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Infosys Tries to Turn Autoworkers into Programmers

Thursday, April 26th, 2012

Although most of Infosys’ charitable activities are, as would be expected, focused on India, the firm also has a few global programs plus more focused contributions and work in many of the other countries in which it operates. For example, it contributed to and provided logistical support to the New York City fire department after 9/11 and continues to support educational initiatives, such as New York City’s STEM Mentoring program and efforts by local governments that need help in responding to natural disasters. Recently it launched a new, very different type of program that draws specifically on some of Infosys’ unique strengths and is intended to form the foundation for a much broader initiative.

A Second Chance for Ex-Autoworkers

As I discussed in two 2011 blogs, Infosys, along with a number of other Indian and multinational IT service companies have developed world-class training programs to bring graduates from India’s uneven college system to a common base of competence. Every one of Infosys’ computer science recruits goes through a 23-week Boot Camp at its Mysore Development Center, now called the Narayana Murthy Centre of Excellence.

It is now bringing this time-tested program to the U.S. in an attempt to retrain unemployed workers for new, high-skill jobs while simultaneously helping to address a growing shortage of skilled computer scientists and programmers. In March 2012, it launched an 18-week “Software Boot Camp” to provide unemployed Detroit autoworkers with an education comparable to a BS in programming.

The idea to boost training and employment opportunities for Detroit-area workers was initially spawned in a discussion with the Office of the Science and Technology Policy in the Office of the President. Washington then put Infosys into contact with potential partners and generally stepped back to let these partners design and run the program. Among Infosys’s primary partners in this endeavor are:

  • Wayne County Community College (WCCC) which will provide the facilities, manage the program and provide programming instructors who, after learning the Infosys program, will deliver it themselves and ultimately train others to deliver it;
  • The Workforce Development Department, which identifies and selects candidates who have lost auto industry jobs; and
  • The Detroit Economic Growth Corporation, which recruits and works with potential employers and will run a job fair to help the graduates find jobs.

Infosys is funding the entire program (which will be free to students) and is using the same curricula, courseware, exams and instructors as in Mysore. However, its Indian and U.S. programs have a few important differences. For example:

  • The Mysore program is targeted at new college graduates that Infosys has already hired. The Detroit program is open to older, non-employees who, after graduation, will be able to take jobs with any employer (including Infosys, for any of its 13 U.S. development centers) from which they receive an offer.
  • All Mysore students have a BS college degree in a computer science or engineering-related discipline. The Detroit program will accept graduates and non-graduates, with all types of backgrounds, who pass an entry test designed to assess analytical and quantitative capabilities.
  • The Detroit program, which is targeted at older people who have work experience, has been reduced from Mysore’s 23 weeks to 18 by eliminating the “soft skills” component that help new recruits adapt to a work in a professional, corporate environment.
  • While Infosys runs the Mysore program itself, the Detroit program was designed and is managed in conjunction with partners.
  • Infosys instructors conduct the Mysore program. These instructors will come to the U.S. to teach the first 18-week program, while training WCCC Computer Science instructors (initially 3 instructors) to take over the teaching—initially with oversight of and guidance by Infosys instructors, and later on their own.

The Detroit program is an experiment that is intended to determine the applicability of the Infosys training program to older students (an average age of 41) with diverse backgrounds. Although Infosys declines to discuss the background of the current students until the course concludes, they are clearly not the relatively heterogeneous lot of new BS Engineering and Computer Science graduates that make up a traditional Mysore class.

The company acknowledges that these factors, combined with its goal of maximizing completion rates, may combine to limit some graduates’ employability as programmers. It does, however, expect that even those who may not get jobs as programmers will be qualified for IT administration and support roles.

Scaling the Initiative

Where will this program go in the future? This will depend largely on the success of the initial class plus the determinations of employers and as to whether changes are required. Some big questions include whether there should be minimum educational requirements (such as a two-year or a four-year degree), whether students should be required to have a STEM-related background and whether the program can be evolved into a scalable, self-sustaining program that can be delivered by a broad range of non-Infosys instructors across multiple locations.

There are, of course, also a number of more nuanced questions, such as the types of jobs for which graduates will be best suited and how to best tailor the curricula, courses and pedagogy to the needs of students and prospective employers. The answers to such questions must await completion and a formal evaluation of the first program, as well as the success of graduates in getting jobs, feedback from students, instructors and employers and, of course, of Infosys’s partners.

While these and many other decisions must await the completion of the first Detroit program, Infosys has already begun to plan to expand this program and to launch others. For example, it hopes that WCCC will be able to immediately scale to three—and longer term—four programs per year, each with about 100 students. It also hopes to apply this same model to other constituencies and other geographies. It is already outlining a program that will be tailored to the needs of returning veterans (probably in conjunction with the Veterans Administration) and has initiated conversations with colleges and universities in other areas, such as Boston and Northern Virginia.

Such programs have the potential of delivering huge value. They can, for example, help:

  • Individuals acquire high-value, real-world job skills in areas for which there is strong and growing demand;
  • Community colleges develop and deliver more business-aligned retaining programs;
  • Cities and towns convert unemployed workers into participants in the knowledge economy; and
  • Companies, across all industries, beef up their IT staffs with professionals with up-to-date, state-of-the-art skills that can deliver immediate business value.

The program can also help Infosys. Although the vast majority of the company’s previous U.S. hires have been experienced professionals, it is now beginning to hire fresh out-of-school (“freshers”) for its U.S. development centers. While Infosys will have to compete with other companies in hiring such people, the programs will provide an expanded recruiting pool of people trained in Infosys methodologies, some of whom may help fill the company’s 300 current U.S. openings.

The program will also provide a supply of talent to Infosys customers (albeit also to its competitors). Just as importantly, it has the potential of improving Infosys’s public image by demonstrating its commitment to training U.S. citizens to provide the type of services that have recently gone offshore.

Although it is too soon to know how the current or subsequent Infosys efforts will pan out, the concept shows great promise. While community colleges have long offered all types of career retaining program, many such programs have not been well suited to actual market needs, much less to the needs of specific employers. Many of those programs that have been targeted to demonstrable market needs have focused on highly company- or industry-specific skills.

The Infosys effort has the potential of combining the best of both worlds—the broad reach and multi-employer appeal of traditional community college programs, with the teaching of specific, real-world skills for which there is a proven business need. Just as importantly, Infosys is providing these colleges with valuable intellectual property in the form of curricula, training materials, exams and even instructors that have already been proven in the training of tens of thousands of people who have gone on to successful IT industry careers.

As I have written previously, this approach is exactly the type of bridge between community colleges and the private sector that is required to retrain America’s workers (and possibly, in the future, initially train some of America’s students) for the jobs of the future. (See, for example, my 2011 blog series on the Future of Community Colleges). One can only hope that the results show as much promise as the concept and that it sparks the creation of many similar programs—by Infosys and hundreds of other companies—in many different fields and in many different cities. It is, however, somewhat ironic that it has taken an Indian company to pioneer a program for which the U.S. has such a critical need.

Accenture Contributes Its Professional Development Skills to Non-Employees

Sunday, October 3rd, 2010

Accenture has always considered professional development to be one of its core competencies. It recruits tens of thousands of new employees each year, puts them through intense training programs and follows up with ongoing, career-spanning, personalized professional development and mentoring regimes. In 2009 alone, it dedicated nearly $800 million to these efforts.

The company is now extending its commitment to and skills in training and professional development beyond the walls of its own company to thousands of people—250,000 by 2015 to be exact—who do not, and probably never will work for Accenture. Its newly announced Skills to Succeed initiative is intended to help disadvantaged people from all around the world to develop the skills they will require to get good jobs or to start and build their own businesses (and thereby create jobs for themselves and others).

Accenture, both itself and through its foundations, is funding this initiative through a commitment of more than $100 million in cash, in-kind donations and employee time, over a three-year period. It considers this effort to be so important that it has developed a global operating model to align all aspects of the company and foundations’ corporate citizenship efforts around Skills to Succeed. In fact, it has established a goal that 80% of all the company’s corporate citizenship activities will be aligned around this initiative by the end of 2010.

However, while Accenture itself manages and delivers training to its own employees, Skills to Succeed training will be delivered almost exclusively through independent non-profit partners that have proven skills in and share Accenture’s commitment to skills training, and that can “drive change and achieve scale” across multiple countries and continents.

Building the Skills to Succeed Initiative

Accenture launched the first stages of this program in mid-2009, with a $48.3 million contribution—primarily of in-kind skills (such as consulting, hardware, software and office space), secondarily cash and, to a small extent, pro bono contributions of employees’ time (as in teaching, mentoring and so forth). It aligned its efforts around three primary objectives:

  • Employment Building, which is the initiative’s primary focus and is intended to train and prepare disadvantaged people for secure jobs that pay well above local average salaries. It begins by providing training in skills required for these jobs to employment-ready individuals (generally, from high-school juniors and community college students to unemployed workers who are looking to be retrained for new jobs and industries). While much of this training focuses on IT skills (an area in which many NGOs have current programs and skills), Accenture plans to address many types of skills that are “at the intersection of business and technology”. These may include IT operations, programming, engineering drafting and accounting/finance. The program also helps prepare these trainees for actual jobs (such as by placing them in part-time jobs or internships while they are still in school) and actually capture new jobs (as by helping them develop resumes, plan job-search campaigns and secure and prepare for interviews).
  • Business Building, which is intended to help entrepreneurs create new employment opportunities such as by helping them strengthen their leadership skills, develop business plans and strengthen capabilities including financial operations, hiring and customer service; and
  • Market Building, in which Accenture helps governments, NGOs and companies build access to markets where current market infrastructures are not sufficient. Examples include a partnership with the U.S. Agency for International Development to improve rural farmers’ access to information on agricultural and marketing practices.

One of the first and largest efforts was in Brazil, where Accenture partnered with two local agencies (Rede Cidada and the Committee for the Democratization of Information) to establish Conexão (the local membership organization of Youth Business International), which provides free technology training to unemployed people and free consulting to small, promising entrepreneurs. The program was a huge success, training 13,500 young people (3,500 of whom have already been hired) and supporting 124 entrepreneurs.

This success led to more than 80 additional programs so far, with more than 15 NGO partners in both developed and developing countries. Examples include:

  • United States, where Accenture is working with Genesys Works to train inner-city high school students in skills including IT, engineering drafting and accounting and is placing them in part-time jobs during their senior years. Accenture executives also teach business preparedness skills to students in community colleges;
  • United Kingdom, with Youth Business International, to help disadvantaged young people find and get appropriate educations or occupational training and mentor them on skills required to become successful entrepreneurs;
  • India, with the Dr. Reddy’s Foundation, to train disadvantaged young people in business process outsourcing and technology skills;
  • Philippines and Cambodia, partnering with Passerelles Numériques to help underprivileged students build the skills they need to obtain IT jobs; and
  • Several countries in Africa, where it is working with Enablis to build the skills of young entrepreneurs.

Accenture’s Objectives and Methods

The concept for Skills to Succeed was born about 18 months ago during a full-scale assessment of the company’s corporate philanthropy efforts. It was looking for a single unifying effort that addressed a critical, global societal need; that reflected the company’s values, culture and character; and in which Accenture had skills that would enable it to contribute unique skills and expertise, in addition to money.

Its initial efforts in partnering and launching the program, combined with the successes it achieved and the lessons it learned, validated its commitment to the initiative and prompted it to set an ambitious goal—that of training and preparing 250,000 disadvantaged people (anyone from high school juniors to older people who need retraining for or who hope to create their own sustainable, well-paying jobs). Although Accenture is open to all types of NGO partnerships and skills training programs, it assesses each opportunity in terms of its ability to:

  1. Cost-efficiently achieve significant, sustainable, demonstrable and measurable results;
  2. Harness the energies of Accenture and the enthusiasm of its people; and
  3. Be scaled to train large numbers of people and leveraged across multiple states and countries.

But while Accenture is open to examining many different types of programs and partnerships, one thing is not negotiable—its objective. Accenture and its executive committee are fully committed to Skills to Succeed. The company is wrapping virtually all of its corporate philanthropy programs and contributions into this program and is committing all levels of Accenture employees to actively contribute to these efforts. It is also beginning to engage customers and partners in this program, as by working with them to place interns and program graduates.

But for all of Accenture’s commitments and efforts, the company understands that that achieving its 250,000-person objective within five years is a big challenge. It is committed to investing $100 million or more of its resources and the capabilities of its people to the program and is rapidly scaling its efforts. It has, for example, already added 80 new initiatives and is actively evaluating others. The means of accomplishing its goals are flexible. The objective, of preparing a quarter of a million people for rewarding jobs, is not.

Funding the Community College Solution

Sunday, September 19th, 2010

Okay, perhaps use of the term “Solution” is a vast exaggeration. But two things are clear. First, as described in my August 8 blog, The Community College Contribution, community colleges play a vital, probably irreplaceable role in our society and our communities. They give millions of people, particularly lower-income minorities and immigrants, unprecedented opportunities to climb the socio-economic ladder and provide many of the office workers required to man administrative and supervisory ranks, the health-care workers required to ensure broad and economical delivery and the manufacturing workers needed to manage today’s computer-controlled processes.

Second, as I discussed in my August 22 blog, The Community College Crisis, this system is in a state of crisis. Many of these challenges are attributable to the tremendous expectations we have of the system and burdens we place on it to address the limitations of the country’s secondary education system. These pressures are being exacerbated by the Great Recession and especially by the huge cutbacks in government funding of these schools.

The county, as President Obama explained in July 2009, has no choice. The community college has suffered through “decades of federal neglect” where “community colleges are treated like an afterthought—if they’re thought of at all.” We MUST find a way of addressing these challenges—and of paying for them.

Better Colleges Require More Money

The bad news is that nobody really knows how to fix our community college system. The good news is, there is no shortage of ideas. Recommendations as to how to address these challenges and help community colleges deliver on their true potential come from a range of sources and cover virtually every aspect of these institutions’ missions.

Some, such as the American Association of Community Colleges and especially the Community College Research Center, focus exclusively on and provide detailed research on all aspects of the colleges’ missions. Others, including the American Enterprise Institute, the Brookings Institution and the Kaufman Foundation address a broad range of policy-based issues, but each have designated education research focuses.

These, along with a wide range of other research organizations, universities, government bodies and NGOs have published numerous studies with specific recommendations for helping community colleges improve governance and better address one or more of their five core missions:

  1. Transfer Education, to educate students who plan to transfer to a four-year institution to pursue a BS/BA degree;
  2. Career Education, to prepare Associate Degree graduates to directly enter the workforce;
  3. Developmental Education, to provide remedial education for high school graduates who are not academically ready to enroll in college-level courses;
  4. Industry Training, which is contracted for by companies to provide training for specific jobs; and, to a lesser extent
  5. Continuing Education, which typically consists of non-credit courses for personal development and interest.

Although recommendations differ for each of these areas, there tend to be common treads across virtually all. Many recommendations, for example, entail some combination of:

  • Better and more systematically integrating academic and technical curricula in conjunction with apprenticeship programs that provide real world experience (as pioneered by so-called “career academies”;
  • Increasing and improving counseling programs to improve career planning and help students select courses that are most appropriate for their goals. (This, however, assumes that classes are available, which is becoming increasingly rare.)
  • Greatly expanding the use of IT tools to improve pedagogy and learning outcomes, engage students through multimedia and educational games, facilitate distance learning and give students much greater flexibility in when and where they learn;
  • Creating specific goals and success metrics and continually measuring progress toward achieving these goals; and
  • Increasing funding and increasingly allocating these funds on the basis of success in achieving and making progress toward defined, measurable objectives.

Money is becoming increasingly problematic. As discussed in my last blog, The Community College Crisis, state and local governments—which typically account for about 60% of community college funding—are slashing public school funding and contributions (which account for less than 5%) are also generally falling. This leaves three funding sources.

  1. Tuition. While rising, tuition account for only 20% of school budgets. Moreover, increases are constrained by the need to keep community colleges accessible to lower income students;
  2. Business funding of specialized courses. Given that business contracts currently account for less than 10% of community college revenues, it will be difficult to grow contracts fast enough to make a meaningful dent in funding shortfalls. Even so, private sector partnerships can yield an additional, even greater benefit, as by allowing colleges to continually track emerging business needs and adapt their programs to ahead of these needs; and
  3. The federal government. The federal government currently accounts for only 10% of community college funding and provides  less money per student than it gives to public four-year schools and in some cases, even for-profit colleges. Surprisingly, however, the feds are stepping up to the plate.

With a Little Help from Government Friends

There is no question that the federal government has short-changed the nation’s community colleges over the last several decades. For example, it allocates only 10% of its total post-secondary education funding budget to community colleges. This is despite the fact that these schools enroll 35% of all post-secondary students. Moreover, since many of these funds are based primarily on enrollment, without regard to whether their students earn degrees or get good jobs, this funding often skews community colleges’ incentives toward inputs and processes, rather than outcomes, like student success. A February 2009 Brookings study called on the federal government to address these deficiencies by instituting four primary reforms:

  1. Institute a new focus on national goals guided by an accountability system that tracks and reports outcomes, such as completion of a minimum number of credits, earning a degree, and landing a good-paying job;
  2. Double federal funding from $6 billion to $12 billion (from about 20% to 30% of their total budgets) to help community colleges achieve these goals and fund much needed upgrades to their infrastructure, technology, and faculties.
  3. Reformulate the basis on which federal funds are awarded so that, over time, the majority of funds will be based not on the basis of enrollment, but on the colleges’ performance on the above goals; and
  4. Stimulate greater innovation in community college policies and practices to enhance educational quality.

The federal government seems to have gotten the message. In July 2009, President Obama highlighted his commitment to addressing these needs by announcing his Community College Initiative. The $12 billion plan is intended to improve educational facilities, increase and improve the utilization of technology and boost graduation rates—producing 5 million more community college grads by 2020. This is big money, considering that the feds have traditionally provided community colleges with only $2 billion in direct support per year—about one-tenth what it spends on public four-year schools.

Although the plan will eliminate the role (and an estimated $9 billion in costs) of private banks in managing the federal student loan program, it will dramatically increase the role of the private sector in other ways, as by encouraging them to help colleges improve remedial-education and counseling programs, and develop online curricula. The proposal would also increase funding of, reduce barriers to qualifying for and increase student access to Pell grants. Congress, meanwhile, is considering legislation that could pump an additional $500 million into the creation of open, online courses.

Moreover, as I mention in my previous blog, community colleges are also likely to benefit from new Department of Education rules that will free up additional aid dollars by cutting aid to a number of for-profit schools.

The community college crisis is also attracting attention and help from other sources. Although charitable contributions are generally falling along with the economy, a growing number of charitable foundations recognize and are seeking to at least partially address community college shortfalls. The Bill & Melinda Gates Foundation, in particular, has pledged up to $110 million (of its $3 billion overall education fund) to community colleges and has recently earmarked $12.9 million to organizations that that are having success in improving community college graduation rates, developing tools to facilitate Web 2.0-based faculty collaboration and creating new IT-based learning tools. And this is in addition to the Foundation’s participation in a twelve-foundation group that has committed $500 million to improving learning outcomes—largely through the use of IT-based tools—across all types of educational institutions. Hopefully, such investments, combined with foundations’ growing focus on quantifiable results, will impose some of the discipline that community colleges will need to succeed in a world that will be characterized by tighter and tighter budgets.

The Great U.S. Tech Education Debate

Sunday, March 21st, 2010

On March 15, TechCrunch produced a very informative debate between Craig Barrett, former CEO of Intel and huge proponent of technology education, and Vivek Wadhwa, a Duke/UC-Berkeley professor who writes extensively on innovation, entrepreneurship and cross-border movement of technology talent. 

The debate was spawned by a Wadhwa comments in a Scientific American article that claimed there is no shortage of tech talent in the U.S. To summarize a debate, which must be read in its entirety to be fully understood, Wadhwa claims there is plenty of talent in the form of STEM (science, technology, engineering and mathematics) talent in this country. The problem is that much of this talent is in the form of postdocs (post-doctoral fellows) that are bottled up in a broken university technology education system, and in foreign-born PhDs who, once they receive degrees from U.S. universities, find it increasingly difficult or unattractive to remain in the U.S. If the artificial economic and political restraints were removed, and STEM PhDs were actually paid what they were worth, this talent would be unleashed and produce the type of innovation and jobs that the U.S. so desperately needs.

Barrett views things differently. Although he acknowledges that some postdoc PhD’s do not achieve their commercial market potential, he claims that this is due to their decisions to dedicate their efforts to the long, uncertain process of becoming tenured professors at research universities, rather than working at corporations. In his view, the real problem lies in our K-12 education system, which, due largely to the lack of qualified science and mathematics teachers, fails to ignite children’s’ imaginations around the opportunities in these disciplines and fails to provide a foundational knowledge for university study.

Wadhwa certainly acknowledges the limitations in the U.S. K-12 education system and the need to create “excitement about science and engineering at the national level and motivate our best and brightest to become engineers and scientists.” He, however, clams that the biggest problem is pay. The scientific community in general and the educational system in particular, simply do not pay enough to retain the best talent. These people are lured by the huge the huge rewards promised by the financial industry (such as becoming venture capitalists or investment bank “quants “), rather than become research scientists who drive U.S. innovation.

My Interpretation

While the debate is fascinating, it appears to me that Wadhwa over-generalizes the admittedly disturbing dilemma of postdocs. Just because some STEM PhDs remain in poorly paid fellowships (with hopes of earning valued professorships) rather than going to industry, it does not necessarily mean either that:

  • There are not enough jobs for STEM graduates; or that
  • STEM professions do not pay competitively.

True, not all STEM PhDs can become professors at prestigious research universities. On other hand, not all law school graduates can win U.S. Supreme Court clerkships or highly paid posts at premier white shoe law firms. That, however, does not stop students from overwhelming law school admissions offices. Nor do the short odds of becoming professional athletes, actors or musicians prevent millions of young adults from aspiring to these careers.

Even if there are not enough tenured professorships, PhDs who do need jobs can always “stoop” to work in the private sector. Nor should we confine the analysis of STEM jobs to PhDs. There are, after all, far more Bachelor and Master-level STEM graduates than there are PhDs. Most statistics show that newly minted STEM graduates have higher employment rates than other job categories (even during the recession) and that by far, the largest percentage of unfilled jobs utilize STEM-related skills. Moreover, starting salaries for these graduates remain among the highest of those for all degrees. As shown in a March 2010 Association of Colleges and Employers study, for example, engineering and IT jobs account for all ten of the top ten earning degrees. 

Although some segments of the financial services industry certainly pay more for a handful of the best graduates from the best schools, this cannot be viewed as the standard for all STEM jobs—just as Wall Street law firm salaries cannot be viewed as the standards for all JDs from all law schools. These numbers are too small, and their selection criteria too limited to apply to all graduates.

In sum, I generally agree with Craig Barrett that most people—especially young people—are driven as much by their passions as by the immediate opportunities for monetary rewards. There are, however, limits to this idealism. Pay must yield reasonably comfortable lifestyles and must at least be in the same ballpark as reasonably competitive fields. Although most STEM careers probably meet these criteria (except when compared with financial services, professional sports or entertainment), the big exception is in K-12 STEM education.

Unfortunately, it will take much more than competitive salaries to fix this country’s K-12 education system. Its problems are far too complex and ingrained to be solved by the education community alone. As I have discussed in many of my articles, solving these problems will require a huge amount of assistance from the private sector.

A number of private sector companies—especially IT companies, like Intel, Microsoft and IBM—are already doing great work in helping to improve education at all levels, from K through graduate schools. They are giving schools some of the tools and the training required to improve teaching and learning and helping them improve STEM curricula.

Some are even attempting to address the intense social and peer pressures against becoming “geeks” and “nerds” by demonstrating that STEM skills can be instrumental in achieving the goals of many young adults—to make a real difference in the world. As discussed in my report on IBM’s Academic Initiative, IBM is doing particularly interesting work in engaging student’s desire to make a difference in the world by showing how STEM skills are so critical to addressing some of society’s most pressing problems, as around smarter healthcare, energy and food supplies.

With all due respect to Intel’s wonderful commercials, it may be too much to hope to persuade kids to view scientists, engineers and mathematicians with the same admiration and awe as rock stars or professional athletes. It may, however, be possible to engage at least some part of their minds, psyches and self esteem around the idea of helping the world solve real problems. Perhaps someday, children focused on such missions may even earn the respect, if not necessarily the admiration, of their peers.

Tom Kucharvy’s 2010 Research Agenda

Sunday, January 17th, 2010

The IT Industry’s Role in Addressing the U.S.’ Technology Skills Gap: How the industry can secure its own future while providing unique value to employees, customers and society

Over the last six months, I have focused my research around two broad questions:

  • What types of skills will U.S. knowledge workers require to build careers that will deliver the highest value and be most sustainable in a global knowledge economy?
  • What must individuals, schools and corporations do to prepare for these jobs?

I recently wrote a report “IT Companies as Catalysts in Creating the 21st Century Workforce”, which I summarized in my January 11 blog. While working on it, I was particularly struck by three key conclusions:

  1. The particular risks that the IT industry will face from a paucity of required skills and the unique role the IT industry can play in creating the next generation workforce;
  2. The combination of foundation skills (including IT, Internet, math and communications) that all knowledge workers will require and how these skills can be most effectively taught and learned;
  3. The critical role that multi-faceted academic (especially university)/private sector partnerships must play in designing and delivering curricula that prepare knowledge workers for tomorrow’s careers.

I have certainly learned a lot from my research over the last six months and, hopefully, readers have valued from my posts and reports. Ultimately, however, this research ended up doing what most research does—it raised more questions than it answered. Some of these new questions are forming the foundation of my 2010 research agenda.

Here’s a peek into what I’ll be working on in 2010.

Q1 2010 Research Agenda

My 2010 research will continue to examine the changing nature of knowledge work in the 21st century and the requirements for the U.S. to build a workforce that will be truly competitive in the Global Knowledge Economy. I will, for example, drill down into a number of issues that I have touched on in my 2009 research including:

  • The skills and attributes individuals need to compete in a world in which knowledge work is increasingly defined by global competition, the automation of increasingly discretionary tasks, a deluge of data and information and the need to collaborate in increasingly fluid physical and virtual teams;
  • The relative roles of academia and the private sector in developing these skills and in creating and enabling the environments in which individuals can contribute ever higher levels of value;
  • The increasingly central role that the IT industry is playing in redefining work requirements and environments and the unprecedented opportunities for IT companies to shape the workforce in accordance with their and their customers’ needs.

Among the primary issues I plan to explore are:

  • Emerging best practices for recruiting, developing and retaining effective knowledge workforces
    • What approaches are proving to be most effective for companies—especially IT companies—in building and maintaining effective development, sales and services teams?
  • Opportunities for building high-payoff private sector/university partnerships
    • What expectations, contributions and commitments must each party bring to effective relationships, what best practices are emerging for collaborative curricula, course and platform development, research and recruiting?
  • Private sector roles in addressing primary and secondary math and science gaps
    • Although university education is critical, educators must instill interest and teach the basic math and science skills on which university educations can build. What role can IT firms play in enabling and facilitating these efforts? What rewards can they gain?
  • Using technology to improve the education process
    • Which types of technologies and techniques can be most effectively employed in schools and universities and how they can best be acquired, taught, implemented and managed?
  • The roles of IT service providers in addressing customer skills shortages
    • How can IT service providers best help clients evolve their own workforces, supplement their skills gaps and prepare new generations of business architects, technical professionals and CIOs?
  • Building and enabling an “innovation workforce”
    • What are the combinations of technology, management practices, collaborative processes and industry skills that will be required and what role can the IT industry play in developing these skills within companies, in conjunction with universities, and across ecosystems and technology and community clusters?
  • The roles of government in addressing—and exacerbating—the U.S.’s technology skills and innovation gaps
    • Can federal, state and local government organizations play productive roles in laying the foundations for addressing educational needs and enabling potential growth industries, or should they just stay out of the way?
  • The IT industry as test bed and role model for new private sector skills initiatives
    • IT vendors are among the leaders in establishing successful private sector/academic partnerships and in developing systematic employee skills development programs. What role can they play as role models for, enablers of or coaches in helping other industries?

Although my primary interest is in understanding the skills that will be required for sustainable 21st century careers, and the roles that IT companies can play in preparing U.S. knowledge workers for these careers, even I do not live on workforce development alone. After 30 years in the IT industry, I still have a deep interest in, and retain an irresistible drive to express my opinion on any of a broad range of industry-related issues. So, interspersed with blogs about jobs, skills, university programs and the globalization of knowledge work, you can also expect occasional discourses on important IT company initiatives, industry trends and especially, the unique opportunities for IT service providers to address a broad range of business and societal needs.

IT Companies as Catalysts in Creating the 21st Century Workforce

Monday, January 11th, 2010

The following is a high-level summary of a more detailed report that summarizes the findings of six months of research into the changing nature of U.S. knowledge work and the requirements for creating a generation of knowledge workers who will not just be able compete, but will not be able to add differentiated value in a global knowledge economy. For a free copy of the full report, click here.

We’ve all seen the statistics and the anecdotes surrounding the declining technical skills of American workers. Although unemployment is at record highs, many positions go fulfilled for lack of qualified applicants. U.S. student interest and skills in science, technology, engineering and math (STEM) education is plummeting relative to other those in other countries and the U.S. is making it increasingly difficult—and unattractive—for talented foreign students and professions to enter and remain in this country. U.S. manufacturing workers lack the skills to work in new-generation factories and promising green tech firms are leaving the U.S. in favor of countries with larger markets and more sympathetic governments.

Unfortunately, most signs suggest that things will get worse, before they get better.

IT vendors and service providers that are based in or have operations in the U.S. face particular challenges:

  • They will find it increasingly difficult to find sufficient numbers of graduates with appropriate skills and will either have to implement “remedial” programs or increase their use of offshore talent;
  • If IT vendors/providers will have trouble finding skilled people, customer IT organizations are likely to face desperate skills shortages;
  • A decline in math and IT skills among customer’s business professionals threatens to limit appreciation for, experimentation with, and adoption of new IT capabilities.

But while IT vendors face some of the greatest challenges from a U.S. skills gap, they are also the best positioned of any major type vendor to address the problem. These vendors, after all, created and will continue to create the tools that are revolutionizing work. They are also pioneering many of the organizational and business revolutions that transform the work environment of the future. IT companies, for example, have been among the leaders in transforming, automating and optimizing traditional business processes, in disrupting revenue models of traditional industries and in globalizing knowledge work and business processes that few ever dreamed could go offshore.

It’s only logical. Companies that are this involved in shaping and defining the future of knowledge work, are also among the best positioned to understand the skills that tomorrow’s workers will need. Although many such companies are already using their large, established training organizations to directly prepare some of their customers and their partners’ employees, a growing number are going much further.

They are forming increasingly innovative partnerships with universities (and to a lesser extent, all types and levels of schools) to help foster the educating of next-generation employees. Schools, including some that traditionally shunned such collaboration as an infringement on their academic integrity, are increasingly welcoming this help as a means of better preparing their graduates for jobs in one of the most challenging job markets in memory.

These types of partnerships, which can include access to free or low-cost hardware and software, help in designing curricula, courses and Internet-based delivery systems and joint research, are beginning to yield some big benefits to the companies and schools alike. In the end, however, students are probably the biggest beneficiaries.

We are, however, only early in to the second generation of such partnerships. The real benefits—to IT companies, schools, students and to the IT companies’ customers and communities—are still around the corner. So, as discussed in some of our recent articles and reports, some vendors and some universities are already beginning to reap some big strategic and financial dividends from their initial partnerships.

Microsoft Learning: Adapting to Changing IT Skills Training Realities

Saturday, December 5th, 2009

Microsoft created Microsoft Learning with a mission: to ensure that the lack of available skills is never a barrier to using Microsoft software.

Although the group has always dedicated the vast majority of its education and training attentions and resources to teaching current and aspiring IT professionals to develop, implement and manage Microsoft software, its mission has been evolving. This has been particularly true over the last decade as a result of changes including:

  • The need to expand beyond training IT professionals to develop, implement and manage IT environments and applications, to training business people to use specific Microsoft tools and to teaching students the value of IT tools in all disciplines and endeavors;
  • The dramatic post-IT-bubble decline in interest in IT professions in developing countries, combined with a simultaneous explosion in interest within emerging countries;
  • Schools rapidly growing recession-era interest in teaching (and certifying students in) skills that will directly improve employability by complementing conceptual education with the training of practical skills; and
  • The recession-era trend for students, employees and the unemployed to take greater control of their own careers by proactively developing their skills and preparing for defined career paths.

The company has—and will continue to—adapt its traditional skills training models to accommodate and capitalize on each of these changes. 

From IT Professionals to Students and Business People

Microsoft Learning’s primary objective has always been, and will continue to be the training and certification (2.4 million technology certifications to date) of IT professionals on Microsoft technologies. Although Microsoft has long-since offloaded the sale and delivery of this training to its worldwide network of 1,500 Certified Partners for Learning Solutions, it continues to develop the courseware and manage the certification process.

While many new certifications go to professionals that currently have other certifications, 60% of the 300,000 new professional certifications issued each year are to new entrants. And since college and university students (as well as career changers) now account for a rapidly growing percentage of total trainees, the company is authorizing more academic institutions to deliver training directly to their students.

Although Microsoft will continue to devote the vast majority of its training efforts to current and aspiring IT professionals, the company also wants to ensure that all types of people, across all industries and job functions, understand how to use its personal productivity applications in their daily work. Therefore, the company has developed a wide range of courses to help business users and students more effectively use Microsoft tools in their day-to-day work and has so far certified 2.5 million professionals to support its business products (in addition to the 2.4 million for its technology products). The company, in fact, estimates that it and its partners train 10 times more business users than IT professionals each year.

But since the training of IT professionals is much more complex and detailed, and since IT work is becoming increasingly difficult at a time when productivity applications are becoming easier to use, Microsoft Learning will continue to focus the vast majority of its efforts on IT training.

From Developed to Developing Countries

Like all IT vendors, Microsoft initially focused its training efforts overwhelmingly on those developed countries that accounted for the vast majority of total IT spend. Now, however, emerging countries are dramatically increasing their IT investments. Their demand for IT training, however, is growing even more rapidly than is their demand for hardware and software.

The reasons are two-fold:

  1. The explosive success of India’s IT outsourcing services has prompted dozens of other emerging countries to train large numbers of their own citizens in efforts to replicate India’s success. Certifications are instrumental in allowing offshore service providers to demonstrate their skills and to level the playing field with developed country competitors; and
  2. The tech crash of 2000, combined with the growth in offshoring, dramatically reduced the interest of IT careers in developed countries (and especially in the U.S.), thereby reducing the need for specialized IT training in these countries. Many developed countries, in fact, are already experiencing shortages in key disciplines. 

This double whammy shifted the locus of the IT training market. India, for example, now accounts for 25% of all new Microsoft certifications and other emerging countries, such as China, Mexico, are growing rapidly. Microsoft has recruited new training partners to address these developing country opportunities (including the giant NITT, which trains more than 500,000 people per year across Asia, the Middle East, Africa, and Latin America) and has formed relationships with hundreds of additional universities.

Schools as Development and Delivery Partners

Microsoft has introduced a number of innovative IT programs (which I will discuss further in future blogs). The Microsoft IT Academy, which it launched in 2007, serves as an umbrella under which the company’s academic IT training offerings (curricula, courseware, software, online learning, certifications, etc.) are aligned. The program, which is primarily targeted at engineering, computer science and related disciplines, has expanded rapidly, encompassing close to 9,000 schools with plans to grow this number five-fold over the next five years.

This program, which adds hands-on, practical experience to the academic education of many curricula, is intended to enhance student employability by adding focus and certifications at special student pricing to the student’s resume and help them deliver immediate value to employers. Microsoft also offers a number of additional services and tools (ranging from career planning tools to resume, cover letter and interviewing guides) plus a newly launched career portal that go even further in helping graduates improve their  employment prospects.  

The company’s academic programs, however, go far beyond the teaching of aspiring IT professionals. The Partners in Learning program is intended to help educators develop and test new methods for using IT tools to enhance education and for highlighting and sharing best practices among schools. It also has a number of programs targeted at college, elementary, middle and high schools students. For example, it provides pre-packaged, online courses to help college students learn to use Excel in business analysis and PowerPoint in presentations. It also offers a number of pre-defined lesson plans to facilitate the learning of specific topics across fields including geography, history, mathematics, science and language. But while Microsoft directly develops the curricula for its IT courses, it relies primarily on schools and other experts to develop non-technical program materials.

Individual-Led Training and Career Development

With the recession prompting a number of companies to cut back on their funding of employee training, growing numbers of employees, students, unemployed workers and independent contractors are taking more active roles in developing their own skills. Microsoft’s new career campaign intends to help these individuals, such as by:

  • Emphasizing the demand for IT skills and certifications, such as by citing independent studies on the current and future demand for IT specialists;
  • Providing justification for individuals to pay for such courses themselves by demonstrating ways in which certifications can help individuals achieve their own career goals (in addition to emphasizing their value to companies);
  • Proactively assisting in career planning by laying out potential career paths and explaining the types of skills, training and certifications that will be required for each step along the way (rather than by focusing on the value of specific courses); and by
  • Distributing up to 1 million free vouchers for select Microsoft eLearning courses and certification exams. 

Into the Future

The future will see more these types of programs. Although the demand for skills training will continue to grow, the type of training, the purchasers of the training and the types of organizations that deliver the training will continue to evolve.

Some of these changes, such as the growing demand from emerging countries and the growing roles of schools in developing and delivering all type of IT training, are long-term trends. Others, such as the decline in corporate spending and the growing role of individuals in planning their own careers and paying for their own courses, were created—or at least exacerbated—by the recession. Such exigencies have prompted Microsoft Learning to take a much more pragmatic approach to positioning and promoting its courses. Its new mantras are for immediate employability and self-directed career development.

While some of these changes may be new, all are likely to shape Microsoft’s education and training programs for years to come. Although the company will continue to focus its primary efforts on the training of IT professionals, it will work increasingly closely with partners—especially all types of educational institutions—to integrate IT more seamlessly into all academic disciplines, curricula and coursework. It will also continue to increasingly position its training materials as providing at least as much value to the individual, as to the employer.

Preparing for Careers in Cloud Computing and Technical Analytics

Sunday, November 22nd, 2009

My last blog, Business Analytics as a High-Value Career Opportunity, examined the growth and career opportunities inherent in using analytics to improve business functions and processes. However, analytics applications—and the increasingly powerful tools that enable them—are also creating incredible new opportunities for graduates in a broad range of technical disciplines.

Two leading technology vendors, IBM and Google, in cooperation with a government agency, have taken an important step in helping students prepare for careers in these promising new fields. Not coincidentally, this work will help these vendors enhance the IT architectures, create the application development skills and build a base of developers that will instrumental in creating new-generation computing infrastructures and applications on which these vendors hope to build their own futures.

Building the Foundation for Large-Scale Internet Computing

There is nothing new about large-scale technical computing. Scientists and engineers have long used the world’s most powerful supercomputers to perform complex calculations on huge data sets—the type of computations required to model and visualize complex interactions and simulate outcomes.

What is new is that a growing portion of this work is migrating from huge, expensive and traditionally proprietary supercomputers and software, to distributed, cloud-based architectures that consist of clusters of hundreds or thousands of standard PCs, connected through open standard interfaces, and applications developed with open source tools.

In October 2007, IBM and Google partnered to create the IBM/Google Cloud Computing University Initiative, which provided several universities with access to a large cluster running the Hadoop open source distributed computing platform. The companies provided the required hardware, software and services and recruited six leading computer science research organization (University of Washington, Carnegie-Mellon, MIT, Stanford, U of C Berkeley and University of Maryland) to participate in a pilot program. Then, in February 2008, IBM and Google partnered with the National Science Foundation (NSF) to provide grants to academic researchers to explore large-data architectural issues and create applications that could take advantage of this infrastructure.

Technical Analytics Enablement

As of October 2009, the NSF had awarded $5 million in grants to 14 universities for various research projects.. Most of these projects have a dual goal of:

  1. Improving computer science students’ knowledge of highly parallel computing practices; and of
  2. Spurring research into specific aspects of large-scale, data-intensive cloud cluster architectures and application development.

The first award, to the University of Washington, has the broadest, most foundational goal. It is intended to help jumpstart the widespread teaching of large-scale cluster computing to large numbers of computer science and software engineering teachers and students across multiple undergraduate universities. It is creating a 2.5 day workshop that provides course material and curricular support that professors at undergraduate universities around the world can use to develop their own courses.

Most awards, however, are intended to fund advanced research into specific particularly knotty problems that must be addressed for cloud to become a ubiquitous platform. A number of the initial grants focus on search—the primary horizontal application of cloud technology and the foundation of Google’s market position. For example, Carnegie-Mellon, University of California-Santa Barbara and University of Massachusetts-Amherst were each awarded NSF grants for developing more efficient methods of searching and managing queries across the Web. University of California-Irvine received one for research intended to improve the efficiency and accuracy of fuzzy search queries on large text repositories.

A number of awards were focused on issues that underlie a broad range of high-performance, technical computing problems. Examples include grants to:

  • MIT, Yale and University of Wisconsin-Madison for studies of tradeoffs associated with using different approaches for analyzing and extracting information from very large collections of data across large-scale clusters of parallel computers; and
  • University of California-San Diego for improving the performance of dynamic provisioning of data-intensive applications.

But while most grants focused on broad, infrastructure-related issues, a few delved directly into specific scientific analytic applications. For example:

  • One of the University of Washington’s three projects focuses on astrophysics, particularly the analysis of astronomical images, space-time overlaps and the simulation of collisions of galaxies;
  • University of Washington and University of Utah each won grants for projects that will allow ad hoc, longitudinal query and visualization of massive ocean simulation results at interactive speeds;
  • University of Maryland-College Park is conducting a project to develop parallel algorithms for analyzing DNA sequencing; and
  • University of California-San Diego’s aforementioned dynamic provisioning research will include a focus on protein matching in bioinformatics.

Helping Students—Helping Themselves

The IBM/Google Cloud Computing University Initiative, as mentioned, has an immediate objective of stimulating research into areas that will be instrumental in establishing cloud as a ubiquitous computing platform. A few are intended to promote research into specific technical disciplines—some of which may have direct commercial application, others not.

But regardless of the immediate commercial opportunities, many of these projects will serve as platforms for subsequent research by hundreds of other universities and corporate research labs. Research findings, for example, will be published in scientific journals, and be disseminated though conferences and by graduates who move to other universities and into the private sector. Some of the projects will result directly in usable products, such as code that will be available under open source licenses.

All of these projects, however, address another of the supporting vendors’ longer-term goals—to create a generation of students that understand the value and application, and will help drive the adoption of cloud-based computing.

Some of these students—particularly those in disciplines such as computer science and software engineering—are training to become the systems and application architects of tomorrow. IBM and Google will work with professors to identify the most promising of these students, offer them scholarships and internships, and attempt to recruit them into their organizations. (See my November 11 blog and report on IBM’s Academic Initiative (IBM’s Role in Creating Tomorrow’s Workforce) to understand how such efforts fit into that vendor’s broad employee development strategy.)

But only a small percentage of those students who benefit from the Cloud Computing University Initiative efforts will end up working for IBM or Google. Many are likely to end up in working for IT organizations or for other vendors—including competitors of IBM and Google. Meanwhile, students who learn to apply parallel computing tools to other disciplines, such as astrophysics, biochemistry or environmental studies, are likely to apply these techniques to their own private and public sector careers.

All of these graduates, however, can provide at least indirect benefits to the founding vendors. Those who work in customer IT departments will help drive demand for cloud-based solutions. Even those who join competitors have the potential of helping to expand the overall cloud market.

In the end, however, the founding vendors, and all private and public sector participants in all types of technical research, are likely to gain the greatest value from those students in non-IT-related technical disciplines—those that learn to apply high-performance, cloud-based computing clusters to drive innovation in their own fields. Their work, combined with the expansion of the IBM/Google Cloud Computing University Initiative into other academic departments—everything from finance and marketing, though metallurgy and nanotechnology, to architecture and urban planning–will spur new applications, and new innovation in all types of fields.

Although not all this work will directly benefit IBM or Google, it will certainly help to jumpstart the cloud computing market. This will not only provide indirect benefits to the two vendors, it will also create new career opportunities for thousands of IBM/Google Cloud Computing University Initiative graduates plus millions of others that end up in new jobs that will be created by these graduates’ innovations

How IT Services Providers Can Help Clients Address the Coming IT Skills Gaps

Saturday, September 5th, 2009

The growth of the IT industry has depended on broad availability to people with IT skills-people to work both at IT vendor and customer organizations. Although it may be tempting to scoff at the emergence of a skills gap during a period characterized by a combination of recession (when companies are being forced to lay off and defer the hiring of qualified people) and globalization (with a huge growth of IT skills in India, China and dozens of other emerging countries), three fundamental trends will combine to jeopardize the availability of the type of skills that will be required to allow developed country companies (especially U.S., Western Europe and Japan-regions on which IT vendors still demand for the vast majority of their revenues and profits) to effectively apply IT to addressing the business needs of their companies. These trends are:

  1. Demographics, a combination of a dearth of Gen X and Y’ers to replace retiring baby boomers, insufficient transition planning by many companies, and simultaneous declines in both the percentage of young adults graduating from colleges and, especially, those majoring in IT or other technical curricula.
  2. Globalization, whereby the rapid growth of offshore labor supplies and skills (and the pressures this will impose on developed country entry jobs and salaries) will initially reduce both the attractiveness of IT careers and, longer term, jeopardize the development of the type of higher-level skills that developed countries will need to mange their own environments and, most importantly, effectively apply IT to their company’s business needs.
  3. Industrialization/Automation, in which lower-level entry tasks (those that are instrumental in helping people learn the foundation skills that are necessary to learn higher-level skills) will increasingly be instantiated into software.

At first glance, it may appear that the combination of 2 and 3 will address the shortfalls created by 1. Moreover, the combination of all three of these trends could very well result in IT organizations that are much more cost-efficient -and effective-than are traditional organizations.

But while the globalization and Industrialization of IT work will certainly reduce the demand for IT-trained “bodies” in the U.S., it will simultaneously reduce the supply of people trained to provide the types of high-level skills that are required to:

  • Architect and manage sophisticated projects and, most importantly, those that best understand how to
  • Apply IT as a tool to address business needs and achieve strategic advantage.

From where will such skills come? True, offshore sources may well produce many of the architectural and managerial skills required to offset a dearth of developed country skills. Although companies may prefer to retain these and other high-level IT skills onshore, many can probably make do with offshore talent. And since few end user organizations are likely to have the scale or the best practices required to build, staff and manage world-class offshore IT organizations, they may even be able to justify outsourcing these functions to third-party providers.

But what about that mix of deep business process, IT architectural and business strategy skills, combined with the type of corporate cultural sensitivity, that is required to identify and sell the need for, and align the types of organizational resources required to drive such projects to fruition? Such capabilities cannot be offshored, much less outsourced. How will developed countries in general, and individual companies in particular, recruit, develop, nurture, manage and retain such skills? Even more fundamentally, what type of skills should companies look for in people who can grow into these roles, where are such skills being taught, what career paths are most effective in developing these skills and what cultures are required to develop skills into talents?

True, the “mere tasks” of increasing college graduation rates, the percentage of students who major in IT and related disciplines and the quality of the educations these students receive, may well increase the pool of raw materials from which such talent may be developed. But the use of such blunt instruments to increase the genetic probabilities of creating the new generation of such talent is not an effective or efficient means of developing these skills. This is particularly true given a probable decline in the number of entry jobs from which such students can percolate to the top.

Neither the country, nor individual companies need huge numbers of raw skills-they need a totally new approach to selective breeding on the type of talent that will be required for the skills that businesses really need to be competitive in the future. They need entirely new types of education, entirely new career paths and entirely new ways of looking at the type of value that IT must provide in a more global knowledge-based economy. 

Since IT vendors in general, and IT service providers in particular, are playing such key roles in driving the  globalization and industrialization/automation tends, they are best positioned to determine the ways in which these trends will redefine the needs for next-generation IT skills. And since they have so much to gain from the availability of such skills-and so much to lose from death of these skills-they have huge incentives to help create them.  Some, as I will discuss in future reports, are already working to define and help universities create the foundation for these new skills.

The Role of Virtual Communities in Enhancing SAP Skills and Business Value

Sunday, August 16th, 2009

My July 27 post examined IBM’s University Initiative, and what I see as an emerging, best practices-based approach for training prospective employees and customers for the IT-based jobs of the future.

 

Other IT vendors are pioneering other types of approaches for continually updating and upgrading the skills of IT professionals. Consider, for example, SAP’s “Communities of Innovation“—a combination of about half a dozen online community-based initiatives that have attracted more than 1.7 million members (growing at a rate of 20,000 to 30,000 per month), about 70,000 of whom contributed over the past year.

 

SAP Developer Network as a Community Prototype

SAP’s first, and by far its largest community-building efforts are focused on technologists—developers that customize SAP applications around specific customer requirements and the IT staffs that develop and manage the infrastructure on which the applications are run. These programs, combined in the 1 million-plus member SAP Developer Network (SDN), are intended to help SAP developers, analysts, consultants, integrators and administrators collaborate to address technical challenges, handle day-to-day administrative issues, identify new opportunities and learn about new technologies.

 

This Internet-based forum, which is augmented by physical meetings (such as SAP’s TechEd and local Tech Tour conferences), are—and will continue to be—the company’s largest, highest-priority community-based initiatives. But while technical education, support and community will always be critical to SAP customers and partners, these technical confabs are taking on an increasingly business-focused slant. They are being increasingly used as vehicles for helping technologists deliver greater levels of value to their organizations by becoming more engaged in the business and by playing more active roles in addressing business problems.

 

From Technical Communities to Business Communities

However, like most other vendors, SAP recognizes that expanding the business acumen of its traditional technical constituencies is a necessary, but not sufficient condition to establishing its tools as critical business solutions. It must reach more directly to line-of-business customers as a means of:

  • Better understanding the capabilities these people will need in the tools of their future, to ensure that SAP tools will become even more relevant to their needs;
  • Helping business executives understand the value that SAP tools can deliver to their organizations, since these executives are playing increasingly central roles in driving and funding technology purchases; and
  • Ensuring that business users understand how to derive optimal business value from these tools, so as to cement SAP’s role in these organizations’ businesses. 

 

So while the vendor will certainly continue to build and empower its technical communities, it is becoming much more aggressive in developing and empowering business communities. Its Business Process Experts (BPX) community is the largest and most mature of these initiatives. BPX, which currently numbers more than a half million members, is intended to help customers—a combination of business executives, analysts and developers—share and collaborate on the creation of best practice-based business processes. The community provides process learnings and moderated collaboration across 18 of the vendor’s 26 target industries, as well as horizontal application areas such as ERP Financials, HR management, supply chain and customer relationship management, and a number of cross-industry business themes such as change management, sustainability and value engineering.

 

Newer communities similarly target a combination of technical and business users. For example, SAP’s:

  • Business Objects Community, built around the business intelligence and reporting software SAP acquired in 2008, helps approximately 400,0000 business and technical users gain greater business value from these tools while simultaneously demonstrating the value of efficiency attributable to reuse of existing objects.
  • University Alliance Community, launched in February 2009, already consists of 60,000 students (a combination of business and Information Systems) and professors from 1,000 universities around the world. Members are also encouraged to participate in SDN and BPX, collaborating with professionals to ensure that they understand how the software is used in practice, as well as in theory.
  • SAP EcoHub, a listing of and interactive community built around the partner products designed to be used with SAP, allows customers to rate, share experiences and provide unbiased feedback around these products. 

 

The Growing Role of Private Communities

Each of the above-mentioned communities is public and is open to anyone who wishes to join. The results are available to all. Such open forums are ideally suited to most types of technology-based discussions, where participants are generally comfortable in engaging in open dialogs and where more value can typically be gained by sharing, than by keeping information proprietary.

 

This, however, is not always the case with business users, who may be comfortable in openly discussing general concepts, but reluctant to share best practices with current or potential competitors. Therefore, SAP also sponsors a growing number of private, orchestrated communities that are open only to a relative handful of specifically invited guests. For example, these communities may be dedicated to specific business processes, in which perhaps a dozen customers and partners may be invited to participate in an SAP-moderated forum around core business needs or common processes.

 

SAP, meanwhile, may also have a need to keep some of its forums confidential. Consider, for example, a forum in which the vendor wishes to explore customer perceptions of a current product or needs for new capabilities. It may form invitation-only communities around a specific industry, such as banking, to which it will invite selected banks and industry-focused partners to identify needs, define specifications and provide feedback on proposed offerings.

 

My next blog will look at the benefits delivered by community-building activities and the implications for other IT vendors.