Young IT blood is needed before companies embrace AI

There is a correlation between companies’ implementation of AI and the recruitment of young IT professionals, according to SAP house SOA People. Both are progressing slowly. AI tools already exist, but there is a pronounced fear of change, and there is fierce competition for the few young IT professionals who have mastered the new technologies.

Article from Berlingske ’Digital transformation’, 8 June 2021

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For years, companies have been talking about artificial intelligence (AI) and how intelligent systems can transform business. Now we are in the midst of this development and have all the new AI-based tools at our fingertips. Yet many companies are hesitant to embrace the potential of AI, according to Lars Bork Dylander, CEO of SAP house SOA People Denmark.

“All companies say they are undergoing a digital transformation – and to some extent they are. But the depth of the digital transformation varies greatly at this point in time. In some companies, it may seem that digital transformation is something they are aware of and talk about, rather than something they are actually doing. All self-respecting companies today have a digital strategy, and in general, our business community and society are very digitised compared to other countries. But when you take a closer look at what companies are doing right now, some of them still seem afraid to fully embrace digitisation and explore the opportunities offered by new technology. There are still few companies that have taken the full step and succeeded in implementing AI in their daily operations for the benefit of their business,” says Lars Bork Dylander.

A phase of fear of contact

He believes that many companies still view AI as something that is difficult to access, and that many companies undoubtedly lack employees who are proficient in new technologies such as AI, data science, algorithms, etc.

‘A phase of apprehension is not unusual when it comes to new technology. We just have to say that the tools needed are already available in the form of new intelligent platforms, for example within ERP systems.’

As an SAP house, SOA People works with, among other things, the new intelligent ERP platform from SAP, S/4HANA, where algorithms can perform much of the work that humans have previously taken care of.

“Take an example where your company has received a large order that needs to be produced. In the old world, you would start by examining capacity, inventory and your supply chain. Perhaps it turned out that you needed to order more components before you could start production. The new systems examine all the relevant factors themselves and alert you if you have a challenge in relation to being able to produce the order. Perhaps the system comes up with three suggestions for how you can solve it, and with a point score, the system also tells you which solution it finds best. When you press “execute”, the system does all the work automatically in the background. It really streamlines and changes the way you work,” says Lars Bork Dylander.

New systems – old habits

However, the new, innovative features that bring algorithms and artificial intelligence into business processes are not typically the first buttons companies press when they get a new system.

‘It should be one of the first things you jump on, because the value of being able to work more intelligently is enormous. Instead, the tendency is to work with the new systems in the same way you worked with the old ones.’

According to Lars Bork Dylander, one explanation could be that the IT professionals working on the systems are seasoned veterans who actually think that the existing systems are still smart. And he knows the problem from his own experience. “What I think is smart, the new young employees think is outdated and boring. You can sense that the decision-makers in companies are adults who are not in such a hurry to jump on the bandwagon of new things.”

War for talent

If AI is to make its breakthrough in businesses, even more young IT professionals need to enter the labour market. Right now, there is fierce competition for talented young IT professionals. “The “war for talent” we talked about years ago has become a reality. We are educating and training, but not enough, and there is fierce competition for talented people. It is particularly difficult to attract young people to newer technologies such as AI, data science, machine learning, etc. They are really talented and well-educated, but they are difficult to retain because they receive many offers,” says Lars Bork Dylander.

He acknowledges that educational institutions are making a great effort and sending many young IT professionals into the labour market, but this is not enough to meet demand. Therefore, he believes that companies themselves have a major role to play in contributing to the education and recruitment of the next generation.

It’s almost a cultural change that is needed.

”In the consulting industry, where we operate, this is quite noticeable. Many consultants have become a bit grey-haired, but our customers also tend to specifically request consultants with 15 years of experience or similar. We might argue that what they really need is a young IT employee who is up to speed with the latest technology, but it is difficult to change this practice when consultants are purchased on the basis of fixed criteria. It is rare for a young high-flyer with only two years’ experience to be in demand.”

Young people create the future

But it is extremely important to make room for young people and give them experience, emphasises Lars Bork Dylander.

“A good 20 years ago, when everyone was worried about the millennium bug and buying new systems, there was a realisation that new blood was needed. A large part of today’s IT workforce was actually trained around the turn of the millennium. Now there is a need for a similar willingness to try new things. There is a need to recognise that it is young people who will shape the future.”

Lars Bork Dylander, CEO at SOA People Nordic, SAP partner in Denmark
Lars Bork Dylander

CEO & Digital Influencer

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