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No, there is no shortage of 128,000 IT specialists in Germany - A rebuttal

02/28/2024 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

A recent report from the Institute of German Economy (IW) claims that Germany will face an acute shortage of 128,000 IT professionals by 2027. However, upon closer examination, this forecast appears to be based on uncertain assumptions and inadequate analyses.

The IW study predicts an increase of nearly 14 percent in the number of employees in IT professions by 2027, coupled with an alleged shortage of 128,000 skilled workers. The authors of the study emphasize that the competition for qualified professionals has become a zero-sum game and advocate for increased efforts in vocational training, retraining for older workers, and, above all, more qualified immigration.

A critical look at the methodology of the study raises doubts. The assumption that the demand for IT experts will increase linearly with the projected rise in employment seems oversimplified. Reality is more complex and influenced by various factors, including technological advancements, automation, and changes in corporate structures.

Another point that deserves scrutiny is the definition of "skills shortage." The study suggests that more workforce is needed than the market can currently provide. However, to what extent can retraining and increased efforts in vocational training not close this gap?

While the demand for qualified immigration is undoubtedly justified, the study overlooks existing initiatives and programs to attract international talent. Instead of emphasizing a "stronger service orientation" in a blanket manner, a detailed analysis of existing obstacles for immigrants and their solutions would be more appropriate.

The presented figures, especially the alleged shortage of 19,000 Data Scientists, also require a thorough examination. It is crucial to clarify whether these forecasts are based on actual demand or merely the wishful thinking of companies.

The foundation of the IW study, relying solely on a 14-day count of job postings on online job portals, raises serious questions about its reliability and representativity. Using this data as a central metric neglects essential aspects of the job market, providing an incomplete perspective.

Criticism begins with the data collection method. Simply summing up job offers without considering duplicates or multiple postings of the same position at different locations distorts the actual demand situation - not to mention fake job advertisements to deceive potential customers, business partners and investors. Companies with multiple branches or involved in various projects might advertise the same position simultaneously at multiple locations, artificially inflating the numbers.

Another critical flaw in the study is the inadequate consideration of the experience level of the advertised positions. The reality of the IT job market shows that many open positions are not for entry-level professionals but for experienced experts. The demand often focuses on candidates with proven several years of work experience, specific skills, and mastery of certain programming languages and tools. Overlooking these essential qualification requirements significantly diminishes the credibility of the study.

Another aspect insufficiently illuminated is regional differentiation. The study leaves it unclear where exactly these shortages are located. The job market's reality exhibits significant regional differences, especially in cities like Hamburg, Munich, and Berlin compared to rural areas or medium-sized companies in Baden-Württemberg. Without a targeted analysis of regional distribution, it remains unclear where the challenges in filling IT positions exactly lie.

Overall, the data foundation of the IW study has significant gaps that could lead to a distorted perception of the alleged skills shortage. A more comprehensive and nuanced analysis, taking into account duplicates, experience levels, and regional differences, would be necessary for an informed discussion about the current state and challenges of the German IT job market.

The IW study leaves the impression that it simplifies the complexity of the German IT job market. A more nuanced examination, considering various influencing factors and analyzing existing measures, would be necessary to support the claim of an acute skills shortage.

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What are Corporate Affairs?

02/28/2024 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

"Corporate Affairs" refers to a set of activities and functions within an organization that are focused on managing relationships with various stakeholders and ensuring the organization's positive public image. It involves strategic communication, public relations, and engagement with internal and external parties.

Key components of Corporate Affairs include:

  • Public Relations (PR): Developing and maintaining a positive image of the organization through effective communication with the media and the public.
  • Government Relations: Managing interactions and relationships with government agencies and officials to address regulatory issues and advocate for the organization's interests.
  • Internal Communication: Ensuring effective communication within the organization, keeping employees informed about corporate strategies, policies, and developments.
  • Corporate Social Responsibility (CSR): Implementing initiatives that contribute to the well-being of the community and align with ethical and sustainable business practices.
  • Stakeholder Engagement: Building and maintaining relationships with various stakeholders, including customers, investors, employees, and community members.
  • Crisis Management: Developing plans and strategies to address and mitigate potential crises that could impact the organization's reputation.

Corporate Affairs plays a crucial role in shaping public perception, maintaining transparency, and fostering positive relationships that contribute to the overall success and sustainability of the organization.

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Residuals in Statistics

02/28/2024 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

In statistics, residuals refer to the differences between the observed values and the predicted values by a statistical model. They are the "remainder" or "leftovers" after fitting the model to the available data.

Purpose of Residuals

The analysis of residuals plays a crucial role in assessing the quality of a statistical model. Here are some key purposes of residuals:

  • Model Evaluation: Residuals allow the evaluation of how well a model explains the actual data. Small residuals indicate a good fit of the model to the data.
  • Pattern Detection: Analyzing residuals can identify patterns or trends in the data that may not have been accounted for in the model.
  • Outlier Detection: Large or unusual residuals can indicate outliers that might have a significant impact on the analysis.
  • Normality Check: The distribution of residuals can be checked for normality, which is important if the model is supposed to fulfill certain assumptions.

Calculation of Residuals

Residuals are calculated by subtracting the observed values from the predicted values. Mathematically, the residuals \( e_i \) for each data point \( i \) are calculated as follows: \( e_i = y_i - \hat{y}_i \), where \( y_i \) is the observed value, and \( \hat{y}_i \) is the predicted value by the model.

Conclusion

Residuals are a crucial tool in statistical analysis. They provide insights into model quality, pattern and outlier identification, as well as checking model assumptions. Careful analysis of residuals contributes to drawing reliable statistical conclusions.

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What is residual analysis?

02/28/2024 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

Residual analysis is a statistical procedure applied in various disciplines such as statistics, econometrics, and natural sciences. It is used to analyze the differences between observed values and predicted values in a statistical model.

Purpose of Residual Analysis

Residuals are the differences between observed values and predicted values in a model. Analyzing these residuals helps evaluate the quality and validity of the model. The main objectives of residual analysis are:

  • Identifying Patterns: Residuals assist in identifying patterns or systematic errors in the model. This can indicate missing variables, non-linearities, or other modeling issues.
  • Checking Assumptions: Many statistical models have assumptions like normal distribution of residuals. Residual analysis helps check these assumptions and ensure the model is appropriate.
  • Detecting Outliers: Residuals can indicate outliers that may have a significant impact on modeling. Detecting and addressing outliers is important for creating robust models.

Conducting Residual Analysis

Residual analysis typically involves calculating residuals, creating plots, and performing statistical tests. Common methods include the residual plot, QQ-plot (Quantile-Quantile plot), and the Shapiro-Wilk test to check the normality of residuals.

It's important to note that careful residual analysis is necessary to ensure model assumptions are met and the model provides reliable predictions.

Conclusion

Residual analysis is an indispensable tool in statistical modeling. It helps improve models, identify patterns, and ensure model assumptions are met. Through thorough residual analysis, researchers and analysts can ensure their models are accurate and reliable.

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Designing Publicly Impactful Activities - PR in 2024

02/28/2024 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

The world of Public Relations (PR) has undergone significant changes in recent years, and in 2024, it requires more than ever creative, innovative, and targeted approaches to capture attention amid the ever-growing information flood. Designing publicly impactful activities has become an art form that needs to attract the audience's attention while effectively communicating the brand message.

The Significance of PR in 2024

The importance of Public Relations extends beyond mere information dissemination. In a time where public trust is crucial, PR plays a central role in shaping and maintaining positive relationships between businesses, organizations, and their target audience. The year 2024 calls for a proactive PR approach, not solely based on reactions but actively influencing opinions and building trust.

Steps to Design Successful PR Activities

1. Target Audience Analysis: The first step in a successful PR concept is a precise analysis of the target audience. Companies need to understand who their potential customers are, what media they use, and what messages are relevant to them.

2. Storytelling: In PR, everything revolves around stories. Companies should develop engaging stories that are not only informative but also emotionally appealing. Storytelling allows conveying complex messages in an accessible manner.

3. Multichannel Approach: In a digital era, utilizing various communication channels is crucial. From social media to traditional media to influencer marketing - an effective multichannel approach maximizes the reach and impact of PR efforts.

4. Technological Integration: Integrating modern technologies such as AI, AR (Augmented Reality), and VR (Virtual Reality) allows for an innovative PR experience. Companies can create interactive and impressive activities that stand out from the crowd.

5. Crisis Communication: In the uncertain world of 2024, effective crisis communication is essential. Companies should have clear protocols for communication in crisis situations and proactively take measures to minimize potential damage.

Sustainability and Social Engagement

In PR in 2024, sustainability plays a prominent role. Companies advocating for environmental friendliness and social engagement are perceived positively. PR activities should authentically contribute to these values, having a long-term positive impact on the brand.

Conclusion: A New Era of PR

Designing publicly impactful activities in 2024 requires creativity, flexibility, and a deep insight into the needs of the target audience. By integrating modern technologies, emphasizing storytelling, and adhering to sustainability principles, companies can develop a successful PR strategy that not only informs but also has a positive effect on the brand image.

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