What the football world cup and GE`s position can teach the USA`s tariff moves

The last week in the global arena has been dominated by two major news items one of which the global trade wars with the US announcing tariffs on imports on many items mainly on China and  the other major news item is centered around Russia – not anything to do with Vladimir Putin but due to ongoing football world cup! The other news items, probably not so major, but which has got hidden in this noise is that the iconic US behemoth General Electric has been moved out of the Dow Jones 30 index for the first time since 1907 and the new age iconic company Apple is within a kissing distance of the one trillion market capitalization mark.

As this blog is being written, the world cup football has seen a number of upsets with the major countries struggling against well-organized lesser known teams. Germany lost its opening match, Brazil drew its opening match before scrapping through in its next match, France has struggled, Argentina is practically out of the tournament and only Portugal have managed to do well only due to the individual brilliance of Cristiano Ronaldo. The lesser known teams like Mexico, Iceland, Switzerland, Nigeria and Croatia, who have never won the world cup before, have knocked the winds out of the sails of the big teams. 

Big teams have big names who play for most part of the year for the rich big European clubs, where they earn huge amounts of money, while country games are second priority for them. National teams which are too dependent on these superstars are unable to work as a cohesive unit. Messi`s body language while playing in the La Liga for the Spanish club Barcelona is positive while he has looked to the contrary while playing for Argentina while the Brazilian star, Neymar Jr, who attracted attention as the world costliest player when he moved to Paris St. German team in the French league, too has been found wanting in the world cup. Cristiano Ronaldo has been an exception but the Portuguese team is too dependent on him and soon teams can sort him out. Iceland, which has a population of only 300,000 and Mexico, Croatia and Russia, despite no superstars like Messi, but with their great teamwork and swift game have surprised their larger rivals with surprisingly good results.

What explains the sudden surge of the smaller teams? Firstly, many of their players play in the competitive leagues and rub shoulders with the best and hence acquire great technical skills. Secondly, since they want to prove themselves as a nation, they are able to gel well as a team without any egos. Thirdly, with the interconnected world, coaching skills, support systems and knowledge are easily transferrable which help the smaller teams. If this trend continues in this world cup, who knows we might have a surprise winner of this world cup.

General Electric, the US industrial behemoth and the epitome of US capitalism, has been seen as a sign of a progressive and a global business firm and cynosure of all eyes for its management talent and shareholder returns. Jack Welch, the company`s CEO from 1981 – 2001, was the epitome of the CEO`s across all times. However since the turn of the century, GE `s financial performance has been overtaken by new age companies like Apple, Google, Facebook, etc. The financial crisis of 2009 hit GE capital, the finance firm of GE, pretty hard and with the decline in its power business the company was forced to hive some of its assets to stay profitable. Due to its share price sliding down by more than 50% in the last 2 years, the GE stock will be removed from the Dow Jones – 30 index from end of June`18. Quite a fall for the behemoth! Nowadays asset light and technology oriented firms command better valuations as compared to previous superstars and industrial behemoths like GE and Exxon Mobil.

The US government has imposed tariffs on a number of items, especially targeted at China, and has sparked a global trade war. The position taken by the US government is that, the US being a superpower, has been taking the responsibility of the world for a long time at the US`s cost and its own people`s jobs. Hence by imposing tariffs, the US government proposes to reduce the trade deficit of the USA and secondly, the US is clamping down on immigration and outsourcing, to create and save local American jobs. Fair enough! 

However, the US economy thrives on consumption which is fed by cheap imports. Secondly, the innovation culture in the US is driven by the soft power and knowledge skills of various immigrants which has led to the US being in the forefront of technology and industrial development. By taking the recent clampdown moves, the US risks getting isolated from the world which can reduce its negotiating power across the globe. Secondly, with the transfer of knowledge becoming easier and world being more integrated, many non US based and fleet footed firms can challenge the US firms.  Thirdly, China has grown to be a global superpower since the dawn of the century and has been focusing on technology and IP development on top of its manufacturing base. Similarly India too has grown by leaps and bounds, while other nations like Indonesia, Russia have strong economies.

These countries can hence challenge the US very much like the smaller teams in the world cup football and hence the US can meet the same fate as GE in case it takes its superpower status to the extremes.

Mr. Trump- hence watch football world cup and be careful!

China`s oil diplomacy moves to bolster its super power status

China, the world`s largest oil importer, announced recently that it will set up a crude oil futures exchange which will be functional by late March`18. The contracts will be traded in the Chinese local currency Yuan and seeks to establish the Chinese oil futures exchange as a challenge to the traditional oil benchmarks like Brent and Dubai crude and the US benchmark WTI.

China has surpassed the USA in the recent past as the highest oil importing country globally with its 2017 imports of 8.4mn bpd surpassing the US imports at 7.9 mn bpd. The key reasons for China moving to the dominant position in the global oil trade are:

a) Oil demand growing at 11-13% fuelled by its GDP growth at around 7.5% annually.

b) Build up its strategic oil reserves across the country as a buffer against oil price fluctuations

c)Surging shale oil production in USA which has led to reduced imports into USA.

Over the last 15-20 years, the global commodities markets has been driven to  large extent by the Chinese demand due to its explosive GDP growth which in turn fuelled China`s energy demand and infrastructure growth. Apart from oil, other base commodities like iron ore, copper concentrates, bauxite and coal have seen very high demand rates and increased imports into China. 

Futures Exchanges in China

In order to have a relevant pricing mechanism, 4 futures exchanges are functional in China under the tutelage of China Securities Regulatory Commission (CSRC) out of which 3 exchanges deal with commodities and 1 exchange in financial futures. The exchanges are:

1.Zhengzhou Commodity Exchange (ZCE, 1993) – trades in agricultural commodities and PTA.

2. Dalian Commodity Exchange (DCE 1993) – trades in agricultural products and industrial products like PP, LLDPE, iron ore, etc.

3. Shanghai Futures Exchange (SHFE, 1999) -  trades in ferrous, nonferrous and precious metals, chemicals and energy products

4. China Financial Futures Exchange (CFFEX, 2006) – treasury bonds, options and futures.

In the last 5 years, China has witnessed substantial increase in volumes being traded on its exchanges. As reported by the China Futures Association, the turnover of futures contracts has doubled from nearly $15 bn in 2011 to nearly $30 bn in 2016.

Objectives for the oil exchange

The stated objective, for the new oil futures exchange, is to set a regional oil price benchmark as China is the largest oil importer globally. However these moves by China will have to be seen from the perspective of China`s ambition to become a global superpower. Like the US in the 20^th century and Great Britain in the 18^th and 19^th century, one of the steps that China is taking towards its path of superpower status is to control the global trade flows.

China`s global ambitions for a superpower status

As per WTO 2016 figures, China controls 13% of the global trade exports and 10% of global trade imports. With its plans for OBOR, which aims to link China to all major nations China aspires to be trade centre of the world very similar to the old days when the silk route trade was one of the dominant trade routes of the world. In the last few years China has made strategic investments in many parts of the world like in Africa and to support its trade flows, it has bolstered its defence presence in key ports in Pakistan, Sri Lanka, etc.

To support the Chinese trade patterns, China also aspires to make the local currency - Yuan to be a global currency and pose a challenge to the US dollar as a global currency. Since 2016, the Yuan is one of the 5 currencies in Special Drawing Rights (SDR) of the International Monetary Fund (IMF) with a 10% weightage. With trade in Yuan. Thus starting an oil exchange in Yuan, China can increase its stake in the global trade flow as the Brent and West Texas Intermediate are dollar denominated exchanges.

Challenges for the proposed oil exchange

On the other side some of the challenges that the Chinese oil exchange would face are:

·  The Yuan has faced many issues of being manipulated by the Chinese government and hence a big question exists over the currency`s movements. Hence many global players will be skeptical pf playing in a Yuan denominated contract given the forex risks and convertibility issues of the currency.

·  Normally, all the oil benchmarks (Brent, WTI and Dubai) are based in a production center and not in a demand center. Hence the liquidity of the trade in the new exchange can be hampered.

·   Since China is a demand center, freight plays an important role in the pricing and hence freight cost effect in the pricing will be unclear. It can be argued that the London Metal Exchange (LME) is based in London when hardly any metal production occurs in the United Kingdom. However, London being one of the major financial centres of the world coupled with the fact that the LME has physical warehouses in many parts of the world helped LME in becoming the global benchmark for metals trade.

Thus China`s move to setup an oil futures exchange is not only control oil pricing but also in tune with China`s global superpower ambitions of becoming a powerhouse like the USA after WW-2 and Great Britain after the Industrial Revolution. Despite challenges, China has time and again proved that it can move against all odds and succeed. Whether the new oil futures exchange will be a success or not – only time will tell!

Technology disruptions – social backlash can disrupt the “disruptions”?

Summary

Technology Disruptions like block chain, 3D printing, VR etc will change business models but will also have a social impact. This blog looks at the changes in traditional business models by these “DISRUPTORS”.

The entire global business eco system is bracing up for the “Technology Disruptions” like 3D printing, block chain, virtual and augmented reality. These changes will be earth-shattering, like the impact of shale oil to the OPEC oil, and also completely change the business models globally. Products will be conceptualized, manufactured and delivered in a very different way as compared to in the traditional business models. Automation has already entrenched itself deeply with many human jobs being taken over by machines like in the banks. These disruptions will have major advantages in productivity but also probably have an adverse impact on the human social capital if not addressed to properly.

Technology disruptions has led to human and location agnostic manufacturing models...

Let’s take a firm say ABC Inc. which is in the business of manufacturing consumer goods. At present the operations are done by humans manning the machinery. In the future, artificial intelligence, robotics and automation will ensure a very minimal human intervention not only in the production space but also in allied activities like planning, procurement and supply chain processes. Advanced algorithms will ensure that nuances and changes as per market needs are captured without human filters.

The core activity of ABC Inc. – production operations – will be massively affected by advanced automation, robotics and 3D printing. Industrial robots are expected to take over from humans especially in extreme conditions like in nuclear plants, etc. Robots are like high efficiency and high productivity employees with no emotions – something which every boss would like to have. Imagine having an employee who doesn`t get fatigued out, doesn’t take leaves and works at same productivity all through the day and night!

3D printing is a major disruptor in the manufacturing process which has made the manufacturing place location agnostic. The 3D printing machines can print all types of intricate parts with high productivity and can use all types of material like metals, plastics, etc. due to which labour cost arbitrage across countries is wiped out. Thus, the manufacturing process can move anywhere and when combined with automation and robotics will change the complexion of manufacturing processes across industries.

Blockchain, big data and social media add to the disruptive forces …

Blockchain will massively change and disrupt the financial transactions. This disruption is so massive that traditional financial institutions and intermediaries like banks, credit card firms and payment channels, etc. will become redundant and will be forced to change its business models to survive. A block chain of a process created is so secure that the traditional security of financial institutions will not be required!

Marketing has been disrupted in a significant way by the social media which has ensured that firms can reach consumer directly. Online data analytics which collects and analyses consumer behavior has altered market research functions. Customer support too has been automated with repetitive functions like customer calls being taken over by automation.

HR function will have more interactions with machines rather than humans...

All human interactions are going to decrease with all the disruptions but what will the HR functions do when human count itself will be reduced? The HR department will have to deal with a different workplace which has both humans and machines and faced with not only human-human interactions but also human-machine interactions!

The major impact will be lesser number of workers….. Jobs!

Very soon, ABC Inc. will mostly have robots running their manufacturing operations using 3D printers and automated lines, machines taking care of procurement and supply chain and all systems manned by a central control room with very few humans! Sounds strange but it’s going to be true!

A World Bank report estimates that 62% of the jobs globally are under threat due to automation and disruptive technologies with the developing nations being affected the most. A situation, where a significant portion of the workforce will be without jobs and in many cases unemployable, will stare at many countries leading to profound implications on the social fabric of the society.

Countries like Switzerland are experimenting with concepts like “Universal Basic Income” for a basic minimum social security income for its citizens which is based on the presumption that the advanced level of revenues generated for the countries, due to these technology disruptions, will take care of the social costs as well. This may work in highly developed nations with aged populations but developing nations and countries with high population like India will find the going difficult.

A social backlash can derail implementation of the disruptive technologies 

The technological changes sweeping the global businesses will no doubt change the way business is done in a very positive manner but the social impact will have to be managed else it will prove to be a disruption to the technology disruptions!

Public backlash against globalization brought a wave of nationalistic forces like Donald Trump`s election victory in USA, Brexit, etc. which are threatening to disrupt the global integration. The US government`s actions in pulling out of TPP, Paris Accord, etc. have created a havoc in the global arena but have struck a chord with the local people. Similarly, leaders like Marie Le Pen and Boris Johnson, despite being loathed by many people globally, have a popular base by playing on the people`s fear of being affected adversely by globalization and hence are popular. A similar backlash against technological changes can disrupt the technological changes.

Is there a way out ??

Gary Kasparov, the former world chess champion, has said that humans should not fear automation but rather work with the machines for higher productivity and output citing a personal example of playing chess with the IBM Deep Blue computer.

To do this, it would require a huge amount of skill set training and mindset change so that the new wave of working population can be deployed in other value-added and skilled jobs. Education systems will have to be aligned to build up workforces with skill sets to handle these changes. Firms will need to train people to handle the new workplaces.

Thus, disruptive technological changes will need to affect people positively else the social backlash can be disastrous and prove to be the “DISRUPTOR” to these “DISRUPTIONS”.

Trends from the Gujarat Elections – Development is still core issue

The recent Gujarat elections results have been interpreted in different ways. The BJP has claimed a victory, saying that it has won Gujarat for the sixth time in a row beating anti-incumbency trends and it’s a vote for the development politics that has been ushered in by the Modi government. The Congress claims a victory indicating that the margin of victory is only 19 seats and the BJP has got its lowest tally in Gujarat at 99 seats. The Congress has also been claiming that it the party has been revitalized by the energetic campaign by Rahul Gandhi and reflected in the election results. Whatever the analysis and trumpets blown by the parties, the Gujarat elections has thrown some interesting trends which have far reaching implications on the national politics.

The first major trend is the shift towards Hindutva politics and not playing the minority card. The BJP`s stronghold has been the Hindu vote which was latched onto by the Congress this time. Rahul Gandhi`s temple visits and playing to the Hindu vote base was a clear-cut realization that the days of the KHAM vote base are past and banking on the minority vote is not smart politics anymore. The root to the issue lies in the UP elections wherein the BJP, without any Muslim candidates, won even in the Muslim dominated seats by the inducing the Muslim women to vote for them with their policies for the upliftment for the Muslim women. Hence the days of parties playing the minority card, without any concerns for their development, are probably numbered. It might also lead to a realignment of community based politics where parties will need to have a developmental agenda to win this vote base.

The BJP was supposed to lose the trader dominated seats like Surat because of the angst due to demonetization and GST. Alas, the BJP managed to win all the seats even in Surat probably due to the timely action on the GST relief in the run-up to the elections. Even all the anti GST campaigning by the opposition parties proved to be of little effect in shaking up the strong trader vote base of the BJP. Even though demonetization and GST implementation would have led to short-term pain to the trading community, this vote base is almost still intact with the BJP and alludes to the point that the business community still reposes faith in the developmental agenda of BJP. If the business community is still voting for the BJP it indicates the faith in BJP`s vision, to take Indian business and trade forward, in the global arena.

The critical area where the BJP lost vote was in the Saurashtra area, especially with the farmers. The ostensible reason was that the government didn’t respond to the farmer demands for loan waivers, etc. similar to the waivers in UP and Maharashtra. Probably true! Even in Maharashtra, the loan waiver came with reluctance with the government insisting on farmers raising their productivity levels so as not to fall into the debt trap again. In the past, governments have splurged money on the loan waivers stressing their finances as well as make the PSU banks having to waive off huge amount of loans at taxpayers expense. Even though the BJP will prefer to address this issue of farmers, hopefully without much populism, the trend shows that elections can still be won without buckling under populist pressure.

Despite sloganeering by the opposition parties, the Gujarat elections reflects the shift in the Indian politics of development agenda moving to be the core issue of Indian politics and elections. We will certainly see quite a bit of populist politics thanks to the challenges of a democracy and we might and certainly see the BJP making some populist moves in 2018 before the next general elections. However, the core issue still remains “Development” which if taken as the criteria makes BJP the clear victor from the Gujarat elections. Next – Karnataka elections!

Lessons from Gopi `s success story

Pullela Gopichand (Gopi), the famed badminton coach, has established India`s credentials as a major world badminton power-house. His stable has produced world beaters who have taken the game by storm- P.V. Sindhu, Saina Nehwal, Srikanth Cidambi- to name a few. Thanks to the accomplishments attained by these players, the popularity of badminton has risen so fast in India, that in the days to come it can give a good fight to cricket as well.

Gopi `s successful venture is nothing short of a successful start-up like an Uber, Snap chat or a Tencent. His academy`s achievements in building up so many champion players in the past few years proves that his model is not a flash in the pan but has been scaled up to a successful business model – something which every firm looks for in all new avenues of investment. 

What are the lessons that can be learnt from Gopi`s triumphs? There will be a number of lessons but a few can be seen clearly, as below, by many sports loving- management professionals:

A successful anchor helps increase the probability of success

Gopi was a star player having won the All England championship during his playing days and hence had the star power to attract and convince people about his ideas. Successful people, apart from the experience also know how to man oeuvre the maze at a higher level, to achieve the desired results.

Malcolm Gladwell in his book “Outliers” says that success comes not only by sheer work and effort but also by successful associations and influences. A good example is that of Mahendra Singh Phogat- father of the famed Phogat wrester sisters- who created a transformation by taking up women`s wrestling in his village in traditional Haryana because he himself was a national level wrestler.

In corporates too, for a complete transformation and change, a proven and accomplished leader increases the chances of success. Nandan Nilekani could successfully build up the Aadhar network in India given his background as one of the founder CEOs of the famous Indian IT firm - Infosys. Lee Iacocca could turn around the car company -Chrysler, as he was a well-known personality from Ford Motors.

Basic ground rules are same for all

Gopi `s academy had a strict rule that all trainees should eat meat to build strength and endurance. No waivers for anybody! Similarly, Mahendra Phogat had the same rules of training for his daughters as well as for other trainees. No emotions and no special favors!

Create your own path 

Gopi tried for government aid to launch his academy but didn’t get much support. He thus decided to start off with his own funding and in fact mortgaged his own house to fund his project. To create a transformation, you have to create your own path as well-trodden paths cannot necessarily lead you to a victory in a totally new venture. 

Don’t count on one blockbuster product

Saina Nehwal needed special attention and decided to move to train with another coach. Rather than regret, Gopi stuck to his vision of expanding his academy and created other stars such as Sindhu and Srikanth to name a few. He ensured that his academy moved on and not rue the loss of a star product. Successful firms hence need to have strong plan B and Plan C`s, in case plan A fails.

World is flat, business model matters

Gopi setup his academy in Hyderabad - a Tier-2 Indian city- and not in any of the metro cities. He however could sell his value proposition to his trainees and succeeded in attracting players to Hyderabad where he could build up his academy at probably at a lower cost.  Secondly, Hyderabad has most of the facilities of a metro city and hence the players could concentrate on their training without any distractions of a metro city like high commuting time and higher living expenses.

In any corporate firm, location is always taken as one of the major factors in setting up a new business. The success of Gopi`s venture proves that as long as the business model and ecosystem is good enough and companies have free access to their markets and suppliers, the business model should work and be free from location constraints.

Pullela Gopichand`s success should be an encouraging sight for many successful sportspersons to take up coaching across the country and create a successful pool of world beaters. India needs an effective ecosystem to create numerous global sports players and Gopi has shown the way with his vision and dedication. It’s time for others – corporates, players, people - to learn and move ahead to make India a global sports force to reckon with. 

The Infy saga – Issues with “Active Promoter Management in Indian firms”

The recent saga that unfolded at Infosys saw something which was unprecedented in Indian corporate history. A professional CEO, the first non –promoter CEO with an unblemished track history was forced to resign, not by the Board which reposed full faith in him, but due to pressure and attacks by a promoter who was not even on the board. The buck didn’t stop there!! Within a few days, the board consisting of some distinguished persons from the corporate world were forced out! In short external powerful forces overruled the board and the executive management.

Similarly, at Tatas a year back, the CEO, who was a family confidante with a great track record was booted out due to pressure again by the promoters. In this case, strangely, the board which took the decision to sack the CEO had never before raised any issues with the CEO before on his performance!

Hail “Active Promoter Management”!

The Indian corporate world is dotted with family owned firms which are growing globally and wants to professionalize its working. However despite the claims of the promoters, especially of listed firms of having a hands off approach, the truth is different. Promoters either through their proxies run the firms or exert influence through other means as seen in Infy. However, research shows that family driven firms globally generate more value on a long term basis as compared to many professionally run firms due to their commitment to the business. Hence on a positive note, it can be argued that the promoters’ involvement is beneficial to the firm to some extent. In many global firms like Ford, Walmart, etc. the promoter families have big stakes but the businesses are left to the professionals and the board. Thus, there is a thin line of difference between active interference and outside support.

In the case of Infy, the leading promoter, who chose the CEO and quit the board on the CEO`s arrival, attacked the board and CEO publicly. Similarly, in Tatas the promoter, started interfering with the CEO`s actions and questioning them.  These activities go against the ethos of professional management and is probably due to the deep emotional attachment of the promoters to the firms. Indians are an emotional lot and just as there are deep family attachments to all actions, the emotional attachment of the promoters to the firms which they have built up is natural. In the famous case of Apple, Steve Jobs who started the company was sacked by the board when they found him interfering too much.

This leads to the question whether Indian corporate world will see a completely professional management in the days to come. If highly respected firms like Tatas and Infy cannot do it, who can? However, equity markets, especially global markets, demand good governance and professional management and hence Indian firms cannot walk away from this fact. Secondly, expanding business demands and an ever changing global business scenario needs different skill sets which can be brought in by good governance and by inducting professionals only.

Hence the incidents at Infy and Tatas have thrown some interesting conclusions. Firstly, corporate governance in Indian firms will be largely dictated by the promoters who hold significant stakes in the company. This might change with more global participation and diversification by Indian corporates.  

Secondly, expat global professional CEO`s will be wary of working, on a long term, in Indian firms given the governance scenario. At Tatas, a decision on flat organizational structure taken by the expat CEO was overturned by the corporate management. Hence we can see a number of home grown CEO`s taking the mantle as well as open lots of avenues for global Indian professionals who have wide global exposure. These people will be best suited to handle to Indian business scenarios as well as the promoter expectations.

“Shareholder activism” which is very normal in western markets is still nascent in India. “Active promoter management” cannot be a full substitute to shareholder activism and probably not healthy for Indian businesses in the long run.

To conclude, global investors who are attracted to India due to its growth story will however have to factor in the effects of governance issues, both good and bad, due to “Active Promoter Management” in India.    

Artificial Intelligence challenge – future “SMART “work force

Abstract

The Artificial Intelligence (AI) challenge will change the workforce practices in the future. Humans need to meet the challenges of AI and automation. This post looks into the skill sets challenges that the futuristic human worker will face to work and compete.

Main Body

A World Bank report published in 2015 indicated that a sizeable number of jobs would cease to exist with the advent of Artificial Intelligence (AI). Former world chess champion Gary Kasparov, who famously played against the IBM machine Deep Blue in the 90`s, has claimed, in a recent Ted talk event on “Artificial Intelligence’, that human behaviour and work practices need to adapt so that with, machines becoming more and more intelligent, humans and machines can co-exist rather than compete. An October`15 HBR article “How smart and connected products are transforming companies” by Michael Porter and James Heppelmann states, that in the future networked and data-driven world, most of the manufacturing firms will have to change from the traditional organizational structures to a revised structures wherein IT and data would be the fabric. Data flow, supported by IT tools, from both external and internal sources would drive analytics which in turn would give deeper business and customer insights. An another interesting trend that will be seen is “Uberization of workforce” where workers will be chosen from a pool for specific activities matching their skill sets, on a project to project basis, like we take an uber cab ride.

AI presents a huge challenge to the workforce and firms in terms of skill sets, training, and education and importantly a different set of soft skills and work practices. This leads to the important question – what are the skill sets required for both white and blue collared workers in the new age wherein humans will have to co –exist with machines? Workers will need to compete and co-exist not only with their colleagues but also with machines which probably is at a remote location in some other part of the world but also work in different organization structures as pointed out by Porter and Heppelmann.

We will see a workplace where, as a division of work between machines and humans, machines will take away a bulk part of the operational work due to their higher speed and efficiency and hence pressure will be on the human workforce will be add more value through innovation, lateral thinking and adding a more humane touch. The human workforce will also need a different team working skills to co-exist in an ecosystem of machines and humans.

These challenges lead to the regular question – how are the education systems of today preparing the workforce to address the challenges of the workplace of tomorrow especially at the schools level. The Finnish government has redesigned their schooling education system where, rather than studying subjects, the school children work together as a group and discuss relevant topics. This helps not only in understanding the topics but also build team skills, co-learning and sharing activities.

Thus the future workspace will see a combination of humans and machines in which the human workers using their co-machine workers as a platform to innovate and reduce time to produce results with better speed and efficiency. Traditional organizational structures will be broken down and new and flexible structures will be in place. The future workspace is a challenging place where different skill sets will be required and human workers need to be more “SMARTER” than today to face the machines challenge. Interesting world indeed!!