Economic and social impact – from Smartphones to smart manufacturing
1) The Internet is worth more to the global economy than traditional industries such as agriculture or energy.
That is testament to the vital role that hyperconnectivity plays in modern society.
2) Continued adoption of the Internet and mobile technology will benefit all economies, but will be especially valuable to developing countries. There is still a need for infrastructure investment in the developing world, but the rewards on offer are considerable.
3) While good news on a macroeconomic scale, hyperconnectivity challenges individual businesses. The media and publishing industries have borne the brunt of its disruptive impact so far, but their example has shown other sectors that they need to think laterally in order to adapt.
4) Hyperconnectivity is accelerating globalisation. Multi-national supply chains are no longer the preserve of large corporations. This is both an opportunity and a threat for companies the world over.
5) More than just a platform for economic activity, hyperconnectivity is a new cultural environment for all human behaviour. Its impact on that behaviour is still unfolding, and businesses must be sensitive to shifting social values and customer expectations as it continues to evolve.
6) Expect Peronsal Data Stores to rise. More than eight in ten people (81%) expected their privacy to be eroded over the next five years, and just 41% said that governments were committed to protecting their privacy.
7) Today under half of the world’s population has access to the Internet,
8) The number of people using smartphones globally will grow by 25% to 1.8bn in 2014 with more than one-third of the entire global population owning one by 2017.
9) The economic impact of the Internet of things has yet to be determined. While hyperconnectivity evidently drives economic growth, related innovations such as smart manufacturing instead may challenge employment in both developed and developing nations.
10) 87% of companies don’t use smart manufacturing systems It could be 20-30 years before they do. Cost is the biggest concern.
The Hyperconnected Economy report produced by the EIU is sponsored by SAP.