Originally published by John Chambers on LinkedIn: Survival in an age of digital disruption
In this series, we asked speakers at the Milken Institute Global Conference to answer: How does one build a meaningful life in the age of technological disruption? Join the conversation by writing your own article here and including #MIGlobal.
There’s no shortage of examples of digital disruption. Advances in digital technology in recent years have upended the entire global business landscape – just over half of the names of the companies on the Fortune 500 have disappeared since the year 2000, and this pace will not only continue, but accelerate dramatically.[1]
By now, most companies and even countries have come to the realization that they both have major opportunities, but are also vulnerable to digital disruption, and rightfully so. The economic benefits for those who take advantage of this opportunity are becoming increasingly apparent: it’s estimated that digitization could generate USD $19 trillion in economic value over the next decade.[2]
This is the greatest technology transformation in history, and it’s only just beginning. Here are the three leadership priorities for ensuring continued survival in the Digital Age:
Replicate “Silicon-Valley” innovation on a global scale: It’s no surprise that executives and entrepreneurs regularly travel to Silicon Valley from around the world to learn the secrets of its success. Perhaps never before has one place created so much innovation in such a short period of time.
In reality, what happened in Silicon Valley could happen anywhere. There’s no reason why other regions can’t harness the same key elements that are found in the Silicon Valley ecosystem, specifically its culture of constant reinvention and disruption, to create similar innovation ecosystems of their own.
As a result of forward-looking strategies to advance digital innovation, we’re beginning to see other tech hubs emerge around the world that could one day rival Silicon Valley. Nowhere is this more apparent than in France, which thanks to government programs like “La French Tech” to help technology startups gain momentum and visibility, now leads Europe for the number of venture-capital funding rounds.[3] Similarly, new startup hubs are also cropping up in the U.S., such as in Austin, Tex., which is now home to the highest rate of new entrepreneurs in the country thanks to government incentives, a strong talent base and a culture that thrives off of creativity and innovation.[4]
Empower the workforce for jobs of tomorrow: While digital technology will create unprecedented economic opportunities around the world, at the current trajectory, most people won’t be ready to take advantage of the new jobs being created. McKinsey estimates that by 2020, there will be a shortage of 40 million high-skilled workers and 45 medium-skilled workers globally.[5] Left unaddressed, we can expect the inequality gap between workers to widen, especially as the use of artificial intelligence and advanced robotics becomes more prevalent. Some experts predict that as many as 47 percent of jobs could be automated over the next two decades.[6]