Key Competencies of Smart Business and
Suggestions for Producing Talent in the Age of the Fourth Industrial Revolution
Researcher in Charge: Bomi Kim / Associate Research Fellow Summary
This study aims to define the industries that either lead the Fourth Industrial Revolution or have been created by it, and those who work in such industries. With regard to smart business areas that stand on the two technological pillars of hyperconnectivity and superintelligence, it analyzes how workers in these fields perform their tasks and what skills are required of them. Through this analysis, the study intends to identify changes in the work methods and key competencies of those working in smart business.
Ⅰ. Backgrounds and Objectives
□ Due to the Fourth Industrial Revolution, repeated routine tasks and those jobs that are dangerous and least sought after will likely be automated. This is expected to reduce the demand for workers in such fields, restructure the job world in favor of professions that create high added value, and enhance the value of occupations that require creative and emotional capabilities, which are thus hard to replace through automation.
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Given the emergence of this trend, it is crucial to secure professionals that have the ability to develop smart information technology and apply it to a variety of industries, and the key challenge in this smart information society is how to reeducate and reposition those that are replaceable by automation.□ Against this backdrop, this study has sought to identify key competencies in the age of the Fourth Industrial Revolution and to suggest options for producing talented individuals who can help respond to the Revolution.
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Unlike in other studies, this study does not deal with changes in key competencies across the business sector that have been caused by the Fourth Industrial Revolution in general, but instead focuses on shifting key competencies in smart business. It alsoidentifies the pattern of such changes based on interviews with corporate human resources personnel and explores ways to nurture talent in line with those changes.
Ⅱ. Key Research Details
1. Research Details□ The Definition of Concepts Related to the Fourth Industrial Revolution
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Quaternary sector and its workers◦
Smart business and key competence□ The Pattern of Changes in Key Competencies That Have Resulted from the Fourth Industrial Revolution
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Select smart business areas and examine the pattern of changes in work processes and key competencies◦
Research the work processes of those working in smart business and identify skills needed to conduct tasks within it□ Suggestions on How to Nurture Talent in Response to the Fourth Industrial Revolution
2. Findings
□ Changes in Innovation Capabilities by Industry and the Current State of Human Resources Development
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This study looked at some cases in the smart business areas of healthcare, securities (financial services), telecommunications, and manufacturing to identify the pattern of changes in the key competencies that are sought by businesses in their response to the Fourth Industrial Revolution and to explore ways to produce talent.<Subject Selection and Survey Methods>
Selection criteria Selected businesses Survey methods Period
◦ Companies that have adopted basic technologies
◦ A cancer hospital that has adopted AI technologies
◦ In-depth interviews with the HR personnel of the selected
June- August
of the Fourth Industrial Revolution, such as artificial intelligence (AI) and big data
◦ Companies that have a robust system of producing talent in response to the Fourth Industrial Revolution
◦ A securities company that uses AI and big data analysis to serve investors and manage funds
◦ A telecommunications company that expands hyperconnectivity through AI, big data analysis, and the IoT
◦ A manufacturer that is one of the first to have adopted a new car production process and human resources development scheme
businesses by using a semi- structured questionnaire developed by our research team
◦ Interviews with the departments that take advantage of technologies related to the Fourth Industrial Revolution, if necessary
2017
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First, the scope of newly required technical skills differs depending on how systems such as AI are adopted.- When a company adopts a third-party AI system, its workers have only to learn a minimal set of technical skills for control and operation since the system is already substantially user-friendly, and therefore there is little need for internal education and training.
- If a firm builds a system in-house, it requires close collaboration between its IT department and business. This process allows the firm to build its capacity and equip its workers with technical skills needed.
- In addition, this system could be used extensively for various applications, in which case technological developments lead to a broad range of changes in required skills and a greater need for securing talented human resources.
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Second, the Fourth Industrial Revolution has significantly expanded the demand for technical skills that companies have not previously had. As internal education and training alone cannot meet such a demand, these businesses are now hiring more people with relevant experience.- Most HR personnel predict that this trend will continue and that the competition for talent will become increasingly fierce, placing a greater financial burden on businesses, particularly from greater compensation for employees with relevant
expertise.
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Third, key competencies needed in response to the Fourth Industrial Revolution include not only information technology, statistical analysis capabilities, and mathematical skills, but also cognitive and social skills such as listening and critical thinking, the ability to cooperate with others, and creativity, which are all expected to grow in importance.- Unlike technical skills, however, multi-functional, cognitive, and social skills are hard to develop in a short period of time. This calls for fundamental innovation in the national education system.
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Fourth, ample training opportunities should be offered to those with little access to education and training, which is needed in response to technological changes. This includes small-business workers, older people, and the unemployed.- If workers engaging in low-value unskilled jobs fail to acquire skills that are required as a result of new technological developments, they will most likely be replaced by automation and cutting-edge technology and will end up mired in unemployment and poverty. The government should make sure that these workers have access to education and training so that they can land better quality jobs and engage in high- value work.
Ⅲ. Policy Suggestions
□ Greater Vocational Training in Companies
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Strengthen re-education and re-training by providing employees with learning opportunities- Companies and workers urgently need to adapt to the technological advances that have been spurred by the Fourth Industrial Revolution. To ensure that businesses lead and respond proactively to future changes, they should first become aware of the need to invest in providing their employees with skill- and capacity-building opportunities on a continued basis.
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Build more robust education channels for producing future-oriented talent through cooperation between businesses and academia- Companies may not have sufficient capacity to run specialized programs in response to the Fourth Industrial Revolution, or they may find it difficult to develop a curriculum or make an investment in relevant facilities and equipment due to high initial costs and future uncertainties, even though they feel the need to produce individuals that can play key roles going forward. In this case, they should work with universities that already have the necessary educational infrastructure to combine the theoretical expertise of academia and the hands-on experience of the business sector.
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Develop educational content for teaching not only technical skills, but also a variety of problem-solving skills- In addition to technical skills programs in response to technological changes caused by the Fourth Industrial Revolution, educational content is needed to help develop problem-solving skills such as tool maintenance and repair, tool management and control, programming, quality control, and root cause analysis through the interpretation of given information.
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Promote massive open online courses (MOOCs) with no time or space constraints - Existing courses on skill building can be used for vocational training programs, or businesses can be engaged to develop and incorporate customized programs into the MOOC scheme in connection with corporate in-house programs.□ Human Resources Development
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Given that the Fourth Industrial Revolution requires not only technical skills but also insight into and communication with other human beings, policies should be geared toward the balance of cognitive/social skills with technical skills.◦
Incumbent workers should be given more opportunities for education and training.For small businesses with no resources to invest in nurturing talent, cooperation needs to be strengthened between companies and universities or other specialized institutions. A new, innovative approach should be taken to ensure that incumbent workers can receive outside training through such joint programs for a certain period of time.
