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The Digital Divide Age: So What? by Roberto Gallardo
The document discusses how the digital age is transforming the global economic landscape. Some key points include: 1. Technology adoption is accelerating, with some platforms reaching millions of users within just a few years. 2. The digital economy is growing rapidly and expected to contribute trillions to the global GDP in coming years, though a digital divide threatens to leave some communities behind. 3. While innovation creates opportunities, it also disrupts existing industries and ways of working, emphasizing the need for communities and workers to embrace digital skills and adapt to changing workforce demands.
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The Digital Divide Age: So What? by Roberto Gallardo
- 1. The Digital Age: SoWhat? Dr. Roberto Gallardo Assistant Director / C&RE Specialist Purdue Center for Regional Development @robertoge
- 2. pcrd.purdue.edu Reaching 100 millionusers worldwide • Telephone 75 years • Mobile phone 16 years • World Wide Web 7 years • Facebook 4 years • Instagram 2 years • Pokemon Go 1 month Source: Twitter user @ValaAfshar; ITU; Statista; BCG Research
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- 4. pcrd.purdue.edu The Digital Economy 32millionmore employed in 2016 vs. 2010 $6.6 trillionsize by 2020 among G-20 countries $16 trillioncontribution of AI to world economy by 2030 Digital Dividereal threat to community economic development Source: Boston Consulting Group; Cisco; McKinsey Global Institute; World Economic Forum $19 trillionIoT global opportunity over the next decade $11 trillionIoT impact per year starting in 2025
- 5. pcrd.purdue.edu Digital Potential • Dozensof indicators • Building digital assets • Expanding digital usage • Creating digital workforce Source: McKinsey Global Institute (2015) 18%
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- 8. pcrd.purdue.edu Digitization? • Internet ofEverything (IoE) • “Physical world can now be digitized, monitored, measured, and optimized.” – Project Syndicate • At least 50 billion devices will be connected by 2020 – Cisco (2014)
- 9. pcrd.purdue.edu Combinatorial? • Technology lag •Artificial Intelligence • Deep learning algorithms • Zero to expert in 8 hours • X-rays & CT scans • Skin cancer • Electrify Cognify
- 10. pcrd.purdue.edu Disruption? • Digital mindset •Exploit digital platforms • Interact digitally with consumers/residents • Mostly EVERYONE has the tools to market, test, refine, and eventually disrupt an industry Source: McQuivey, J. (2013). Digital Disruption – Unleashing the Next Wave of Innovation
- 11. pcrd.purdue.edu Disruption? “Investor concern overthe threat of new technologies is overstated.” Source: Twitter user @ValaAfshar Blockbuster analyst report, 1999
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- 14. pcrd.purdue.edu 1st Industrial Revolution CommunicationEnergy Transportation Source: Rifkin, J. (2015). The Zero Marginal Cost Society
- 15. pcrd.purdue.edu 2nd Industrial Revolution CommunicationEnergy Transportation Source: Rifkin, J. (2015). The Zero Marginal Cost Society
- 16. pcrd.purdue.edu 3rd Industrial Revolution CommunicationEnergy Transportation Source: Rifkin, J. (2015). The Zero Marginal Cost Society
- 17. pcrd.purdue.edu Innovation “I have notfailed. I have just found 10,000 things that do not work.” – Thomas Edison “The secret to creativity is knowing how to hide your sources.” – Albert Einstein
- 18. pcrd.purdue.edu Economic landscape changing •Geographic proximity • The bigger, the better • Tied to office, factory • Mass production Industrial Economy Digital Economy • Decentralization • Economic gardening • Work from anywhere • Customizable manufacturing
- 19. pcrd.purdue.edu 600,000 rooms Airbnb Hilton Source: WorldEconomic Forum 4years 93years
- 20. pcrd.purdue.edu Most valuable companies2006-2016 Source: World Economic Forum
- 21. pcrd.purdue.edu Digital Globalization Source: McKinseyGlobal Institute. Digital Globalization: The New Era of Global Flows. March 2016 15 years old1. Larger impact on GDP than 100s year old goods trade 2. Includes developing countries, small companies, start-ups, & billions of individuals 3.
- 22. pcrd.purdue.edu Digital Age makespossible … • Quality education (badges) • Crowdfunding / crowdsourcing • Search/apply for jobs • Telecommuting / telework • Telehealth & telemedicine • Enhance downtowns & retail • Digital civic engagement • Precision Agriculture
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- 24. pcrd.purdue.edu Remember this? • Weight2.4 lbs • Talk time: 30 minutes • Charge time: 10 hours • Cost: $3,999
- 25. pcrd.purdue.edu Digital Age willmake possible … • Driverless cars • Artificial Intelligence • 3D Holograms • 3D Virtual / augmented reality • Blockchain • Quantum computing
- 26. pcrd.purdue.edu Remember that inthe digital age … • Levels the playing field between urban and rural • Size does not matter • Eliminates “middle of nowhere” • When most people can work anywhere, where will they choose to live and work?
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- 28. pcrd.purdue.edu Not all isgreat … • Not a silver-bullet • Chips & batteries • Cyberattacks • Net Neutrality • Big Brother • Profitable Privacy • Inequality • 21st Century Institutions • Digital Divide
- 29. pcrd.purdue.edu Digital Readiness 14% 5% 33% 31% 17% 0% 5% 10% 15% 20% 25% 30% 35% Unprepared TraditionalLearners Reluctant Cautious Clickers Digitally Ready Source: Pew Research Internet 52%
- 30. pcrd.purdue.edu Computer Skills ofAdult Population 26% 14% 29% 26% 5% 0% 5% 10% 15% 20% 25% 30% 35% Can't use computers Below Level 1 (terrible) Level 1 (poor) Level 2 (medium) Level 3 (strong) Source: OECD; Nielsen Norman Group 69%
- 31. pcrd.purdue.edu Digital Divide Index(DDI) • DDI = Infrastructure/Adoption + Socioeconomic • Ranges from 0 to 100; higher score, higher divide • http://pcrd.purdue.edu/ddi
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- 34. pcrd.purdue.edu Source: Purdue Centerfor Regional Development
- 35. pcrd.purdue.edu 19.3 26.7 12.6 47.8 65.6 81.0 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 U.S. Minnesota Lowest2nd Lowest 2nd Highest Highest 2010 Percent Rural Population: U.S., Minnesota, & DDI Quartiles Source: Purdue Center for Regional Development
- 36. pcrd.purdue.edu 4.0 3.4 5.0 0.3 -0.6 -1.9 1.9 2.4 3.7 0.0 -0.1 -2.6-3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 U.S. MinnesotaLowest 2nd Lowest 2nd Highest Highest 2010-2015 Percent Change: U.S. , Minnesota, & DDI Quartiles Population Labor Force
- 37. pcrd.purdue.edu 8.4 3.5 5.7 -1.6 -1.6 -2.7 3.4 1.9 3.3 -1.3 -1.8 -1.2 10.0 4.1 6.6 -1.7 -1.6 -3.3-4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 U.S. MinnesotaLowest 2nd Lowest 2nd Highest Highest 2010-2015 Percent Change: U.S. , Minnesota by DDI Quartiles Establishments Paid Emp. Nonemployers
- 38. pcrd.purdue.edu 7.2 0.9 1.9 -4.0 1.3 -20.5 21.1 12.4 12.6 16.3 7.7 -5.3 -25.0 -20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 U.S. MinnesotaLowest 2nd Lowest 2nd Highest Highest 2010-2015 Percent Change: U.S. , Minnesota by DDI Quartiles DE Establishments DE Jobs
- 39. pcrd.purdue.edu Source: Purdue Centerfor Regional Development; County Business Patterns; Census Nonemployers Dataset 57.5 52.7 52.5 55.6 54.5 47.5 27.2 33.3 34.1 24.9 28.4 39.4 9.4 8.9 8.3 12.9 14.0 10.1 5.9 5.1 5.2 6.5 3.1 3.0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% U.S. Minnesota Lowest 2nd Lowest 2nd Highest Highest 2015 Digital Economy Establishments by Type Nonemployers Micro (1-4 Emp.) Small (5-19 Emp.) Large (20+ Emp.)
- 40. pcrd.purdue.edu Change is noteasy “Doubt is an uncomfortable condition, but certainty is a ridiculous one.” Voltaire
- 41. pcrd.purdue.edu Do I needfaster Internet? Do I need electricity when I already use candles? … is like asking …
- 42. pcrd.purdue.edu Changing workforce By 2025,1 billion digital natives will join the workforce Source: Deloitte
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- 44. pcrd.purdue.edu Percent Manufacturing Jobs Source:Bureau of Labor Statistics; Ford (2015)
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- 46. pcrd.purdue.edu Jobs Vs. Productivity Source:Brookings Institution
- 47. pcrd.purdue.edu Bipolar Economy Source: HarvardBusinessReview (2017) Traditional Autonomous Food Shelter Health care Clothing Transportation Energy Robots Artificial Intelligence Big Data High-speed Internet Cost Increasing Wages/Employment Decreasing Middle Class Service Sector
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- 49. pcrd.purdue.edu In summary … •Transforming landscape • Digital divide: largest threat • Collaboration • Change in mindset
- 50. pcrd.purdue.edu “Dream bigger than yourcircumstances” Source: Twitter user @kengarex
Editor's Notes
- #5 [The following comments go hand in hand with the bullets on the slide. Use the comments below to further explain after you read each of the bullets] G-20 economies are the most developed in the world; these does not include developing nations so the size of the digital economy will get much larger Making sure the future workforce has the skills to benefit from this huge number of jobs is a must for communities The fact that the digital economy alone accounted for a higher share of the GDP compared to the federal government is not a small feat. Think about it for a second, more than military and social program expenditures Digital divide and leaving people behind is a real obstacle for economic growth. As more and more is done in the digital realm (for example looking for and finding jobs), leaving people behind is a challenge that needs to be addressed
- #10 Technology lag: been great at putting things in; not so good getting out information we need Fanuc industrial robots: using deep learning algorithms, after 8 hours a single robot reached 90% accuracy picking up randomly placed objects; eight robots sharing their lesson reached 90% in an hour; an engineer writing a similar program would take several days X-rays (Enlitic) 50% more efficient compared to 3 expert radiologists; false-negative (when cancer is missed) 0% versus 7% in humans Xprize: Picture of possible melanoma or suspect mole is taken using smartphone camera; AI instantly compares to 50 million+ known moles seeking cancerous similarities; immediately updates patient’s file and informs doctor of suspicious changes Breakout arcade game: machine taught how to learn to play 80s arcade games; after half an hour it missed once every four times; after an hour, it never missed; after two hours, found a loophole overlooked by millions of human players Electrify Vs. Cognify: advantages of cognifying inert things will be hundreds of times more disruptive than transformations gained by industrialization; struck it reach by electrifying things (pumps, washers, etc.); did not have to generate electricity just bought it to automatize manual things
- #11 Digital disruption is all about a digital mindset -- think and act digitally. Disruptions will happen more often and will be stronger. Exploit digital platforms: Take advantage of digital platforms (social media, blogs, app stores, etc.). For example, there is nothing in the way of a 15 year old to develop an app, sell it on the app store for 99 cents but selling 10 million copies Listen digitally to your customers/residents; engage with them digitally [Mostly everyone]: back in the day whole R&D departments and millions of dollars were needed to survey, analyze, and improve products and services. Now, with real-time digital platforms you can constantly listen to your customers and fine-tune product/service as needed Heard of innovator’s dilemma? Companies struggle to change their successful business model. Kodak invented the digital camera in 1975; filed for bankruptcy in 2013 More importantly, remember that Internet 1.0 gave us the world wide web; Internet 2.0 gave us social media and e-commerce (with some tax-related issues); Internet 3.0 is on a head on collision to disrupt three of the most heavily regulated industries, not to mention government itself: healthcare (heard of telehealth and telemedicine, remote diagnosing?), education (heard of the flipped classroom model?), and finance (heard of crowdfunding?) What will be the end result? We don’t know but industries are being disrupted in the digital age much easier and more frequently than in the past. [Telehealth, telemedicine, and remote diagnosing is a booming industry where patients can receive medical consultation and treatment through sophisticated video teleconferencing. Access to specialists around the world is possible and is a great service for rural areas. More on this under the Where to Start slide.] [Flipped classroom model is basically recording lectures online and assign them as homework and when class meets a discussion of the lecture takes place along with hands-on application. The advantage is that kids can study the lectures over and over again and use other resources online to better understand it. Kids learn at their own pace.] [Crowdfunding is the ability to raise money on specific Internet-based platforms where people donate money. Potential funders increase exponentially compared to traditional funders.]
- #13 Homeplus store in South Korea wanted to increase sales WITHOUT building more stores After extensive research and conducting focus groups, Homeplus came up with an innovative solution aligned with a digital mindset Thinking and acting digitally, they used QR codes and purchased advertising space in subway stations Purchases are delivered home Online sales increased 130% and became number one store in the country
- #29 In 2012 Google earned $14 billion with 38,000 employees; GM earned $11 billion in 1979 with 840,000 employees 2006 YouTube sold for $1.65 billion with 65 employees = $25 million per employee 2012 Instagram sold for $1 billion with 13 employees = $77 million per employee 2014 Whatsapp sold for $19 billioin with 55 employees = $345 million per employee
- #30 Assess American adults according to five main factors: their confidence in using computers, their facility with getting new technology to work, their use of digital tools for learning, their ability to determine the trustworthiness of online information, and their familiarity with contemporary “education tech” terms.
- #31 OECD Skills research: survey of 215,000+ people (ages 16-65) across 33 rich countries during 2011-2015
- #39 Digital economy: 454111 Electronic Shopping; 454112 Electronic Auctions; 4931 Warehousing and storage*; 51121 Software Publishers; 51711 Wired Telecommunications Carriers; 51721 Wireless Communications Carriers; 51791 Other Telecomunications; 51821 Data Processing, Hosting, and Related Services; 51913 Internet Publishing and Broadcasting and Web Search Portals; 54151 Computer Systems Design and Related Services
- #48 Size of autonomous economy (also called the second economy) may reach $7.5 trillion by 2025 Service sector makes up 80% of workforce Rents forecast to increase 6% in 2016 Median home prices increased 17.3% between 2012 & 2014 Food prices rose 31% between 2005 & 2014 Health insurance increased 44% in the past five years