Multimodal Essays

Subtle Digitization

Digitization in all forms is essentially innovation with emphasis on technology. Since the mid 20th century, digital innovation has been on the rise, with a particular increase in the past thirty years. Beginning with the invention and popularization of commonly associated items like the home computer and continuing to date with items like the e-reader (figure 1), digitization in the form of primary invention of luxury items has increased drastically. These are the types of items that are more commonly considered forms of digitization.

Figure 1: Modern e-reader

 

Similarly, like these hand-held devices, yet less recognized as examples of digitization, the innovation of medical and personal safety items has increased. The invention of heath-sustaining items like the pacemaker, cochlear implant, and MRI scanner (figure 2) have saved and improved the lives of millions. Home safety devices are another form of digitization that is not immediately associated with the concept. The signal system within a smoke detector is a form of digitization, invented at the turn of the 19th century. Modern wireless home security systems with electronic motion detectors are also less commonly identified forms of digitization.

Figure 2: Magnetic Resonance Imaging (MRI) scanner

 

Not only is the invention of new products included in this category, but the modernization of pre-existing objects as well. The Wright brothers are credited with inventing the first successfully functioning passenger airplane in 1903. As digitization gained popularity over the years, their primitive design was modified to include instruments such as a digital navigation display system, an electronic control panel for speed and altitude, and a computerized autopilot system. Many would not immediately acknowledge these vital technological modifications when considering digitization, but the safe operation of passenger airplanes, along with the efficiency and smooth process of the entire global flight system, would not be possible without them.

Like those made to the aircraft control system, changes have been made to improve safety of other objects that are used on a daily basis. The digitization of traffic lights (figure 3) in the transition from stop signs allowed for safer and smoother traffic conditions. The Global Positioning System, GPS, has also helped improve the driving experience in allowing users to navigate without having the distraction of a hand-held paper map.

Figure 3: Modern digitized traffic light

 

Whether it comes in the form of invention or modification, digitization will continue to change our lives in both a sense of luxury and a sense of necessity, just as it has in the past. People have willingly embraced the transition from analog to digital in the obvious sense, but have unknowingly accepted the transition in the more subtle ways as well.

 

 

Digitization of the Economy

     In today’s global economy, there has been a mass adoption of digital applications through connected services and devices, known as digitization. Digitization is proving to be a powerful means of delivering services and an effective tool in creating wealth and jobs. In recent years, digitization has played an important role in assisting policymakers to spur economic growth and employment.

The modern digital era has brought computer power, connectivity and sophisticated technological advances unlike anything the world has ever seen. Growth accounting has shown that the rising total factor productivity is in fact an effect of technological progress, which is central to long-run economic growth, but while these advancements are beneficial, the vast wealth being created are not being evenly distributed amongst society, and is instead creating a divide in the world of work.

Measuring Industry Digitization

The digital era has brought sweeping change to the labor markers in economies all over, and many people have felt its effects. Due to the rise of technological advancements and machine intelligence, the incomes of the highly educated with the skills to accompany the use of computers have significantly increased, however those that do not obtain these types of skills have seen their jobs being threatened. According to American journalist, and 60 Minutes correspondent, “The percentage of Americans with jobs is at a 20-year low,” observed Kroft.  “Just a few years ago if you traveled by air you would have interacted with a human ticket agent.  Today, those jobs are being replaced by robotic kiosks.  Bank tellers have given way to ATMs, sales clerks are surrendering to e-commerce and switchboard operators and secretaries to voice recognition technology. . .” (Berger).

Bank Teller vs. Atm

Digitization’s impact differs depending on what stage of development a country’s economy is in. While it has a greater impact on economic growth in more developed countries,  it has shown to have some implications in developing countries. Due to technology, the wealth being created has generated very little employment because the large firms with capacious amounts of valuations are able to operate with very little staff. Poorer countries that are constantly trying to play catch-up in economic growth may have had the physical capital to facilitate growth in a time such as the Industrial Revolution, but lack the human capital and knowledge to keep up in the digital era.

Though digitization has some implications, it still allows for efficiency in all aspects of the economy. Smart devices, social media and 24/7 Internet connection are just some of the things that enable instant communication, and allows for real-time business interaction. With the advent of digitization connecting to platforms such as Apple’s App Store and iTunes only further propel business.  Digitization has also provided the framework to build collective intelligence. This boosts the economy because it allows for effective business partnerships to be made and makes business processes more efficient.  Being connected with the online world fosters collaboration to build collective knowledge.  Specialists in crowdsourcing on social media, and instant messaging tech support help build efficiency for a business.

Digitization in Global Market