Technology and Economics move in tandem. Technological advancement increases efficiency and productive capacity of the economy; which leads to long term economic growth and prosperity. Today’s competitive landscape of different technologies is under-pinned with intense rivalry, temporary disruption of existing technologies; followed by commoditization due to low cost barriers. Here are five recent examples of emerging technology trends:
1-Stock Markets of World have become extremely volatile because information is executed instantaneously without giving any reaction time for market players to perceive the depth of fundamentals. It takes much longer to analyze the fundamentals of stocks than absorption of instantaneous messages bombarded in fractions of seconds. Such plethora of messages, coupled with Media hype, has created marked volatility in the Capital Markets of the world.
2-Although Facebook and LinkedIn are not competitors in true sense, LinkedIn has done much better job in terms of cash generation; and consequently surge in its stock as compared to Facebook. The main driver behind cash generation is strategic positioning of LinkedIn in the talent acquisition industry, mainly in North America. This has enabled the company to double its stock in one year; whereas Facebook is still struggling to recover its stock lurking much below than its IPO point.
3-There is an exponential growth of mammoth data, which determines the competitive landscape and future growth path of companies. Conventionally data was restricted to sales and inventory; which did not present holistic picture of a company’s performance. Now the trend is to embrace Big Data, entailing Social Media and Business Intelligence. There is a massive on-going demand for housing and securing this data using Cloud compatible solutions.
4-Crowd-funding is another emerging trend backed by online technologies. If successful, it will disrupt the conventional venture capitalist model. From the perspective of technology, this model faces few challenges. However, from the regulations standpoint, there are formidable challenges, in particular for the conservative regulatory regimes like Canada.
5-The trend is also to “connect everything to internet” using mobile technologies. This ultra-integration would require extremely data intensive processes combined with telecommunications – all rolled onto the emerging world of cloud computing. However, this “technology utopia” of ultra-integration is replete with three key challenges: First, security of data in the world of cloud computing is a colossal challenge, although some companies like Blackberry claim to possess viable solutions. Second, telecommunication costs place constraint on what could be an optimal solution in terms of benefits versus costs. Third, it is rather difficult to work out a lean and sustainable model that avoids unnecessary information overload.
To conclude, technology is playing an increasingly uncertain but very important role in shaping the contemporary world; and this has massive economic implications at both macro and micro levels. One key implication is that most disruptive technologies are invaded by glut of new entrants until that technology is commoditized to a great extent. This adds complexity to the fast changing landscape of new emerging technologies and how efficiently these could fulfill consumer demands.