Download - Teletimes

The infrastructure backbone of the digitalworld is bringing affordable wired and wirelessbroadband to billions of consumers.media such as Facebook andTwitter, or mixing work withplay as they go through theworking day. Their insistence onthe right to stay connected istransforming their personal lives,and their willingness to shareeverything is changing long-heldattitudes about privacy. Theirtrust is shifting from wellknownbrands to referrals fromtheir closest friends. They areadvocates of many causes and atthe same time deeply embeddedin their social environments.In their world, knowledgeisn’t just power. It’s social andcommercial currency—and accessto it is vital. These changes areforcing companies to rethinkhow to manage their employees,who are already becoming lessemotionally attached to theircompany’s wider purpose andgoals, and who expect to beable to live their digital livesat work as well as at home.These trends are spreadingoutward from the developedworld, as new middle-classpopulations in every emergingmarket are being connectedto the global informationflow. The typical Generation Cconsumer now spends a largeportion of his or her day online,always connected, alwayscommunicating (see Exhibit1).Technology PushDigitaltechnology continues to makeinroads into every aspect ofour lives. The infrastructurebackbone of the digital world isexpanding into every corner ofthe globe, bringing affordablewired and wireless broadbandto billions of consumers indeveloped and developingmarkets alike. Three-quartersof the world’s population isnow connected through mobilephones, while digital cloudbasedservices gather moreand more data on consumersin every segment (see Exhibit2). In parallel with the“Internet of People,” low-costconnected sensors and devicesare being deployed in everyindustry. The developmentof cloud computing, and thevast information processingmachinery it requires, is wellunder way. As a result, thedemand for powerful real-timeanalytics engines to allowcompanies to gather and makesense of hitherto “undigested”information flows is risingfast, and companies aroundthe world are responding withnew technologies such asin-memory analytics devicesto meet that need. EconomicBenefitsThe third force drivingthe digitization phenomenonis the realization on the partof executives in every industrythat the economic benefits tobe captured are real. Though itis too early to quantify thosebenefits, a wave of capital haspoured into the new digitizationtechnologies and companies, andthe public markets are beginningto reward early movers withvaluations reminiscent of theyears leading up to the dot-combubble. An increasing portionof the $22 billion and the $20billion that U.S. venture capitalfirms and U.S. angel investors,respectively, invest each yearappears to be going into thesedigitization technologies.Recent transactions in thesecondary financial marketshave suggested that Facebookis worth more than $80 billion,while LinkedIn recently wentpublic at a valuation of morethan $3.3 billion, a high multipleover its 2010 revenues of $243million. On a national scale,the benefits of digitizationcreated through investmentsin broadband infrastructurehave been amply demonstrated(see Exhibit 3). Meanwhile, theeconomic cycle and globalizationhave exposed the weaknessesof large enterprises thathave so far failed to embracedigitization. They have alsosharpened the minds of CEOsregarding the need to furthercut costs and monetize existingcapabilities more effectively.Finally, increased competitionfrom around the world is forcingcompanies in every industryto contend with increasedcost pressures, transformingtheir traditional value chains,spawning new formats andnew business models, blurringindustry boundaries, and evencreating entire new industries.In response, companies areturning to digitization to providea competitive advantage andto generate growth. At thesovereign level, too, countriesand regions are acting toaccelerate the digitizationphenomenon. China haswritten cloud, connectivity, anddigitization goals into its 12thfive-year plan, which will includestimulus measures estimatedat more than $1.7 trillion. TheEuropean Union has agreed onan energy upgrade plan of morethan $200 billion, and the U.K.’snational infrastructure planearmarks more than $200 billion(see “The Age of the Dragon”).Dramatic EffectsMany of the ideas andtechnologies underlying thedigitization phenomenon arenot new; indeed, some havebeen around for a long time.Taken together, however, theywill create a degree of changeDecember 2011www.teletimesinternational.com49