Digital Economy Series: Through what eye do you behold a digitising economy?

In order to answer this article’s question we need to appreciate how our perspectives have developed. For it is important to note that not only do we all have our own biases but our world views aren’t always in synch on any one of a number of issues.

high angle photo of robot
Photo by Alex Knight on Pexels.com

This development process starts with our beliefs. These are shaped by factors such as our culture, our education and our experiences. What we hold dear, our values, not only grows out of our set of developed beliefs but are also shaped by our family’s values and our successes in life. What builds on these two, in turn, is first our attitudes and finally our behaviours.

This is where our perspectives of the future digital economy come into play. Because the future can not be studied, as it does not yet exist, only our images and conceptions of the future can be. These ideas are built upon our beliefs, values, attitudes and behaviours. The vision that we each have of what a fully digital economy will look like depends upon our biases and world views.

Consider the question: “what do you think the future will be like?” From a temperament perspective, are you a hopeful person and by default you look for win-win outcomes? Or are you one who has been bitten by identity fraud and based on your experiences your answer is laced with skepticism. The implication here is that an argument for a fully digitised economy that is utopian in nature could be just as well received as well as one that is dystopian.

The question that follows from this first consideration is this: “what future are you afraid of?”. If you fear being manipulated by omnipresent artificial general intelligence, then you may well rail against “the machine” as it currently stands. Perhaps even exhibiting Luddite-like qualities in your attitude toward technological developments.

In discussing how the future of the economy could unfold, specifically the degree to which it could be digitised, we have seen that there is not one preferred scenario. Several possibilities could eventuate. What underpins any of these paths is the growing preponderance of the digital bit in creating economic value. For it used to be that the economy was solely based on what we could do with the atom – build things, sell things and establish bases of power through the material world. But now it is the world of the bit that is increasingly ubiquitous.

There are then several issues that flow from this increasing digitisation: the skills that we trade for value in the workplace, questions concerning the knowledge and wisdom that can be derived from a super-abundance of data, social responses to the changing structure of the economy, and the shape of governance structures surrounding corporates and other institutions. Finally, what may arise from this trend toward increasing digitisation is the emergence of an “intelligence economy”. One that supersedes the digital economy. An economy where real value is no longer held in varying compositions of bits, but in prized abstractions of knowledge stored in quantum computing machines.

In looking forward from the vantage point of today, what is your preferred future? How would you like this increasingly digital economy develop? Are you hoping for one that is based on solely the taxation of capital, thus freeing humanity through the mechanism of a universal basic income? Or are you hoping that life continues as it is, albeit with some form of control mechanism that reduces any digital encumbrances arising from social toxicity?

Whether we gladly accept this trend or hold deep reservations, the future is progressively digital. This phenomena will impact how value is created, how we lead our lives, and how the state conducts its governance. The nexus of all aspects of the future economy will rest on streams of ones and zeros. For just like the harnessing of physical streams by the waterwheel led to all manner of outcomes, so to will the technology that harnesses digital streams.

 


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