In an age of emerging technology, staying abreast is impossible. It is common to find that the leading value creators of recent years are all reliant on technology. It is undoubtedly a major disruptive force across the entire global economy. Almost every factor that contributes to the global economy is affected by technology. Instead of being a layer of the economy, technology is becoming the heart of it. The most significant evolutions in the economy are often accompanied by a process of "creative destruction," in which profit pools shift, industries restructure, and incumbent firms are replaced. According to Joseph Schumpeter, an economist from the early 20th century, such changes entail "creative destruction." As you read further in this article, you will find a clear vision of how emerging technologies has a disruptive byproduct on the global economic scale and a brief on the growth of cloud infrastructure in non-technical companies.
Disruptive technologies often showcase a rapid change in price and performance compared to alternative approaches. They change the way business is done and how needs are met despite entering an established market. Disruptive technology allows people to break down barriers and empower people who may have been ineffective in the past. It can also spread more interaction and responsiveness to communications platforms.
When you think about all leading industries, the only buzzword that comes to mind as the driving force is 'Technology'. Technology is in itself the number one industry. Any industry's expected success is largely due to the way technology has altered and will continue to alter. In the past decade, cloud computing, machine learning, artificial intelligence, and big data were cited as the sub-sectors that have made the biggest impact and are continuing to do so. In terms of massive changes witnessed among multiple industries, technology is leading in almost every one of them. In the energy industry, technology has shown miracles in the form of energy trading. It increases the use and efficiency of sustainable energy sources. On the other hand, in financial companies, it's financial technology or cryptocurrency that's leading the way. Healthcare industries hold a strong output due to the implementation of technology using subsectors such as biotechnology, health data management, personalized health solutions, advanced insurance solutions, etc. Also, disruptive technological methods have introduced growth and sustainability in retail, construction, and hospitality.
Digital transformation, also known as digital business transformation, refers to the strategic use of digital technologies for streamlining and accelerating business processes. Many technical and non-technical companies are accepting digital transformation for big growth. For example, IKEA has recently put one step forward in the field of technologically growing by digitally transforming through an online platform. Without this transformation, IKEA would not have opened another sales channel. Other examples of companies that evolved through digital transformation include Walmart, Disney, PayPal, National Geographic, and Starbucks. A study performed on 1,200 mid to large-sized US companies found that the average budget for digital transformation in 2018 was $14 million, and spending on digital transformation worldwide is expected to reach $1.78 trillion by 2022. Digital transformation is expected to add $100 trillion to the global economy by 2025. Digital transformation can have varying impacts on your company. However, digitization often brings these benefits:
· Reduced operating costs
· Optimized operations
· Increased revenue
· Improved customer satisfaction
· Lowered fragmentation
Since the mid-2000s, cloud technology and platform business models have driven the technology industry globally. Among all technological advancements, cloud technology is one such strategy that has now spread towards every big and small business and has played a major role in the economic sector. In the past few years, cloud computing has become increasingly popular for many reasons. It allows almost any application or service to be delivered over the Internet or a network, without the need for expensive local hardware or software. The market value of top cloud-native infrastructure software vendors is increasing rapidly. With cloud-based services, businesses can streamline performance and support growth and development with a much more scalable and reliable IT infrastructure. Historically, cloud computing has gone through multiple phases - it started with grid (or utility) computing, then came the "application service provision" phase, followed by what is now called SaaS. Software companies using cloud-native infrastructure can pay for cloud computing resources as they use them, rather than making expensive capital investments. Every new trend in cloud services has possibly changed the way a business runs in terms of product consumption and services, data storage, and communication. Additionally, cloud computing allows users to access their data remotely by moving data to the cloud. The enterprise to consumer expansion of cloud services does not appear to be slowing down any time soon. Companies can launch new ventures within the cloud without spending more on the infrastructure or employees. This strategy allows competing with larger, existing incumbents. Companies that use cloud technology and platform business models mainly apply them using data and analytics. The ability to monitor and analyze large data sets can help businesses better respond to real-time consumer feedback and improve their product offerings. Apart from cloud-based services, a few latest disruptive technologies are reported to have developed over the last decades. Such disruptive technologies include artificial intelligence, energy storage, next-generation genomics, blockchain, E-commerce, streaming entertainment, social media networks, GPS systems, smartphones, ride-sharing apps, etc.
In summary, you now know that high-technology production was limited to financially developed countries in the past. Today, disruptive technology acts as a force that is more easily transferred to developing nations, where high-tech products can be combined with low costs. This displays the extremely rapid transitions of time and technology. With time, technology has evolved faster than anything else and has outspread uncountable intelligent ways to create businesses that bring disruptive changes on the global economic scale.