Staffing firms must use data assets to compete with new platforms – Geoffrey Parker

MIT Sloan Visiting Scholar and Fellow, Initiative on the Digital Economy, Geoffrey Parker

From MIT SMR Custom Studio

Like established companies in many industries, incumbent players in the staffing and recruitment sector are encountering a competitive landscape transformed by platform businesses.

New platforms that have sprung up to connect companies with workers include online freelance marketplaces such as Fiverr, TaskRabbit, and Wonolo. While Facebook and Google are seeking a cut of recruitment advertising revenue, Microsoft-owned LinkedIn is challenging staffing firms by offering job listings and recruiter services fueled by well-maintained data. With its emphasis on professional networking, LinkedIn gives users motivation to maintain current information about their credentials, providing a rich view of where they fit into the economy and the jobs they’re qualified for.

To develop their capabilities in a platform economy, traditional staffing enterprises need to make better use of their own valuable data assets. Based on what they know and capture about both their customers’ workforce needs and job candidates’ qualifications, what new revenue streams can they create? For example, they might use in-depth knowledge of an employer’s resource needs to create road maps for workforce skills development that will generate value for that organization. When training and education providers participate in the ecosystem, staffing companies would generate revenue via recommendations that are implemented.

Using data effectively is key to efficiently matching supply and demand, the core of any platform strategy. With more and higher quality data, a company does a better job of facilitating that match. However, many traditional enterprises are not leveraging data from across the whole business, and their analytics capabilities are designed to optimize current, not future, business models.

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Tech innovators open the digital economy to job seekers, financially underserved – Irving Wladawsky-Berger

MIT Sloan Visiting Lecturer Irving Wladawsky-Berger

MIT Sloan Visiting Lecturer Irving Wladawsky-Berger

From The Wall Street Journal

The future of work is a prime interest of the MIT Initiative on the Digital Economy, started in 2013 by researchers Erik Brynjolfsson and Andy McAfee. To help come up with answers to questions about the impact of automation on jobs and the effects of digital innovation, the group launched the MIT Inclusive Innovation Challenge last year, inviting organizations around the world to compete in the realm of improving the economic opportunities of middle- and base-level workers.

 More than $1 million in prizes went to winners of the 2017 competition in Boston last month in four categories: Job creation and income growth, skills development and matching, technology access, and financial inclusion. Awards were funded with support from Google.org, The Joyce Foundation, software firm ISN, and ISN President and CEO Joseph Eastin.

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$1 million to create a more inclusive, productive, and sustainable future for all — Devin Cook

Devin Cook, Executive Producer of the MIT Inclusive Innovation Competition

Devin Cook, Executive Producer of the MIT Inclusive Innovation Competition

From Forbes

Two years ago, in their groundbreaking book The Second Machine Age, Professor Erik Brynjolfsson, Director, and Andrew McAfee, Co-director, of the MIT Initiative on the Digital Economy, described digital technology’s transformative effect on business, the economy, and society.  With productivity, wealth, and profits at historic highs, digital innovation has created unprecedented bounty for a great number of people. However, not all people have shared equally in this prosperity. In economic terms, overall GDP is growing but median incomes since 1999 have actually fallen. While technology has created greater wealth for society and for innovators at an unprecedented pace, changes in our economy are actually leaving many people — especially middle- and base-level earners — worse off.

This is the great economic paradox of our time, yet at the Initiative on the Digital Economy, we know this disparity will not define our future. Rather we are technology optimists, and we believe that the future of work can be better for all. However, we cannot ensure that people will enjoy prosperous working lives, if we just stand by and watch these trends unfold. Thus to celebrate, support, and inspire solutions to this challenge, the MIT IDE launched the Inclusive Innovation Competition (IIC). We will award a total of $1 million in prizes to the world’s most inventive organizations that are enabling more people to fully experience the prosperity of the Second Machine Age.

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