Digitization's Impact on Employment Trends in Taiwan: Insights from Reports

1. Impact of Digitalization on Employment and Jobs: Managing adjustments at enterprise, industry and national levels Reflections from Two Reports by interacting with Taiwan society Hamilton Cheng ECM, Taiwan Public Television Service Enterprise Union Oct. 26 2017

2. Automation replaced workersA “popular” threat • TV Studio Automation-created a threat • Threat to the worker’s lives (employment) and even real lives • AI and Automation are one of the murder themes by Forensic TV • Dead Air (studio, a no-man zone)—CSI Les Vegas

3. Now it is our drama, digitization taking the economy into uncharted water, the speed of change is not that slow anymore

4. Outline • Taiwan affected by Current Digitization (A Mckinsey & Company Report 2017) • The impending effect to Taiwan by waves of Worldwide trends (The World Economic Forum Report 2016) • Media Industry Overview through a Local Revisited • Recommendations

5. A Governance Probe on Taiwan in digital age Sept. 28, 2017 China Times

6. Assessing on Taiwan Digitalization is well-launching However, digitizing unevenly Digitization is generated by a tech-savvy society Digitization is a sector-wise approach in first decade of 21 century in Taiwan The Industry Digitization Index of McKinsey Report found out,………..

7. Taiwan Digital track in variance Summary Vary widely in the level of digitization • High-Tech sector: productivity is the highest of all, digitization applied to every chain (Finance, second to this) • Professional Service (ex. media company) is lacking of digital capacities in Business Processes • Have further room to digitize, included Manufacturing, Service industries

8. On Productivity, the problems looming Regarding four sectors Summary Taiwan, is wildly fluctuating the rates of productivity growth divided by different sectors Although the High-tech performs the best practices of evolving digitization, the automation, advanced analytics forced margins to be slim The finance service enjoyed high rate of digitization but insufficient supply of qualified talent, equipped with sluggish regulatory framework

9. Problems on Productivity, continues. • Transportation is the most digitized among service sectors, thanks to e-commerce, online transaction, data collection (niche market) • Professional Services is low score on digitization on contrast, with much room to digitize the internal processes to manage business (ex., vertical-specific software) for the workforce

10. One special review on Central Government Aging, and lowest fertility rate The difficulties of increasing government spending because of high level of debt and slowing GDP growth

11. How digital solve this, including public service, public utilities, and working condition being effected Saving the cost? (increasing opportunities) By building capability Salary levels and working hour set to optimal scale Generous at extra vacation days and flexible career path (incentives) A forward-looking culture to embrace going digital Collaboration between IT and other part of the operations • Streamline and integrate workflows • Managing data and information generated by online and IoT • Enhancing public service delivery • Expand communication channels for engaging citizens

12. Building Benchmark by Public sectors • Digital spending on Labour • Hardware spend is enough • Software spending customized to per worker • Telecommunication and IT implementation encouraging to replace current process (red-tap) • Data analytics-based decision making deployment into workers’ profession requirement (resourcing to AI backup, see next page) • Based on above, Organized labour skillfully as the exemplar for knowledge intensive industry

13. Involving into AI system 科技部26日舉行「科技大擂台 與AI對話 Formosa Speech Grand Challenge」記者會，科技部長陳良基（右）、華碩董事長施崇棠（中）、公共電視董事長陳郁秀（左）出席。中央社記者郭日曉攝 106年7月26日 Public resource pouring into AI detecting system Public TV provided 5,000-hour program from children, drama, News, In-depth Reporting Using the audio data for future Robotics to understand Taiwan daily speech Professional workers participation and general application to public

14. New Approach need regulatory support • Let workers adapt to digital world • Updating regulatory framework for new job with pro-active protection • Clarify project-based workers are treated under current legal structure • Is there an opportunity to meet the needs of different working models as the economy evolves simultaneously project employees rights (focus on the performance basis rather than the hours basis)

15. World Economic Forum:the Fourth Industrial Revolution By Professor Klaus Schwab

16. Who ignited change

17. This time is different, faster than ever • The concentration of benefits and value in just small percentage of people is also exacerbated by the so-called platform effect (driven by mobile device and apps) • Innovation as disruption to current industry • Revolution has made possible new products and services that increase at virtually no cost (zero) the efficiency of our personal lives as consumers • That a unit of wealth is created today with much fewer workers compared with 10 or 15 years ago

18. To think in different way • The disruption effect is accompanied by a capitalization effect in which the demand for new goods and services increases to the creation of new occupations • However, the trend is to raise productivity by replacing existing workers rather than creating ones • How we can resist this trend in dramatically new way

19. The change we can make Thinking job is rigid Thinking skill is flexibility Cognitive System Complex Problem Content Process Social Resource Technical Physical

20. Adjusting on National Level • Exploring the on-job capacities and training: • Psychologist, therapist, coaches, event planners, nursing, healthcare alike • Public and private-sector leaders executing credible strategies by public scrutiny • Created Association between typical unions and traditional professional groups • Regulatory backlash and reasserting the power of policymakers

21. Local reply to the digitization:audiovisual media industry Although media industry is started digitization early, but what result below……..

22. Market Outlook Cable TV is success on the surface Market Share

23. International Trade Association Watch (CASBAA, 2008) Annual Revenue from HH is high Return to HH investment is low

24. If the Media Regulation is in place:on Cable TV Must Go digitalization, Go pay-TV Model • Investment bring back the job creation in following categories • Digital content creator • News reporting in Digital Platform • Channel Aggregator • Program package • Call centre and sales • STB and CA Marketing • Digital Right Management • TV Portal Service Provider • Otherwise, the reality is…………… (CASBAA, 2008) • For a nation that produces most of the world’s LCD TV panels, Taiwan has only a single program tier(about 100 channels), whereas in mature pay-TV markets, consumers can choose from up to 1,000 channels. Furthermore, there has recently been a significant rise in the level of general consumer complaints about content quality, particularly around the large number of low production value news shows and the level of tabloid reporting.

25. Recommendations • Reform done through a social dialogue • Return to the market by the joint-efforts between State-owned Enterprise, Industrial Association, Unions, social groups, NGO, and academic • With a completely unique endeavour by organized workforce and stakeholders group to fight

26. IPTV Service Provider’s Proactive Reform (SOE into digital video by the supports of union, activist, academic) Chunghwa Telecom. Being restricted from operating Video Service Platform OTT as future (one-stop shopping service for national video premium platform, Chunghwa Telecom, 2017) • no state/no party’ investment rule flies in the face of global industry experience over the past 20 years. “This is preventing Taiwan from enjoying the most compelling aspects of the twenty-first century media revolution,” (CASBAA, 2017) • Make it abolished With Taiwan Broadcasting System Group (TBS/PTS) and Enterprise Unions ‘ endorsement

27. Thanks for your attentionBrothers, Sisters No the end, it is a refresh start