Fourth Industrial Revolution

Why 2016 is a pivotal year for digital

An illustration picture shows a projection of binary code on a man holding a laptop computer, in an office. Image: REUTERS/Kacper Pempel

Vivek Kundra
Chief Operating Officer, Sprinklr, Inc.
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Fourth Industrial Revolution

From Europe to North America to Asia-Pacific, it’s clear that maintaining the status quo isn’t a winning strategy in a race for countries to compete in a global economy.

Over the course of the next decade, technology must be at the center of nations’ efforts to transform and create a prosperous environment for its citizens. As I reflect on the World Economic Forum in Davos in January - where much of the conversation focused on machine learning, Internet of Things, and mobile and social communication - it’s important to discuss how governments can embrace technology to drive actual and tangible benefits for their citizens.

Why the sense of urgency? Many industries that dominated economic growth are starting to slow. Minerals, mining, manufacturing: these are no longer enough to keep a country afloat. But a healthy technology ecosystem can and will pay dividends for decades to come. Citizen expectations are being reset, thanks to companies like Uber and Airbnb enabling people to get their needs met with touch of button and, interestingly, disrupting the market for government services in the process. Citizens want “an app for that,” not a “form for that,” at the end of the day.

Let’s examine some of the countries that are rapidly accelerating their use of technology in 2016.

Australia has prospered in the last decade due to a mining boom and China’s demand for coal, but that is changing. China’s demand for fossil fuel is ebbing as it slowly turns to renewable energy sources to curb the increasing pollution issues across the country. This could prove crippling for Australia’s economy. So in early December, Prime Minister Malcolm Turnbull unveiled a $1.1 billion plan aimed at driving innovation to boost the economy. This plan is his second major initiative since taking office; the first was the creation of the Digital Transformation Office (DTO) to make government more accessible and responsive by using modern tech tools to connect with its citizens.

In the U.K., Prime Minister David Cameron created Government Digital Services Cabinet Office, with the mandate to make digital services and information simpler, clearer and faster. This group is working with public, private and nonprofit sectors to help people access the internet, so that by April 2016, the number of people lacking basic digital capabilities in the U.K. will be reduced by 25 percent. More people using the internet daily means more digitally skilled citizens who are better suited for today’s modern workforce. Of course, supporting policies that encourage an entrepreneurial spirit has become a pillar of U.K. government policy. Inspired partly by Sir Richard Branson, Britain has become a “venture country,” giving loans to entrepreneurs vs. loans for colleges. As a result, technology startups are flourishing.

Now let’s look across the globe to Japan, where the government is facing record-low birth rates amid an aging population. The proportion of people aged 65 or more is predicted to reach nearly 40 percent of the population by 2060, the government has warned, which could threaten Japan’s GDP. For this reason, Japan’s need to innovate and transform industries like healthcare is critical. For example, Japan-based Fujitsu developed technology to provide better support for elderly residents by using sensors to to monitor their movement and location, giving doctors better data to help with their care. If Japan can be a global leader in in healthcare transformation they will not only to help their own aging population, but also provide a valuable export for countries around the world, helping grow their own economy as well.

Each country has its own challenges, but the underlying urgency is the same. As an old African proverb says, “Every morning a lion wakes up. It knows it must outrun the slowest gazelle or it will starve to death. It doesn’t matter whether you are a lion or a gazelle: when the sun comes up, you’d better be running.” It will be interesting to watch the year ahead to see who takes crosses the finish line first in the race toward a technology-based economy.

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