(More on Mega-trends - 2022 - cont. 5)
5. Diving into Digital
Introduction
Digital transformations (including data technologies) are increasing exponentially and are demonstrated by
"...the growth of online retailing, remote working, tele-health, virtual education, digital currencies and data-driven organisations..."
CSIRO, 2022
The impact of digitalisation is just starting and is expected to be significant.
Impacts of this megatrend
i) mass adaptation of industry 4.0 technologies
This includes high-performance computing, AI, machine learning, sensors, Internet of Things, robotics, digitalisation, automation, etc.
"...there is a drive to increase the technical capabilities of transport and logistics using IoT, data analytics and automation to boost efficiency and productivity..."
CSIRO, 2022
ii) pandemic-fuelled growth in e-commerce
As a flow on from C-19 restrictions, etc, e-commerce has boomed, eg in Australia, online shopping grew by 26.8% from July 2022 to July 2021 (source: CSIRO, 2022)
iii) emergence of data-driven organisations
Explosion of data, eg 60+ terabytes of data was created in 2020 and this is expected to grow significantly; more and more organisations are realising the value of the data, ie data-driven decision-making
"...Companies that use customer analytics are twice as likely to generate above-average profits than those who do not..."
CSIRO, 2022
iv) an office-less workforce
The pandemic (starting in 2020) accelerated the trend of remote working, ie working from home, tele-working, hybrid working, etc.
Remote working favours online communication and business activity over face-to-face interaction.
Before the pandemic around 25% employees work from home at least once a week; in 2022, around 70% of workers prefered the hybrid working model rather than working exclusively from home or in the office. The impact of tele-working is
"...greater worker satisfaction and lower the costs but it can also decrease effective communication, knowledge flows between employees and managerial oversight..."
Need to get the balance right, ie maximising the benefits of remote working while minimising potential downsides for staff and the organisation
v) the rise of the regions enabled by teleworking and online services
The pandemic has reversed historical migration patterns from regional to the urban and coastal areas; more people are moving to the regions, ie
"...This shift in settlement patterns likely driven by the preference to live in the outer fringes of capital cities during a global pandemic and the increased uptake of flexible remote working practices..."
CSIRO, 2022
The transition to low-emission activities and technology, ie Internet of Things, etc, have allowed this trend to happen. Whether this trend evolves from short term to long-term is yet to be determined
vi) a new era for the central business district
The recent boom in tele-working and growth in regional migration has had a negative impact on central business districts, ie lower office occupancy rates plus significant reduction in people shopping in the cities. On the other hand, regional plus outer urban and suburban fringes are benefiting; city office space is being redesigned as residential accommodation.
vii) the ongoing pull of big city life
Despite the pandemic, globally there is still a population drift towards urban areas, ie in 2018, over half the world's population live in urban areas especially in Africa and Asia; this trend of human migration to urban areas is expected to continue.
viii) digital health is becoming mainstream
The pandemic has fast tracked integration of digital health initiatives into routine healthcare management and delivery.
"...tele-health services can reduce travel time and productivity losses and improve the timeliness of care. But tele-health can lead to over utilisation of services, widen health-care disparities in populations with limited digital access and may not reduce health-care costs under the current activity-based funding models. The benefits of tele-health and other digital health initiatives need to be managed..."
CSIRO, 2022
ix) distributed ledgers technology and cryptocurrency
The technology behind crypto currencies, ie blockchain, has many potential uses. One use is crypto currencies or digital currency; these are very volatile and lack suitable Government regulation.
x) enhancing the transparency of exports
Emerging technologies are able to authenticate products and are used to track movements of products across global supply chains, which can help handle food fraud, ie protect country's reputation of safe, high-quality products.
Some of the technologies include blockchain, radio-frequency chips, nanotechnology, laser, DNA fingerprinting, spectroscopic analysis, etc they are
"...used to verify ingredients and detect contaminants to prevent food fraud, substitution and adulteration..."
CSIRO, 2022
These technologies can be used to build trust with regulators and customers and minimise trade disruptions
xi) towards increased digital inclusivity
Digital inclusion is defined by measures such as accessibility, affordability and digital ability. Generally lower-income groups, like the unemployed, have recorded lower digital inclusivity than higher-income groups such as those employed.
Increased reliance on digital services during the pandemic has widened the gap on inclusivity, ie put
"...digitally excluded groups at risk of social isolation and limited access to online learning and online services..."
CSIRO, 2022
xii) future demand for digital workers
To keep pace with technological changes, millions of digital workers will need to continually upgrade their skills by training.
xiii) the risk spending too much time online
Researchers have shown those people
"..who actively use social media to connect and communicate with others experience positive well-being benefits, but passive users experienced poorer well-being outcomes..."
CSIRO, 2022
However social media addiction is associated with poorer job performance and has a negative impact on work-family balance and increases work-family conflict.
