The digital revolution changed lives

The Digital Revolution changed lives Danilov Iulia ILAC — Pathway 3 The Digital Revolution changed lives As stated by Katz, R. L. (n. d. ). SOCIAL AND ECONOMIC IMPACT OF DIGITAL TRANSFORMATION ON THE ECONOMY [Word], “Digitization refers to the transformations triggered by the massive adoption of digital technologies that generate, process, share and transfer information. Unlike other innovations driven by a single innovation, digitization builds on the evolution of multiple technologies: telecommunications networks (mobile or fixed broadband networks), computer technologies (computers/laptops, wireless devices/tablets), software engineering (operating systems, machine learning and artificial intelligence) and the spillover effects resulting from their use (common platforms for application development, electronic delivery of government services, electronic commerce, social networks, and availability of online information in fora, blogs and portals). The gradual adoption of these technologies has led to a massive technological discontinuity, similar to the introduction of steam engines, electricity and railways, sweeping across economies, affecting our societies, and leading to spillover effects within the local, regional and global communities. ” Digital transformation impacts society at several levels. On the production side of the economy, digital transformation enables the automation of business operations, yielding operational efficiencies, such as reduction of transaction costs, with an impact on productivity. Similarly, digital transformation provides new business opportunities, impacting employment and entrepreneurship. Regarding the delivery of public services, digital transformation enhances the provision of health and education, while improving the way citizens interact with their governments. Finally, digital transformation has an impact on human relationships and individual behavior, facilitating social inclusion and communication. It should be noted, however, that digital transformation could also result in potential negative effects, such as workforce disruption, the disappearance of companies, cybercrime and social anomie. By their very nature, general-purpose technological revolutions are also highly disruptive. According to The National Archives Learning Curve: Power, Politics and Protest: The Luddites. (n. d. ), the Luddites of the early 19th century resisted and tried to destroy machines that rendered their weaving skills obsolete, even though the machines ushered in new skills and jobs. Such disruption occurs precisely because the new technology is so flexible and pervasive. Consequently, many benefits come not simply from adopting the technology, but from adapting to the technology. The advent of electricity generation enabled power to be delivered precisely when and where needed, vastly improving manufacturing efficiency and paving the way for the modern production line. A similar situation happened when the typewriter made its appearance, people being ready to start their own revolution and demanding the machine to be burned so they would not lose their typewriting jobs. An important component of a disruptive technology is that it must first be widely adopted before society adapts to it. Electricity delivery depended on generators. The current technological revolution depends on computers, the technical backbone of the Internet, search engines, and digital platforms. Because of the lags involved in adapting to new processes, such as replacing traditional printing with online publishing, it takes time before output growth accelerates. In the early stages of such revolutions, more and more resources are devoted to innovation and reorganization whose benefits are realized only much later. Even though the process of digitalization was not always very fast, it is still imperative that people adopt and adapt it as soon as possible. Another aspect that changed people’s lives is slowly transitioning from physical money to credit and debit cards, and also the creation of cryptocurrencies. As stated by Lewis, R. (2021, November 19), in the United Kingdom, Internet transactions already account for almost one-fifth of retail sales, excluding gasoline, up from just one-twentieth in 2008. Meanwhile, anonymous cryptocurrencies such as Bitcoin are posing challenges to efforts to combat money laundering and other illicit activities. But what makes these assets appealing also makes them potentially dangerous. Cryptocurrencies can be used to trade in illegal drugs, firearms, hacking tools, toxic chemicals, but also to pay for prostitution, murder, rape. On the other hand, the underlying technology behind these currencies (blockchain) will likely revolutionize finance by making transactions faster and more secure, while better information on potential clients can improve the pricing of loans through better assessment of the likelihood of repayment. Regulatory frameworks need to ensure financial integrity and protect consumers while still supporting efficiency and innovation. Digitalization also transformed people’s jobs. There are many studies and debates regarding the possibility of humans being replaced by robots and machines, which could work much faster or more efficient. Nowadays computers are being taught to drive cars but also to teach and keep a conversation about any subject. Views vary but it is clear that there will be major potential job losses and transformations across all sectors. For example, cloud computing has led to network administrators to go almost extinct, because now there is almost no need for physically operating with networks. A paper by The Global Institute, M. (May 19). Twenty-five years of digitization: Ten insights into how to play it right [PDF] underscores that even though it started slow, the transformation continues to accelerate. The ubiquitous smartphone was inconceivable to the average person at the turn of the 21st century. Now, almost everyone owns one and if not a smartphone, at least a normal phone. Each of them possesses more computing power than the US National Aeronautics and Space Administration used to send 2 people to the moon. Even so, these tiny supercomputers are only used for texting and calling, leaving the vast computing resources idle. It is quite clear that there is no turning back, as digital technology will spread even further and any efforts to ignore or legislate against it will likely be futile. Even though economic disruption and uncertainty about one’s job can fuel social anxiety, it is believed that new jobs will be created, denial not being the answer, but devising smart policies that maximize the benefits of the new technology while minimizing the inevitable short-term disruptions. There are jobs that will not become obsolete soon, such as nurses, artists, clergy. Education has also been changed, schools and universities starting to provide online libraries and support for the students, as well as courses needed to work in the emerging economy. With good policies and a willingness to cooperate, humanity can and should harness every existing technology to improve its wellbeing, without diminishing the energy and enthusiasm of the digital age. References Global Institute, M. (May 19). Twenty-five years of digitization: Ten insights into how to play it right [PDF]. Katz, R. L. (n. d. ). SOCIAL AND ECONOMIC IMPACT OF DIGITAL TRANSFORMATION ON THE ECONOMY [Word]. Lewis, R. (2021, November 19). Internet sales as a percentage of total retail sales (ratio) (%). Retrieved from https: //www. ons. gov. uk/businessindustryandtrade/retailindustry/timeseries/j4mc/drsi The National Archives Learning Curve: Power, Politics and Protest: The Luddites. (n. d. ). Retrieved from https: //www. nationalarchives. gov. uk/education/politics/g3/