning help effectively manage resources in dynamic environments. But first, let’s understand the challenges of resource planning in an agile environment.

Challenges of managing resources in agile environment

For projects to be successful, it is vital to have the right resources. While agile methodologies offer flexibility and adaptability, managing resources effectively within this can be complex. Here are some common challenges of managing resources in an agile environment:

Difficulty in managing changing project requirements and scope

Agile projects are characterized by their adaptability and responsiveness to change. However, this flexibility can pose challenges when it comes to resource management. As project requirements evolve, new tasks can emerge, existing tasks can be reprioritized or modified, and additional resources can be added to the project.

If projects managers are unable to anticipate the changes and manage them accordingly, it can lead to last-minute firefighting for resources and overloading of existing employees. This impacts on the project quality and causes delays in delivery.

Inability to manage competing project priorities

Agile projects often operate in dynamic environments where priorities can shift rapidly. Stakeholder requirements, market conditions, or internal organizational changes can lead to changes in project priorities.

Constantly juggling competing priorities and conflicting resource demands can cause significant stress and burnout among team members. It can lead to a decrease in morale and productivity. This, in turn, can further hinder the progress of agile projects.

Conflicting resource demands

In an agile environment, resources typically work on multiple projects concurrently. However, each project has its own set of deadlines, deliverables, and resource requirements which can result in conflicting resource demands and contention among different projects or teams.

This can cause delays, conflicts, and compromises in resource allocation decisions, impacting project progress and overall efficiency. If tasks or projects with high priority are not given the necessary resources, it can result in missed deadlines and compromised project schedules.

Poor communication and collaboration between teams

Effective communication and coordination are crucial for resource management in agile projects. However, lack of proper communication channels, poor resource visibility and dispersed teams can affect the collaboration between team members, stakeholders, and project managers.

This can result in misinterpretations and misalignment of expectations, leading to inefficiencies, duplicated efforts, and rework. As a result, team members may spend more time seeking clarification, impacting the overall productivity and project progress.

This article shows you the importance of collaboration and cross-team collaboration best practices.

Skill gaps and resources shortages

Agile projects often require a diverse range of skills and expertise. However, poor visibility into resources skills, lack of proper training and development opportunities, skill obsolescence, etc., can lead to skill gaps, as team members may not have the necessary competencies to effectively contribute to agile projects.

Without the necessary expertise, teams may make mistakes or overlook critical aspects of the project, leading to failures or low quality of deliverables. In addition, it also affects employee productivity because resources struggle to perform tasks efficiently due to a lack of expertise or resources, resulting in delays in project delivery

Knowing the challenges of resource planning in agile project management, let’s understand how advanced resource management software can help manage resources effectively.

5 best practices for agile resource management

Effective agile resource management helps identify and allocate resources to ensure that teams have the right skills and capacity needed to deliver high-quality results. Here are some best practices for agile resource management:

Leverage cross-functional teams and their skills

Cross-functional teams consist of individuals with a range of expertise and abilities, allowing them to contribute to different aspects of a project. By harnessing this collective knowledge, organizations can optimize resource allocation and utilization for agile projects.

In addition, it promotes flexibility, as team members can adapt to changing project needs and fill gaps in skills or knowledge as required. By leveraging the strengths and capabilities of cross-functional teams, organizations can enhance productivity, deliver high-quality results, and foster a culture of collaboration and knowledge sharing.

Prioritize project tasks based on business value and dependencies

Agile projects typically involve a backlog of tasks, and it is important to prioritize them strategically to maximize the overall project value. By focusing on delivering high-value features or outcomes early in the project, organizations can ensure that the most critical objectives are addressed first.

Additionally, managers need to understand task dependencies to determine the sequence and order in which tasks should be executed. By consistently reassessing and reprioritizing tasks based on their value and dependencies, organizations can ensure that resources are allocated efficiently, resulting in better project outcomes and increased customer satisfaction.

Monitor and track resource utilization

Agile resource management emphasizes the importance of continuous monitoring of resource utilization levels throughout the project lifecycle. It involves regularly tracking resource usage, progress, and performance to identify any deviations or issues. By monitoring resource utilization, organizations can identify potential bottlenecks, underutilized resources, or overburdened team members.

This allows project managers to make timely adjustments and reallocate resources as needed. In addition, it helps in being responsive to changes in project requirements, priorities, or constraints and ensures that resources are aligned with the evolving needs of the project, optimizing their utilization and enabling timely delivery of project milestones.

Practice iterative and incremental development

Iterative and incremental development promotes the breaking down of work into smaller units and delivering value incrementally. This enables better estimation, planning, and allocation of resources. By dividing the work into smaller increments, teams can optimize resource utilization, as these units are easier to estimate and allocate.

Additionally, iterative development facilitates prioritization based on feedback, ensuring that teams focus on the most valuable and high-priority items, thus helping in competent allocation. It also allows for adaptability and mitigates risks, as the team can adjust resource allocation in response to changing requirements or emerging opportunities.

Encourage a culture of continuous learning and improvement

To foster a culture of continuous improvement in resource management, it is important to encourage team members to actively pursue learning and growth opportunities. This can be achieved through participation in training programs, workshops, or upskilling activities. By continuously expanding their knowledge and skills, team members can make valuable contributions to the projects.

In addition, embracing a culture of continuous improvement means viewing each iteration or sprint as an opportunity for learning and refining resource management practices. It is crucial to regularly review and adapt processes based on feedback received and the outcomes achieved. This iterative approach enables the team to enhance resource allocation, improve capacity planning, and optimize resource utilization effectively.

These are some of the best practices for efficient resource management in an agile project environment. Now, let’s understand the key features of resource management software to help manage resources in agile projects.

Resource management software for agile framework

Resource quality plays a significant role in an agile project environment. One cannot optimally use critical resources by assigning work below or above a person’s capability.

One also needs visibility into all the resources – available or not – and their costs. Only then can one balance people, technology, knowledge, time, and budget to deliver on time and goal. This needs to be analyzed before creating WBS (Work Breakdown Structure).

Here are some of the salient features of resource management software to manage agile projects:

Resource or workforce scheduling

Resource scheduling involves identifying and allocating resources for a specific period to different project tasks. With a centralized Gantt chart view of the enterprise, resource scheduling eliminates silos of spreadsheets. It also facilitates deploying the “best-available-best-fit” rather than the “first-available-first-fit” resource. Most agile projects operate with small team sizes. The product backlog will be adversely impacted unless the right resource is deployed for the right task.

Resource utilization

A resource is effective if it works on billable or strategic projects and is fully utilized per its capacity. The efficiency of an organization can be determined by the cumulative utilization of all its employees. Resource managers can proactively mobilize resources from non-billable to billable/ strategic tasks and maximize their billable utilization. Furthermore, ensuring minimum time is spent on mundane tasks such as attending meetings for the scrum team members is crucial.

Forecast shortfall or excesses of resources

Resource capacity is the total number of standard hours an individual is available to work per the employer’s arrangement. Resource demand is understanding the number of resources required to meet the demand for various types of work. Capacity vs. Demand is the process of forecasting shortages or excesses of resources by analyzing the gaps between resources’ capacity against the demand for resources.

It is a shortage of resources when the demand is higher than the capacity or supply of resources. Conversely, it is an excess of resources when the demand is lower than the capacity or supply of resources.

Effective bench management

Bench refers to employees not assigned to any project but on the company’s payroll. They are, in short, kept as reserves by companies on their payroll in anticipation of future projects. If the size of the bench is not controlled, this cost suddenly balloons and significantly affects the company’s bottom line. Therefore, Scrum Master needs to consider bench resource availability during sprint planning.

Forecasted vs. actual use of resource

Resource forecasting predicts various workforce metrics such as demand, supply, vacancies on the bench, resource cost, etc. A resource may be booked for multiple projects where they are expected to spend a certain percentage of the time. Therefore, a timesheet helps record the time an employee spends on each job. This is essential in agile project management to control project costs.

The PMO office verifies if the person concerned has spent the same hours on different activities as per the allocation or if there is a variance.

Managing pipeline projects

The two pipeline management goals are to build a healthy pipeline and win more deals. However, the pipeline or future projects also must be delivered on time and within budget, and one needs advanced resource planning to complete them. Many scheduling software allows creating a project plan using ghost resources, which can be replaced with the existing resources. Since frequent requirement changes are expected within a project that follows agile methodology, timely resource capacity planning is essential.

Supporting matrix structure

In a matrix organizational structure, some individuals report to multiple supervisors or leaders. This relationship can be described as a solid or dotted line of reporting. Managing a shared resource becomes complex when two managers have different project priorities.

It is necessary to ensure that the resource is not overloaded, leading to burnout or unplanned attrition.

Matrix organization can complement the agile project management process when the Scrum Master can access surplus resources in other departments.

Visibility of resource information for decision making

Relevant information about a resource can be viewed using an advanced filter to help decision-making. It can also be made role-specific, e.g., a project manager will only see information related to the projects he manages. On the other hand, a location manager can see resource-related data for the location. These fields could include skillset/competency, cost rate, charge-out rate, etc.

A resource management software with an advanced filtering option can quickly identify appropriate resources for a scrum master.

Forecasting financials

Forecasting is the process of making predictions of the future based on past and present data. To calculate the gross margin for a project, we need to know the charge-out rate and cost to the company of each resource. Most of the projects operate either on a fixed cost or on a time and material basis.

For a fixed-cost project, the revenue amount is already known, and we only need to calculate the resource cost for the project duration.

Scenarios – modelling and simulation

The simulation technique determines how projected performance is affected by changes in the assumptions that those projections are based upon. What-if analysis often compares scenarios and their potential outcomes based on changing conditions. The changes can be simulated in a sandbox environment, and the best possible scenario can be applied to the schedule.

When there is a resource crunch, agile project management can decide on project and resource priorities using simulation.

Business intelligence and reports

Business intelligence provides actionable insights by performing extensive data analysis. Resource management metrics are generated using real-time data, individualized reports, and dashboards. The reports allow managers to make informed decisions and monitor the overall resource health index.

Scrum masters can immensely benefit from the digital dashboards created using real-time business intelligence with changing requirements.

Workforce planning and optimization

Strategic Workforce planning looks at system-wide issues and strategies to:

• Support the organization’s strategic plan (e.g., reorganization and redeployment).
• Address external workforce factors that affect the entire business (e.g., succession planning for retirement bubbles or staff reduction planning for budget cuts).
• Maintain organizational capacity (e.g., in-service training).
• Mitigate risk exposure (e.g., safety planning and Equal Employment Opportunity training).

What is next?

Resources must be utilized efficiently as they are the most high-priced investments of any business. This must be considered while implementing effective resource management in an agile project. In addition, organizations spend a lot of time and cost creating the right talent pool.

Depending on the nature of the project, an appropriate methodology, such as a waterfall or agile, can be adopted. Accordingly, it is necessary to tap the skills and competencies of resources for overall efficiency and profitability.

The Glossary

The SAVIOM Solution

SAVIOM is the market leader in providing Enterprise Resource Management Software. With more than 20 years of experience, SAVIOM’s solution is being used by many Fortune 500 companies across the globe. It also provides tools for project portfolio management, professional service automation, and workforce planning software.

Whether it is Agile, Waterfall, or any other methodology, SAVIOM can provide a comprehensive solution for managing resources.

In this hyper-competitive era, innovation and digitalization are paving the way for significant business transformation. The growth of advanced technology and tools like SaaS applications, cloud computing, AI, Automation, IoT, etc., have propelled businesses to revamp their work practices.

Organizations are going beyond their traditional work norms and have started embracing remote work. These changes were exacerbated and adopted at an exponential rate during the global COVID-19 pandemic, which mandated work from home.

As a result, companies started implementing cutting-edge technologies to facilitate teleworking and eventually transformed into a smarter digital workspace. However, this change is not limited to the pandemic period and is here to stay.

This article will discuss the significance of a more innovative digital workplace and cover some practical strategies to build one.

But before that, let’s understand what a digital workplace is.

What is a digital workplace?

A digital workplace consists of a set of processes and technologies that provide employees with tools for better communication, collaboration, task or time management, etc. It also simplifies their work and enhances their work efficiency.

These tools include email, intranet, HR tools, virtual meeting rooms, workflow automation tools, etc., which can be accessed securely from anywhere.

The digital workplace aligns technology with the workforce to increase productivity and efficiency regardless of in-office or remote work setup.

However, many organizations implement or invest in technology before formulating a proper plan or strategy. This can negatively impact the ongoing business operations and lower workforce productivity. So, framing a process is imperative before forming a digital workplace to ascertain a smooth transition.

It will help you analyze the work area and identify segments that require technology integration. Furthermore, it will serve as blueprints for the future working environment.

Let’s look at some of the benefits of a more intelligent digital workplace.

Why businesses should adopt a digital workplace?

According to a survey by Harvard Business Review, more than 62% of CEOs said that they have management initiatives or transformation programs underway to make their business more digital.

Here are a few prominent benefits that the digital workspace provides: –

Unify the workforce

Technology has simplified multiple business processes. This includes enabling the ease of doing business from anywhere in the world. Through advanced tools such as workflow automation, project or resource management, companies can now bring their workforce on a single platform, gain visibility of everyone’s attributes and schedules regardless of their locations.

Also, the digitally advanced collaboration tools help the teams share information and work cohesively, leading to project success.

Boost employee productivity & efficiency

Research by Harvard Business Review shows that organizations with smarter digital networks are 7% more productive than those without.

A digital workplace eliminates traditional boundaries by providing a wide range of tools. As a result, employees can share information faster, collaborate better on different projects, and meet team goals. In addition, other software such as automated tools or robotic process automation, etc., can automate mundane tasks so that employees can focus on human-specific activities. This leads to increased productivity and efficiency.

Increase flexibility and work-life balance.

The easy access to all the necessary information from anywhere coupled with the use of a plethora of conferencing tools readily available today has simplified remote team collaboration. Moreover, the distributed workforce can work seamlessly by implementing the right tools and technology. As a result, it provides them with flexibility and allows them to strike the ultimate work-life balance.

Reduce operational cost.

By setting up virtual meetings or using interactive digital whiteboards, you can reduce or eliminate in-person meetings, which saves on travel and overhead costs like hotel bills and airfare, rent, etc. Furthermore, using SaaS platforms will spare you from installing and maintaining complex software and hardware management, saving you time and money.

Improve employee engagement

As stated earlier, a digitally innovative workplace provides the right tools and technology to the employees to carry out their tasks. Additionally, the ease of connecting with the dispersed team across global boundaries enhances team cohesiveness. When employees’ needs are taken care of, and they feel belonged, it naturally enhances their engagement.

Increase talent attraction & retention

As per the latest study, companies that have adopted a digital workplace have experienced an increase in talent attraction and a 25 % lower turnover rate.

The Gen Zs are today’s new working generation. Being born in the technologically advanced era, they are highly tech-savvy. As a result, they have a natural tendency to learn new technology and thrive better when working with modern tools and technology at the workplace. Thus, forming a digital workplace enables organizations to attract and retain these potential candidates.

Considering the benefits of using a digital workspace, it’s time to formulate an action plan and create one for your organization.

Let’s explore the strategies that will help you establish one.

6 effective strategies to build a smarter digital workplace

Building a digital workplace strategy involves taking your employees, existing tech inventory, and business processes into account. Then formulating an action plan after analyzing and identifying every attribute will help you transition to the digital workspace successfully.

Here are some of the following ways you can implement to achieve the same:

Analyze your current workplace & create a transformational action plan

Analyzing the existing processes and practices is vital before implementing any changes as it helps better understand organizational needs. Moreover, having a thorough understanding will enable you to align your digital workplace strategy with the business objectives.

Additionally, conducting extensive market research to understand emerging technologies will help you determine the proper tech inventory. After factoring in all aspects and conducting the necessary research, you are ready to form the action plan. Along with this, you must focus on setting up a governance system that can ensure systematic implementation of the tools and monitor the developments.

Choose high-end technologies and tools as enablers.

According to a survey, 93% of companies consider innovative technologies necessary to reach their digital transformation goals.

A leader should carefully assess their existing IT system’s capabilities and determine whether it addresses their workplace problems. They can make a note of the software that needs upgradation, or processes that need new tools altogether, and so on.

There is a multitude of tools and technologies available, but not all of them serve the organization’s needs. Moreover, technology is advancing rapidly, so certain outdated tools cannot fulfill the needs of the modern business environment. Therefore, you must thoroughly research the technologies and take multiple demos to learn the different features before selecting the right one for your firm. For example, if you need security software, one must look at the multiple tools, analyze what each security plan covers, and then select it.

Develop a robust security system

The development of a digital workplace entails high-security risks as well. A high proportion of employees access company records through unprotected servers. Furthermore, unsecured cloud services, mobile access can further complicate data security.

Therefore, businesses require stringent security measures to protect data from cyberattacks, breaches, and so on. Using security software such as advanced malware protection, user authentication tools, firewall protection, etc., can help restrict access to critical and confidential information. Also, it can help protect networks, servers, and laptops from intrusions and other threats. Furthermore, IoT and Blockchain technology can be used by companies to upgrade their systems with new safety features.

Prioritize employee experience in the digital workplace.

According to Gallup, businesses with engaged employees see a 17% increase in employee productivity.

Employees are the cornerstone of organizational success. Therefore, it is imperative for a business to ensure that they have a seamless experience and all the needs of its workforce are met. During the process of establishing a digital workspace, managers must take employees’ experience and engagement levels into consideration. To accomplish this, leaders can conduct surveys to understand their employees’ needs better.

For example, if you have a design team in your company, constantly upgrading their designing software & tools will help them deliver better results. Thus, being at the forefront of the latest tech trends and catering to employees’ needs will allow your company to improve innovation and enhance the experience of your employees.

Organize training programs to empower employees.

Accepting change is never easy; the first reaction to change is always resistance. Similarly, when new technology is introduced in the workplace, it can cause employees distress if they are not adequately trained to use it effectively. Also, nowadays, organizations cater to a multigenerational workforce inclusive of Gen Z, millennials, and baby boomers. Usually, baby boomers are not abreast with the latest technology trends. As a result, employers must conduct training programs to ensure a smooth transition and enhance their technological quotient.

For example, providing employees access to online training sites or employing personnel to train the workforce can be beneficial. That way, employees will find it easier to learn new technologies, which will result in better performance.

Track performance to ensure continuous improvement.

Tracking and monitoring the performance of resources is crucial to determining the value of a digital program. This enables an organization to continuously learn and improve, which helps it to achieve better results. Managers can start by tracking employee productivity after implementing the tools.

To do so, managers can implement resource management software and track resource utilization levels across the enterprise. In addition, forecast vs. actual analytics helps determine whether the staff takes longer or less time to complete a task after implementing the new tech. Accordingly, they can take corrective measures and aim for continuous improvement.

Thus, it is clear that a solid digital workplace strategy is essential to upgrade the way your organization operates. Companies can effectively create a smart digital workplace by understanding the business goals, employee needs, tools, and technology.

Conclusion

The digital workplace is here to stay. Therefore, to remain competitive and thrive in the global market, companies must take the necessary steps to build a digital workplace that is aligned with their business goals.

The strategies mentioned above will help you create a comprehensive and secure digital workplace that can result in enormous benefits for your organization. It will also enhance your employees performance, satisfaction, and engagement and make your business progress seamlessly.

The Glossary

The SAVIOM Solution

SAVIOM is the market leader in offering the most powerful and configurable solutions for managing enterprise resources efficiently and effectively. Having more than 20 years of experience, this Australian-based MNC has a global presence in over 50 countries. It is also popular with more than 100 customers and helps them achieve their business goals. SAVIOM also has products for project portfolio management, professional service automation, and workforce planning software which can be easily customized as per business requirements.

In the era of digital transformation, it is helping organizations prevent data loss, saving costs, improving efficiency, and boosting productivity.

As a result, cloud computing has become a growth catalyst for numerous organizations.

Studies show that the public cloud service market will reach $623.3 billion by 2023 worldwide.

This technology follows all the traditional forms of architecture and hardware that form the backbone of any computer network. However, it stands out from the conventional systems because the user gets to access the hardware’s processing power and storage capacity remotely, with the help of the internet. These benefits have opened new doors for seamless remote working.

This article takes you through the basics and benefits of cloud computing, different cloud models, and a verdict on which one is ideal for your organization.

But first, let us have a closer look at why modern-day enterprises are adapting to cloud computing technology.

Why do businesses adapt to a cloud infrastructure?

Cloud computing has revolutionized the way businesses operate, and there are several key reasons why even more organizations are eager to migrate their applications to cloud infrastructure.

Here are some of the significant benefits of Cloud Computing:

Reduce overall IT cost

Traditionally, companies have always relied on using large-scale, in-house data centers, which require a huge CapEx (capital expenditure). The CapEx further rises because a data center needs space, hardware, software, and a maintenance workforce to stay functional. In addition, the firm will eventually have to replace the hardware to keep up with industry standards even before leveraging all the benefits from the investment. The pay-as-you-go model of the cloud resolves this issue by eliminating the need to worry about servers or data centers.

61% of the world’s biggest IT companies have moved to the cloud because it allows them to cut down on costs.

Improved security

Cloud services store the data on remote servers and databases subject to stringent security checks, such as granular permissions and multi-factor authentications. In addition, data stored within the cloud is stored behind a firewall and can be accessed by users only by providing a password. The security measures ensure that there are no data breaches or malware attacks. Cloud solutions also allow companies to store their data off-site, making it a safer option than keeping servers on the company premises.

Promotes remote work

As mentioned earlier, cloud computing technologies allow access to data from remote locations with the help of the internet. This ability to store data remotely has made the sudden transition to the remote work model convenient. Furthermore, it improves efficiency levels and supports real-time collaboration, creating an environment where team members can work together and execute projects hassle-free.

Highly dependable

Cloud service providers employ several technologies which ensure that the service is always up and running. The technology is spread across different regions to prevent any downtime from affecting the service. It also helps them avoid facing any single point of failure. Thus, the service provider can quickly repair any fault without shutting down the entire cloud platform. As a result, the cloud has become an extremely resilient and highly dependable platform.

Improves scalability

Cloud computing is an ideal solution for smaller companies and start-ups on an expansion spree. Cloud technology provides these companies with the flexibility to scale up at their own pace, according to the demand, and without spending much on physical infrastructure. For example, your product gets featured in a popular newspaper, which brings thousands of visitors to your website. Applying a scalable cloud infrastructure ensures that the website has enough bandwidth to handle the traffic without crashing.

What are the types of cloud computing services?

There are four different types of cloud computing services, and companies should clearly understand each service before they invest in a subscription plan. Professionals can choose from the following cloud computing services to meet their business targets:

Infrastructure as a Service (IaaS)

IaaS is an automated solution offered by service providers, where the computing resources, software, and networking capabilities are provided to consumers on-demand and charged on a meter. In addition, the users have the flexibility of hosting the cloud with the service provider or within their premises.

It is a highly scalable model, as companies are only paying for the infrastructure and have the freedom to expand their operations if they require it. Companies such as Microsoft Azure, Google Compute Engine, and Amazon Web Services provide this facility.

Software as a Service (SaaS)

Any software that is owned, managed, and controlled by cloud service providers are considered SaaS. SaaS applications can run directly with the help of web browsers, which means they do not have to be downloaded or installed on the device. It allows the businesses’ internal IT teams to solve software management issues quickly.

SaaS providers offer a complete software solution by delivering the operating system, infrastructure, and data required to run the customers’ services. It allows companies to scale up their operations rapidly since they only have to purchase a subscription plan. Examples of SaaS providers are Microsoft Office 365, Cisco WebEx, and Google Suite.

Platform as a Service (PaaS)

In this cloud computing model, the service provider delivers the hardware and software tools required for developing applications. As a result, it is primarily utilized by companies focused on building software and web-based applications.

The tools required to make software for different devices, such as computers, smartphones, browsers, etc., can be expensive. So, instead of directly purchasing these tools, PaaS customers can access them based on a fee whenever needed. Some of the companies that provide this service are AWS Elastic Beanstalk, Apache Stratos, Google App Engine and, Microsoft Azure.

Function as a Service (FaaS)

FaaS is a cloud computing model where developers can build, run and manage application packages as functions without maintaining their infrastructure. It allows customers to focus on deploying the application code for their systems while the cloud service provider takes care of the infrastructure upon which the code will run. It is an excellent tool for creating chatbots, data processing, and backends for IoT devices.

Service providers can scale functions according to the demand, which makes them an ideal choice for companies that may have dynamic workloads. In FaaS, customers only pay for the resources they are using, making it one of the most original forms of pay-as-you-go model of cloud computing services. Most major cloud providers sell this service, such as AWS Lambdas and Microsoft’s Azure Functions.

What are the different types of cloud deployment services?

Cloud deployment defines how a cloud platform and its features are implemented so that organizations and users can benefit from these services, depending on the requirements. There are four primary types of ways in which the cloud platform can be implemented:

Public cloud

It is the most common cloud deployment service where the resources are owned and managed by the service provider. The services are delivered through the internet, and users share the resources with other organizations or tenants of the same cloud service.

Private cloud

A private cloud provides all the usual resources of a cloud computing service, but it is accessible to only one single organization. The software and hardware are dedicated to matching the specific demands of the organization. It is mainly used by companies that want greater privacy and control over their cloud environment.

Hybrid cloud

It allows seamless interaction between public and private clouds and is the perfect solution for a business or company that wants to access both technologies. In addition, this technology is beneficial when dealing with clients who need to be updated in real-time using the public cloud. At the same time, the computer will keep the sensitive data stored in the private cloud.

Community cloud

It is a platform comprised of multiple tenants using a set of applications to achieve their business goals. These companies usually belong to the same industry and share similar security, scalability, and compliance interests. For example, the IBM SoftLayer cloud platform is used by U.S. Federal agencies.

However, often one cloud system doesn’t suffice the organizational needs, and thus, they invest in a broader system known as multi-cloud. Here is a detailed description of it:

What is a Multi-Cloud model?

The multi-cloud model is different from the hybrid cloud as it consists of many public clouds from varying cloud service providers. Therefore, it is beneficial for organizations that have various departments with different cloud computing requirements.

For example, the HR department and the Marketing departments may have different needs for cloud computing. Multi-cloud offers a specialized solution for each of these departments. Thus, they don’t have to settle for a one-size-fits-all solution. Instead, companies can choose the solution that gives the specific departments their maximum return.

These models are more reliable than the other forms of cloud deployment because they consist of different cloud service providers. A mixture of various cloud providers, such as AWS, Microsoft Azure, and Google Cloud, ensures that organizations don’t have to be dependent upon the services of a single cloud provider. Instead, it gives them flexibility and reduces overreliance on a single provider.

Hybrid and multi-cloud solutions are two of the most well-integrated cloud service solutions, but organizations can often choose the best plan for themselves. Read on to find out which model suits your business perfectly.

Which is the better solution for your business – Hybrid or Multi-Cloud?

If you want to know which is the right choice for your business, you need to clearly understand your business needs and how cloud technology can help you fulfill them.

Benefits of multi-cloud

Multi-cloud models benefit from compiling and letting you use different computing environments to perform specific tasks.

For example, an organization’s sales team might require the CRM features provided by a cloud provider. But, on the contrary, the IT department will demand a cloud provider that equips them with greater processing capacity and higher storage.

Large organizations with numerous departments benefit the most from multi-cloud models. Since it uses different cloud service providers, organizations can look forward to driving down costs by pitting service providers’ prices against each other. Thus, having various cloud providers allows greater flexibility.

Moreover, it protects organizations from security concerns that may arise from having shadow IT users. It refers to the IT services employees use personally when a single cloud cannot fulfill their demands. These applications help achieve the goals but aren’t safe from data theft.

Research shows that 81% of all enterprises have a multi-cloud strategy already laid out or in the works.

Benefits of Hybrid Cloud

Hybrid clouds are beneficial for businesses that need to operate under higher levels of security. They provide an environment where the private cloud can locate and store sensitive data. In contrast, the public cloud interface offers the framework for running applications used by clients and users.

The public cloud platform provides benefits such as high scalability and reliability. High scalability ensures you always have access to the resources needed to meet business goals while the vast server network keeps the client interfaces running smoothly.

For example, financial institutions and banks such as Bank of America and Banco Santander prefer using the hybrid model of cloud computing. It provides them the advantage of storing sensitive data on private clouds, making them less susceptible to security threats. Meanwhile, they can keep the rest of the data, with lower sensitivity, on public clouds.

Organizations can easily customize the hybrid cloud models according to their requirements. Therefore, it is beneficial for medium and small-scale enterprises to scale up the processing power when needed. Companies such as Netflix, Uber, and Airbnb extensively use hybrid cloud models in their IT systems.

Conclusion

Cloud services are swift, reliable and serve as excellent backup options if you ever lose your primary data storage device. As a result, a wide variety of industries and businesses are eager to move to the cloud. It is expected that 25% of organizations will move all their applications to the cloud within the following year.

Moreover, the umpteen benefits, including a customized solution for business-specific needs, make a cloud solution more viable and practical. In this era of remote work, cloud computing is an intelligent solution for any business looking forward to minimizing costs and improving the scalability of its operations.

Have you invested in a cloud computing system yet?

The advent of IoT has also helped them overcome connectivity and productivity challenges in the era of digital transformation.

In short, IoT has enabled organizations to boost their productivity and profitability in today’s fast-paced, tech-driven world.

According to McKinsey, “58% of companies who embraced an IoT enables workplace experienced at least a 5% increase in revenue, while 46% had witnessed a 5% decrease in excess costs.”

This figure is testimony to the fact that the Internet of Things is the inevitable future of workplaces. Global leaders have already realized its value and are adopting it to streamline business processes, save costs, and boost overall efficiency.

This blog walks you through all the benefits IoT provides to the business world and explains the best practices you can follow for its successful implementation.

But first, let’s start with the definition.

What is the Internet of Things?

The Internet of Things (IoT) refers to a network of physical devices or objects embedded with sensors, software, and technologies. They help you connect and share data with other devices via the internet. These devices can range from something as simple as a smartwatch to as complex as an industry-scale robot.

For example, a lightbulb that you can turn on or off using a smartphone app is an IoT device. Similarly, a smart thermostat in the office or a smart streetlight are also IoT devices. The large-scale applications of IoT range from driverless cars, smart cities to drones from the aerospace industry.

The following section explores the benefits of IoT implementation in your workspace.

Advantages of implementing IoT in your workplace

Enhances operational efficiency

Proper IoT implementation in your workplace helps increase overall operational efficiency. One of the simplest examples is the use of intelligent voice-enabled speakers and AI applications in offices. Smart virtual assistants like Google Assistant, Alexa, or Siri auto-schedule recurring meetings or interviews and also let you set reminders for your priority tasks to stay on top of task management.

Their speech-to-text capabilities help document minutes of the previous meetings to enhance transparency and enable collaboration. All these features cumulatively minimize mundane tasks and allow employees to focus on critical human-specific work. Another industry-specific example is FANUC’s industrial robots. With over 100 robot models, FANUC provides manufacturers with the right IoT solutions to overcome manufacturing challenges and achieve production goals. These robots work in tandem with humans to optimize high-precision processes, including assembling, quality testing, pick-and-place, etc.

Boosts employee productivity

A conducive physical work environment substantially enhances productivity. Let’s understand it with some examples. A smart lighting system, for instance, helps prevent dullness and keeps employees focused and energized, increasing their productivity. Likewise, a smart standing desk tracks the number of hours you spend on your desk while working and prompts you to stand at regular intervals. Thus, it keeps the workforce active by eliminating the entirely sedentary lifestyle.

The globally renowned tech giant Apple is also providing smart desks to its employees. Another IoT application is smart kiosks. You can fit them outside a conference room to let your employees rate the quality of a meeting on a scale of 1-5. It helps you get immediate feedback and figure out what you can do to make future meetings more productive.

Enables proactive measures to preempt various risks

IoT technology enables decision-makers to take proactive measures to prevent issues and risks. These risks can be related to resources, equipment, workplace, or all. For example, an IoT-enabled workplace monitors working conditions and senses high temperature, humidity, vibrations, smoke, etc., to detect levels exceeding the normal range. Moreover, IoT predictive maintenance forewarns you of the need to fix faults in equipment and prevent breakdowns and accidents.

Further, workers in industries like metallurgy, mining, etc., exposed to more hazardous environments can monitor their vital signs with wearable devices. Tracking these vital signs can flag any health emergency that requires immediate medical attention. The management, thus, can call in the medical team to prevent the worker’s condition from worsening. Additionally, some smart security surveillance cameras like AI Guardman interpret videos and prompt alerts on noticing potential shoplifters.

Streamlines supply chains’ management

IoT helps streamline supply chain management in several ways. A popular application of IoT is Radio Frequency Identification System (RFID) chips or sensors. RFID tags track and authenticate their locations in real-time via GPS when attached to storage containers, raw materials, or final products. These real-time updates about products’ movement and location enable suppliers, manufacturers, and distributors to prepare in advance to receive goods and reduce handling times. It also allows you to form a contingency plan in case of delays.

Some products like chemicals and food require specific environmental conditions. IoT devices (primarily sensors) monitor parameters like temperature, humidity, light intensity, etc., and trigger an alarm when a particular parameter reaches its threshold. Thus, it gives you time to “act” swiftly and minimize spoilage.

One of the latest futuristic IoT innovations in supply chains is Prime Air. It’s an Amazon service to deliver up to 5 pounds in 30 minutes or less using small unmanned drones.

Increases workplace safety

Today, IoT technologies help companies track internal and external factors impacting workers’ safety. They can track and measure workers’ patterns on the factory floor and identify risks of harm or injuries. Smart helmets, jackets, and watches track their movements and alert them about hazardous conditions and restricted areas to prevent fatal accidents. A prime example is General Motors and Ford Motors. They provide exoskeleton vests that help them ease their overhead tasks that require lifting heavy weights and objects.

Furthermore, a laser scanner monitors vehicle and equipment navigation in warehouse and storage areas to identify protruding objects. It, thus, helps avoid major collisions that can cause damage to life and property. Sensor-equipped wearable devices also allow medical personnel and rescue crews during major accidents. Critical data collected from IoT devices help make informed decisions to avoid fatal accidents and rescue workers in emergencies. GPS tracking via IoT wearable devices can pinpoint the injured or trapped workers” exact locations and expedite their rescue operations.

Reduces unnecessary expenses

When combined with artificial intelligence, IoT devices can provide actionable insights into cost-saving areas. It uses predictive analysis to prevent unprecedented machine breakdown, downtime, and heavy repair expenses. A smart building, for instance, uses IoT devices (sensors, software, etc.), monitors different building characteristics, analyzes data, provides insights into usage patterns and trends, and optimizes them. Using this technology, one can stay forewarned of the CO2 levels and accordingly control the apartment’s heating, ventilation, and air conditioning (HVAC).

A leading appliance provider, LG, has launched its brand ThinQ in 2017. It aimed to embed Wi-Fi chips in products to enable their “communication” and learn their users’ behavioral patterns and environments. Users can use this application to perform different cost-saving functions in LG’s smart devices. For instance, one can put their refrigerator in vacation mode when away to save electricity costs.

The following section introduces to you some best practices to implement and utilize IoT in your workplace.

Best IoT implementation practices to follow for your workplace

Spot the areas where you can save costs

Look for all the possible areas where you can leverage IoT devices to cut down on ongoing expenses. For instance, in inventory management, you can use sensors that detect and indicate low stocks and refill them to reduce order cancellations and increase the bottom line. Moreover, devices like LG Dual-Smart Wi-Fi ACs, thermostats, etc., can help you reduce monthly utility costs. For example, smart LG ACs feature a dual inverter compressor with a varied-speed dual rotary motor. It provides a wider rotation frequency and cools faster than traditional compressors, and helps save electricity costs.

Ensure to implement proper security measures

Strong security measures are indispensable to protect your IoT network against cybercriminals. First, keep a record of the exact number of IoT devices, types, and associated risks connected to the network for complete visibility. Second, change default passwords that come with devices to unique and strong passwords. Finally, focus on regular patching and updating the IoT framework. Patch management includes locating and fixing bugs and vulnerabilities in your framework that are susceptible to cyberattacks. It also includes updating features and functionalities, helps increase the system’s uptime, and maintains compliance standards.

Create an in-house IoT team as you scale your IoT implementation

While external consultancy services can work for your proof-of-concept (or pilot) IoT implementation, an in-house IoT team fits better in the long run. Focus on nurturing an in-house talent to maintain your extensive IoT network when you scale up. Train your employees in IoT skill sets, including QoS, IoT integration, IoT data analytics, etc.

Combine IoT with resource management to enhance overall productivity

IoT-enabled devices monitor the health of the physical parameters of the workspace, whereas resource management software provides real-time information on employee performance status. As a result, organizations can combine these two technologies to enhance the productivity levels of the workforce.

Consider an example where you notice that an employee’s productivity levels are lower than expected. Managers can gauge external factors like temperature, luminosity, humidity, etc., to see if they are causing any hindrance. If they notice employees’ physical health as one of the causes behind their low productivity, IoT can also help. For example, they can leverage a smart standing desk to help keep resources active and fit and perform at their best.

Internet of Things – The future of Workplace

The future of artificial intelligence and the Internet of Things (IoT) is bright – and it is now. IoT is already revolutionizing the corporate environment and industrial workplaces across the globe.

An IoT-connected workforce raises the efficiency of operations and resources, preempts future risks, reduces unnecessary costs, and more.

So, it’s high time you got on the bandwagon of IoT adoption, transformed your workplace, and reap its benefits.

Glossary

The SAVIOM Solution

SAVIOM has over 20 years of experience helping multinational clients manage their resources efficiently and effectively. With over 20 years of experience, this Australian-based MNC has a global presence across 50 countries and has helped 100+ clients meet their specific business goals. SAVIOM also provides tools for project portfolio management, professional service automation, and workforce planning software. So, SAVIOM can help your business to establish an efficient system geared towards your specific business challenges.

It was rightly said by a business magnate who transformed the whole e-commerce industry. His courage to make bold moves and walk along with the novel technology trends made him the richest man globally. This is just one example of how technology has reinvented and uplifted the business landscape. Multiple instances are living proofs of the wonders of advanced tech trends.

The question is, are all these trends capable of giving businesses a competitive advantage? Is every technology worthy of massive amounts of investment?

To address these queries, we have compiled a list of trends that serve as the backbone of business innovation and transformation.

If implemented correctly, these novelties can enhance your organizational efficiency, improve employee experience, and help you explore the untapped areas of the business industry like never before.

This article illustrates the individual implications and combinatorial effects of these trending technologies on various business domains. So, are you ready to take a deep dive into this futuristic tech-driven world?

Let’s begin with understanding,

What is the rate of technology change?

According to CompTIA, the global technology industry is forecast to reach $5 trillion in 2021.

This statistic is clear evidence of the escalating rate of adoption of technology. From the development of smartphones to advanced quantum computing, this era has witnessed a plethora of innovations.

A typical law is implemented to support this argument, known as Moore’s law. It states that the power of computing will double every 18 to 24 months. Undoubtedly, the computing systems have improved incrementally over the years, and the speed has increased from milliseconds to nanoseconds. In addition, it has opened doors for better connectivity, functioning, and so on.

However, it became increasingly challenging to align development speed with Moore’s law as the decades went by. Hence, it’s obsolete today.

Comparing the technological change to adoption rates, in 2000, Gartner had predicted that biometrics, quantum computing, etc., were poised to take off. But even two decades later, none of these technologies are in widespread acceptance and use yet.

On the other hand, America saw a massive transformation in the early 1900s, with rapid urbanization. For example, a stat revealed that just 2.3 million electrical household appliances were produced in 1900, but 84 million in 1919.

Overall, looking back at history, technology’s development and adoption rates haven’t been faster than in previous epochs. However, that’s not to say that we are not experiencing change; the pace could be better.

Let’s now look at the trends that have the potential to drive this technological transformation at an accelerated speed,

What are the technology trends that will reinvent the business infrastructure?

The business landscape has experienced a paradigm shift in the organizational skeleton, work culture, job market, etc. Most of these shifts were propelled by technology. For instance, limitless connectivity enabled globalization and a remote work model. Similarly, when combined, tech advancements like AI, Machine Learning, Automation, and so on can bring about a wave of reinvention with them.

Below is the list of most prominent trends that have the potential to change the business realm:

Internet of Behaviors to enhance employee satisfaction

Bringing a personalized touch to algorithmic technology is the new aim for tech avantgardes. The novel technology Internet of Behaviors (IoB) takes them nearer to their goal. It is an extension of IoT (Internet of Things) and an amalgamation of three major fields: Technology, Data analytics, and Behavioral Science.

Out of these, behavioral science can be further categorized into four areas, namely, emotions, decisions, augmentations, and companionship. Technology can tap into these four areas and sense the user’s reactions in different circumstances.

For example, behavior scientists can analyze customers’ behavior from the data procured from multiple sources like social media handles, wearables, and other IoT devices. This will allow the brands to understand the gaps and improve consumer’s experience. Furthermore, as psychology plays an instrumental role in marketing, IoB can work wonders for businesses looking to expand their reach.

At the same time, IoB can also be used at workplaces to enhance employee satisfaction. For instance, managers can evaluate employees’ behavior by amassing data from IoT and other devices and then implementing the right action course.

As Gartner says, IoB captures the digital dust of people’s lives.

Applied AI to improve customer experience

We all have witnessed the transition of searching for products from text to speech to images on e-commerce platforms. Needless to say, it has made shopping on online websites simpler and convenient. This change is attributed to Artificial Intelligence and its ability to train machines to recognize and interpret patterns and act on the same by making sense of the real-world data using computer algorithms.

AI implements three major technologies viz., Natural language processing (NLP), Computer Vision, and Speech technology. NLP creates a seamless experience for customers by allowing the technology to understand the human language easily. The prime example here is Chatbots. Consumers can resolve their issues faster using Chatbots rather than waiting in the queue on customer service calls.

Computer vision uses Machine Learning to make sense of visual data depicted in images or PDFs, etc. Lastly, Speech technology responds to the human voice, making Google Home, Alexa, or Siri a go-to encyclopedia. These technologies, when put together on one platform, can elevate the customer experience tremendously.

Next-gen connectivity with IoT and 5G

5G is known to increase the internet speed 100 times faster than 4G/LTE and reduce the latency from 20 milliseconds to less than one millisecond. Here, latency implies the time taken to retrieve data. On the other hand, the Internet of things comprises sensors, software, and other tech embedded in everyday objects like wearables, smartphones, etc. These sensors then receive and send the data to the end-users.

When combined, 5G and IoT can bring massive shifts in the business landscape. 5G enables faster connectivity across longer distances with a reduced latency period than ever.

One of the best-suited implementations of these tech advancements is in the manufacturing sector. It can be digitized and provide wireless control and monitoring of devices and machines. The supervisors can then retrieve data at a faster rate, track the progress, and deploy remedial measures in advance.

At the same time, with remote work being the new normal globally, the next-gen connectivity will make the business operations faster and facilitate quick decision-making. For instance, a manager can monitor an IoT connected workspace from a different location and instantly assess the environment, employee behavior, etc. This will fasten their decision-making ability and enhance their functioning.

Quantum and Neuromorphic computing solving unprecedented issues

The previous generation of AI-enabled computing was rule-based and was limited to concluding a narrowly defined problem domain. The current generation evolved and upgraded to sense and perceive using the deep learning networks that analyzed the content of video frames. The next-gen computing that will disrupt the market is neuromorphic computing that corresponds to human cognition.

It will emulate the neural structure and functioning of the human brain using the computational building blocks known as Spiking neural networks (SNNs). Neuromorphic computing is projected to find answers to questions that have bewildered science and society for years.

For example, one of the industries that can benefit from neuromorphic computing is pharmaceuticals. It will minimize the development time for chemicals by providing quick simulations and solutions. Neuro-based computing will also give an extra edge to adaptive robotics as the robots will perceive and respond to the stimuli on their own.

Talking about quantum computing, which uses quantum mechanics to solve complex issues more efficiently. It is still in its nascent stage, but when it reaches a certain maturity level, it will combat challenges that were previously impossible to cater to. Areas like transportation, traffic regulation, and energy storage will be majorly benefitted by quantum computing.

Hyper automation and virtualization to streamline mundane tasks

Hyper-automation and virtualization exhibit the combinatorial power of technology where robotics, the industrial internet of things (IIoT), digital twins, and 3D- or 4D- manufacturing are combined to automate routine (mundane) tasks and improve operational efficiency.

Previously, the processes and functioning of businesses were hampered due to the ‘organizational debt.’ Here, corporate debt is the interest that the company pays when its policies, talent, architecture, and processes remain stagnant when the world is changing. This had a negative impact on the value proposition and brand reputation.

Business leaders are clamoring to adopt digital operational excellence by integrating automation into the tech infrastructure to combat this shortcoming. Adding onto this is the emergence of remote work culture that has fast-tracked hyper-automation and virtualization into the business landscape. While hyper-automation can digitize documentation and process workflows, virtualization will make design and product development a breeze by allowing visualized simulations of prototypes.

A hybrid infrastructure to facilitate remote work (edge and cloud computing)

Conventional computing practices included on-premise IT-infrastructures that were time-consuming and demanded IT professionals to ensure data availability across all the offices instead of focusing on software development and innovation. However, the advent of cloud and edge computing has led to IT democratization. This has shifted the competitive advantage from IT to human-specific innovative skills.  

Cloud computing provides ready-to-use vendor-supervised services to the end-users, whereas edge computing allows companies to procure and analyze their data. This eliminates the need to send the data to the centralized data hub and tremendously increases speed and reduces latency.

The ongoing remote work model can significantly benefit from the hybrid model of cloud and edge computing. It facilitates companies to control and retrieve their data on-demand from anywhere across the globe. It eventually helps them boost their speed, minimize complexities, strengthens data-driven decision-making and cybersecurity defenses. A hybrid computing model can be implemented in various industries, including utilities, education, manufacturing, etc.

Real-life implementation:

In 2018, it took the Broad Institute of MIT and Harvard eight minutes to sequence a human genome (at the rate of 16 terabytes per day). Since then, cloud-based analytics has lowered sequencing time by 400 percent.

Diversity, Equity, and Inclusion (DEI) tools to promote a positive work culture

According to Deloitte, 96% of CEOs now consider DEI to be a strategic priority.

Diversity, equity, and inclusion are the three main pillars that drive organizational success. Diversity empowers organizations to embrace a diverse workforce from different cultures, geographical demographics, races, etc. Equity provides fair access to resources and opportunities to every employee, and inclusion supports giving equal respect to the workforce, giving them a sense of belonging.

A myriad of technological solutions is being developed using AI, ML, and advanced analytics to help managers foster DEI at organizations. Some areas where these solutions can provide actionable insights are recruitment, leadership, and performance monitoring.

For example, a candidate search platform that runs on AI and RPA can let you access pools of qualified and diverse talent. In addition, different behavioral assessment tools and learning platforms can provide insights into behavioral changes to inclusive leaders and help them improve the DEI practices. Lastly, advanced analytics, data visualization, and interactive dashboards can monitor DEI KPIs like compensation and advancement equity. Leveraging this information, managers are better positioned to create a uniform rewarding platform for the workforce.

These are some of the most prominent trends that will reinvent the business world in the forthcoming years. The following section sheds light on the potential implications of these novelties on the resource management industry.

How will these tech trends disrupt the resource management realm?

Resource Management is an incumbent part of the organizational processes. After emerging as an independent discipline, a plethora of resource management software has surfaced in the market. The current advancements like Business Intelligence have enabled these tools to provide real-time data-driven insights to the managers, ensure forecasting, and proactive resource planning.

However, there is still a lot more scope to take this software to the next level and improve its functioning and accuracy. For example, if the Internet of Behaviors is integrated into the software, resource managers would be able to gauge employee behavior and take corrective measures to improve productivity. At the same time, embedding applied AI like natural language processing and speech technology will allows seamless operation of the software, enhancing user experience.

Furthermore, quantum computing will make sensitivity analysis and resource planning a more precise phenomenon. Is there still more scope left? Certainly yes! Integrating resource management software into the edge computing system will make data instantly available to every decision-maker. Last but not least, adding the DEI technology solutions will give an extra edge to the leaders and reinforce a positive, employee-friendly conducive work culture and environment.

In a nutshell, the above-mentioned technology trends can disrupt the resource management realm and make it a more holistic solution.

Conclusion- Experience the paradigm shift

As opposed to the notion that technology is negating jobs or human-specific activities, if we closely look at these trends and applications, technology is minimizing the robotic tasks and allowing you to add a layer of creativity and innovation. These trends can multifold your organizational efficiency if implemented at the right place.

McKinsey has reported that the pandemic had sped up the adoption of digital technologies by several years.

If the adoption escalates at this rate, we will witness technology taking the reins of the business world in no time. So, are you ready to shift the fundamentals of your business infrastructure and enter a tech-enabled workplace environment and culture?

Glossary

SAVIOM Solution

SAVIOM is the market leader in providing an Enterprise Project Resource Management solution. With over 20 years of experience leading the market, SAVIOM is actively used by over 15 highly-esteemed global companies worldwide. The tools within the suite include project portfolio management, professional service automation, and workforce planning software. It also entails supporting solutions to schedule equipment and assets seamlessly. Re-engineer your project management efficiency with a system shaped around your business!

Industries are looking forward to adopting blockchain technology. It is estimated that by 2022, global spending on blockchain solutions will reach $11.7 billion. Furthermore, various studies have revealed that implementing blockchain will help multiple sectors to save costs, improve efficiency and boost overall performance.

Blockchain is the underlying technology that enables these various cryptocurrencies to succeed. However, its benefits go way beyond this. Its ability to create an uninterrupted database has opened doors for a plethora of applications.

The technology can certainly bring about massive changes in various industries, including finance, voting, transport, healthcare, and more. The rise of blockchain will eventually bring about a revolution and change the world as we see it.

Here is an article that will take you through the definition of blockchain, its applications, and what the future holds for it. 

What is blockchain?

Blockchain is an extensive database that stores information in the form of blocks and chains them together. The data is collected and stored in chronological order, which cannot be tampered with or deleted. However, the permitted users can verify the data to gain clarity on the stored information.

The uses and applications of blockchain are many, but it has primarily been used as a digital ledger. These are the three main components that come together to make blockchain a success: 

Ledger technology:

The technology primarily acts as an open ledger for everyone, which cannot be changed or edited. It is entirely transparent. Any information that is added to the system gets collected alongside the existing data stored. Thus, all the network participants have access to an enormous record of immutable transaction data on the platform.

Immutable records:

As mentioned earlier, records stored inside a blockchain technology cannot be changed, edited or deleted, thus making them immutable. These records are untouchable. If any error gets crept in, then an opposing transaction can be used to correct it.

Smart contracts:

One of blockchain’s most significant advantages is that it comes attached to a set of Smart Contracts rules. These contracts can execute functions automatically. In addition, the contracts determine conditions upon which the transactions are to be performed.

These transactions are encrypted, do not require the presence of a third party, and are entirely digital. Hence, there are no processing fees or time delays involved, unlike manual contracts. For example, a smart contract can transfer the ownership of a residential building to a new owner as soon as the previous owner is paid. 

How has blockchain disrupted modern businesses?

Blockchain technology is still very much in its nascent stage, yet it has had a significant impact on finance. While cryptocurrencies have been responsible for bringing the technology to the forefront, the advantages of blockchain have been recognized by various industries. As a result, most modern businesses are now undergoing a sea of change as they prepare themselves to usher in this new era.

These are some of the few advantages that blockchain technology provides over traditional business methods:

Decentralized transactions:

Blockchain is primarily an open ledger that can record transactions transparently. Thus, cross-border transactions will receive a much-needed boost upon their broader acceptance. In addition, it would help track down transactions easier than before. It could also help establish a cashless society.

With increasing decentralized transactions, businesses will reach out to clients across the globe and accept payments digitally. Blockchain provides a massive boost to secure, trustworthy and traceable transactions, which would generate immense revenue for the global economy.

The Central Banks of various nations, which operate based on the public’s trust, would not be required anymore. Instead, blockchain’s transparent and traceable solutions could provide a much clearer picture of the state of the economy.

Universal forms of currency:

The advent of blockchain has been a boon, and cryptocurrencies across the globe are reaping its benefits. The new forms of currency, such as Bitcoin, Ethereum, and Dogecoin, have been created upon the bedrock of blockchain technology.

There are more than 10,000 cryptocurrencies, and 50 million blockchain wallet users exist worldwide. However, they do not enjoy as much credibility as the American Dollar or the Euro. Regardless, they certainly have been impactful enough to garner the attention of both the private and the public sector entities. 

The rise of universal forms of currency will give a significant boost to globalization and benefit various industries. Eventually, businesses will be able to perform seamless transactions all over the globe without worrying about exchange rates.

How blockchain will transform various industries

While blockchain technology is considered relatively simple and easy, it can profoundly change the way modern businesses and industries function. Let’s have a look at the sectors where blockchain is playing a key and disruptive role.

Finance

Bitcoin is the best-known example of blockchain technology and has had far-reaching effects on finance. Companies that offer financial services and manage funds have already established their cryptocurrency units. Moreover, stock exchanges such as NASDAQ are also joining in on the blockchain bandwagon.  

Credit Suisse, a global leader in banking services and financial solutions, has partnered with Paxos to settle its stocks in the USA. An eminent blockchain company, Ripple, has partnered with banking giants such as Santander and Western Union to facilitate cross-border payments.

JPMorgan Chase has developed its blockchain-based currency called JPMCoin. This currency would help the organization to perform transactions with other institutions.  In a nutshell, blockchain has the potential to bring a paradigm shift in the financial sector.

Voting

The voting industry has been stagnant and devoid of significant changes over the last couple of centuries. The modern electronic voting machines can only offer minute improvements. The integration of blockchain into the voting system can potentially reinvent it. It provides unparalleled security measures and eliminates outdated methods of voting such as paper ballots.  

Follow My Vote has come up with a unique solution. It allows users to vote from their smartphones, tablets, or computers with complete security. This innovation is the application of Blockchain’s ability to store immutable records. The company is also collaborating with BitShares, a leader in the blockchain development industry, to develop the new voting platform.

Supply chain

Blockchain promises newer solutions and intriguing opportunities for the world of supply chains. For example, blockchain technologies allow organizations to store information such as price, location, date, quality, and more.

The technology makes management of such data very easy, offering users to monitor the progress within the supply chain. A seamless, transparent, and easily traceable supply chain will allow industries to function with the highest levels of efficiency.

The supply chain managers will be in a position to track the location of the products anytime. They can also resolve the discrepancies and supply chain delays ahead of the curve. Blockchain makes all this achievable while significantly bringing down administrative costs as well.

Human resources

Blockchain will help HR professionals to have easy access to verifiable data, and employment processes can receive a much-needed boost. It helps save time, improve overall efficiency and make hiring new talent a breeze.

The technology can also help HR managers to store employee data securely by implementing encryption. Smart contracts could also play a significant role in this industry. It can ensure payment to contract-based workers only after they have finished the assignment. Furthermore, HR can automate payrolls instead of waiting for the banks to process their salaries.

Chrono.tech is one of the blockchain projects developed to transform people’s approach towards jobs and contract-based roles. It uses smart contracts and untampered data to make accessing employment opportunities easier for both employees and employers.

Healthcare

Healthcare is another critical sector that would benefit enormously by adopting blockchain technology and making it mainstream. Traditionally, healthcare systems have always struggled to collect previous medical information of their patients. Furthermore, manual data entry can be error-prone, vulnerable to hacking, and challenging to track.

Integration of blockchain-based solutions into the industry will eventually transform record-keeping. Thus, paving the way for medical institutions to have better clarity on the patient’s medical history. Health insurance companies could also benefit from blockchain technologies. Clients often tend to hide past medical history from their records to take advantage of a specific policy.

HealthVerity is a player within the medical sector, which is developing permission and access rights-based technology. The HealthVerity platform will work on the blockchain network with the support of private and government entities. The technology ensures that only authorized professionals can handle the client’s medical data. Thus, the implementation of blockchain promises greater security and privacy.

What lies next for blockchain technology?

Blockchain has made a significant impact on the world of finance with cryptocurrency, making everyone take notice. Cryptocurrencies have the power to challenge traditional currencies and have already shocked the established players in finance. Thus, it can be an early sign of how blockchain can significantly impact the rest of the industries. 

The most significant advantage offered by blockchain is that no one can own it, promises unparalleled security, and is completely decentralized. This makes it a big hit with business houses and individuals who want to operate with greater privacy. In addition, various companies have recognized the potential of blockchain, and they are eagerly racing to implement it into their systems. As a result, the future for this relatively new but innovative piece of technology seems bright. 

Are you planning to explore the benefits of blockchain technology yet?

At the same time, the said project will also add no value to the primary objectives and will utilize resources that can otherwise be allocated to a profitable and strategically aligned project. Thus, It will further eat up from the firm’s capital without generating any substantial revenue or tangible/intangible benefits.

The above example illustrates the requirement for a project selection criterion. Similarly, it is vital to follow a systematic approach for any investment that one makes, be it a new software / technology or specific service. Thus, a data-driven finance model will allow one to select the best possible solution out of multiple options.

One such technique is called cost-benefit analysis. It will allow you to make the best investment decision for your firm based on the principle of time value for money.

This article takes you through the key concepts constituting the analysis.

Let’s begin with the basics,

What is cost-benefit analysis?

Cost-benefits analysis is a financial model that considers both tangible and intangible benefits for decision making. Additionally, it considers the associated costs (fixed and recurring), and compares the two, yielding concrete results. Based on the procured values, managers will be able to make data-driven informed decisions about any investment.

If the benefits outweigh the cost, then it’s a feasible venture, and when the cost outweighs the benefits, one may need to rethink their decision. Overall, cost-benefit analysis is an invaluable tool for any organization to form the right business strategy, evaluate a new project, software, or any other purchase decision.

Cost-benefit analysis is an extensive calculation of multiple attributes such as the direct costs, indirect costs, real costs, and more. One of the most important factors to calculate before deducing the final cost is Total Cost of Ownership.

Below you will find its detailed description,

Why is it important to consider Total Cost of Ownership (TCO)?

The total cost of ownership is a financial estimate that facilitates decision-makers or buyers to calculate and determine the indirect and direct costs of an entity. Rather than only considering the purchase price of the product/entity, the TCO factors in the additional expenses like the cost price, the insurance, the maintenance or service costs, and so on.

For instance, if you are buying software, the TCO will factor the buying price, cost of the license, license renewal costs, training, data migration costs, software maintenance and support, configuration, and others.

So, the total cost of ownership is an integrated approach that considers the financials at a granular level and thus provide a precise value of the investment.

TCO is just one part of the cost-benefit analysis. Here is a step-by-step guide on how to do it with the utmost diligence,

How to conduct cost-benefit analysis steps?

In order to make the calculation precise, the cost-benefit analysis implementation caters to all the nitty-gritty of the investment. From formulating the right framework to calculating costs and benefits and even factoring in the risks, it covers it all. This is why it is one of the most preferred models for business decision-making.

Following are the steps you can take to get it right:

Formulate a framework based on your objective

Your framework is the foundation of the analysis as it outlines the goals and objectives of the particular endeavor you are evaluating. Let’s continue with the same example, you are planning to buy a software. What is your objective behind buying it? It can be either replacing the mundane tasks with automation, or replacing multiple legacy tools with a centralized platform, and so on.

So, the framework will be designed accordingly. It will emphasize the details and give a clear understanding of the costs and benefits as both are critical to determining the outcome. Also, keep in mind to decide all the necessary metrics you will be deploying to gauge and compare the costs and benefits. Furthermore, one needs to maintain a common currency for all the calculations.

Calculate the total cost of ownership and benefits

After developing the framework, the next step is to compile two separate lists of costs and benefits for each of the proposed investments.

• Costs

In case of costs, the total cost of ownership will be an amalgamation of the following categories:

Direct costs

Direct costs are the expenses associated with the production of a product or development of a service or the purchase price of an investment. Labor costs, material costs, licensing costs, etc., are some of the examples.

Indirect costs

Indirect costs are mostly fixed in nature and consider the overhead expenditure of conducting the business such as utilities, rent, transportation costs, etc.

Tangible costs

Tangible costs are simple to quantify and have an identified source. For example, the direct and indirect costs are tangible costs.

Intangible costs

Intangible costs are qualitative in nature and difficult to quantify or measure in numbers. Some examples are the shifts in customer satisfaction, productivity levels due to the introduction of a new process, etc.

Opportunity costs

When decision-makers forego a project, product, strategy, or tool to select another option, they lose opportunities and benefits. These are known as opportunity costs.

• Benefits

The benefits will be calculated on similar lines. Below is the rundown of different categories:

Direct

The measurable benefits you avail of from a project, service, or software, such as revenue, profit, or sales, are known as direct benefits.

Indirect

Indirect benefits are the qualitative benefits that one cannot measure but perceive. For instance, increased brand awareness or consumer base.

Intangible

Similar to indirect benefits, intangible benefits are not quantifiable. Improved employee morale or productivity are some of the examples.

Competitive

As the name suggests, competitive benefits are the ones you can avail of by being the first brand in the market to introduce a new product or service.

Draw a comparison between the cost versus benefits

After listing out all the costs and benefits, the next step is to draw a comparison between the two and get the final value. This is also known as Return on Investment. It is a financial metric that emphasizes the profitability of your investment relative to the investment’s cost.
The ROI is calculated using a simple formula:

Return on Investment (ROI) = (Current value of investment – cost of investment) / Cost of investment

Here, the current investment value implies the current year’s value or the benefits and cost of investment is the initial value invested.

Ideally, the ROI should be positive for you to invest in a product/service or software. If it’s negative, you might want to rethink your decision.

Please note that this ROI calculation does not take into account the time value of money.

With/without analysis

One more way to draw a comparison is a with/without analysis. For instance, if you are buying software, the ROI will depict the benefits. On the other hand, without analysis will give you a picture of your organization’s structure or scenario if you don’t buy the software.

This analysis strengthens the decision-making power by allowing you to weigh the scenarios in the absence and presence of the proposed entity.

Factor in the Necessary parameters

Let us define some of the financial terminologies that are needed to complete this analysis.

• Net present value (NPV)

The net present value accounts for the time value of money and is calculated to determine the present value of the cash flow by taking the discount rate into account.

The discount rate is either the interest rate charged by the government or the rate used to discount future cash flows. If the NPV is positive, it implies your project or software will generate revenue in the long run, making it feasible, and the negative NPV calls for a re-evaluation.

• Sensitivity analysis

Sensitivity analysis or a what-if analysis takes you one step further towards your analysis. You can change the value of some variables and study how it influences the overall value you deduced from the CBA. In other words, sensitivity analysis lets you factor in the risks you may encounter during the course of the project or any other investment. It analyzes the robustness of the CBA giving a more precise result.

• Internal rate of return (IRR)

The internal rate of return is a financial metric implemented to evaluate an investment opportunity’s attractiveness. When you assess the IRR, you are practically evaluating the return rate after considering all the projected cash outflows while considering the net present value (NPV). The solution, software, or product that gives you the highest rate of return is selected over others.

Deduce a conclusion after diligent study of the results

Before drawing a concrete conclusion, the final step of the analysis is to consider all the external factors and risks that can impact the CBA results. These can be called the ‘wild-card’ issues that are not always deemed to happen but should keep an eye out for them.

Some of the risks involved are:

• Inaccuracies in the estimation of costs and benefits value can literally nullify the whole analysis.
• Cash flows are unpredictable that experience peaks and valleys, and thus putting a definite value on then can be challenging.
• Even though CBA allows you to put value or money sign on the intangible benefits, not all of them can be quantified.
• One stakeholder can value an intangible asset differently than the others. It’s a subjective entity.
• Relying on the previous project’s data can prove futile as the values vary based on the discounted rates and other factors.

Once you are thorough with all the calculations, it is time to do a final comparison between the cost-benefit ratio of different options and select the most cost-effective one.

To make these complex concepts simpler to understand, here is a real-life example of cost-benefit analysis.

The real-world example of cost-benefit analysis- Buying a resource management software

Disclaimer: This example is a decision-making model designed to explain to the users the significance of CBA in helping you make the right investment. This particular model is designed to explain its utility in software selection. The type of costs and benefits integrated into the sheet may vary for different organizations based on their needs and requirements. We have used some fictitious values to demonstrate this concept. It will be necessary to take help from the SMEs and business users to quantify numerical values out of the Intangible benefits.

How to use CBA to buy the right resource management software?

Let us suppose you are planning to invest in resource management software. Of course, since there are tools available in the market for this purpose, the first step will be to compare similar products and draw a conclusion. For this purpose, we have developed an excel that explains how a cost-benefit analysis can prove fruitful to help you make the right decision.

As the first step after forming the framework is to calculate the costs and benefits separately, we have followed suit.

Cost:

The first-purchase cost of the software include:

• Hardware cost – $ 6500
• Hardware maintenance cost – $1000
• Initial software licensing cost – $1000
• Software Maintenance cost – $4000

Total costs= $12500

Only maintenance costs will be incurred in the following years as the hardware installation and licensing is a one-time cost. So, for the next two years the cost will be:

• Hardware maintenance cost – $500
• Software Maintenance cost – $4000

Total costs for 2 years = $4500*2= $9000

However, these values are based on the current rates and have not factored in the future discount rate. So, now the next step is to calculate the present value of the second and third year with a future discount rate of 12%. These values are calculated using the excel formula.

The values will be,

• The present value of 2nd year= $3544.05
• The present value of 3rd year= $3993.53

After listing out and assessing all the parameters, the final step is to sum up the costs of these years and calculate the total cost of ownership which comes out to be $ 20,037.57 in 3 years.

Benefit:

After getting all the costs in place, the next step is to list all the benefits carefully. Since it’s a resource management software, the first tangible benefit to look at is reducing resourcing costs, followed by a reduction in hiring/firing costs and an increase in employee productivity.

You will not experience any visible savings on resource and hiring/firing costs in the first year because setting up a resource management strategy and forming a resource plan takes time.

• Savings on resources cost- $0
• Productivity Increase- $200
• Savings on Hiring/Firing Cost- $0

In the next following years, the benefits will look like,

• Savings on resources cost- $7000 + $13000
• Productivity Increase- $1200 + $1200
• Savings on Hiring/Firing Cost- $3000 + $4000

Similar to the pre the next step is to calculate the present value of the second and third year with a discount rate of 12% using the excel formula.

The values are:

• The present value of 2nd year= $14333.70
• The present value of 3rd year= $9939.43

The intangible benefits can be only be perceived after the software is utilized for a year. Qualitative benefits are long-term effects and, in this case, client satisfaction and user acceptance are the ones. This is because deploying a resource management system leads to the timely completion of projects result in enhanced customer experience. Additionally, the software is user-friendly as it provides real-time unified visibility and a smooth user interface, thus increasing the user-acceptance.

• Business User acceptance – $700 + $900
• Client Satisfaction – $400 + $1000

The present value for the above benefits is as follows:

• The present value of 2nd year= $1496.375
• The present value of 3rd year= $976.194

After calculating and summing up all the values of both tangible and intangible benefits, the total was $ 26935.74.

Final calculations and comparison:

After calculating the costs and benefits, the ROI, NPV, IRR, and payback period were calculated to see the definite cost to benefit ratio.

The first step here is to evaluate the Returns. So, considering the net present value of the costs and benefits,

The return will be,

Total Benefits (tangible + intangible) – Costs = $ 26935.74 – $20,037.57= $ 6908.14

After deducting the costs, the positive value of the returns indicates a green signal to go ahead with the software.

We also calculated the internal rate of return using the NPV formula and making the NPV zero.

The IRR was 49% which is substantial enough to go ahead with the investment. This needs to be higher than the discount or the coupon rate.

The payback period of the software came out to be 1.29 years. It indicates that the benefits will be higher than the costs after 1.29 years and the investment will generate revenue.

This financial data proves that it makes sense in investing in a resource management software

Conclusion

You can draw a similar sheet for all competitor products, carry out the cost benefit analysis for each and derive a conclusion based on the results.

The software with the highest returns, best IRR, and the lowest payback period is the right choice for this purpose.

At the same time, if you are planning to build software on your own rather than taking a third-party tool, you can carry out a Build vs. Buy cost-benefit analysis.

It will give you a clear picture of the cost vs. benefit ratio for building the product against the value of CBA if you buy it.

This additional comparison will give you a 360-degree picture of the returns of investing in new technology and add an extra layer of precision.

Now that it is fairly clear on how to conduct a full-fledged cost-benefit analysis, here is a wrap-up of all the pros and cons of this model that you must keep in mind.

Conclusion- Advantages and disadvantages of cost-benefit analysis

Even though cost-benefits analysis is one of the most accepted financial decision-making models amongst businesses, it has its own set of disadvantages. Here is a compiled list of both,

Advantages

• The cost-benefit analysis offers an agnostic and evidence-based assessment of your multiple prospects, enabling you to become more data-driven.
• Cost-benefit analysis can be used in multiple scenarios like project selection, software investment, evaluating recruitment decisions, setting standardized protocols to compare and select the right project, etc.
• The analysis reduces the complexity of business decisions by categorizing all the costs and benefits and calculating each entity individually.
• The fact that cost-benefit analysis factors in indirect and intangible costs and benefits make it more accurate and granular.

Disadvantages

• Even though cost-benefit analysis puts value to all attributes, certain business parameters are unpredictable, such as market volatility, change in market demand, material costs, etc.
• CBA is completely data-centric, so if your data is based on pure guesstimations, this entire analysis is futile and error-prone.
• This analysis is only beneficial for short-term or medium-term projects because the longer the duration, the more are the chances of inaccuracies in economic predictions. For example, discount rates, inflation, etc.
• There are unpredictable, immeasurable human elements that are not catered to while conducting a cost-benefit analysis. For instance, one may decide to go ahead with a project due to humane reasons and not numbers. Obviously, this cannot be reconciled with this business case model.

If followed and implemented meticulously, CBA can prove to be a boon for your business and enhance your project or software, or product inventory. If not, it can take the progress downhill. So, avoid overlooking any attribute because every small number added can change the ratio substantially.

What decision-making model do you follow to make a suitable investment?

Glossary

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As a result, “34% of HR leaders invest in workforce learning and reskilling as part of their strategy to prepare for the future of work.”

These technologies have brought numerous benefits such as:

• Higher productivity.
• Better GDP growth.
• Improved performance.

But they have also changed the way we view human workers now.

In an interview with the New York Times, the tech avantgarde Elon Musk said that artificial intelligence would take over humans in the next five years.

In this blog, we shall discuss which jobs AI or robots may take over in the future.
But first, let’s discuss what these terms mean:

• Artificial intelligence (AI).
• Machine Learning (ML).
• Robots.
• AI-enabled robots.
• Robotic Process Automation (RPA).

What is AI?

Artificial intelligence or AI simulates human intellect to machines. AI-enabled machines are capable of performing specific tasks better than humans and mimic human actions. There are four types of AI:

• Reactive machines: This is the most superficial level of AI. Reactive machines can do basic operations. They cannot form memories or use past experiences to make decisions. IBM’s Deep Blue is the perfect example of this type of machine. This AI beat international grandmaster Garry Kasparov in 1997.

• Limited memory: This AI type can store existing data and create better output by using the data. For example, Tesla’s self-driving cars observe the speed of vehicles and direction and act accordingly.

• Theory of mind: Theory of mind can connect with human thoughts and interpret them better. The AI can understand people and have thoughts and emotions of its own. These AI machines are still hypothetical, but researchers are making many efforts to develop such AI machines.

• Self-aware AI: This type of AI is a thing of the future. A self-aware AI will have an independent intelligence, and it will make its own decisions. These machines will be smarter than the human mind.

What is Machine Learning?

Machine Learning is a discipline within artificial intelligence where systems can learn from past data, identify patterns, detect anomalies, and make decisions with minimal human intervention. Once the system has learned from the past data, it can provide an inference based on the new input parameters.

There are primarily three different types of machine learning, namely:

Supervised Learning

Learning takes place from the training dataset under supervision. The input and output data are known for the training data, and the learning process establishes a relationship between them.

Unsupervised Learning

The corresponding output variables for a set of input variables are not established in unsupervised learning. Algorithms such as clustering and association are designed to model the data’s underlying structure or distribution to learn more about them.

Reinforced Learning

Reinforcement learning employs trial and error methods to come up with a solution and gets either rewards or penalties for the actions it performs. Reinforcement learning is the most effective way to hint at a machine’s creativity.

What is a robot?

A robot is a machine that is capable of carrying out specific tasks automatically. It can replicate human efforts and provide better outcomes.

There are five types of robots:

• Pre-programmed robots: Pre-programmed robots can perform simple tasks. A mechanical arm used for welding in the automotive industry is an example of a pre-programmed robot.
• Humanoid robots: These robots can perform human-like activities. They look like humans and mimic human actions. Hanson Robotics’ Sophia is a perfect example of humanoid robots.
• Teleoperated robots: Humans control these robots. They perform tasks in extreme conditions where humans cannot operate. Human-controlled submarines or drones are examples of teleoperated robots.
• Autonomous robots: These are independent robots that do not require human intervention. They carry out tasks on their own. A perfect example would be the Roomba vacuum cleaner. It uses sensors to roam throughout a home freely.

• Augmenting robots: Augmenting robots enhance human capabilities by replacing the ineffective part. Some examples of augmenting robots are prosthetic limbs or exoskeletons.

What is an AI-enabled robot?

Reinforcement learning principles apply to AI-enabled robots. It enables a robot to autonomously discover an optimal behavior through trial-and-error interactions with its environment. Solving complex problems using this approach allows AI-enabled robots to take over repetitive tasks from human beings.

AI-enabled robots can navigate, sense and monitor their actions through computerized vision. These robots can learn on their own and calculate their reactions accordingly.

The manufacturing factories use AI-enabled robots. The following are some of the fields where AI-enabled robots are used:

• Assembly
• Packaging.
• Customer service.
• Repetitive custom tasks.

What is Robotic Process Automation (RPA)?

Robotic Process Automation (RPA) allows the robot to integrate with human interactions and execute business processes just like humans. RPA enables the robots to manipulate business applications, interpret and communicate with systems to automate repetitive tasks.

RPA robots can operate tasks nonstop and at a much faster rate than humans. Their precision and reliability are unparalleled.

Most organizations are implementing AI and other technological advancements in many areas, starting from manufacturing to customer management. The introduction of technology has made some rapid changes in the way we work. And ideally, automation will lead to some significant changes, to the extent of AI replacing jobs.

However, the primary question remains,

Will robots take our jobs?

It is probably not an easy answer to provide, but the concern is far from being baseless.
Even if the change is not imminent right now, industry experts such as Fortune have stated that “robots will replace 40% of jobs in the next 15 years”.

AI and advanced technology expect that processes will become smarter, and machines will be more humanized in the long run. However, the problem is that it may also make a few jobs redundant.

According to the World Intelligence Congress, AI, virtual personal assistants, and chatbots will replace almost 69% of the manager’s workload by 2024.

When technology and computers were introduced, they showed improvements in productivity, global reach, and faster communication across the world. Computers have reduced or eliminated paperwork to a great extent, for one. IT and software have enhanced our problem-solving, reasoning, knowledge, learning, and planning qualities.

But do you think robots are taking over your job as well? It may be hard to predict the exact impact that AI will have on specific assignments. Mechanization and technology have had some effect on particular professions. Similarly, AI might also have that impact.

Let’s look at some of the professions that may be deemed redundant in the future and why.

12 jobs that robots will replace in the future

Based on the nature and type of these jobs, here is a rundown of the jobs that AI machines are most likely to perform in the future:

Customer service executives

Customer service executives don’t require a high level of social or emotional intelligence to perform. Many companies now rely on AI to answer FAQs and customer support questions. Chatbots are not only becoming a significant part of customer interaction. They also support a lot of internal queries, among others.

Bookkeeping and data entry

There is a chance you may not have heard of bookkeeping as a profession in a long time. Instead of using humans for data entry and bookkeeping, it makes sense for AI and ML (Machine Learning) to be introduced in the product cycle.

Receptionists

And with auto check-ins in both large and small hotels, there will be a lesser need for receptionists in the long run. Nowadays, even in fast food joints, people can place orders through communication screens or tabs. With AI’s introduction, there is a good chance that robots can handle ordering and other related functions.

Proofreading

While editing is a more complex job in terms of tonality, comprehension, and others, proofreading is much simpler. Detecting grammatical mistakes, sentence construction, and other errors can easily be automated through different apps. For example, Grammarly is one of the most famous apps that professionals use for this purpose.

Manufacturing and pharmaceutical work

This sector is probably the most extensive area where people are scared that AI will take over jobs. When the production process for most commodities produced today has been mechanized, the operational aspect can also be handled by AI.

Even in pharmaceutical labs, robots can work together with scientists providing a much safer environment. Scientists will no longer be putting their lives less at risk.

Retail services

Automated services have replaced people who carry out the way sales. From several merchants focussing on self-ordering and payment options, AI can very quickly be involved as well.

Robots are replacing retailer jobs in many shopping conglomerates to understand customers’ patterns. Moreover, the advanced data analysis of AI machines shows other products that customers might be interested in in the future.

Courier services

AI has introduced many social and economic changes to the delivery industry. It has streamlined various logistics and supply chain functions. Drones and robots are already taking over courier services. Aside from the manufacturing industry, the transport sectors will be most affected when robotic automation booms in the future years.

Doctors

We are already witnessing robot-surgeons perform critical operations worldwide, and it’s only a matter of time before they completely replace us. Robotic doctors will make more accurate and effective treatments for the patients compared to their human counterparts. There is also less chance of infection due to more sterile measures and no room for human error.

Soldiers

Military professionals are sure that future battlefields will consist of robots that can follow orders without constant supervision. Robots are significantly being used in military operations for various tasks such as surveillance, intelligence, and many more.

Recently, the head of the UK military stated that “autonomous robots could soon form a quarter of the British army by 2030.”

Taxi and bus drivers

There is a 98% chance that this sector will be completely automated. Self-driving cars are already here, and it won’t be long before fully autonomous vehicles take over us.
As per the Los Angeles Times, self-driving trucks could replace 1.7 million American truckers in the next ten years.

Market research analysts

Research analysts are crucial for every organization. They conduct market research to increase the performance of their business. AI-enabled robots are gaining popularity in this sector because of the comprehensive data that they provide.

Security guards

AI has made substantial advancements in the field of physical security. For example, Yelp’s security robot can inspect a building with its high-definition camera. It also has a directional mic and infrared sensor that can detect any suspicious activity. There is an 84% chance that AI will fully automate this sector in the future.

With an increasing dependency on technology for these functions, human involvement will be redundant for future jobs. But does the future look that bleak for everyone who has a job?

12 jobs that AI can’t replace

Human creativity knows no limits. Strategic thinking, thought leadership, conflict resolution and negotiation, emotional intelligence, and empathy are qualities in jobs that AI cannot replace at any point in time.

Following are some of the professions which would stand the test of time:

Human resource managers

A company’s Human Resources department will always need a human to manage interpersonal conflict. Humans possess non-cognitive and reasoning skills. Robots cannot understand human emotions; hence this job won’t be replaced by robots soon.

This sector will grow 9% by 2024. The likelihood that robots will take over this sector is 0.55%.

Writers

Writers have to ideate and produce original written content. Every piece of writing is unique. Machines can never personalize the way humans do. They cannot relate to other humans. Writers need to have creativity and empathy, which AI won’t be replacing soon.

AIs can do some of this with pre-programming, but robots can never take over the creative side.

Lawyers

Being a lawyer implies being smart enough to bend the rules in your favor. A robot will never know the precise point to hit the opposite party with the right argument. Robots cannot have the emotional intelligence to persuade people. A robot cannot reason with another human being.

However, robots can help in terms of processing evidence.

Chief executives

Chief executives have to look after a broad spectrum of operations. They need to motivate vast teams of people working for them. Every leader is integrated with a myriad of leadership skills. There is no absolute formula for being the best leader and no fundamental algorithm to teach the machines.

Robots cannot understand a person’s feelings or state of mind and cannot replace this job.

Scientists

There is a lot more to a scientist than just performing wet-lab experiments. The countless hours in research, the curious trait to invent cannot be replicated by any possible machine. Robots can help analyze data for scientists, but robots cannot develop or be very creative.

Clergyman

A clergy needs to have the power to guide and preach to his audience. He should have empathy, emotion, and faith to inspire other people. One cannot teach a robot to instill confidence in other human beings.

But it would be amusing to see an AI-enabled priest in the future.

Psychiatrists

Even the best scientists and doctors in the world do not understand completely how a human brain is wired. To connect to every individual, it takes extreme empathy and compassion. Robots can never understand the human mind. Robots cannot express feelings or have compassion for others.

So it is quite impossible to have a robot psychiatrist in the foreseeable future.

Event planners

Planners have to coordinate and negotiate with other people to make things come together. Event planning needs creativity and coordination. Do you think a machine can ever have coordination and organizational skills? Certainly not. Thus, this job is unlikely to be taken over by robots.

Graphic designers

Graphic design is both artistic and technical. It takes an immense sense of understanding to comprehend what your client wants. Every consumer’s requirements are unique, and a machine cannot possibly do so. Like writing, it has to be original and created as per the requirements.

Robots can never have these skills or the creativity required to operate.

Public relations managers

PR managers need to rely on a network of relationships and contacts to create buzz for the clients. They have to raise awareness around an issue and raise funds. PR managers should have a connection with people to make them participate in the campaign. This requirement makes it a safe position for humans in the future.

Software developers

Software development is hard enough for even human beings to do. It requires a tremendous amount of time and skill investment to create applications or software. Since different clients have different demands, the product has to be customized and perfect. It will be hard for AI to replicate the work and make it responsive.

Project managers

The project manager is responsible for leading the project from start to finish. They must keep constant communication with all others on the project and are required to be on-call at all times. AI can help project managers to a great extent. It will lead to increased project success rates. But it is improbable that AI will replace project managers. On the other side, activities where the schedules are continually changing, and there is no exact pattern, robots will not be able to master.

Will robots replace humans?

Robots today are continually being developed and are learning and adapting to their environment. To some extent, there will be a significant impact of artificial intelligence on employment. But, one should also remember that empathy, cognitive thinking, and emotional intelligence are traits that make humans unique and irreplaceable.

Some customers prefer to talk to human representatives when they have a problem, and AI can never take that.

Overall, AI has a great future and will be one of the essential tools for organizations in the future. It is unlikely that even the best of robots would replicate a human being’s warmth and understanding.

So the question: “Will they replace humans altogether?” cannot be answered.

Future-proofing the jobs

When computers were introduced to help business processes, many people were skeptical that there would be severe job losses. However, it became part of everyday life, and new categories of jobs emerged. The workforce, however, needed to reskill and adapt to a different style of working.

Artificial Intelligence is expected to bring a similar kind of revolution in the technology field. As a result, the future workforce will be required to go through a similar transformation. There will be changes in the old way of doing things, and a new employment source will be made available.

AI-enabled Robots will efficiently execute all the repetitive, well-structured, and mechanical tasks. Most of the analytical work which requires critical thinking cannot be taken up by machines. Human resources will, however, be required to upgrade their skill periodically and stay relevant.

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The business industry has seen a massive transformation in terms of work culture, management practices, skill requirements, and so on over the past decade. Technology is the major propeller behind these reinventions. It has empowered and enabled businesses to expand their horizons.

For example, telepresence has facilitated employers to recruit from beyond geographical peripheries. The second major example is Automation. It has eliminated the need to spend countless hours on mundane admin work. Employees can now focus and spend time on human-specific business work that demands critical thinking. The list of these instances is endless.

One of the major industries that have seen a paradigm shift is the Professional Services Industry.

With ever-evolving market trends, there is a radical shift in customer demands, business models, and the way services are delivered to the clients.

It’s time for decision-makers to accept and adopt these trends to stay relevant in the long haul.

This blog highlights 5 major professional services trends that are disrupting the industry. Before we dive deep into it, let’s get the basics right.

What are professional services?

Professional services encompass a plethora of occupations that extend support to businesses in the form of consulting, advice, or by performing other tertiary roles.

Some of the key services include:

• Law- Providing legal assistance to the firms to ensure they adhere to the current laws and regulations.
• Audit & Accounting– Reviewing and assessing financial accounts to ascertain the legality of their financial records.
• Consulting- Working coherently with the organization to help them maximize their operational efficiency
• Financial advisory- Helping the decision-makers to make sound investments and secure their finances
• Actuarial Science- Predicting and evaluating future financial risks using statistical models

The reason behind taking external help from these services is their professional expertise, business acumen, and years of experience. Thus, to keep serving the organizations to the best of their abilities, every professional services firm has to keep up with the trends and adopt a core strategy that aligns with the ever-evolving market.

Let us see how

Re-evaluate the core strategy to align with the new norms

The two paramount characteristics that set the professional service firm apart from other business are:

• The bespoke service they offer to every client regardless of the tools and models used.
• The underlying nature of cultivating and fostering long-lasting client relationships.

In order to maintain the competitive edge, it’s imperative to walk along with the new norms that are redefining your industry. For instance, you cannot compete in a technology-driven market with silos of data and legacy tools. You need to equip the advanced and robust software to provide automated delivery and more-accurate insights to the clients.

The new norms that are driven by technology and other factors demand a more agile, value-driven, and tech-enabled firm. Thus one has to focus on the proactive and targeted transformation of their core strategy to increase sustainability.

These innovative trends that are compelling you to redefine your strategy can be categorized into two sections:

• Business-centric
  • The emergence of Automation and Artificial Intelligence
  • Increase in globalization and virtual offices
  • A value-driven revenue model
• Employee-centric
  • Recruitment of hybrid talent to fill the skill gaps
  • A tech-enabled work-culture to enhance team engagement

Here is a description of each one of these in detail:

The trends that will transform the PS industry

• Business-centric trends

Emergence of Automation and Artificial Intelligence

In order to provide the most appropriate business solutions to clients, professional services demand extensive data-analysis. This process is time-consuming and prone to human errors.

The onset of Artificial Intelligence and Machine Learning has made this tedious process simpler. It essentially interprets the real-time data and organizes large chunks of data into usable information. Resources also can learn from the past data and generate strong, data-driven insights for the clients. This systematic arrangement of data helps them make sense out of complexities conveniently.

Technological advancement does not limit here. Organizations are now gearing-up to automate the mundane back-end tasks that limit the employees from doing valuable work. This enhances task efficiency and enables resources to focus on activities that are role-specific and polish their skillset and capabilities.

Emerging technologies such as RPA (Robotic Process Automation), Chatbots, IoT (Internet of Things), Block-Chain, and CNN (Convolutional Neural Networks) are creating a new business model for traditional businesses.

According to a report by Mckinsey, a leading bank automated about 900 of its back-end operations to relieve 50% of its full-time employees from their admin tasks. Some of these employees were successfully deployed in other meaningful activities within the bank to increase overall productivity.

Increase in globalization and virtual offices

Gone are the days when recruitment was restricted to specific locations due to communication, collaboration, and performance tracking barriers. A myriad of collaboration and video-conferencing tools are available today to make information-sharing a breeze.

Moreover, intuitive project and resource management tools have allowed managers to keep a track of their projects and resources’ performance from across geographical boundaries. Due to these provisions, clients are approaching the firms based on their reputation and work regardless of where they are located.

In addition to getting global clients, firms are recruiting valued talent with niche skills from across the globe. This is because virtual offices and remote work have become an integral part of the work culture and environment. Moreover, the COVID-19 pandemic has escalated the emergence of virtual offices.

In fact, a recent study from Gartner reveals that 82% of Company Leaders Plan to allow employees to work remotely.

In short, the skills scarcity and unavoidable circumstances have led to an increase in globalization and remote workspace.

A value-driven revenue model

Professional services like Audit & Accounting charge the client on an hourly basis. This billing model does not consider the value generated out of each task. For example, an hour of billable work is leading to 10% of tax savings for the client. However, you are still invoicing the client based on the employee’s charge out rate rather than on the task’s value.

This reduces the profit margins for professional services firms and the clients fail to see the benefits of the overall project. To change this, firms are now opting for a value-driven revenue model that will bill the client based on the benefits and profits they make during the course of the project.

A client will now pay for the overall gains such as tax savings, ROIs, insurance claims, and so on. This shift from time-driven to the value-driven model allows PS firms to get more clients and increase their profitability.

These are some of the business-centric trends that are disrupting the PS realm. Let us now see the trends that are transforming the workplace culture,

• • Employee-centric PS trends:

Recruitment of hybrid talent to fill the skill gaps

Often the firms end up hiring permanent employees for one-time project tasks. This results in unnecessary administrative overhead costs. Unplanned or inappropriate hiring happens due to inefficiency in pipeline management and capacity planning. Now that organizations have the liberty to digitize their resource and project management platforms, they are going for a hybrid-talent model.

Hybrid talent refers to creating the right resource mix i.e. a team of full-time employees, contractors, freelancers, and so on. It also includes creating a team based on the band-levels, resource costs (local and global resources) to control the project financials.

Professional services firms are now adopting advanced tools that predict the resource demand in advance and allow them to draw out a hiring plan. This greatly reduces the project resourcing costs and increases their profitability.

Furthermore, these tools provide real-time visibility of resource schedules and their utilization levels. Managers can leverage this and optimize resource allocation thereby preventing employee burnout.

A tech-enabled work-culture to enhance team engagement

Team engagement is critical to driving business to success. According to Forbes, highly engaged teams show 21% greater profitability. Encouraging team engagement is easy when you are working in co-located offices. However, it becomes a challenge when your team is distributed across different locations.

With the advent of highly-advanced collaboration tools and companies investing to foster a tech-enabled work culture, employees can communicate and share important information in real-time. This enhances team engagement and allows quick problem-solving.

Moreover, when teams are connected, their productivity increases and gives better results. Professional services firms are therefore indulging in building a tech-enabled work environment that will strengthen their employee’s morale and improve performance.

Conclusion- The future of Professional Services

The growing trends and technology have provided a historic opportunity for the professional services industry to pivot and change the nature of business.

If the firms adapt to these evolutions, how will the future face of PS look like?

The project-delivery will be more efficient, accurate, and data-driven. The client-engagement will grow leaps and bounds in the presence of advanced collaboration tools. The ease of sharing real-time data will escalate and simplify performance tracking.

Business Intelligence will provide comprehensive reports on varied project metrics that will allow you to predict and plan in advance. In addition to this, automation will improve the productive utilization of resources to a great extent.

Overall, the ever-evolving trends will disrupt and change the face of the professional services industry.

Are you ready to evolve and grow along with them?

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