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Automation
Project
Findings from the
Preliminary Research
Paper
28 July 2017
A Study of Automation
Automation can involve a range of technologies, such as computerisation, artificial intelligence,
data analytics, robotics, and nanotechnology.
The central story of automation is not about technologies, or technological disruption, or even
the replacement of human workers in certain jobs; instead it is about a transformation in the
nature of work, ensuring existing workers are skilled to drive automation-enabled change and
growth, and the substantial challenge of preparing people for jobs of the (very near) future.
A Study of Automation
Scope of automation
Automation is the use of technologies to make processes run with a substantially reduced
reliance on human involvement.
A Study of Automation?
Definition
Competency Impact
Senior Group Manager, Westpac
Competency Impact
“The shelf life of technical competencies
is 26 months and reducing! We simply
cannot keep pace with the change
automation is bringing not only to our
workers, but how we recruit, train and
develop staff to be bankers of the future.”
1. Automation will impact all but a few training packages and all IRC and SSO
jurisdictions.
2. A review of all endorsed training packages indicates 280 units are most likely in need
of immediate review as they contain an activity or component that involves automation.
3. No competency standards were found that could directly enable the individual workers,
a business or industry to respond to the challenge of introducing automation.
4. The existing training packages classified as extremely exposed to the impact of
automation on units of competency include Transport and Logistics (46); Construction
(40); Property Services (31), Information Technology (28), Manufacturing (17) and,
through indicative analysis, the Defence training package (62).
Competency Impact
Initial Findings: Training Packages
5. The level of impact of automation on a current training package is not a reliable
indicator of future extent nor speed at which automation will impact the training
package. This is because research indicates some packages have coverage of
occupations where high levels of automation are impacting jobs but their rating is low
or moderate, and no correlation has been done between the competencies and their
future relevance as the Australian and New Zealand Classicisation of Occupations
has restricted relevance to emerging business models and work of the future.
Competency Impact
Initial Findings: Training Packages (cont).
6. The research is a reliable indicator of the likely administrative workload in reviewing
and updating existing training packages by the responsible SSO and IRC.
7. The research provides a strong, evidence based prima facie case for suggesting the
existing system is incapable of keeping pace with automation as it modifies some
jobs, alters boundaries between vocations and converges activities that traditionally
have been seen as residing in different industries (e.g. mechatronics).
Competency Impact
Initial Findings: Training Packages (cont).
Level of impact automation has on existing units
of competency
Competency Impact
Based on the analysis of occupational data and findings from this research the following
jobs will be most exposed to loss and dissipation as their role is shared or diluted into new
roles and occupations:
– Drivers (truck, taxi, courier, etc.)
– Bankers (in particular routing administration, clerical, financial advisory, market analysts, investment brokers)
– Mining
– Agricultural labourers
– Call centre and data processing
– Health care primary providers
– Freight handlers (logistics, stevedores, waterfront and warehouse workers)
– Marine engineers
– Education (assessors, vocational lecturers, administration and general tertiary education staff)
– Retail sales and service (especially in computers, real estate, supermarkets, liquor, etc.)
– Manufacturing
Competency Impact
Automation and ANZSCO
The following job roles would represent opportunities for workers – particularly those exposed to
negative impact of automation on employment or employability – to transition to areas of predicted
high growth:
– Agribusiness-Farmers with IT and mechatronic skill sets
– Care workers (e.g. aged, home or personal services)
– Medical professionals (GPs, surgeons, diagnostic and pathology, nurses, etc.)
– ICT professionals (e.g. cybersecurity, enterprise architects, telecommunications engineers, business Intelligence/data analysts,
programmers, applications developers, etc.)
– Advanced Science, engineering and technology professionals (e.g. Biological scientists, biochemists, geoscientists, design
engineers, structural engineers, digital and special surveyors, sustainable energy engineer, etc.)
– Specialist logisticians and supply chain managers
– Process and business improvement managers (e.g. RPA)
– Business services/ consultants
– Electrical-mechanical trades
– Specialist machine operators and technicians (advanced manufacturing workers)
– Protective services and security managers
– Digital media and creative workers
– Project managers
– Data-driven marketers
– Specialist teachers and digital educators
– Online/ virtual trainers, coaches and assessors
Competency Impact
Automation and ANZSCO
1. Develop a set of automation common competency standards guiding workforce development of
skills sufficient to span the following phases in automation:
a) Research and discovery
b) Business benefits analysis
c) Design and testing
d) Evaluation
e) Deployment
2. Review of specific units of competency that need to be updated by training package owners
(consolidated, replaced, edited)
3. Review where competency standards do not exist to cover the automation of processes, activities
or tasks currently impacting specific vocations.
Competency Impact
Next Steps: Competency Development
Automation:
The Big Picture
Impact of Automation
Automation: The Big Picture
There are a growing number of major reports
stating the volume and speed with which
automation will impact Australian employment
and future workforce skills.
“CEDA suggest over five million jobs (almost
40% of existing Australian jobs) have a
moderate to high likelihood of being replaced by
automation in the next decade”
- CEDA Committee for Economic Development of Australia, 2015
“Governments need a clearer picture, not only of
how labour markets are changing, but of how
well equipped their citizens are to participate in,
and benefit from, increasingly knowledge-based
economies.”
- OECD (2016), Skills Matter
Automation: The Big Picture
Impact of Automation & Computerisation on
Work
Businesses require predictive, reliable
insights that lead to actionable strategies
that prepare their workforce for the future.
47% of all jobs in the U.S.
Workforce will be replaced or
completely redesigned
5 of 10
40% of all jobs in the
Australian Workforce will be
replaced or completely
redesigned
4 of 10
Impact of automation on jobs
Automation: The Big Picture
Scope of automation
These trends are supported by a
range of emerging technologies:
Hugh Bradlow is Chief Scientist at
Telstra Corporation in which
capacity he acts as adviser to the
CEO, the board and other parts of
the business on longer term
technology directions and
technology disruptions.
Cloud services Internet of Things Big data
Artificial Intelligence
and robots
Immersive
communications
Automation: The Big Picture
Impact of automation: Future of work
Automation: The Big Picture
Impact of automation on job activities, not occupations
The role and activity view
“… automation and digitalisation are unlikely to destroy
large numbers of jobs.”
Five million jobs may be susceptible to computerisation and
automation, only 9% may be replaced but over 70% will have
completion of some task or activity altered by 2020.
20
Automation: The Big Picture
“The current public narrative surrounding
automation is that it drives economic growth and
improves human productivity, but at the cost of
jobs. This narrative does not adequately focus
on what automation is, nor on the wider
environment within which it is occurring. The
result is deepening anxiety when we need a
positive debate about the future workforce we
wish to construct”.
21
Professor Marcus Bowles
Institute for Working Futures

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Skills impact automation project july 28 2017

  • 2. A Study of Automation
  • 3. Automation can involve a range of technologies, such as computerisation, artificial intelligence, data analytics, robotics, and nanotechnology. The central story of automation is not about technologies, or technological disruption, or even the replacement of human workers in certain jobs; instead it is about a transformation in the nature of work, ensuring existing workers are skilled to drive automation-enabled change and growth, and the substantial challenge of preparing people for jobs of the (very near) future. A Study of Automation Scope of automation
  • 4. Automation is the use of technologies to make processes run with a substantially reduced reliance on human involvement. A Study of Automation? Definition
  • 6. Senior Group Manager, Westpac Competency Impact “The shelf life of technical competencies is 26 months and reducing! We simply cannot keep pace with the change automation is bringing not only to our workers, but how we recruit, train and develop staff to be bankers of the future.”
  • 7. 1. Automation will impact all but a few training packages and all IRC and SSO jurisdictions. 2. A review of all endorsed training packages indicates 280 units are most likely in need of immediate review as they contain an activity or component that involves automation. 3. No competency standards were found that could directly enable the individual workers, a business or industry to respond to the challenge of introducing automation. 4. The existing training packages classified as extremely exposed to the impact of automation on units of competency include Transport and Logistics (46); Construction (40); Property Services (31), Information Technology (28), Manufacturing (17) and, through indicative analysis, the Defence training package (62). Competency Impact Initial Findings: Training Packages
  • 8. 5. The level of impact of automation on a current training package is not a reliable indicator of future extent nor speed at which automation will impact the training package. This is because research indicates some packages have coverage of occupations where high levels of automation are impacting jobs but their rating is low or moderate, and no correlation has been done between the competencies and their future relevance as the Australian and New Zealand Classicisation of Occupations has restricted relevance to emerging business models and work of the future. Competency Impact Initial Findings: Training Packages (cont).
  • 9. 6. The research is a reliable indicator of the likely administrative workload in reviewing and updating existing training packages by the responsible SSO and IRC. 7. The research provides a strong, evidence based prima facie case for suggesting the existing system is incapable of keeping pace with automation as it modifies some jobs, alters boundaries between vocations and converges activities that traditionally have been seen as residing in different industries (e.g. mechatronics). Competency Impact Initial Findings: Training Packages (cont).
  • 10. Level of impact automation has on existing units of competency Competency Impact
  • 11. Based on the analysis of occupational data and findings from this research the following jobs will be most exposed to loss and dissipation as their role is shared or diluted into new roles and occupations: – Drivers (truck, taxi, courier, etc.) – Bankers (in particular routing administration, clerical, financial advisory, market analysts, investment brokers) – Mining – Agricultural labourers – Call centre and data processing – Health care primary providers – Freight handlers (logistics, stevedores, waterfront and warehouse workers) – Marine engineers – Education (assessors, vocational lecturers, administration and general tertiary education staff) – Retail sales and service (especially in computers, real estate, supermarkets, liquor, etc.) – Manufacturing Competency Impact Automation and ANZSCO
  • 12. The following job roles would represent opportunities for workers – particularly those exposed to negative impact of automation on employment or employability – to transition to areas of predicted high growth: – Agribusiness-Farmers with IT and mechatronic skill sets – Care workers (e.g. aged, home or personal services) – Medical professionals (GPs, surgeons, diagnostic and pathology, nurses, etc.) – ICT professionals (e.g. cybersecurity, enterprise architects, telecommunications engineers, business Intelligence/data analysts, programmers, applications developers, etc.) – Advanced Science, engineering and technology professionals (e.g. Biological scientists, biochemists, geoscientists, design engineers, structural engineers, digital and special surveyors, sustainable energy engineer, etc.) – Specialist logisticians and supply chain managers – Process and business improvement managers (e.g. RPA) – Business services/ consultants – Electrical-mechanical trades – Specialist machine operators and technicians (advanced manufacturing workers) – Protective services and security managers – Digital media and creative workers – Project managers – Data-driven marketers – Specialist teachers and digital educators – Online/ virtual trainers, coaches and assessors Competency Impact Automation and ANZSCO
  • 13. 1. Develop a set of automation common competency standards guiding workforce development of skills sufficient to span the following phases in automation: a) Research and discovery b) Business benefits analysis c) Design and testing d) Evaluation e) Deployment 2. Review of specific units of competency that need to be updated by training package owners (consolidated, replaced, edited) 3. Review where competency standards do not exist to cover the automation of processes, activities or tasks currently impacting specific vocations. Competency Impact Next Steps: Competency Development
  • 15. Impact of Automation Automation: The Big Picture There are a growing number of major reports stating the volume and speed with which automation will impact Australian employment and future workforce skills. “CEDA suggest over five million jobs (almost 40% of existing Australian jobs) have a moderate to high likelihood of being replaced by automation in the next decade” - CEDA Committee for Economic Development of Australia, 2015 “Governments need a clearer picture, not only of how labour markets are changing, but of how well equipped their citizens are to participate in, and benefit from, increasingly knowledge-based economies.” - OECD (2016), Skills Matter
  • 16. Automation: The Big Picture Impact of Automation & Computerisation on Work Businesses require predictive, reliable insights that lead to actionable strategies that prepare their workforce for the future. 47% of all jobs in the U.S. Workforce will be replaced or completely redesigned 5 of 10 40% of all jobs in the Australian Workforce will be replaced or completely redesigned 4 of 10
  • 17. Impact of automation on jobs Automation: The Big Picture
  • 18. Scope of automation These trends are supported by a range of emerging technologies: Hugh Bradlow is Chief Scientist at Telstra Corporation in which capacity he acts as adviser to the CEO, the board and other parts of the business on longer term technology directions and technology disruptions. Cloud services Internet of Things Big data Artificial Intelligence and robots Immersive communications Automation: The Big Picture
  • 19. Impact of automation: Future of work Automation: The Big Picture
  • 20. Impact of automation on job activities, not occupations The role and activity view “… automation and digitalisation are unlikely to destroy large numbers of jobs.” Five million jobs may be susceptible to computerisation and automation, only 9% may be replaced but over 70% will have completion of some task or activity altered by 2020. 20 Automation: The Big Picture
  • 21. “The current public narrative surrounding automation is that it drives economic growth and improves human productivity, but at the cost of jobs. This narrative does not adequately focus on what automation is, nor on the wider environment within which it is occurring. The result is deepening anxiety when we need a positive debate about the future workforce we wish to construct”. 21 Professor Marcus Bowles Institute for Working Futures