Last week, I attended an international seminar that among others discussed the impact of the current digital economy on management and leadership styles. The topic intrigued me not so much for all the sophisticated developments around the world as a direct result of the digital economy but rather what, in my mind the real meaning of what the digital economy is all about.
Lets use Hollywood as an illustrative example of the new digital economy. 5 or 10 years ago, an animated feature film produced by a Hollywood studio would have been a 100% American product as the entire production of the film would have been done by Americans or those working in American movie studios. Today, a Disney cartoon is conceptualised in Boston, animated in Bangalore, edited in Busan and premiered in Baltimore. How is this possible? Simple! The Digital Economy.You see, what the digital economy has done is that it has enabled more and more of human commercial activities to be broken down into bits and pieces of digital bytes that can be moved from one continent to another, re-assembled, worked on, re-broken into bytes and sent to another continent to be re-assembled into a finished product. This cycle can involve a dozen employees in a dozen countries in multiple time-zones.
Today, a large amount of medical x-rays from American hospitals are read and interpreted by Indian and Australian doctors. Again, this is the direct result of our ability today to digitize our everyday activities.
While I find most discussions on the digital economy hovering around how outsourcing and offshoring are changing the international economic order, very few have actually paused to look at how the digital economy have enabled almost all our activities to be broken into byte sized information that can be manipulated and worked on without any spatial-time constraints.
I anticipate the real impact of the digital economy will dawn on the mass consciousness of the people in a couple of years when the International Space Station is completed. This space station and others like it that will surely follow will be maintained 24/7/365 by a group of space agency employees who will be spread around in every corner of the world who will be managing every minute detail of these space stations.
Do we dare to hope that maybe the digital economy will also unite the human race? Time will tell.
